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EX - 99.1 2 tm2115694d8_ex99-1.htm EXHIBIT 99.1 CIVITAS Exhibit 99.1 CIVITAS ADDS PREMIUM ASSETS IN DJ BASIN WITH ALL - STOCK ACQUISITION OF CRESTONE PEAK RESOURCES Enhances Civitas ' Scale and Synergy Potential , with Addition of Crestone's Highly Complementary and Adjacent Assets Crestone Operations Support Civitas ' Commitment to Achieve Net - Zero Emissions DENVER - June 7 , 2021 – Civitas Resources , Inc. ( " Civitas ” or the “ Company ” ) , a Colorado energy leader that will be formed upon closing of the recently - announced merger of Bonanza Creek Energy , Inc. ( NYSE : BCEI ) ( “ Bonanza Creek " ) and Extraction Oil & Gas , Inc. ( NASDAQ : XOG ) ( “ Extraction " ) , today announced that it has materially advanced its consolidation strategy in the Denver - Julesburg ( DJ ) Basin by entering into a definitive agreement to acquire Crestone Peak Resources ( " Crestone " ) , another leading energy producer in the region . Civitas is expected to have an enterprise value of approximately $ 4.5 billion ( based on the closing market equity capitalizations of Extraction and Bonanza Creek as of June 4 , 2021 ) , and will be optimally positioned to increase efficiencies through combining operations across more than half a million net acres and an estimated production base of approximately 160,000 barrels of oil equivalent per day . The agreement to acquire Crestone represents the most recent initiative in Civitas ' execution of the new E & P business model that has been actively embraced by each of Bonanza Creek and Extraction . The model is defined by operational discipline , a strong balance sheet , commitment to free cash flow generation , financial alignment with stakeholders , environmental and community leadership , and best - in- class governance . Civitas is also proud that , inclusive of the Crestone assets , it will be Colorado's first carbon neutral oil and gas producer ( scope 1 and scope 2 ) upon closing , advancing its net - zero goals . STRATEGIC RATIONALE The acquisition of Crestone will strengthen the strategic rationale underlying the formation of Civitas , as it is projected to enhance the Company's scale , in - basin diversification , balance sheet , and liquidity profile . Civitas will have established itself as the preferred consolidation partner in the target - rich DJ Basin , which will help increase its trading liquidity and market relevance , and ultimately elevate its presence among top energy producers in the country . With the addition of Crestone , Civitas will operate across more than half a million net acres , with leasehold positions in all key areas of the DJ Basin . The Company will also have an estimated production base of approximately 160,000 barrels of oil equivalent per day ( on a pro forma 1Q21 production basis ) and YE20 SEC proved reserves of more than 530 MMBoe . Crestone's primary shareholder is Canada Pension Plan Investment Board ( " CPP Investments " ) . CPP Investments will become Civitas ' largest shareholder and will designate one member to the Civitas board upon closing .