Capital Markets

Silverbow Resources' Borrowing Base Upped by 14% to $525MM

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SilverBow Resources, Inc. has entered into an amendment to its senior secured revolving credit facility under which the borrowing base has been increased from $460 million to $525 million in connection with its regularly scheduled semi-annual redetermination.

The upsized borrowing base and strong free cash flow generation in the first quarter of 2022 further strengthens SilverBow's liquidity.

As of March 31, 2022, the Company had approximately $2 million in cash and $200 million of outstanding borrowings under its Credit Facility. Adjusted for the increase to the borrowing base to $525 million, the Company had $325 million of undrawn capacity and approximately $2 million in cash, resulting in approximately $327 million of liquidity.

Sean Woolverton, SilverBow's Chief Executive Officer, commented, "We are pleased with the increase to our borrowing base and the enhanced liquidity it provides. We appreciate the continued support of our existing lenders and are excited to welcome the new lenders to our expanding bank syndicate. This increase in our borrowing base follows a period of continued development and acquisition activity, which led to growth in proved reserves, and, in conjunction with rising commodity prices, to overall reserve value."

Mr. Woolverton commented further, "The enhanced liquidity broadens SilverBow's opportunity set, as we continue to evaluate strategic M&A while further developing our Eagle Ford and Austin Chalk assets. We believe that our continued operational focus and track record of acquisition activity within the basin is building significant shareholder value. We are committed to maintaining financial discipline and working with our lending group to further our strategy of consolidating assets to increase scale and efficiency."