The following is a summary of the SilverBow Resources, Inc. (SBOW) Q1 2024 Earnings Call Transcript:
Financial Performance:
SilverBow started 2024 strong, focusing on strengthening its balance sheet and maximizing free cash flow.
The company generated $56 million in Q1 free cash flow which is attributed to gains in capital efficiencies, production, and product pricing.
Full-year free cash flow estimate has been increased, and the year-end leverage ratio target has been lowered to 1.25 times.
SilverBow witnessed a record EBITDA quarter at $200 million, which has an annual run rate of $800 million.
They significantly reduced their debt, even while leveraging it for growth and acquisitions over the past couple of years.
Business Progress:
SilverBow completed the final stage of a multi-year effort to assemble a 25,000-acre position in the liquids window of the Eagle Ford without new capital.
The company initiated a refracturing program, with the first wells yielding encouraging results and more than 100 opportunities across their portfolio.
Strong well productivity and the success of refracturing have increased confidence in the company's forecast.
The company drilled its first horseshoe well, resulting in reduced costs and improved cycle times.
Significant operational improvements were made in reducing gross drilling costs, drilling days, and cost per foot.
The company strategically improved its scale via acquisitions, which has resulted in increased investor interest.
SilverBow plans to achieve a sub one times leverage ratio and introduce a shareholder return program.
More details: SilverBow Resources IR
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