SilverBow Resources, Inc. (NYSE:SBOW) Q1 2022 Earnings Conference Call May 5, 2022 9:00 AM ET

Company Participants

Jeff Magids - Senior Manager, Finance & IR

Sean Woolverton - CEO & Director

Steven Adam - EVP & COO

Christopher Abundis - EVP, CFO, General Counsel & Secretary

Conference Call Participants

Michael Furrow - Johnson Rice

Bertrand Donnes - Truist

Geoff Jay - Daniel Energy Partners

Operator

Good day and thank you for standing by. Welcome to SilverBow Resources First Quarter 2022 Earnings Conference Call. [Operator Instructions].

I would now like to hand the call over to your speaker today, Mr. Jeff Magids, Director of Finance and Investor Relations. Please go ahead.

Jeff Magids

Thank you, Buena, and good morning, everyone. Thank you very much for joining us for our first quarter '22 conference call. With me on the call today are Sean Woolverton, our CEO; Steve Adam, our COO; and Chris Abundis, our CFO. Yesterday afternoon, we posted a new corporate presentation to our website and will occasionally refer to it during this call. We encourage listeners to download the latest materials.

Please note that we may make references to certain non-GAAP financial measures, which are reconciled to their closest GAAP measure in the earnings press release.

Our discussion today may include forward-looking statements, which are subject to risks and uncertainties, many of which are beyond our control. These risks and uncertainties are described more fully in our documents on file with the SEC, which are also available on our website.

With that, I will now turn the call over to Sean.

Sean Woolverton

Thank you, Jeff, and thank you, everyone, for joining our call this morning. SilverBow is off to a strong start to the year. Our first quarter results, borrowing base increase, and recently announced transactions exemplify the winning strategy we have consistently executed on.

The Sundance and SandPoint acquisitions marked the fourth and fifth transactions we have announced since August 21. Combined, we view these acquisitions as attractively valued at a purchase price of less than USD30,000 per flowing Boe per day of production -- of current production and at a cash flow multiple of 2.1x. We are excited about adding scale to our legacy position in the Western Eagle Ford, the efficiencies we stand to gain, and the projected growth from the combined asset base.

For the past several quarters, we have outlined our strategic objectives. First, we are targeting double-digit production growth while living within cash flow. Second, we are focused on expanding our inventory through accretive acquisitions and organic leasing. Third, we want to lead our peers in capital efficiency and cost structure. And last, our fourth objective is to delever the balance sheet through debt reduction and cash flow generation.