11:47 AM EDT, 04/16/2024 (MT Newswires) -- (Updates with SilverBow's recent stock movement in the first paragraph and the headline, as well as additional details in the succeeding paragraphs.)

SilverBow Resources ( SBOW ) shares fell more than 7% around midday Tuesday after Kimmeridge Energy Management said it has withdrawn its proposal to combine SilverBow with its natural gas unit.

Kimmeridge said SilverBow has refused to enter into good faith negotiations or conduct substantive due diligence regarding the transaction.

"Given SilverBow's lack of engagement, Kimmeridge sees no pathway towards a transaction by the April 26, 2024 deadline that we had put forward more than a month ago," Kimmeridge said. "As a result, we are withdrawing the Proposal and will be focused on providing solutions for SilverBow's broken governance."

In March, Kimmeridge offered to merge its Kimmeridge Texas Gas subsidiary with SilverBow and provide a $500 million equity investment.

SilverBow did not immediately respond to a request for comment from MT Newswires.