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Bonanza Creek to Buy Restructured Highpoint For $376 Million

Nov. 9, 2020, 11:59 AM

Bonanza Creek agrees to buy HighPoint Resources in a transaction valued at about $376 million.

  • Bonanza to issue 9.8m shares of stock and up to $100m in senior unsecured notes as part of the transaction
  • Deal creates a company of scale in the rural DJ Basin with production of 50,000 Boe/d and a consolidated, contiguous leasehold position of approximately 206,000 net acres
  • Upon closing, Bonanza holders to own about 68% of combined company and HighPoint’s stakeholders will own 32%
  • Company and Fifth Creek Energy, which owns about 46.5% of outstanding shares of HighPoint, have entered into support pact
  • Deal expected ...