Hedge Fund Backs Kimmeridge Move to Merge Unit With Driller (1)

One of the biggest investors in SilverBow Resources Inc. is supporting asset manager Kimmeridge Energy Management Co.’s plan to combine its natural gas unit with the Texas driller.

Hedge fund Riposte Capital LLC, which owns nearly 10% of SilverBow stock, finds the potential deal to be “highly compelling,” according to a statement Thursday. The combined driller would be more attractive to public markets given its scale, modest leverage, inventory depth and projected earnings, Riposte said. Kimmeridge’s offer values the proposed new company at $3.6 billion.

Read More: Shale Investor Kimmeridge Makes Offer for Eagle Ford Driller (2)

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