D-J Basin Producers Bonanza Creek, HighPoint to Merge in $376 Million Deal

The combination of Bonanza Creek Energy and HighPoint Resources is expected to create a leading unconventional oil producer in the Denver-Julesburg Basin with roughly 206,000 net acres in rural Weld County, Colo.

D-J Basin Producers Bonanza Creek, HighPoint to Merge in $376 Million Deal

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Bonanza Creek Energy Inc. agreed to acquire a restructured HighPoint Resources Corp. on Nov. 9 in a transaction valued at approximately $376 million.

The combination is expected to create a leading unconventional oil producer in the Denver-Julesburg (D-J) Basin. Combined, the companies have production of 50,000 boe/d and a consolidated, contiguous leasehold position of approximately 206,000 net acres in rural Weld County, Colo.

Additionally, the companies expect the transaction to result in approximately $31 million in 2021 synergies on a pro forma basis, with $150 million of PV-10 synergies total, which represents nearly 45% of Bonanza Creek’s market cap at announcement, according to the company release.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.