On 30 Dec 2019, SilverBow Resources, Inc. (NYSE: SBOW) spotted trading -62.69% off 52-week high price. On the other end, the stock has been noted 39.58% away from the low price over the last 52-weeks. The stock changed 0.51% to recent value of $9.91. The stock transacted 25207 shares during most recent day however it has an average volume of 47K shares. The company has 12.05M of outstanding shares and 10.67M shares were floated in the market.
SilverBow Resources, Inc. (SBOW) recently reported operating and financial results for the third quarter of 2019.
FINANCIAL RESULTS
The Company stated total oil and gas revenue of $72.0M for the second quarter, up 11% over the third quarter of 2018. On a GAAP basis, the Company stated net income of $27.7M for the third quarter of 2019, which includes an unrealized gain on the value of the Company’s hedge portfolio of $13.4M and a $1.0M net tax provision.
The Company stated Adjusted EBITDA of $62.9M for the second quarter, up 41% over the third quarter of 2018. On a per unit basis, the Company’s stated Adjusted EBITDA of $2.85/Mcfe for the third quarter came in 13% higher than the third quarter of 2018.
Capital expenditures incurred during the third quarter totaled about $49.5M, which includes $4.9M for leasing expenditures.
2019 GUIDANCE AND PRELIMINARY 2020 OUTLOOK
The Company tightened its full-year capital budget range to $255-$260M and full-year production guidance range to 228-232 MMcfe/d. For the fourth quarter, the Company is guiding for average estimated production of 225-234 MMcfe/d, with the largest variable being the timing of initial production from the Company’s six-well pad in Webb County.
While still finalizing the 2020 budget, the Company expects to increase oil production by over 25% year-over-year and generate free cash flow while reducing capital expenditures by about 30% to a preliminary range of $175-$195M.
Additional detail concerning the Company’s fourth quarter and full-year 2019 financial and operational guidance can be found in the table included at the end of recently’s news release and the Corporate Presentation uploaded to the Investor Relations section of the Company’s website.
HEDGING UPDATE
Hedging continues to be an important element of the Company’s strategy to protect cash flow. The Company maintains an active hedging program to provide predictable cash flows while still allowing for flexibility in capturing price increases.
As of September 30, 2019, the Company had 67% of total estimated production volumes hedged for the remainder of 2019, using the midpoint of production guidance.
For 2020, the Company has 86M cubic feet of natural gas per day (“MMcf/d”) hedged at an average price of $2.66/Mcf and 3,191 Bbls/d of oil hedged at an average price of $56.30/Bbl. Please see the Company’s Form 10-Q filing for the third quarter of 2019, which the Company expects to file on Thursday, November 7, 2019, for a detailed summary of its derivative contracts.
Its earnings per share (EPS) expected to touch remained -34.20% for this year while earning per share for the next 5-years is expected to reach at 5.00%. SBOW has a gross margin of 86.20% and an operating margin of 41.10% while its profit margin remained 53.80% for the last 12 months.
According to the most recent quarter its current ratio was 0.9 that represents company’s ability to meet its current financial obligations. The price moved ahead of 1.46% from the mean of 20 days, 3.68% from mean of 50 days SMA and performed -22.83% from mean of 200 days price. Company’s performance for the week was -3.41%, 12.23% for month and YTD performance remained -58.08%.
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