SilverBow Resources sees FY24 capital investments $470M-$510M

Woolverton commented, “Our outlook for 2024 reflects the positive impacts of our recent transaction and ability to exercise flexibility in our operating plan in response to commodity prices. Given low natural gas prices, we reduced our planned investments in our Webb County Gas area to preserve valuable inventory for the future, while our development activity in our expanded oil opportunities continues. This flexibility is a result of our acquisition strategy and allows us to capitalize on our competitive advantage in the Eagle Ford. Our current 2024 plan high-grades our large, high-return portfolio of opportunities to create a plan that maximizes free cash flow and allows for debt reduction. We are positioned to benefit from the significant and sustainable capital efficiencies we have created over the past year, and expect to continue optimizing our development program in real-time as dictated by our returns-focused mindset.” SilverBow’s current planned capital investments are $470 – $510 million, with approximately 90% allocated to D&C activity. This represents a $75 million, or 13%, reduction when compared to the midpoint of the Company’s preliminary 2024 outlook. The plan is expected to generate $125 – $150 million of FCF at current prices. Annual production is expected to average 85.2 – 93.5 MBoe/d, a 50% increase over the prior year. Oil volumes are expected to average 23.5 – 26.5 MBbls/d, a 71% increase over the prior year. SilverBow’s full year gas volumes are expected to be 13% lower at the midpoint compared to its prior guidance range. The Company plans to operate three drilling rigs through the first half of 2024, and operate two drilling rigs in the second half of the year. The Company is directing the majority of its investments to liquids development, including approximately 50% of its full year D&C activity directed toward its Western Condensate area and approximately 30% of its D&C activity directed toward its Central Oil and Eastern Extension areas. SilverBow expects to drill 62 gross (49 net) operated wells drilled, compared to 46 gross (45 net) operated wells drilled in 2023.