NEW YORK, March 21, 2024 /PRNewswire/ — Riposte Capital LLC, one of the largest shareholders of SilverBow Resources, Inc. (NYSE: SBOW), owning approximately 9.9% of the Company’s outstanding common stock, today issued the following statement:
Riposte Capital has thoroughly analyzed Kimmeridge’s proposal, published on March 13, 2024, to combine Kimmeridge Texas Gas with SilverBow Resources, Inc. (“SilverBow” or “the Company”) and finds it to be highly compelling.
Riposte urges the Company to capitalize on this strategically and financially advantageous opportunity. The benefits of the transaction are clear: the combined entity would be positioned to lead further consolidation in the region and would be instantly attractive to the public markets given its scale, modest leverage, inventory depth, and projected 2025 EBITDA in line with peers. This is in stark contrast to SilverBow today, which trades at a significant discount to peers and is too levered to pursue growth or return cash to shareholders.
Repeatedly ignoring shareholders’ interests has become somewhat standard practice for SilverBow, as management and the Board have pursued their own agenda at the expense of shareholders. Most notable is the introduction of the shareholder rights plan or “Poison Pill” 18 months ago which has only alienated the company from the public domain and deterred prospective shareholders from investing.
As stewards of shareholder capital, SilverBow’s Board has a fiduciary responsibility to engage with Kimmeridge in good faith negotiations in order to extract the highest possible transaction price. Failure to do so could result in legal repercussions and would further highlight management’s self-interest. Riposte believes the overwhelming majority of shareholders want the Board to seize this opportunity to transform SilverBow for the benefit of all the Company’s stakeholders.
