Colorado Drillers to Combine, as Consolidation Continues in Oil Patch
Colorado Drillers to Combine, as Consolidation Continues in Oil Patch
Two oil-and-gas producers that operate in Colorado— Bonanza Creek Energy Inc. and Extraction Oil & Gas Inc. —plan to announce Monday that they are combining into a company valued at about $2.3 billion.
The all-stock, no-premium merger of companies that produce in Colorado’s Denver-Julesburg Basin is the latest example of regional consolidation in U.S. oil and gas fields, as the energy industry emerges from the Covid-19 pandemic.
The combined company will be renamed Civitas Resources Inc. and become the largest pure-play oil-and-gas company in the DJ Basin. Bonanza and Extraction shareholders will respectively own 50% of the new company, according to a person familiar with the matter.
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