The $4.5 billion firm created as a result of the merger of Denver’s Bonanza Creek Energy , Inc. with Extraction Oil & Gas Inc. came only four years after Oklahoma’s SandRidge Energy backed out of an acquisition of Bonanza Creek Energy.
It was 2017 when SandRidge and Bonanza agreed to a merger agreement in which SandRidge would acquire all of the outstanding shares of common stock of Bonanza Creek. But by year’s end following criticism from SandRidge investor Carl Icahn, the deal fell apart. Shareholders in SandRidge indicated they would not approve the merger and the two firms agreed to mutually terminate the merger agreement.
This week, Bonanza and Extraction announced their merger agreement would result in the creation of Civitas Resources, Inc. which in turn would buy Crestone Peak Resources to form a company focused on Colorado’s Denver-Julesburg Basin. The involved firms will have combined operations across more than half a million net acres and an estimated production base of nearly 160,000 barrels of oil equivalent a day.
In making the announcement, the firms stated that Civitas will be Colorado’s first carbon neutral oil and gas producer upon closing.
Crestone’s primary shareholder is Canada Pension Plan Investment Board so it will now become the largest shareholder in Civitas.
Source: press release