Bonanza Creek Energy, Inc., and Extraction Oil & Gas, Inc., have agreed to combine in an all-stock merger of equals, creating Civitas Resources, Inc.
Civitas will be the largest pure-play energy producer in Colorado's Denver-Julesburg Basin. The company has been given an estimated enterprise value of $2.6 billion.
The combined company will operate across 425,000 net acres, with a production base of 117,000 barrels of oil equivalent per day.
At closing, Civitas will be Colorado's first net-zero oil and gas producer through an intensive, continuing focus on reducing operational emissions and a multiyear investment in certified emissions offsets. Following the transaction, Eric Greager, president and CEO of Bonanza Creek, will lead Civitas.