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SBOW

SilverBow Resources NYSE:SBOW Stock Report

Last Price

US$27.40

Market Cap

US$611.2m

7D

-4.2%

1Y

8.6%

Updated

28 Sep, 2022

Data

Company Financials +
SBOW fundamental analysis
Snowflake Score
Valuation5/6
Future Growth5/6
Past Performance4/6
Financial Health3/6
Dividends0/6

SBOW Stock Overview

SilverBow Resources, Inc., an oil and gas company, acquires and develops assets in the Eagle Ford shale and Austin Chalk located in South Texas.

SilverBow Resources, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SilverBow Resources
Historical stock prices
Current Share PriceUS$27.40
52 Week HighUS$49.91
52 Week LowUS$19.00
Beta2.27
1 Month Change-38.19%
3 Month Change-3.39%
1 Year Change8.64%
3 Year Change201.10%
5 Year Change13.93%
Change since IPO19.13%

Recent News & Updates

Aug 26

SilverBow Resources: 2023 Production Expected To Be 60% Higher Than Q2 2022

Summary SilverBow is growing its production through a combination of acquisitions and organic growth. It expects 380 MMCFE per day in production in 2023, compared to 300 MMCFE per day in Q3 2022 and 238 MMCFE per day in Q2 2022. Strong commodity prices result in its projected leverage reaching 0.3x by the end of 2023. SilverBow's oil percentage is increasing, but it remains primarily a natural gas producer. SilverBow Resources (SBOW) has provided updated guidance now that it has closed its acquisition of Sundance Energy. It anticipates growing production by around 60% in 2023 (compared to Q2 2022 levels). This growth is fueled by its recent acquisitions as well as organic production growth. At current strip prices, SilverBow should be able to generate close to $300 million in positive cash flow in 2023, despite the continuing negative impact of its hedges. I have made a positive revision to my view on long-term natural gas prices since I last looked at SilverBow. This doesn't change its estimated cash flow in the near term, but improves the projections for beyond 2023. Since SilverBow is still primarily a natural gas producer (with 60+% of its production expected to be natural gas in 2023), its estimated value gets bumped up to around $61 per share in a long-term $70 WTI oil and $4.00 Henry Hub natural gas scenario. Growing Production SilverBow is growing its production substantially through the combination of acquisitions and increased development activity. It averaged 238 MMCFE per day in production in Q2 2022, including partial quarter production from its SandPoint Resources acquisition. SilverBow expects to average approximately 300 MMCFE per day in production during Q3 2022 (including full quarter contributions from SandPoint Resources and Sundance Energy). It is now operating two drilling rigs and thus expects production to rise further to approximately 340 MMCFE per day in Q4 2022 and 380 MMCFE per day in 2023. 2H 2022 Outlook The current strip for the second half of 2022 is approximately $95 to $96 WTI oil along with $8.90 Henry Hub natural gas. At those commodity prices, SilverBow can generate $584 million in oil and gas revenues during the second half of the year. SilverBow's 2H 2022 hedges have an estimated value of negative $161 million. It has approximately 77% of its natural gas production and 72% of its oil production hedged for the second half of 2022. Type Units $/Unit $ Million Oil (Barrels) 2,109,250 $96.50 $204 NGLs (Barrels) 1,170,250 $33.50 $39 Natural Gas [MCF] 39,400,000 $8.65 $341 Hedge Value -$161 Total Revenue $423 SilverBow is thus expected to generate $99 million in positive cash flow in 2H 2022. SilverBow's capex budget for 2H 2022 appears to be around $200 million. $ Million Lease Operating Expense + Workovers $43 Transportation & Processing $21 Taxes Other Than Income $32 Cash G&A $9 Cash Interest $19 Capital Expenditures $200 Total Expenses $324 2023 Outlook At Current Strip SilverBow mentioned that it may average around 380 MMCFE per day in production during 2023. At $90 WTI oil and $4.75 Henry Hub gas, it expected to generate approximately $250 million in free cash flow during 2023. The current strip for 2023 is around $87 WTI oil and $6.50 Henry Hub gas. At those prices, SilverBow is projected to generate $1.14 billion in oil and gas revenues before hedges, while SilverBow's hedges would have negative $145 million in value for 2023. SilverBow has hedges covering approximately 67% of its natural gas production for 2023 along with 46% of its oil production. This assumes that 63% of its 2023 production is natural gas and 25% of its 2023 production is oil.

Shareholder Returns

SBOWUS Oil and GasUS Market
7D-4.2%-4.5%-2.0%
1Y8.6%35.9%-20.3%

Return vs Industry: SBOW underperformed the US Oil and Gas industry which returned 29.9% over the past year.

Return vs Market: SBOW exceeded the US Market which returned -22.1% over the past year.

Price Volatility

Is SBOW's price volatile compared to industry and market?
SBOW volatility
SBOW Average Weekly Movement12.4%
Oil and Gas Industry Average Movement8.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: SBOW is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: SBOW's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
197962Sean Woolvertonhttps://www.sbow.com

SilverBow Resources, Inc., an oil and gas company, acquires and develops assets in the Eagle Ford shale and Austin Chalk located in South Texas. As of December 31, 2021, it had proved reserves of 1,416 billion cubic feet of natural gas equivalent. The company was formerly known as Swift Energy Company and changed its name to SilverBow Resources, Inc. in May 2017.

SilverBow Resources, Inc. Fundamentals Summary

How do SilverBow Resources's earnings and revenue compare to its market cap?
SBOW fundamental statistics
Market CapUS$611.20m
Earnings (TTM)US$102.87m
Revenue (TTM)US$562.86m

5.9x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SBOW income statement (TTM)
RevenueUS$562.86m
Cost of RevenueUS$51.06m
Gross ProfitUS$511.80m
Other ExpensesUS$408.94m
EarningsUS$102.87m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.61
Gross Margin90.93%
Net Profit Margin18.28%
Debt/Equity Ratio135.3%

How did SBOW perform over the long term?

See historical performance and comparison