Rocky Mountain HighPoint

Rocky Mountain HighPoint

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.”

www.bonanzacrk.com

Learn more about Reese Energy Consulting and our expertise in the DJ Basin at www.ReeseEnergyConsulting.com.

You Might Also Like…

Outrigger Out to Conquer The West

Outrigger Out to Conquer The West

Wasn’t quite four years ago Outrigger Energy said adios to its West Texas operations with the $1.5 billion sale of its Permian midstream assets to Targa Resources. But the company hardly looked to sever ties with The West. Denver-based Outrigger had already built a sizeable crude oil gathering system in the Powder River Basin. So, flush with cash and private equity capital, Outrigger said hello darlin’ to the DJ, where it constructed a midstream system in Weld Co., Colo., that includes natural gas, crude oil, and produced water gathering pipelines. The company also purchased a 60 MMCFD cryogenic processing plant that went into service last year. Next up, how’s it goin’ Williston? With a sweet midstream commitment from XTO, Outrigger announced in January plans to build a 70-mile rich gas gathering system and a 200 MMCFD processing facility. Even today, some pipe dreams come true. Outrigger now has received the official regulatory nod from N.D., to continue construction on the plant and two pipelines that will flow residue gas and NGLs from the plant to major pipeline interconnects.

Outrigger Energy

Outrigger Energy II LLC is a private, full service midstream energy company specializing in greenfield project development with current systems operating and under construction in the DJ and Williston Basins.  The company was formed in 2017 after Outrigger Energy LLC sold its assets to Targa Resources and Tallgrass Energy Partners.

www.outriggerenergy.com

What do you think?

Learn more about Reese Energy Consulting at www.ReeseEnergyConsulting.com.

You Might Also Like…

San Mateo Fired Up

San Mateo Fired Up

On time. On budget. That’s what joint venture San Mateo Midstream has announced with the startup of its newly expanded Black River gas processing plant in Eddy Co., N.M., offering greater capacity to area producers but especially to parent company Dallas-based Matador Resources. The project increases cryogenic capacity to 460 MMCF per day from an initial 260 MMCF. Customers can access firm transportation via San Mateo’s growing gathering pipeline system, which currently is under construction to add 24 miles of pipe between Black River and the N.M./Texas state line and 19 miles of gathering line northward from the plant. Both will support Matador’s ongoing development in the Delaware Basin. San Mateo also is wrapping up construction on 19 miles of oil gathering pipelines from certain points of origin in Eddy Co., to its existing interconnect with Plains Pipeline. The company expects to initiate commercial service on all lines at various times this month.

San Mateo Midstream

San Mateo Midstream, LLC is a joint venture formed by Matador Resources Company and Five Point Capital Partners to operate and grow midstream assets in the Delaware Basin. San Mateo currently provides natural gas gathering and processing services, salt water gathering and disposal services and crude oil gathering services in Eddy County, New Mexico and Loving County, Texas. 

www.sanmateomidstream.com

What do you think?

Learn more about Reese Energy Consulting and our natural gas, NGLs, and crude oil midstream expertise at www.ReeseEnergyConsulting.com.

You Might Also Like…

What’s Mine Is Now Yours

What’s Mine Is Now Yours

After a year plagued with disappointments and back-to-square-ones, Houston-based Occidental Petroleum finally has something to smile about. In the company’s efforts to reduce its debt load by more than $2 billion by year end, Oxy has scored a big win with the $1.33 billion sale of 4.5 million mineral acres and 1 million surface acres in Wyo., Colo., and Utah.

Occidental Petroleum

Occidental Petroleum Corporation is an American company engaged in hydrocarbon exploration in the United States, the Middle East, and Colombia as well as petrochemical manufacturing in the United States, Canada, and Chile. It is organized in Delaware and headquartered in Houston.

www.oxy.com

The deal also includes mineral rights to the world’s largest trona deposit. When refined into soda ash, trona is a key element to manufacture glass, paper products, laundry detergents, and even baking soda. Not surprisingly, the winning bidder knows a thing or two about mining. N.Y.-based, private equity firm Orion Mine Finance was one of 13 bidders on the package and invests exclusively in base and precious metals operations across the globe. For now, Occidental will keep its oil and gas assets in the Rockies, specifically in the DJ and Powder River basins. The sale is expected to close in 4Q. Oxy inherited the Rockies’ spread as part of its $38 billion purchase of Anadarko Petroleum last year, making the company the largest landowner in the state of Wyo.

What do you think?

Learn more about Reese Energy Consulting at www.ReeseEnergyConsulting.com.