SilverBow Resources(SBOW) - 2023 Q4 - Annual Report

Production and Sales - SilverBow's net oil production for 2023 was 5,347 MBbls, a significant increase from 2,634 MBbls in 2022, representing a growth of approximately 103%[66] - Total net production volume for natural gas in 2023 was 79,900 MMcf, up from 70,958 MMcf in 2022, indicating an increase of approximately 12%[66] - In the Western Condensate Area, net oil production reached 1,003 MBbls in 2023, compared to 697 MBbls in 2022, marking an increase of approximately 44%[70] - SilverBow's oil sales increased significantly to $402.7 million in 2023 from $239.2 million in 2022, while natural gas sales decreased to $187.3 million from $451.9 million[314] Financial Performance - SilverBow Resources reported total oil, natural gas, and NGLs sales of $652.4 million, a decrease from $753.4 million in 2022[314] - Net income for 2023 was $297.72 million, a decrease of 12.5% compared to $340.44 million in 2022[291] - The company’s basic net income per share was $12.74 for 2023, down from $17.24 in 2022[291] - Total operating expenses increased to $432.42 million in 2023, up 50.4% from $287.65 million in 2022[291] - SilverBow's cash flows from operating activities increased to $447.11 million in 2023, compared to $331.24 million in 2022[294] Costs and Expenses - Average production cost per Boe sold increased to $6.88 in 2023 from $5.48 in 2022, representing a rise of about 25%[66] - The company incurred transportation expenses of $14.0 million for the year ended December 31, 2023[373] - Total costs incurred for oil and natural gas operations in 2023 amounted to $1.07 billion, up from $921.5 million in 2022[423] Assets and Liabilities - SilverBow Resources reported total current assets of $261,451,000 as of December 31, 2023, compared to $145,726,000 in 2022, representing an increase of 79.5%[290] - The company's property and equipment, net, increased to $2,373,919,000 in 2023 from $1,525,179,000 in 2022, reflecting a growth of 55.7%[290] - Total liabilities rose to $1,545,790,000 in 2023, up from $1,042,000,000 in 2022, indicating a 48.5% increase[290] - The total assets of SilverBow Resources reached $2,734,462,000 in 2023, compared to $1,716,362,000 in 2022, reflecting a growth of 59.1%[290] Equity and Stock - Stockholders' equity increased significantly to $1,189,328,000 in 2023 from $791,579,000 in 2022, marking a growth of 50.1%[290] - The weighted average shares outstanding for basic earnings per share increased to 23.37 million in 2023 from 19.75 million in 2022[291] - The company repurchased 131,951 treasury shares in 2023 to satisfy withholding tax obligations, compared to 120,350 shares in 2022[325] Debt and Interest - The company incurred $1.2 billion in drawn amounts under its Credit Facility and Second Lien Notes, which are subject to interest rate fluctuations[267] - Long-term debt as of December 31, 2023, was $1.2 billion, up from $688.5 million in 2022[343] - Total interest expense on the Credit Facility was $55.7 million for the year ended December 31, 2023, compared to $26.9 million in 2022[352] Derivative Instruments and Risk Management - SilverBow has derivative instruments in place to protect a significant portion of its production against declines in oil and natural gas prices through Q4 2026[73] - The Company has a price-risk management policy using derivative instruments to protect against declines in oil and natural gas prices[362] - The Company recorded gains of $235.8 million from commodity derivative activities for the year ended December 31, 2023, compared to losses of $78.0 million in 2022[363] Workforce and Diversity - SilverBow's workforce increased by 63.4% from December 31, 2022, to December 31, 2023, with a net addition of 52 employees[88] - As of December 31, 2023, women represented 27% of the total workforce and 30% of executive and senior management positions[85] - Minorities accounted for 52% of the total workforce and 30% of executive and senior management positions as of December 31, 2023[85] Community Engagement and Corporate Responsibility - The SBOW Cares initiative supported over forty charities in 2023, emphasizing community relations and employee engagement[91] - The company has implemented health, safety, and environmental management processes to promote workplace safety, aiming for an incident-free environment[86] Compliance and Audit - The company maintained effective internal control over financial reporting as of December 31, 2023, according to the audit opinion[273] - The audit report expressed an unqualified opinion on the consolidated financial statements for the years ended December 31, 2023, 2022, and 2021[280] - The critical audit matter identified was the estimation of proved oil and natural gas reserves, which significantly impacts depreciation, depletion, and amortization expenses[286]