BCEI - Bonanza Creek Extraction Oil to merge creating $2.3B company - WSJ

Colorado drillers Bonanza Creek Energy (BCEI) and Extraction Oil & Gas (XOG) will announce today that they will merge, creating a company valued at ~$2.3B, WSJ reports.The all-stock, no-premium merger of companies would create the largest pure-play oil and gas company in the DJ Basin.Bonanza and Extraction shareholders would respectively own 50% of the new company, which would be renamed Civitas Resources, according to the report.Once combined, the companies reportedly plan to lift Bonanza Creek's annual dividend by ~14% to $1.60/share.Bonanza Creek CEO Eric Greager would serve as CEO of Civitas, while Extraction Chairman Ben Dell would become chairman of the new company.The deal would be the latest example of regional consolidation in U.S. oil and gas fields: Last week, shale gas producer EQT agreed to buy Alta Resources Development for $2.9B in cash and stock.

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Bonanza Creek, Extraction Oil to merge, creating $2.3B company - WSJ