{"id":4483,"date":"2024-05-17T12:12:17","date_gmt":"2024-05-17T12:12:17","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/05\/17\/crescent-point-to-acquire-silverbow-in-us2-1-billion-oil-and-gas-deal\/"},"modified":"2024-05-17T12:12:17","modified_gmt":"2024-05-17T12:12:17","slug":"crescent-point-to-acquire-silverbow-in-us2-1-billion-oil-and-gas-deal","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/05\/17\/crescent-point-to-acquire-silverbow-in-us2-1-billion-oil-and-gas-deal\/","title":{"rendered":"Crescent Point to Acquire SilverBow in US$2.1 Billion Oil and Gas Deal"},"content":{"rendered":"<p><strong>Crescent Point Energy (TSX:CPG,NYSE:CPG)  is set to acquire SilverBow Resources (NYSE:SBOW) in a deal valued at US$2.1 billion, positioning Crescent as the second largest operator in the Eagle Ford shale. <\/strong><\/p>\n<p>Under a definitive agreement announced on Thursday (May 16), SilverBow shareholders will receive 3.125 shares of Crescent Class A common stock for each share of SilverBow common stock they own, with an option to receive cash at a value of US$38 per share, subject to a cash consideration cap of US$400 million.<\/p>\n<p>John Goff, chairman of the board at Crescent, said the deal will place the business in a more favorable position. <\/p>\n<p>\u201cThis is a compelling transaction for shareholders of both companies, creating a premier growth through acquisition platform,\u2019 he explained. \u201cAs Chairman and a major long-term shareholder, it has been exciting to watch this business execute on the strategy management laid out from the very beginning. This combination further positions Crescent as a leading growth business, and we look forward to welcoming the SilverBow team as we continue to build this company.\u2019<\/p>\n<p>The move aligns with Crescent\u2019s long-term strategy of growth through acquisition, focusing on deriving a balanced portfolio of high-quality and long-life assets leading to augmented cash flow. The merger is expected to yield annual synergies of US$65 million to US$100 million through cost savings and operational efficiencies.<\/p>\n<p>According to the company, these efficiencies will stem from immediate cost-of-capital savings and enhanced operating capabilities due to the complementary nature of the companies\u2019 assets.<\/p>\n<p>This acquisition follows the announcement that Crescent will be selling particular non-core assets in Saskatchewan to Saturn Oil &amp; Gas (TSX:SOIL,OTCQX:OILSF) for C$600 million. During the first quarter of the year, Crescent Point also sold its Swan Hills and Turner Valley assets for C$140 million.<\/p>\n<p>The SilverBow purchase is designed to create a leading mid-cap exploration and production (E&amp;P) company that is well positioned for sustainable value creation with the stability characteristic of larger operators.<\/p>\n<p>Post-merger, Crescent\u2019s board will expand to 11 members, incorporating two SilverBow directors. Crescent will remain headquartered in Houston, with Goff being non-executive chairman and David Rockecharlie continuing as CEO.<\/p>\n<p>The acquisition is part of a broader trend of heightened M&amp;A activity in the oil and gas industry. <\/p>\n<p>In 2023, E&amp;P companies increased their spending on mergers and acquisitions to US$234 billion, the highest in real 2023 dollars since 2012. This surge marks a return to the previous trend of consolidation among US oil and gas companies, following a decline in transactions during the significant oil market volatility of 2020 and 2022.<\/p>\n<p>The M&amp;A spending encompasses both corporate mergers and asset acquisitions. Notably, corporate M&amp;A accounted for 82 percent of the total spending, driven by high-profile deals such as ExxonMobil\u2019s (NYSE:XOM) acquisition of Pioneer Natural Resources for US$64.5 billion and Chevron\u2019s (NYSE:CVX) US$60 billion acquisition of Hess. <\/p>\n<p>According to the US Energy Information Administration, these deals are the largest by value since Occidental Petroleum\u2019s (NYSE:OXY) US$55 billion acquisition of Anadarko Petroleum in 2019.<\/p>\n<p><strong>Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n<div>This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Crescent Point Energy (TSX:CPG,NYSE:CPG) is set to acquire SilverBow Resources (NYSE:SBOW) in a deal valued at US$2.1 billion, positioning Crescent as the second largest operator in the Eagle Ford shale. Under a definitive agreement announced on Thursday (May 16), SilverBow shareholders will receive 3.125 shares of Crescent Class A common stock for each share of [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":4484,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-4483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/4483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=4483"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/4483\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/4484"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=4483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=4483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=4483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}