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SilverBow's (SBOW) Acquisition Gains Strong Shareholder Support

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SilverBow Resources, Inc. announced that its stockholders have approved the acquisition of the company by Crescent Energy Company (CRGY - Free Report) in a special shareholders meeting held on Jul 29, 2024. The proposed acquisition deal, valued at $2.1 billion, is expected to be concluded on Jul 30, 2024, subject to other customary closing conditions.

SilverBow’s shareholders showed overwhelming support for the transaction, with 99% votes cast in favor of the proposed deal. The company’s management highlighted that the deal offered an attractive premium to its stockholders.

Furthermore, the merger will give rise to a premier oil and gas company based in the Eagle Ford, boasting a balanced and resilient asset portfolio, return-focused financial model and a strong balance sheet.

On Jul 29, Crescent Energy also held a special shareholders’ meeting, where 87.94% of its outstanding common stockholders voted in favor of the merger. Its stockholders also agreed to the issuance of Crescent Class A common stock in relation to the acquisition.

Crescent’s management highlighted that the combined entity will own high-quality assets with a long reserve life in the Eagle Ford and it will be led by a board and management team that has extensive operating and investing experience.

The merger will give rise to one of the largest, publicly-traded exploration and production firms in the Eagle Ford shale. The U.S. Federal Trade Commission cleared the deal in early July this year. SilverBow has stated that it will file the final vote results of its special shareholder meeting with the U.S. Securities and Exchange Commission on a Form-8K.

Zacks Rank and Key Picks

Currently, SBOW carries a Zacks Rank #4 (Sell), while CRGY has a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the energysector are SM Energy (SM - Free Report) and VAALCO Energy (EGY - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while VAALCO Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.

VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.


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