crudeoil24
4年前
"As we work to close this transaction, you can expect to hear more from Bonanza about our free cash flow priorities. For now, let me be clear that our business model is focused on creating an industry-leading cost structure, returning capital to shareholders and when warranted by sufficiently high returns, pursuing modest production growth. We expect to maintain a very strong balance sheet and use this strength, along with our strong technical and operating capabilities, to continue to grow our business in an opportunistic and highly disciplined manner for the benefit of our shareholders."
Eric Thomas Greager Bonanza Creek Energy, Inc. - President, CEO & Director
Filed by Bonanza Creek Energy, Inc.
(Commission File No. 001-35371)
Pursuant to Rule 425 of the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
of the Securities Exchange Act of 1934
Subject Company: HighPoint Resources Corporation
(Commission File No. 001-38435
crudeoil24
4年前
HPR > "Oil and natural gas producers Bonanza Creek Energy, Inc. BCEI and HighPoint Resources Corporation HPR announced that they have reached an agreement of consolidation worth $376 million. The deal involves merging of the two companies in the Denver-Julesburg (DJ) Basin to form a new entity as well as combine their property and production.
The transaction has been approved by the boards of each company. The new organization will own approximately 206,000 acres of leases in the DJ Basin with a day-to-day production capacity of 50,000 barrels per day (bpd) of oil. Further, the merged entity will be able to generate savings of roughly $31 million and free cash flow of approximately $130 million in 2021. In fact, the company plans to maintain a business model that focuses on free cash flow, with a greater emphasis on shareholder returns.
The strategic union is expected to close in early 2021. Following the completion, Bonanza Creek shareholders will hold a 68% stake in the combined company, with HighPoint’s stakeholders owning a 32% share. The oil and natural gas firm’s balance sheet is estimated to represent a cash of $50 million, $100 million senior unsecured notes and $150 million of reserve based lending (“RBL”) debt in addition to $15 million of near-term capital expenditure savings.
Per Eric Greager, CEO at Bonanza Creek as well as of the combined company, the integration of their complementary resources will generate cumulative effects. This will mark a revolutionary transaction for Bonanza Creek. Furthermore, the merger of HighPoint’s midstream infrastructure with Bonanza Creek will provide additional flow assurance, operating cost management as well as enhanced flexibility to third-party processing and takeaway. Notably, the transaction will initiate a premier DJ Basin player with a peer-leading expenditure pattern and a sizable rural footprint. The deal also offers HighPoint shareholders the opportunity to engage in a larger DJ Basin producer with an attractive balance sheet as well as a free cash flow profile."
Zacks Equity Research > 11/13/2020