SilverBow Resources, Inc. (NYSE:SBOW) Q3 2023 Earnings Call Transcript

Noel Parks: Just want to get your thoughts on one other topic. So the gassy E&Ps, a number of them were the earliest ones to report. As we listen to those companies talk about their outlook, they’re, of course, extremely focused on LNG capacity coming online starting next year and what that does to the overall demand picture and hopefully to commodity prices. I just wondered can you just talk a bit about your general thoughts on the gassy Eagle Ford’s role in LNG? And I guess I’m wondering in particular out in Webb County area whether you are maybe seeing new players coming in kicking the tires because, of course, Appalachia looms large, the Haynesville looms large. I’m just wondering about maybe what we should be looking for in either new capital coming in for development or maybe even new purchasing or consolidation in the area.

Sean Woolverton: Yes. I think, as you look at the amount of LNG buildout slated over the next several years, you start to look at the imbalance of the demand of that LNG buildout versus the supply and where is it going to come from, and the acknowledgement that getting more out of the Appalachia is somewhat challenged just from pipelines being able to get to the Gulf Coast. Obviously, you’ve got strong growth in the Haynesville, but there’s still a gap to fill that LNG buildout. So, yes, we’re seeing that the Eagle Ford and just the strong performance of Webb County over the last few years, us plus others see that as probably one of the first places to look at to help fill that forthcoming LNG demand. So, yes, I think it’s existing players plus new entrants that are looking to find gas to fill some of the LNG expansion that they’re contracting into.

So sets us up well. We’re long-term players in the area, understand the reservoir well, have a lot of great existing relationships and infrastructure there. So we’re excited about the opportunity this exposes us to much stronger gas prices in the coming years.

Operator: Okay. Thank you all for your questions. And with that, I will turn the call back over to CEO, Sean Woolverton, for closing remarks.

Sean Woolverton: Hey, appreciate that, Greg. Well, we’ll wrap up. I’ll say, look forward to giving an update hopefully here in the near future on the close of Chesapeake and giving everyone an early preliminary view look into our plans for 2024. And with that, we’ll conclude our call. Thank you.

Operator: Thanks, Sean. And, ladies and gentlemen, that does conclude today’s call. As he mentioned, thank you all for joining and you may now disconnect.