08:29 AM EDT, 05/16/2024 (MT Newswires) -- (Updates to include additional details in the third to sixth paragraphs.)

Crescent Energy ( CRGY ) and SilverBow Resources ( SBOW ) said Thursday they have signed a deal under which Crescent will buy SilverBow for $2.10 billion.

SilverBow stockholders will receive 3.125 of Crescent's Class A common shares for each SilverBow common share they own, with the option to elect to receive a part or all of the proceeds in cash at $38 per share, the companies said.

This option is subject to possible proration with a maximum total cash consideration for the deal of $400 million, the companies said.

On a fully diluted basis and dependent on the final cash consideration at closing, Crescent shareholders will own about 69% to 79% and SilverBow shareholders will own about 21% to 31% of the combined company, according to the companies.

After the deal is completed, the Crescent board will increase to 11 members with the addition of two directors that SilverBow will designate, the companies said.

John Goff and David Rockecharlie will continue to serve as the combined company's non-executive chairman and chief executive, respectively, the companies said.

The deal is expected to be completed by the end of Q3, they added.

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