SilverBow Resources Inc.’s board plans to “carefully review and consider” a proposal from activist investor Kimmeridge Energy Management LLC to merge its natural gas production subsidiary in a tie-up that could become the largest South Texas exploration and production company.

In a letter to shareholders, Kimmeridge proposed to merge Kimmeridge Texas Gas LLC (KTG) into the Eagle Ford Shale producer. The combination would create “the largest public pure-play Eagle Ford Shale operator,” the letter stated. 

Kimmeridge became a SilverBow shareholder in 2022 and holds a 12.9% stake. 

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