SilverBow Resources Announces Third Quarter 2017 Results Ahead of Expectations

SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or the “Company”)
today announced operating and financial results for the third quarter
2017. Highlights include:

• Net production averaged 156 million cubic feet of natural gas
  equivalent per day (“Mmcfe/d”), exceeding the high end of guidance
• Oil and gas revenues of $49.0 million, a 7% increase from second
  quarter 2017
• Lease Operating expenses of $0.41/Mmcfe
• Net Income of $12.9 million, or $1.12 per diluted share
• Adjusted EBITDA (a non-GAAP measure) of $31.1 million, a 15% increase
  from second quarter 2017
• Acquired an additional ~15,000 net acres bringing total acreage to
  approximately 91,400 net acres
• Initial Oro Grande well, the NMC 1H, supports 14 Bcf type curve;
  currently completing second well
• Latest Lower Eagle Ford Fasken wells tracking above 14 Bcf type curve
• Re-engineered seven well program in Artesia yielding strong performance
• Continued expansion of hedge book

Management Comments

Sean Woolverton, SilverBow’s Chief Executive Officer, commented, “We
continue to make significant progress in transforming SilverBow into the
premier operator in the Eagle Ford gas fairway. We are delivering on our
primary 2017 goals of expanding our inventory of de-risked, high rate of
return drilling locations while generating strong production and EBITDA
growth. Specific to our drilling inventory expansion, we now have over
20 years of drilling development locations at our current one rig
program. We have reached this milestone through our strategic leasing
program, adding approximately 28,000 net acres while nearly doubling the
inventory of high rate of return drilling locations since the first
quarter. We now have over 91,000 net acres in the core Eagle Ford gas
fairway. Additionally, through a combination of enhanced well
productivity from more recent completion designs in Artesia and the
Upper Eagle Ford in Fasken and encouraging results from our successful
delineation well in Oro Grande, we have confirmed the strong returns
profile of our future development opportunities. These results provide
SilverBow clear running room for future production and reserves growth.”

Mr. Woolverton continued, “Supported by our strong base production, new
well productivity, and an acute focus on costs reductions and
efficiencies, daily production and adjusted EBITDA grew 7% and 15% in
the third quarter, respectively, compared to second quarter 2017 levels.
Since the fourth quarter of 2016, we have grown production by 23%⁽¹⁾
while increasing adjusted EBITDA by 50%. These results highlight our low
cost structure and high performance assets. Additionally, we have
initiated a process to divest of our non-core Olmos production. We
believe the resulting streamlined portfolio should lead to even better
long-term returns and a more efficient organizational structure as the
Olmos accounts for more than 60% of our producing wells but less than
10% of total production. As we look ahead, our focus shifts towards
execution on our asset base and further driving down our costs as we
continue building a premier position in the Eagle Ford with industry
leading margins.”

OPERATIONS HIGHLIGHTS

During the third quarter 2017, the Company drilled and completed five
wells. Specifically, SilverBow drilled three wells in Fasken and two
wells in Artesia while completing five wells in Artesia. Through the
third quarter of this year the Company has drilled twenty-two wells and
completed nineteen wells. The drilled wells include twelve in Fasken,
seven in Artesia, two in AWP, and one in Oro Grande. The completed wells
include nine in Fasken, seven in Artesia, two in AWP, and one in Oro
Grande. Since the close of the third quarter, the Company has brought
online three wells in Fasken, including two Upper Eagle Ford wells, and
is currently drilling its first well in Uno Mas.

As previously announced, SilverBow completed its first well in Oro
Grande, the NMC 1H well, earlier in the year. The well had cumulative
production of approximately 940 Mmcfe after ninety producing days with
flowing tubing pressure of over 6,000 psi. Results to date are
supportive of the Company’s internal 14 Bcf type curve for the area. The
Company moved a drilling rig back to Oro Grande in the third quarter and
recently finished drilling the NMC 2H with plans to drill another well
in early 2018.

SilverBow’s most recent three well pad drilled in Fasken during the
third quarter included one well targeting the Lower Eagle Ford and two
wells targeting the Upper Eagle Ford. This pad was completed early in
the fourth quarter and utilized 300 foot frac stage spacing and 1,500
pounds of proppant per foot of lateral. Early results from this three
well pad are encouraging and the Company plans on reporting more details
surrounding its performance on the fourth quarter earnings conference
call.

The Company continued its liquids-rich drilling program in Artesia by
deploying the latest generation of drilling and completion technology.
Earlier wells in this area were drilled without the benefit of processed
and evaluated 3-D seismic, target window identification, and modern
completion design tied to longer laterals. SilverBow has completed seven
wells in northern Artesia year to date, including five in the third
quarter, with lateral lengths ranging from 6,000 feet to 11,000 feet in
accordance with lease configurations. These wells are currently tracking
in line with their 1,500 Mboe type curve.

PRODUCTION VOLUMES, OPERATING COSTS, AND REALIZED PRICES

SilverBow’s total net production for the third quarter averaged
approximately 156 Mmcfe/d, which was above the high end of guidance.
Production mix during the third quarter consisted of approximately 82%
natural gas, 11% NGLs, and 7% oil.

Lease operating expenses during the third quarter of $0.41/Mmcfe came in
better than the Company’s guidance range of $0.47/Mmcfe to $0.48/Mmcfe
primarily driven by compression optimization and labor force reductions
at the field level.

Transportation and processing expenses came in at $0.34/Mmcfe while
production and ad valorem taxes were 5.1% of oil and gas revenues for
third quarter.

General and administrative costs of $0.42/Mcfe compared favorably to
second quarter 2017 levels of $0.51/Mmcfe.

The Company’s average realized natural gas price excluding the effect of
hedging was $3.01 per Mcf compared with $3.16 per Mcf in the second
quarter of 2017. The average realized crude oil selling price excluding
the effect of hedging was $46.93 per barrel in the third quarter of
2017, up slightly from $46.82 per barrel in the second quarter of 2017.
The average realized NGL selling price in the third quarter of 2017 was
$21.67 per barrel versus $18.49 per barrel in the second quarter of 2017.

FINANCIAL RESULTS & GUIDANCE

The Company reported total oil and gas revenues of $49.0 million for the
third quarter 2017 which increased 7% compared to second quarter 2017
levels. On a GAAP basis, the Company reported net income of $12.9
million for the third quarter, which includes a loss on the value of the
Company's hedge portfolio of $1.6 million.

The Company reported Adjusted EBITDA of $31.1 million. Adjusted EBITDA
is a non-GAAP financial measure. Please see the tables included with
today's news release for a reconciliation of net income to Adjusted
EBITDA.

Capital expenditures incurred during the third quarter totaled $60.4
million inclusive of approximately $13 million spent on leasing.

The Company is expanding its 2017 budget to $205-$215 million to reflect
the success of its strategic leasing program which has successfully
added an additional 28,000 acres and 300 locations to the portfolio
since the first quarter of 2017. The Company also guided for fourth
quarter production of 160 - 171Mmcfe/d yielding full year 2017
production of 150 - 152 Mmcfe/d. Additional detail concerning the
Company's fourth quarter 2017 and full year financial and operational
guidance can be found in the table included with today’s news release
and the Corporate Presentation uploaded to the Investor Relations
section of the Company’s website before the conference call.

HEDGING UPDATE

Hedging continues to be an important element of SilverBow’s strategy.
The Company maintains an active hedging philosophy to provide
predictable cash flows while still allowing for flexibility in capturing
increases in prices. SilverBow has approximately 65% of total production
volumes hedged for the fourth quarter using the mid-point of production
guidance. The Company continues to layer on additional hedges in 2018,
2019, and 2020. Please see the Company’s Form 10-Q filing, which the
Company expects to be filed on Tuesday, November 7, 2017, for a detailed
summary of derivative contracts.

CAPITAL STRUCTURE AND LIQUIDITY

The Company had liquidity of approximately $90 million as of September
30, 2017, primarily consisting of availability on the Company’s $330
million bank credit facility. The Company is currently in the process of
its Fall borrowing base redetermination; the preliminary commitments of
which provide for a $40 million increase from $330 million to $370
million.

As of November 1, 2017, the Company had 11.6 million total common shares
outstanding.

CONFERENCE CALL & UPDATED INVESTOR PRESENTATION

SilverBow will host a conference call for investors on Tuesday, November
7, 2017, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).
Interested investors can listen to the call by dialing 1-877-420-2751
(U.S.) or 1-442-275-1680 (International) and requesting SilverBow’s
Third Quarter 2017 Earnings Conference Call or by visiting our website.

A simultaneous webcast of the call may be accessed over the internet by
visiting our website at www.sbow.com,
clicking on “Investor Relations” and “Events and Presentations” and then
clicking on the “Third Quarter 2017 Earnings Conference Call” link. The
webcast will be archived for replay on the SilverBow website for 14 days.

Additionally, an updated Corporate Presentation will be uploaded to the
Investor Relations section of the Company's website before the
conference call.

ABOUT SILVERBOW RESOURCES, INC.

SilverBow Resources (NYSE: SBOW) is a Houston-based energy company
actively engaged in the exploration, development, and production of oil
and gas from the Eagle Ford Shale in South Texas. With almost 30 years
of history operating in South Texas, the Company possesses a significant
understanding of regional reservoirs which we leverage to assemble high
quality drilling inventory while continuously enhancing our operations
to maximize returns on capital invested. For more information, please
visit www.sbow.com.

Forward-Looking Statements

This release includes “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. The opinions,
forecasts, projections, or other statements other than statements of
historical fact, are forward-looking statements. Although the Company
believes that the expectations reflected in such forward-looking
statements are reasonable, no assurances can be given that such
expectations will prove to have been correct. Certain risks and
uncertainties inherent in the Company’s business are set forth in the
filings of SilverBow Resources, Inc. with the Securities and Exchange
Commission.

(1) Excludes assets sold in 4Q16

(Financial Highlights to Follow)

SilverBow Resources, Inc.
Non-GAAP Financial Measures
Reconciliation
of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP)
(In
thousands)
(Unaudited)

We present adjusted EBITDA attributable to common stockholders
(“Adjusted EBITDA”) in addition to our reported net income (loss) in
accordance with U.S. GAAP. Adjusted EBITDA is a non-GAAP financial
measure that is used as a supplemental financial measure by our
management and by external users of our financial statements, such as
investors, commercial banks and others, to assess our operating
performance as compared to that of other companies in our industry,
without regard to financing methods, capital structure or historical
costs basis. It is also used to assess our ability to incur and service
debt and fund capital expenditures.

Our Adjusted EBITDA should not be considered an alternative to net
income (loss), operating income (loss), cash flows provided by (used in)
operating activities or any other measure of financial performance or
liquidity presented in accordance with U.S. GAAP. Our Adjusted EBITDA
may not be comparable to similarly titled measures of another company
because all companies may not calculate Adjusted EBITDA in the same
manner.

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