Crescent Energy Co. (CRGY) revealed on Thursday its plans to acquire SilverBow Resources, Inc. (SBOW) in a deal valued at $2.1 billion.
According to statements from both energy firms, the merged entity will emerge as the second-largest operator in the Eagle Ford Shale.
Under the terms of the agreement, each SilverBow shareholder will receive 3.125 shares of Crescent stock for each SilverBow share. Shareholders also have the option to receive cash at $38 per share, subject to a maximum cash consideration of $400 million.
Post-transaction, Crescent shareholders are expected to own between approximately 69% and 79%, while SilverBow shareholders will own between approximately 21% and 31% of the combined company on a fully diluted basis, contingent on the final cash amount at the time of closure.
The companies anticipate completing the deal by the end of the third quarter of this year.
