Bonanza Creek Energy has plans to acquire HighPoint Resources Corp. in a transaction valued at approximately $376 million.
“The combination of Bonanza Creek and HighPoint creates significant scale in the rural DJ Basin, which will immediately increase free cash flow generation,” said Eric Greager, president and CEO of Bonanza Creek. “The combination of our complementary asset bases will yield significant synergies and represents a transformative transaction for Bonanza Creek.”
Scot Woodall, CEO and president of HighPoint, stated, “This transaction will create a premier DJ Basin player with a peer leading cost structure and a large, attractive rural footprint. The transaction provides HighPoint stakeholders with the opportunity to participate in a larger DJ Basin producer with both an attractive balance sheet and free cash flow profile.”
The DJ Basin is a large formation in northwestern Colorado and southeastern Wyoming.
