First quarter production increased 35% year-over-year

Two-rig oil development program accelerates oil growth through year-end

Continued cycle time improvements driving greater capital efficiencies

SilverBow Resources, Inc. (NYSE:SBOW) ("SilverBow" or the "Company") today announced operating and financial results for the first quarter of 2023. Highlights include:

Reported net production of 304 million cubic feet of natural gas equivalent per day ("MMcfe/d") (66% natural gas) for the first quarter of 2023, at the midpoint of guidance
First quarter net oil production of 11.4 thousand barrels of oil per day, above the midpoint of guidance and an increase of 138% year-over-year
Reported net income of $94 million, which includes a net unrealized gain on the value of the Company's derivative contracts of $72 million, and Adjusted EBITDA of $111 million for the first quarter of 2023. Adjusted EBITDA is a non-GAAP measure defined and reconciled in the tables below
Drilling and completion ("D&C") spend below planned costs during first quarter of 2023; higher pumping efficiencies and lower non-productive time driving costs down compared to 2022 levels
Full year 2023 estimated production of 325-345 MMcfe/d unchanged, a 24% increase year-over-year and compound annual growth rate of more than 20% since full year 2020
Reiterated full year 2023 capital budget guidance range; two-rig program dedicated to oil development expected to deliver 2023 oil production growth of ~100% year-over-year. Optionality to complete up to eight previously drilled but uncompleted Fasken gas wells by year-end, contingent upon commodity prices and takeaway capacity
As of April 28, 2023, gas production is 91% hedged for remainder of 2023 using midpoint of guidance

MANAGEMENT COMMENTS

Sean Woolverton, SilverBow's Chief Executive Officer, commented, "Our team continues to execute our 2023 business plan and drive greater operational efficiencies. We achieved strong initial results from oil wells brought online this year reflecting the value of our recent acquisitions and our consolidated acreage blocks. With the relative strength in oil prices since our last update, our development plans are largely unchanged as we expect to double our 2023 oil production year-over-year by continuing with two drilling rigs focused on our oil assets. We expect this oil growth will drive increasing revenue and EBITDA for the remainder of the year and establish a well-balanced PDP production base by year end, providing us optionality in our future development program."

Mr. Woolverton continued, "SilverBow's differentiated growth strategy and commitment to spending within cash flow sets up compelling returns over our multi-year outlook. Our 2023 gas production is over 90% hedged, mitigating downside exposure to lower pricing, and we can elect to complete several Webb County Gas wells by year end should pricing improve. Our strategy emphasizes operational flexibility and real-time capital allocation to our highest returns on investment. The ability to pivot between oil and gas development has been, and will continue to be, a competitive advantage for SilverBow."

OPERATIONS HIGHLIGHTS

During the first quarter of 2023, SilverBow drilled 13 net wells, completed 11 net wells and brought online 13 net wells. The Company operated two drilling rigs during the quarter, primarily on its Central Oil and Western Condensate areas, which reflect its ongoing focus on oil development in the near term. SilverBow's operations team set a new Company record in pumping efficiency during the quarter, completing 25% more stages per day as compared to similar jobs for full year 2022. Drilling and completion costs year to date have trended below levels experienced in 2022, including drilling dayrates, horsepower, sand and chemicals.

In its Central Oil area, the Company completed and brought online two three-well pads which produced 30-day averages of 2,000 Boe/d (93% oil) with average lateral lengths of 7,550 feet. In its Western Condensate area, SilverBow completed and brought online a three-well pad which produced a 30-day average of 2,700 Boe/d (26% oil) with an average lateral length of 7,200 feet. Strong initial performance from these pads are in-line with expectations and support consistent results across the Company's oil development program. As expected, net gas production in SilverBow's Webb County Gas area was limited to contracted firm capacity levels during the quarter. The Company continues to plan for limited interruptible takeaway capacity until late 2023 as new pipelines come into service.

PRODUCTION VOLUMES, OPERATING COSTS AND REALIZED PRICES

SilverBow's total net production for the first quarter of 2023 averaged 304 MMcfe/d, within the Company's guidance range. Production mix for the first quarter consisted of 66% natural gas, 22% oil and 12% natural gas liquids ("NGLs"). Natural gas comprised 38% of total oil and gas sales for the first quarter, compared to 60% in the first quarter of 2022. Net oil production for the first quarter averaged 11,362 Bbls/d, an increase of 138% compared to the first quarter of 2022.

For the first quarter, lease operating expenses ("LOE") were $0.78 per thousand cubic feet of natural gas equivalent ("Mcfe"), transportation and processing expenses ("T&P") were $0.42 per Mcfe and production and ad valorem taxes were 6.7% of oil and gas sales. Total production expenses, which include LOE, T&P and production taxes, were $1.54 per Mcfe for the first quarter. Net general and administrative ("net G&A") expenses for the first quarter were $7.7 million, or $0.28 per Mcfe. After deducting $1.1 million of non-cash compensation expense, cash general and administrative ("cash G&A") (a non-GAAP measure) expenses were $6.5 million for the first quarter, or $0.24 per Mcfe.

Crude oil and natural gas realizations in the first quarter were 96% of WTI and 86% of Henry Hub, respectively, excluding hedging. The average realized natural gas price, excluding hedging, was $2.94 per thousand cubic feet of natural gas ("Mcf") in the first quarter compared to $4.96 per Mcf in the first quarter of 2022. The average realized crude oil selling price, excluding hedging, was $73.01 per barrel in the first quarter compared to $92.59 per barrel in the first quarter of 2022. The average realized NGL selling price, excluding hedging, was $22.95 per barrel (30% of WTI benchmark) in the first quarter compared to $34.89 per barrel (37% of WTI benchmark) in the first quarter of 2022. Please refer to the tables included in this news release for production volumes and pricing information.

FINANCIAL RESULTS

SilverBow reported total oil and gas sales of $140.0 million for the first quarter of 2023. The Company reported net income of $94.5 million, which includes a net unrealized gain on the value of the SilverBow's derivative contracts and WTI contingency payouts of $72 million.

For the first quarter of 2023, the Company generated Adjusted EBITDA (a non-GAAP measure) of $111.0 million. For the twelve months ended March 31, 2023, SilverBow reported net income of $499.2 million and Adjusted EBITDA for Leverage Ratio (a non-GAAP measure) of $492.8 million, which, in accordance with the Leverage Ratio calculation in the Company's Credit Agreement (as defined below), includes contributions from acquired assets prior to their closing dates totaling $62.7 million.

Capital expenditures incurred during the first quarter of 2023 totaled $108.0 million on an accrual basis.

GUIDANCE UPDATE

SilverBow continues to operate two drilling rigs on its oil acreage, consistent with its original budget plans detailed in March. The Company also re-affirmed its full year 2023 capex guidance range of $450-$475 million. During the second quarter of 2023, SilverBow will shift its drilling rig from its Western Condensate area to its Eastern Extension area, where early results are showing strong well performance and potential inventory upside from both the Eagle Ford and Austin Chalk formations. Additionally, included in the 2023 capital budget is the completion of a four-well pad in the Webb County Gas area at year-end, which will be subject to commodity prices and timing of regional midstream expansion projects coming online.

For the second quarter of 2023, SilverBow is guiding to estimated production of 317-332 MMcfe/d, with expected oil volumes of 11,900-12,300 Bbls/d. For the full year 2023, the Company's guidance is unchanged with a production range of 325-345 MMcfe/d, and with expected oil volumes of 13,750-15,000 Bbls/d. Based on guidance, SilverBow's full year 2023 oil production is expected to increase roughly 100% year-over-year and comprise 40%-50% of total production mix by the fourth quarter. The Company's production guidance assumes that gas production from Webb County is limited to contracted firm pipeline capacity for the full year 2023.

Additional detail concerning the Company's second quarter and full year 2023 guidance can be found in the table included with today's new release and the Corporate Presentation in the Investor Relations section of the SilverBow's website.

HEDGING UPDATE

Hedging continues to be an important element of SilverBow's strategy to protect cash flow. The Company's hedging program is structured to provide exposure to higher commodity prices while also protecting against periods of low prices.

As of April 28, 2023, SilverBow had 72% of total production hedged for the remainder of 2023, using the midpoint of guidance. SilverBow has 181 MMcf/d (91% of guidance) of natural gas production hedged at an average price of $3.79 per million British thermal units, 7,399 Bbls/d (48% of guidance) of oil hedged at an average price of $74.55 per barrel and 3,750 Bbls/d (42% of guidance) of NGLs hedged at an average price of $32.98 per barrel for the remainder of 2023. For 2024, the Company has 118 MMcf/d of natural gas production hedged and 3,273 Bbls/d of oil hedged. The hedged amounts are inclusive of both swaps and collars with the average price factoring in the floor price of the collars.

Please see SilverBow's Corporate Presentation and Form 10-Q filing for the first quarter of 2023, which the Company expects to file on Thursday, May 4, 2023, for a detailed summary of its derivative contracts.

CAPITAL STRUCTURE AND LIQUIDITY

As of March 31, 2023, SilverBow had $2.2 million of cash and $559.0 million of outstanding borrowings under its Credit Facility. The Company's liquidity position was $218.2 million consisting of $2.2 million of cash and $216.0 million of availability under the Credit Facility. SilverBow's net debt as of March 31, 2023 was $706.8 million, calculated as total long-term debt of $709.0 million less $2.2 million of cash.

As of April 28, 2023, SilverBow had 22.6 million total common shares outstanding.

CONFERENCE CALL AND UPDATED INVESTOR PRESENTATION

SilverBow will host a conference call for investors on Thursday, May 4, 2023, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). Investors and participants can listen to the call by dialing 1-888-415-4465 (U.S.) or 1-646-960-0140 (International) and requesting SilverBow Resource's First Quarter 2023 Earnings Conference Call or by visiting the Company's website. A simultaneous webcast of the call may be accessed over the internet by visiting SilverBow's website at www.sbow.com, clicking on "Investor Relations" and "Events and Presentations" and then clicking on the "First Quarter 2023 Earnings Conference Call" link. The webcast will be archived for replay on the Company's website for 14 days. Additionally, an updated Corporate Presentation will be uploaded to the Investor Relations section of SilverBow's website before the conference call.

ABOUT SILVERBOW RESOURCES, INC.

SilverBow Resources, Inc. (NYSE:SBOW) is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas in the Eagle Ford and Austin Chalk in South Texas. With over 30 years of history operating in South Texas, the Company possesses a significant understanding of regional reservoirs which it leverages to assemble high quality drilling inventory while continuously enhancing its operations to maximize returns on capital invested. For more information, please visit www.sbow.com. Information on our website is not part of this release.

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. These forward-looking statements represent management's expectations or beliefs concerning future events, and it is possible that the results described in this release will not be achieved. These forward-looking statements are based on current expectations and assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical fact included in this press release, including those regarding our strategy, the benefits of the acquisitions, future operations, guidance and outlook, financial position, well expectations and drilling plans, estimated production levels, expected oil and natural gas pricing, estimated oil and natural gas reserves or the present value thereof, reserve increases, service costs, impacts of inflation, future free cash flow and expected leverage ratio, capital expenditures, budget, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this report, the words "will," "could," "believe," "anticipate," "intend," "estimate," "budgeted," "guidance," "expect," "may," "continue," "predict," "potential," "plan," "project," "should" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, the following risks and uncertainties: further actions by the members of the Organization of the Petroleum Exporting Countries, Russia and other allied producing countries with respect to oil production levels and announcements of potential changes in such levels; risk related to recently completed acquisitions and integrations of these acquisitions; volatility in natural gas, oil and NGL prices; ability to obtain permits and government approvals; our borrowing capacity, future covenant compliance, cash flows and liquidity, including our ability to satisfy our short- or long-term liquidity needs; asset disposition efforts or the timing or outcome thereof; ongoing and prospective joint ventures, their structures and substance, and the likelihood of their finalization or the timing thereof; the amount, nature and timing of capital expenditures, including future development costs; timing, cost and amount of future production of oil and natural gas; availability of drilling and production equipment or availability of oil field labor; availability, cost and terms of capital; timing and successful drilling and completion of wells; availability and cost for transportation and storage of oil and natural gas; costs of exploiting and developing our properties and conducting other operations; competition in the oil and natural gas industry; general economic and political conditions, including inflationary pressures, further increases in interest rates, a general economic slowdown or recession, instability in financial institutions, political tensions and war (including future developments in the ongoing Russia-Ukraine conflict); the severity and duration of world health events, including health crises and pandemics, related economic repercussions, including disruptions in the oil and gas industry, supply chain disruptions, and operational challenges including remote work arrangements and protecting the health and well being of our employees; opportunities to monetize assets; our ability to execute on strategic initiatives; effectiveness of our risk management activities, including hedging strategy; counterparty and credit market risk; pending legal and environmental matters, including potential impacts on our business related to climate change and related regulations; actions by third parties, including customers, service providers and shareholders; current and future governmental regulation and taxation of the oil and natural gas industry; developments in world oil and natural gas markets and in oil and natural gas-producing countries; uncertainty regarding our future operating results; and other risks and uncertainties discussed in the Company's reports filed with the SEC, including its annual report on Form 10-K for the year ended December 31, 2022, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K.

All forward-looking statements speak only as of the date of this news release. You should not place undue reliance on these forward-looking statements. The Company's capital budget, operating plan, service cost outlook and development plans are subject to change at any time. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this release are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved. The risk factors and other factors noted herein and in the Company's SEC filings could cause its actual results to differ materially from those contained in any forward-looking statement. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the foregoing. We undertake no obligation to publicly release the results of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.

(Financial Highlights to Follow)

Condensed Consolidated Balance Sheets (Unaudited) SilverBow Resources, Inc. and Subsidiary (in thousands, except share amounts)

	March 31, 2023			December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents	$	2,167		$	792
Accounts receivable, net		63,940			89,714
Fair value of commodity derivatives		79,979			52,549
Other current assets		2,672			2,671
Total Current Assets		148,758			145,726
Property and Equipment:
Property and equipment, full cost method, including $18,196 and $16,272, respectively, of unproved property costs not being amortized at the end of each period		2,638,716			2,529,223
Less – Accumulated depreciation, depletion, amortization & impairment		(1,048,062	)		(1,004,044	)
Property and Equipment, Net		1,590,654			1,525,179
Right of use assets		10,229			12,077
Fair value of long-term commodity derivatives		26,645			24,172
Other long-term assets		8,646			9,208
Total Assets	$	1,784,932		$	1,716,362
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities	$	51,599		$	60,200
Fair value of commodity derivatives		13,450			40,796
Accrued capital costs		45,264			56,465
Accrued interest		2,225			2,665
Current lease liability		7,165			8,553
Undistributed oil and gas revenues		16,743			27,160
Total Current Liabilities		136,446			195,839
Long-term debt, net		705,715			688,531
Non-current lease liability		3,303			3,775
Deferred tax liabilities		42,753			16,141
Asset retirement obligations		9,451			9,171
Fair value of long-term commodity derivatives		2,394			7,738
Other long-term liabilities		565			3,588
Commitments and Contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued		—			—
Common stock, $0.01 par value, 40,000,000 shares authorized, 22,081,653 and 22,663,135 shares issued, respectively, and 22,602,018 and 22,309,740 shares outstanding, respectively		231			227
Additional paid-in capital		577,293			576,118
Treasury stock, held at cost, 479,635 and 353,395 shares, respectively		(10,479	)		(7,534	)
Retained earnings		317,260			222,768
Total Stockholders' Equity		884,305			791,579
Total Liabilities and Stockholders' Equity	$	1,784,932		$	1,716,362

Condensed Consolidated Statements of Operations (Unaudited) SilverBow Resources, Inc. and Subsidiary (in thousands, except per-share amounts)

	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
Revenues:
Oil and gas sales	$	139,954		$	129,656

Operating Expenses:
General and administrative, net		7,664			4,786
Depreciation, depletion, and amortization		43,998			21,154
Accretion of asset retirement obligations		224			99
Lease operating expenses		20,560			9,125
Workovers		779			647
Transportation and gas processing		11,520			6,352
Severance and other taxes		9,385			7,764
Total Operating Expenses		94,130			49,927

Operating Income		45,824			79,729

Non-Operating Income (Expense)
Gain (loss) on commodity derivatives, net		92,249			(140,242	)
Interest expense, net		(16,745	)		(6,557	)
Other income (expense), net		(24	)		61

Income (Loss) Before Income Taxes		121,304			(67,009	)

Provision (Benefit) for Income Taxes		26,812			(2,754	)

Net Income (Loss)	$	94,492		$	(64,255	)

Per Share Amounts:

Basic Earnings (Loss) Per Share	$	4.21		$	(3.84	)

Diluted Earnings (Loss) Per Share	$	4.17		$	(3.84	)

Weighted-Average Shares Outstanding - Basic		22,440			16,719

Weighted-Average Shares Outstanding - Diluted		22,634			16,719

Condensed Consolidated Statements of Cash Flows (Unaudited) SilverBow Resources, Inc. and Subsidiary (in thousands)

	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
Cash Flows from Operating Activities:
Net income (loss)	$	94,492		$	(64,255	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation, depletion, and amortization		43,998			21,154
Accretion of asset retirement obligations		224			99
Deferred income taxes		26,612			(2,902	)
Share-based compensation		1,124			1,047
(Gain) Loss on derivatives, net		(92,249	)		140,242
Cash settlement (paid) received on derivatives		18,699			(24,554	)
Settlements of asset retirement obligations		(3	)		(38	)
Other		756			1,138
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable and other current assets		30,687			2,794
Increase (decrease) in accounts payable and accrued liabilities		(24,504	)		(10,144	)
Increase (decrease) in income taxes payable		300			149
Increase (decrease) in accrued interest		(441	)		165
Net Cash Provided by (Used in) Operating Activities		99,695			64,895
Cash Flows from Investing Activities:
Additions to property and equipment		(111,285	)		(35,228	)
Acquisition of oil and gas properties, net of purchase price adjustments		(1,090	)		436
Net Cash Provided by (Used in) Investing Activities		(112,375	)		(34,792	)
Cash Flows from Financing Activities:
Proceeds from bank borrowings		121,000			122,000
Payments of bank borrowings		(104,000	)		(149,000	)
Purchase of treasury shares		(2,945	)		(2,462	)
Payments of debt issuance costs		—			(117	)
Net Cash Provided by (Used in) Financing Activities		14,055			(29,579	)

Net Increase (Decrease) in Cash and Cash Equivalents		1,375			524
Cash and Cash Equivalents at Beginning of Period		792			1,121
Cash and Cash Equivalents at End of Period	$	2,167		$	1,645
Supplemental Disclosures of Cash Flow Information:
Cash paid during period for interest, net of amounts capitalized	$	16,434		$	5,816
Non-cash Investing and Financing Activities:
Changes in capital accounts payable and capital accruals	$	(3,097	)	$	5,037
Non-cash equity consideration for acquisitions	$	—		$	1,134

Definition of Non-GAAP Measures as Calculated by the Company (Unaudited)

The following non-GAAP measures are presented in addition to financial statements as SilverBow believes these metrics and performance measures are widely used by the investment community, including investors, research analysts and others, to evaluate and useful in comparing investments among upstream oil and gas companies in making investment decisions or recommendations. These measures, as presented, may have differing calculations among companies and investment professionals and may not be directly comparable to the same measures provided by others. A non-GAAP measure should not be considered in isolation or as a substitute for the related GAAP measure or any other measure of a company's financial or operating performance presented in accordance with GAAP. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure or measures is presented below. These measures may not be comparable to similarly titled measures of other companies.

Adjusted EBITDA: The Company presents Adjusted EBITDA attributable to common stockholders in addition to reported net income (loss) in accordance with GAAP. Adjusted EBITDA is calculated as net income (loss) plus (less) depreciation, depletion and amortization, accretion of asset retirement obligations, interest expense, net losses (gains) on commodity derivative contracts, amounts collected (paid) for commodity derivative contracts held to settlement, income tax expense (benefit); and share-based compensation expense. Adjusted EBITDA excludes certain items that SilverBow believes affect the comparability of operating results, including items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. Adjusted EBITDA is used by the Company's management and by external users of SilverBow's financial statements, such as investors, commercial banks and others, to assess the Company's operating performance as compared to that of other companies, without regard to financing methods, capital structure or historical cost basis. It is also used to assess SilverBow's ability to incur and service debt and fund capital expenditures. 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 GAAP. Adjusted EBITDA is important as it is considered among the financial covenants under the Company's First Amended and Restated Senior Secured Revolving Credit Agreement with JPMorgan Chase Bank, National Association, as administrative agent, and certain lenders party thereto (as amended, the "Credit Agreement" and the borrowing facility provided thereby, the "Credit Facility"), a material source of liquidity for SilverBow. Please reference the Annual Report and subsequent 8-Ks for discussion of the Credit Agreement and its covenants.

Adjusted EBITDA for Leverage Ratio: In accordance with the Leverage Ratio calculation for the Credit Facility, the Company makes certain adjustments to its calculation of Adjusted EBITDA. Adjusted EBITDA for Leverage Ratio is calculated as Adjusted EBITDA (defined above) plus pro forma EBITDA contributions related to closed acquisitions. The Company believes that Adjusted EBITDA for Leverage Ratio is useful to investors because it reflects the last twelve months EBITDA used by the administrative agent for the Credit Facility in the calculation of its leverage ratio covenant.

Cash General and Administrative Expenses: Cash G&A expenses is a non-GAAP measure calculated as net general and administrative costs less share-based compensation. The Company reports cash G&A expenses because it believes this measure is commonly used by management, analysts and investors as an indicator of cost management and operating efficiency on a comparable basis from period to period. In addition, SilverBow believes cash G&A expenses are used by analysts and others in valuation, comparison and investment recommendations of companies in the oil and gas industry to allow for analysis of G&A spend without regard to stock-based compensation which can vary substantially from company to company. Cash G&A expenses should not be considered as an alternative to, or more meaningful than, total G&A expenses. The Company has provided forward-looking Cash G&A expenses estimates; however, SilverBow is unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure because the items necessary to estimate such forward-looking GAAP measure are not accessible or estimable at this time without unreasonable efforts. The reconciling items in future periods could be significant.

Free Cash Flow: Free cash flow is calculated as Adjusted EBITDA (defined above) plus (less) cash interest expense and bank fees, capital expenditures and current income tax (expense) benefit. The Company believes that free cash flow is useful to investors and analysts because it assists in evaluating SilverBow's operating performance, and the valuation, comparison, rating and investment recommendations of companies within the oil and gas industry. SilverBow uses this information as one of the bases for comparing its operating performance with other companies within the oil and gas industry. Free cash flow 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 GAAP. From time to time the Company provides forward-looking free cash flow and free cash flow yield estimates or targets; however, SilverBow is unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure because the items necessary to estimate such forward-looking GAAP measure are not accessible or estimable at this time without unreasonable efforts. The reconciling items in future periods could be significant.

Total Debt to Adjusted EBITDA (Leverage Ratio): Leverage Ratio is calculated as total debt, defined as long-term debt excluding unamortized discount and debt issuance costs, divided by Adjusted EBITDA (defined above) for the most recently completed 12-month period.

Net Debt: Net debt is calculated as the total principal amount of second lien notes plus borrowings on the Company's Credit Facility less cash and cash equivalents.

Calculation of Adjusted EBITDA and Free Cash Flow (Unaudited) SilverBow Resources, Inc. and Subsidiary (in thousands, except share amounts)

The below tables provide the calculation of Adjusted EBITDA and Free Cash Flow for the following periods (in thousands).

	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
Net Income (Loss)	$	94,492		$	(64,255	)
Plus:
Depreciation, depletion and amortization		43,998			21,154
Accretion of asset retirement obligations		224			99
Interest expense		16,745			6,557
Loss (gain) on commodity derivatives, net		(92,249	)		140,242
Derivative cash settlements collected/(paid) ⁽¹⁾		19,868			(28,201	)
Income tax expense/(benefit)		26,812			(2,754	)
Share-based compensation expense		1,124			1,047
Adjusted EBITDA	$	111,014		$	73,889
Plus:
Cash interest expense and bank fees, net		(16,434	)		(5,816	)
Capital expenditures⁽²⁾		(108,033	)		(40,358	)
Current income tax (expense)/benefit		(200	)		(149	)
Free Cash Flow	$	(13,653	)	$	27,566
(1) Amounts relate to settled contracts covering the production months during the period.
(2) Excludes proceeds/(payments) related to the divestiture/(acquisition) of oil and gas properties and equipment, outside of regular way land and leasing costs.

	Last Twelve Months Ended March 31, 2023			Last Twelve Months Ended March 31, 2022
Net Income (Loss)	$	499,183		$	(5,875	)
Plus:
Depreciation, depletion and amortization		156,826			76,391
Accretion of asset retirement obligations		660			330
Interest expense		52,136			28,667
Loss (gain) on commodity derivatives, net		(158,607	)		245,001
Derivative cash settlements collected/(paid) ⁽¹⁾		(164,348	)		(96,675	)
Income tax expense/(benefit)		39,166			3,644
Share-based compensation expense		5,164			4,622
Adjusted EBITDA	$	430,180		$	256,105
Plus:
Cash interest expense and bank fees, net		(54,656	)		(30,317	)
Capital expenditures⁽²⁾		(395,179	)		(137,900	)
Current income tax (expense)/benefit		(25	)		(335	)
Free Cash Flow	$	(19,680	)	$	87,553

Adjusted EBITDA	$	430,180		$	256,105
Pro forma contribution from closed acquisitions		62,654			25,343
Adjusted EBITDA for Leverage Ratio ⁽³⁾	$	492,834		$	281,448
(1) Amounts relate to settled contracts covering the production months during the period.
(2) Excludes proceeds/(payments) related to the divestiture/(acquisition) of oil and gas properties and equipment, outside of regular way land and leasing costs.
(3) Adjusted EBITDA for Leverage Ratio, which is calculated in accordance with SilverBow's Credit Facility, includes pro forma EBITDA contributions reflecting the results of acquired assets' operations for referenced time periods preceding the acquired assets' close date. Leverage Ratio is calculated as total debt, defined as Credit Facility borrowings plus Second Lien notes, divided by Adjusted EBITDA for Leverage Ratio for the most recently completed twelve month period. The below table provides the calculation for Leverage Ratio for the following periods:

	March 31, 2023		March 31, 2022
Credit Facility Borrowings due 2026	$	559,000	$	200,000
Second Lien Notes due 2026		150,000		150,000
Total debt	$	709,000	$	350,000
Adjusted EBITDA for Leverage Ratio ⁽³⁾		492,834		281,448
Leverage Ratio	1.44x		1.24x

Production Volumes & Pricing (Unaudited) SilverBow Resources, Inc. and Subsidiary

	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
Production volumes:
Oil (MBbl) ⁽¹⁾		1,023		429
Natural gas (MMcf)		17,974		15,587
Natural gas liquids (MBbl) ⁽¹⁾		539		359
Total (MMcfe)		27,345		20,319

Oil, natural gas and natural gas liquids sales (in thousands):
Oil	$	74,655	$	39,741
Natural gas		52,922		77,372
Natural gas liquids		12,377		12,543
Total	$	139,954	$	129,656

Average realized price before impact of cash-settled derivatives:
Oil (per Bbl)	$	73.01	$	92.59
Natural gas (per Mcf)		2.94		4.96
Natural gas liquids (per Bbl)		22.95		34.89
Average per Mcfe	$	5.12	$	6.38

Price impact of cash-settled derivatives:
Oil (per Bbl)	$	0.92	$	(30.04	)
Natural gas (per Mcf)		0.94		(0.84	)
Natural gas liquids (per Bbl)		3.61		(6.11	)
Average per Mcfe	$	0.73	$	(1.39	)

Average realized price including impact of cash-settled derivatives:
Oil (per Bbl)	$	73.93	$	62.55
Natural gas (per Mcf)		3.89		4.12
Natural gas liquids (per Bbl)		26.56		28.78
Average per Mcfe	$	5.85	$	4.99

(1) Oil and NGLs are converted at the rate of one barrel to six Mcfe. Bbl refers to barrels, and MBbl refers to one thousand barrels. MMcf refers to one million cubic feet.

Second Quarter 2023 & Full Year 2023 Guidance

	Guidance
	2Q 2023	FY 2023
Production Volumes:
Oil (Bbls/d)	11,900 - 12,300	13,750 - 15,000
Natural Gas (MMcf/d)	205 - 215	195 - 205
NGLs (Bbls/d)	6,800 - 7,200	7,900 - 8,400
Total Reported Production (MMcfe/d)	317 - 332	325 - 345

Product Pricing:
Crude Oil NYMEX Differential ($/Bbl)	($4.50) - ($2.50)	N/A
Natural Gas NYMEX Differential ($/Mcf)	($0.80) - $0.00	N/A
Natural Gas Liquids (% of WTI)	26% - 30%	N/A

Operating Costs & Expenses:
Lease Operating Expenses ($/Mcfe)	$0.70 - $0.74	$0.73 - $0.77
Transportation & Processing ($/Mcfe)	$0.39 - $0.43	$0.39 - $0.43
Production Taxes (% of Revenue)	7.0% - 8.0%	6.5% - 7.5%
Cash G&A, net ($MM)	$4.5 - $5.0	$19.0 - $20.0
A forward-looking estimate of net G&A expenses is not provided with the forward-looking estimate of cash G&A (a non-GAAP measure) because the items necessary to estimate net G&A expenses are not accessible or estimable at this time without unreasonable efforts. Such items could have a significant impact on net G&A expenses.

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SilverBow Resources Announces First Quarter 2023 Results