A little more than four years ago, Denver-based Bonanza Creek Energy hit the reset button with a prepackaged restructuring plan, filing for then emerging from Chapter 11 bankruptcy in 100 days. With a clean balance sheet and strong positions in the DJ Basin, the company quickly caught the eye of rival Sandridge Energy in 2017, which itself had emerged from bankruptcy just a year before. Sandridge announced it would purchase Bonanza for $746 million, but investor Carl Icahn responded with a “not so quick, cowboy” kneejerk that put the kabosh to that deal faster than falling Christmas snow in the Rockies. Which brings us to the latest news from Bonanza Creek, which not only has survived but thrived despite the fallout of a hyper-tumultuous year. Bonanza has announced it will acquire Denver-based HighPoint Resources in a deal valued at $376 million, which—if all conditions are met—will stave off bankruptcy for Highpoint. The acquisition ups Bonanza’s leaseholds in the DJ to 206,000 contiguous acres and will increase 4Q production by 50,000 BOED. What do you think?
Bonanza Creek Energy
Denver-based Bonanza Creek Energy, Inc. is an exploration and production company focused on the extraction of oil and associated liquids-rich natural gas in the United States. Founded in 1999, the company went public in December 2011. The common shares are listed for trading on the NYSE under the symbol “BCEI.”