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May 10, 2021, 8:21 a.m. EDT

Bonanza Creek, Extraction Oil & Gas to merge, with combined 'Civitas Resources' valued at $2.6 billion

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By Tomi Kilgore

Bonanza Creek Energy Inc. and Extraction Oil & Gas Inc. announced Monday and agreement to combine in an all-stock merger of equals, with the combined energy producing company valued at about $2.6 billion. Under terms of the merger, Extraction shareholders will receive 1.1711 Bonanza Creek shares for each Extraction share they own. Based on Friday's closing prices, that values Extraction shares at $43.85, a 0.9% premium. After the deal closes, which is expected to occur in the third quarter of 2021, the combined company will be named Civitas Resources Inc., and Bonanza Creek and Extraction shareholders will each own about 50.0% of Civitas. Extraction's stock rose 3.0% in premarket trading and Bonanza Creek's stock gained 1.7%. Meanwhile, futures /zigman2/quotes/209948968/delayed ES00 +0.0069% for the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.51% edged up 0.1%.

US : U.S.: CME
$ 3,601.75
+0.25 +0.0069%
Volume: 45,868
Oct. 2, 2022 6:28p
-54.85 -1.51%
Volume: 2.22B
Sept. 30, 2022 5:55p

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