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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Crescent Energy (NYSE:CRGY) (Houston, Texas) said Thursday it agreed to acquire shale player SilverBow Resources (NYSE:SBOW) (Houston) for $2.1 billion, creating one of the largest operators in the Eagle Ford Basin.
Crescent gets a broad portfolio with an estimated 250,000 barrels of oil equivalent per day (Boe/d) in production and will become the second-largest operator in the Eagle Ford Basin with the acquisition.
Situated entirely in Texas, the Eagle Ford basin is expected to yield about 1.1 million barrels of crude oil and 7.3 billion cubic feet of natural gas per day in May. That makes it the third-largest oil producer and fourth-largest gas producer of the seven primary inland shale basins.
"The combination with SilverBow, which is expected to be immediately accretive to all key per share metrics, solidifies Crescent as a leading operator in the Eagle Ford and strengthens the company's growth platform with increased scale," said Crescent Chief Executive Officer David Rockecharlie.
SilverBow last year put up $700 million to take 42,000 net acres in the Eagle Ford from Chesapeake Energy (NASDAQ:CHK) (Oklahoma City). SilverBow said at the time the deal made it the "largest public pure-play" operator in the Eagle Ford.
It also marked the end of Chesapeake's operations in the basin. "Through multiple transactions," SilverBow managed to assemble around 250,000 net acres in Eagle Ford over the last three years.
During the first quarter, SilverBow reported production swelled year-over-year by more than 100% to average 24,500 barrels of oil per day (BBL/d). Net production of 91,400 Boe/d was in the upper range of its guidance.
The company, however, incurred a loss of around $16 million and said investments of $109 million were 20% below expectations.
Crescent, for its part, reported record-setting production during the first quarter, at 166,000 Boe/d. That represented a 21% increase year-on-year.
And while Crescent too took a loss during the first quarter, it raised its production guidance for the year by 1.5% to a range of between 157,000 and 162,000 Boe/d.
Growth in the U.S. shale patch is slowing down, meanwhile, though overall production makes the country one of the world leaders in oil and natural gas. Eagle Ford oil production is expected to grow by a fraction of a percent to settle at 1.1 million BBL/d in June, though that represents a decline of around 300,000 BBL/d from year-ago levels.
Gas production in the basin drops off by about 0.3% next month to average 7.3 billion cubic feet per day, though that marks a 27% increase from June 2023.
Operations in the shale patch are becoming more efficient, but lower commodity prices are squeezing upstream activity in the United States.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Crescent gets a broad portfolio with an estimated 250,000 barrels of oil equivalent per day (Boe/d) in production and will become the second-largest operator in the Eagle Ford Basin with the acquisition.
Situated entirely in Texas, the Eagle Ford basin is expected to yield about 1.1 million barrels of crude oil and 7.3 billion cubic feet of natural gas per day in May. That makes it the third-largest oil producer and fourth-largest gas producer of the seven primary inland shale basins.
"The combination with SilverBow, which is expected to be immediately accretive to all key per share metrics, solidifies Crescent as a leading operator in the Eagle Ford and strengthens the company's growth platform with increased scale," said Crescent Chief Executive Officer David Rockecharlie.
SilverBow last year put up $700 million to take 42,000 net acres in the Eagle Ford from Chesapeake Energy (NASDAQ:CHK) (Oklahoma City). SilverBow said at the time the deal made it the "largest public pure-play" operator in the Eagle Ford.
It also marked the end of Chesapeake's operations in the basin. "Through multiple transactions," SilverBow managed to assemble around 250,000 net acres in Eagle Ford over the last three years.
During the first quarter, SilverBow reported production swelled year-over-year by more than 100% to average 24,500 barrels of oil per day (BBL/d). Net production of 91,400 Boe/d was in the upper range of its guidance.
The company, however, incurred a loss of around $16 million and said investments of $109 million were 20% below expectations.
Crescent, for its part, reported record-setting production during the first quarter, at 166,000 Boe/d. That represented a 21% increase year-on-year.
And while Crescent too took a loss during the first quarter, it raised its production guidance for the year by 1.5% to a range of between 157,000 and 162,000 Boe/d.
Growth in the U.S. shale patch is slowing down, meanwhile, though overall production makes the country one of the world leaders in oil and natural gas. Eagle Ford oil production is expected to grow by a fraction of a percent to settle at 1.1 million BBL/d in June, though that represents a decline of around 300,000 BBL/d from year-ago levels.
Gas production in the basin drops off by about 0.3% next month to average 7.3 billion cubic feet per day, though that marks a 27% increase from June 2023.
Operations in the shale patch are becoming more efficient, but lower commodity prices are squeezing upstream activity in the United States.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
