SilverBow Resources reports Q3 EPS (21c) vs. $6.29 last year

Reports Q3 revenue $174.0M, consensus $167.8M. The company: Reported net production of 357 million cubic feet of natural gas equivalent per day (“MMcfe/d”) (61% natural gas) for the third quarter of 2023, above the high end of guidance. Third quarter net oil production of 15.3 thousand barrels of oil per day, within the Company’s guidance range and an increase of 81% year-over-year. CEO Sean Woolverton, commented, “Strong third quarter results reflect our leading operational and capital efficiencies. Production exceeded the high end of our guidance range and capital expenditures were below planned costs. Strong free cash flow generation and the success of our follow-on equity offering allowed SilverBow to reduce debt by nearly $80 million during the quarter, while also paying a $50 million deposit for the Chesapeake Transaction. Cost savings and drilling efficiencies year-to-date have allowed us to accelerate the completion timing of several wells into 2023, which will bolster 2024 production while also remaining within our stated 2023 capital budget range. The Chesapeake Transaction is expected to drive significant production and free cash flow growth while maintaining the Company’s long-term leverage target. Our strategy emphasizes operational flexibility and real-time capital allocation, and our portfolio of high-return locations provides for 10+ years of inventory life. Looking ahead, we are excited about the optionality in our development program to generate value through strong oil prices as well as the startup of Gulf Coast liquified natural gas infrastructure projects which we expect will increase the regional demand for natural gas.”