Good morning. I am Angie, and I will be your conference facilitator today. I would like to welcome everyone to the Civitas Resources Acquisition of Crestone Peak Resources conference call. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone keypad. To withdraw your question, press the pound key. I would now like to turn the conference over to Marianella Foschi. Please begin. Good morning, everyone, and thank you for joining this call on short notice. I am Marianella Foschi, Chief Financial Officer of Extraction Oil & Gas. Earlier this morning, Civitas Resources, which will be formed upon the closing of the recently announced merger of Bonanza Creek Energy and Extraction Oil & Gas, announced that it has materially advanced its consolidation strategy in the Denver-Julesburg Basin by entering into a definitive agreement to acquire Crestone Peak Resources in an all-stock transaction. The purpose of this call is to discuss that announcement, to walk through an accompanying presentation, and to answer any questions that you may have. Joining us with prepared remarks are Eric Greager, President and Chief Executive Officer of Bonanza Creek Energy, and Tom Tyree, Chief Executive Officer of Extraction Oil & Gas. Please be aware that on today's call, we may make forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Please see the full disclosures regarding forward-looking statements in the investor presentation and each of our filings within the Securities and Exchange Commission. On today's call, we may also refer to certain non-GAAP financial metrics. Reconciliation of certain non-GAAP metrics can be found in both companies' press releases and SEC filings. As a reminder, this call is being recorded, and a press release and slide presentation regarding today's news are both available on the investor relations section of Bonanza Creek's and Extraction's respective websites. They're also available on the news release section of Crestone's website. We encourage you to pull up and refer to the slide presentation, as Tom and Eric will be referring to those slides in their remarks. With that said, I'd like to turn the call over to Tom Tyree, CEO of Extraction. Thanks, Marianella. Good morning to everyone on today's call. As Marianella mentioned about an hour ago, Bonanza Creek and Extraction announced that immediately following our own merger to form Civitas Resources, Civitas will acquire Crestone Peak Resources in an all-stock transaction that values Crestone at $1.3 billion. Crestone, as many of you know, is a leading energy producer in the DJ Basin with strong ties to the Colorado communities in which it operates. When we announced the Extraction Bonanza Creek merger just a few weeks ago, we made our ambitions for Civitas very clear. We intend for the company to be a new energy leader, the largest pure-play producer in the DJ Basin, and the region's preferred consolidation partner. We're also proud that Civitas, including Crestone, will be Colorado's first net zero oil and gas producer on a Scope 1 and Scope 2 basis. The Crestone acquisition is a key step in advancing Civitas' strategy. Crestone's premium assets are at the front end of the cost curve. They're complementary and in many instances adjacent to Civitas' assets. Crestone will enhance Civitas' scale, basin diversification, balance sheet, and liquidity profile. Importantly, Crestone also fits into Civitas' distinctive E&P business model and shares its organizational and community values, including an aggressive commitment to sustainability. The acquisition itself is a result of a significant amount of mutual due diligence among Extraction, Bonanza Creek, and Crestone. This diligence and dialogue included direct discussions between Extraction and Crestone even before our merger discussions with Bonanza Creek. At the time, Extraction and Crestone were unable to reach a standalone agreement, but the effort expended ultimately laid the groundwork for how quickly we were able to negotiate this compelling acquisition that we're announcing this morning. With that, I'd like to turn to the presentation that's available on our website and begin on slide three. Based on the share price of Bonanza Creek as of market close on Friday, and with the addition of Crestone, Civitas is expected to have an aggregate pro forma enterprise value of approximately $4.5 billion. The combined company will operate a production base of approximately 160,000 BOE per day with proved reserves of 530 million BOE across more than half a million net acres in the DJ Basin. Estimated 2022 EBITDA is more than $1.3 billion, reflecting approximately 45 million in annual synergies generated by the Crestone integration, in addition to approximately 25 million in expected synergies associated with the Bonanza Creek Extraction merger. Free cash flow will be substantial at over $575 million estimated for 2022. As important, long-term free cash flow is supported by a proved developed asset base pro forma for the Crestone acquisition with a PV-10 of $3.6 billion. An inventory of 1,200 highly economic drillable locations. If you'll turn to slide four. The quality of the Civitas producing properties and development inventory is reflected by the moderate amount of capital required to generate flat to low growth in our production. Our expectation is that roughly half of our EBITDA will be required for reinvestment. Crestone's premium assets are expected to provide even more scale to Civitas' asset base, further enhancing our industry-leading cost structure with G&A and LOE together of less than $4 per BOE. Civitas will also maintain its industry-leading balance sheet with pro forma leverage at 0.5 times EBITDA. All in all, this will generate a significant and increasing free cash flow yield together with a commitment to return a meaningful share of that cash to Civitas shareholders. To that point, the synergies generated by the integration of Crestone will fund a further increase in Civitas' distributions from the previously announced annual dividend of $1.60 per share to $1.85 upon the Crestone closing, with the continued potential for additional increases, share repurchases, and special dividends. While the Bonanza Creek merger and the Crestone acquisition are each expected to confer significant value upon our financial shareholders, it's important to note that Civitas' focus extends to all of our stakeholders. Civitas will expand on the environmental, social, and governance initiatives already being pursued by Extraction, Bonanza Creek, and Crestone, demonstrated by the combined company's commitment to achieve net zero emissions through an intensive continuing focus to reduce operational emissions and a multi-year investment in certified emissions offsets. These values align with Crestone and its primary shareholder, CPP Investments, which maintains an aggressive commitment to sustainability and has demonstrated its commitment to operational strength and efficiency along with its introduction of innovative ESG practices. Turning to slide five. The Crestone acquisition is an all-stock transaction that we expect to close in the fall of this year. It's subject to customary closing conditions, including the approval of Bonanza Creek shareholders and the consummation of the merger between Bonanza Creek and Extraction. The boards of all three companies have unanimously approved the merger, as have Crestone's shareholders. Under the terms of the agreement, Crestone shareholders will exchange 100% of their equity for 22.5 million shares of Bonanza Creek common stock. On completion of the transaction, Bonanza Creek and Extraction shareholders will each own approximately 37% of Civitas, and Crestone shareholders, including CPP Investments, will own approximately 26% of Civitas. As previously disclosed, Eric Greager will be CEO of Civitas, and Ben Dell will be Chairman of the Board. The board itself will increase from eight to nine members. Extraction and Bonanza Creek will each designate four directors, and CPP Investments will designate one director. All board members will stand for re-election annually in line with governance best practices. With that, let me turn it over to Eric Greager, the soon-to-be CEO of Civitas Resources. Thanks, Tom. Before I move on to slide six, I want to briefly comment on a fire incident that occurred this past Saturday afternoon at the Crestone Peak well pad in Arapahoe County. The wells on the pad were undergoing fracture stimulation and were not flowing hydrocarbons. The fire was quickly contained. There were no reported injuries, and all workers who were at the site are safe and accounted for. Bonanza Creek, Extraction, and Crestone Peak are focused on safety as our highest priority and core value. Each of our companies have policies, procedures, and controls in place to prevent and, if necessary, to fully address any incident. To that end, we are closely aligned with first responders in the area and would like to thank them for their swift response this past Saturday. Crestone is thoroughly evaluating the cause of the event, and their team will provide any further updates as they become available. Now turning to slide six. It is important to note that the Crestone acquisition will not result in any changes to the executive leadership structure announced as part of the Extraction Bonanza Creek merger. Ben Dell, current chair of the board of Extraction, will serve as chair of Civitas, and I will serve as President and CEO of Civitas. Other previously announced senior management positions for Civitas also remain unchanged. As you will also see on slide six, compensation for the Civitas management team will be tied, in large part, to company performance, primarily in stock. This will contribute to alignment with shareholders and should serve as a model in the industry. I'll pause for a moment on slide seven to reiterate that the Crestone acquisition is accretive on estimated 2022 key metrics, including cash flow per share, dividend per share, inventory depth and quality, credit quality, cost of capital, and cash cost structure. On slide eight, when we announced the Extraction and Bonanza Creek merger last month, we told you that we expect a peer-leading cash cost structure, low financial leverage, responsible stewardship of resources, value-conscious operatorship, and a transparent, accessible leadership team. The Crestone addition enhances all these attributes. Civitas also remains committed to providing a progressive framework for achieving ESG targets, which will help serve the interests of our partners, employees, and the communities in which we operate. Only now, Civitas will be sitting on a larger base of high-quality assets with expanded operational flexibility across the basin. On slide nine, we show the sources and uses of cash flow in 2022 as a representation of how we'll prioritize the allocation of capital over time. With the Crestone acquisition, Civitas will generate flat to low production growth with moderate reinvestment through efficient management of its premium properties in the DJ. Over time, we'll reinvest about half of our EBITDA while liberating the balance as free cash to be allocated to the highest returning opportunities. This disciplined reinvestment will maximize free cash flow to support material dividends, including the payment of the $1.85 per share annual dividend effective at closing. Slide 10 summarizes the anticipated synergies and operational efficiencies to be derived from the Crestone acquisition. As previously mentioned, the integration of Crestone is expected to result in approximately $45 million of annual synergies, in addition to approximately $25 million in previously announced expected annual synergies associated with the Bonanza Creek-Extraction merger, for a total of $70 million in expected annual synergies. The acquisition will also enhance the Civitas financial profile and accelerate cash returns to shareholders. We anticipate that the previously announced Civitas annual dividend of $1.60 per share will be increased to $1.85 at the Crestone closing, with the continued potential for share repurchases and special dividends. On slide 11, we show the position of Civitas relative to peers on leverage ratio and a proxy for cash costs. On slide 12, we show Civitas relative to peers on total production, liquids mix, and EBITDA. This is a cost and margin business, and the combination of high liquids and low cash cost drives margin expansion, amplifying profitability. On slide 13, we highlight the implied EV to EBITDA multiple of Civitas, as well as the free cash flow yield, and it is clear that with the increased scale and relevance, there's a significant opportunity for multiple expansion. On slide 14, we show the complementary nature of the Civitas asset base with the addition of Crestone. With leasehold in key areas of the DJ Basin, we'll continue to realize opportunities for operational and marketing optimization, as well as disciplined organic growth benefiting shareholders. Slide 15 really highlights the depth and high quality of the Civitas economic inventory. As you can see, more than 150 of our approximately 1,200 total locations provide an IRR above 100%. It's really a testament to the strength and diversification of the Civitas premium asset base. Slide 16 helps complete the picture around opportunities for operating efficiency, gathering and marketing optimization, and accumulation of synergy value, all to the benefit of shareholders. On slide 17, you'll note, like Civitas, Crestone Peak has maintained an aggressive commitment to sustainability, as demonstrated through its advances in identifying and adopting new technologies that reduce the temporary impacts of energy production on nearby communities. We are proud that Civitas will be Colorado's first carbon neutral oil and gas producer, and Civitas will continue to expand on the best-in-class ESG initiatives currently pursued separately by Extraction, Bonanza Creek, and Crestone. In particular, Civitas will continue to make progress toward reducing operational emissions. To accomplish this, we will be deploying a suite of environmental best practices that include retrofitting legacy facilities, plugging legacy wells, and reducing or eliminating flaring, among many others. On slide 18, we highlight a few more of the ESG initiatives underway, which we previously discussed when announcing the Extraction Bonanza Creek merger. We believe in responsible stewardship of all resources: air, water, land, human, and capital. Like Extraction and Bonanza Creek, Crestone Peak has been working hard to improve environmental performance, and we're eager to combine skills, talent, and knowledge to advance the improvements across our operations to help ensure our license to operate. We look forward to reinforcing a culture of performance, to cultivating and maintaining a transparent, diverse, and inclusive merit-based culture. We are committed to best-in-class air monitoring technology and facility validation, and we will be seeking a responsibly sourced gas designation for the energy resources that we produce. From EV fleet adoption to community solar facilities to financing a community fund to sponsor local grants and scholarships, we are committed to being an industry leader in ESG. On slide 19, as Tom noted earlier, with the Crestone Peak acquisition, Civitas' board will increase from eight to nine directors. This board brings together a diverse group with decades of relevant experience across critical capabilities and includes individuals who have a depth of knowledge and experience outside the energy space. It reflects exceptional confidence, diversity, and governance standards, which are consistent with our focus on share price performance and our commitment to industry-leading sustainability practices. On slide 20, I want to focus on the accelerated distribution model. Organically, we'll maintain mostly flat production over time at about 50% reinvestment rate. With disciplined capital deployment, operational and cost excellence, and focus on shareholder value, we're putting into action an E&P business model that is ideally suited to deliver for all of our stakeholders. With that, I'd like to turn it over to the operator for any questions. Your first question comes from the line of Leo Mariani with KeyBanc. Hey, guys. I was hoping to just clarify a couple of things here. One, to get a sense of how much debt is getting added as a result of the Crestone purchase. I didn't see that number anywhere. I was just guesstimating somewhere around $240 million. Would that all be bank debt? Is that number about right? Just trying to get a sense of what you guys are adding on the leverage side here. Yeah, that's real close, Leo. This is Greager. Thanks for tuning in this morning. 248 is the number we think. It is all bank debt. It's on their RBL, and we would simply take it onto our RBL. Just in terms of the production you're picking up in the deal, it looks like the current production, Crestone Peak, right around 45,000 BOEs per day. Seems like pretty much the same plan you guys had at Civitas, which is to keep that flat into 2022 here. Can you give us a little bit more detail on that production? What's the oil cut there? How much of that is gas? Just want to get a better sense of the volumes you're picking up. Yeah, it's pretty consistent. I'm just flipping to the slide here, Leo, that helps that conversation along. I think it's slide 12. You look at Civitas, we had 65% liquids mix, and Civitas plus CPR is just a little bit higher at 66%. Obviously, the key asset down in the south, what Crestone Peak calls Watkins, Extraction calls Hawkeye, and is sometimes referred to as the Lowry Bombing Range. You might hear us refer to it in any one of those three. However, for the oil side, it's about 46% oil. That puts it a little bit above Extraction and a little bit below Bonanza Creek, but pretty well in line on a mixed basis with Civitas. Okay, that's helpful. Then just mechanically here, can you kind of talk us through how the vote's going to work from a Bonanza Creek shareholder perspective? Are you guys going to be asking Bonanza to vote on this deal kind of simultaneously with XOG or separately? I'm just trying to get a better sense of how this is going to play out mechanically from a shareholder approval perspective. I've got Skip here in the room. I'll take a whack at it, and then, if I've missed anything, Skip's here to back me up. We really have two conditions, other than regulatory conditions, two conditions that need to be satisfied. The first is a successful vote by the Bonanza Creek shareholders. That is approving the Crestone Peak deal. They have to approve the Extraction deal first. That is to say our Bonanza Creek shareholders will have the opportunity to approve the Crestone Peak deal on top of the Extraction deal. One is conditioned on the other. Okay. Very helpful. Thanks, guys. If I could just add, Leo, real quick, sorry, that there will be an XOG vote. The XOG vote will be just voting on the Bonanza Creek merger. The XOG shareholders don't have to vote on the Crestone Peak merger. It's all going to happen simultaneously. Bonanza Creek shareholders will vote on two ballot items, one for the Extraction merger transaction and one for the Crestone Peak transaction. It'll all happen at once. Thank you. Okay. Thanks, guys. Thanks, Leo. If you would like to ask an audio question, please press star one on your telephone keypad. Again, that's star one to ask an audio question. To ask an audio question, please press star one. Your next question comes from the line of Noel Parks with Tuohy Brothers. Good morning. Good morning, Noel. It sounds like another very interesting deal. I heard Crestone come up as certainly something that I guess now either company would take a look at. Sort of to come to consummation so fast is definitely striking. Can you just give a sense for what the criteria will be going forward as you formulate your operational plan across what ultimately will be the four properties of what were four separate companies. I totally understand that as a general principle, you're going to pursue the highest return activities, but as the footprint now has grown so much, are there going to be implications for efficiency as far as just, for instance, a given rig being confined more to a particular geographic area where you might have moved it around more in light of just the best economics? I'm just interested in what that might mean for efficiency going on as you look across the whole portfolio. Yeah. Thanks, Noel. It's a good question. I don't want to get too far ahead of what will be the new Civitas board. We still have some optimization work to do, integrating three lanes into one, really working the details out in the development plan. Broadly speaking, we think it's going to take something in the range of three level-loaded full-time drilling rigs and probably about three level-loaded frac crews to accomplish the broadly flat 50% reinvestment rate. Obviously, we'll be pursuing opportunities based on the creaming function based on the highest return. With three rigs running and three frac crews running, because these aren't just numbers on a page, these are hundreds of tons of equipment that have to be moved from location to location. It certainly benefits us to concentrate those in areas. If you didn't fully appreciate in our tone, in our commentary, the real dimension about this deal that we find most interesting, obviously the EBITDA is interesting, obviously the value creation and the price is all very interesting, but it really brings a lot of high-quality inventory. That inventory means we're going to be tilted toward leaning into that high-quality inventory. What I would expect is that you're going to see probably one, perhaps one and a fractional rig developing in the Watkins asset over the next couple of years on a priority basis. The good news is Crestone Peak worked long and hard and has great relationships with all of the local municipalities, Aurora, and the various county authorities. Those permits are in hand. Many of them are ready to go, and that creates optionality for the Civitas organization. Let me just sit there and see if there's anything you want to pick up on in that conversation. Thanks. That's just what I was looking for. You mentioned on the ESG front, you certainly envision initiatives like plugging wells, retrofitting some legacy facilities, and I'm assuming also more in terms of monitoring equipment and so forth. Is that the sort of initiative that, I guess depending on the state of some of the legacy wells in the various former companies, is that sort of a steady state consumption of time, effort, and capital going forward? I guess I'm trying to think for cleanup retrofitting type projects, is that a two-year plan, a three-year plan, a rolling sort of constant plan that goes forward? Along with that, just wondering to the degree you have equipment purchases that support that, does your scale now with all the companies combined, does that give you any advantages you wouldn't have had necessarily, say, if you were just doing work on just the HighPoint properties, for instance? Yeah, I think it does. For example, Bonanza Creek, Extraction, and Crestone Peak are all customers of Project Canary. We're all using the full-time autonomous surveillance units on a variety of locations and in a variety of applications. We're all gathering data, and we were all running down parallel roads. Combining the opportunities, combining the purchasing power certainly gives, I think, the combined company more of a leveraged position there. More importantly, we can test technology. We can work together with innovators and technology solutions providers across the asset base to advance up the curve, I think a little bit faster than the three would be able to afford independently. We've got obviously a deep set of skills considering the three companies operated in different environments and had a variety of different skills. Putting that together and figuring out where the most attractive opportunities are, whether it's leak detection and autonomous surveillance or electrification. I think putting together these companies into one will not only combine the competencies, skills, and talents and allow those ideas to collide into one another and create better solutions, but also create economies that allow us to buy perhaps in bulk at a deeper discount. Great. That's all I got. Thanks. Thank you, Noel. Your next question comes from the line of Michael Scialla with Stifel. Yeah. Maybe just a follow-up on the last question. You mentioned getting to net zero emissions immediately. Does that include buying carbon credits? Is that how you get there? Yeah, it does, Michael. We're intent on doing absolutely everything we can to reduce operational emissions. There's a nice chart in the deck, which I know you saw that puts the companies operating on the western side, XOG and Crestone Peak, further down and to the right, which is a more favorable position. Helping Bonanza Creek and HighPoint Resources figure out how to advance faster and farther down and to the right. Even when you've gotten as far down and to the right as you can possibly go, our business has a carbon footprint. Even when we've theoretically done absolutely everything possible to eliminate operational emissions, there are residual emissions. We use emissions offsets or carbon offsets to create that Scope 1 and Scope 2 carbon neutrality. Do you have an estimate, Eric, on what the annual cost for the offsets will be? I'm sitting here with Brian Cain. Brian can probably tell you something about the pricing framework in the marketplace there for carbon offsets. Yeah. We haven't publicly disclosed the allowance for that spend on an annual basis. We are looking at a blended portfolio of U.S. international projects that will include Colorado projects, all procured through the four major registries. The key consideration is that our ESG program and our goals haven't changed from the last announcement. Crestone is closely aligned, and as Eric said, the idea is to reduce and where possible, eliminate emissions through operational improvements as a first priority. Where those emissions cannot be eliminated with current technology or practices, we'll offset using those certified offsets procured through those four major registries. Right now, generally speaking, pricing, you can get a ton offset for anywhere between $2-$5 on a mixed basis or international, and U.S. are obviously going to be a little bit higher. Okay. Thank you. Eric, I know when you did the forum Civitas, you're pretty upfront that there's a lot of private companies here that make a lot of sense. This isn't, I guess, really surprising, but the timeframe is awfully quick. I'm wondering how competitive was this deal? Were you worried that this could get away from you? As you look at the other privates that you've got mapped out, is there concern that this is going to be very competitive and you need to be quick in continuing to roll up the basin here? That's a good question, Mike. I don't consider the basin particularly competitive from a capital inflow and buyers bidding perspective. There still seems to be a lot of acrimony and/or sort of angst around potential for future regulatory changes. We feel very good about the environment, which obviously puts us in a position of strength in terms of operating. I think as evidenced by the discount in multiples relative to other basins, there's still some resistance to new capital flowing into DJ. That's allowing us to execute consolidation strategy. I don't think we're going to waste a lot of time, but I don't think we have to feel a lot of bidding pressure. There's just not that much competition for bidding up the assets. I think more importantly, the question is how quickly can you do it to capitalize on an open window and the culture around value and consolidation before something changes in the calculus, in the macro calculus that might change the view. We're going to be, I think, as prompt as reasonable, but we're going to continue to be real value conscious. We have been deliberate and disciplined in our work all the way through obviously the Bonanza Creek history between selling the MidCon non-core asset at the top of the market to acquiring HighPoint's asset at the bottom of the market, the merger of equals with Extraction that was very accretive to Bonanza Creek shareholders. Now this acquisition by Civitas Resources of companies. It's really all about driving value, creating value for shareholders, and taking that accumulated synergy value and creating a sustainable return and sustainable allocation back to the shareholders. Mike, I guess that's a long way of answering a short question, which is we're not going to be slow and sloggy about it. We're going to be prompt, but we're really interested in creating value for our shareholders, and I think you've seen that all along in our performance and behavior, and I think you should expect to see that going forward. Very good. Thank you. Thank you, Mike. Your next question comes from the line of Jeff Robertson with Water Tower Research. Thank you. It looks like on slide 15 that most of the Civitas' highest return locations are concentrated in the west and the south. I'm wondering, with the increased scale you all have with the Crestone Peak assets in the south, can you talk about what specific steps you can take on those assets to improve the margin that maybe neither company could have achieved on its own? Hey, Jeff. This is Eric Greager. You're right about the concentration of assets, which is what's driving these last two major steps in the consolidation efforts. We will continue to take advantage of marketing opportunities that improve our realized pricing. We'll continue to invest in oilier assets because those oilier assets are obviously going to drive margins higher because the oils are higher value commodity stream. Probably most importantly, as a larger organization, we can manage our cash cost structure. If you focus on the higher value stream products and you minimize your cash cost, that's, best we can tell, one of the most durable ways to expand your margin, your EBITDA margin, or cash flow margin. What we can do specifically is continue to focus on the relationships along the western side, investing in those relationships and those municipal and operator agreements also down in the south in Watkins, continue to generate permit inventory and expand the opportunities to drive low cash cost, low lifting cost, high value production. Jeff, this is Matt. I'll just add a little bit onto that. You're right, most of our high-quality inventory are in the west and southern areas, and I think what this combination brings, and you can tell on slide three with the overlap in the acreage that Crestone has, both in the southwestern portion of Weld County, but also down in the Watkins area. We should be able to utilize a lot of each other's surface agreements, operator agreements, and bring forward some of that inventory that may have been further down the road if the two companies remain standalone. I think bringing some of that forward is going to be another big value driver in this consolidation. Thanks. Matt, basically that enhances the economics of what was Extraction's acreage down there by having a bigger footprint? Yes, both of those. There's a lot of ways that it increases the value. If we can share surface locations, you're obviously saving midstream costs that don't have to be duplicative. There's a lot of ways to extend laterals, which then save facilities cost for each well. We're digging into that right now, but we're excited about the opportunity. We see a lot of value by consolidating these two positions. Great. Thank you very much. Thanks, Jeff. Once again, if you would like to ask an audio question, please press star one on your telephone keypad. Again, that's star one to ask an audio question. Your next question comes from a follow-up of Leo Mariani with KeyBanc. Hey, guys. I'm just hoping you can provide a little bit more color on the $45 million of synergies here. Just eyeballing one of these charts here, it looks to be maybe about three-quarters of that or so is G&A. Can you verify that's about right? Maybe just talk through some of the other components. I see there's some capital synergies and maybe some LOE here as well. Maybe just talk generally about the timeframe in terms of how you'd expect to achieve those synergies. Leo, this is Matt. You're correct. About three-quarters of that is going to be coming from G&A. Again, when you look at the overlap of the two company positions, that's the main difference between the Civitas acquisition. We didn't have that kind of overlap between Extraction and Bonanza Creek. In this deal, there's a significant amount of overlap, and most of the G&A is going to come from office consolidation and reduced headcounts. The next largest portion is going to come on the LOE side, just with the overlap in the producing assets. We believe we'll be able to optimize routes and save a lot of G&A that the two standalone companies would have to incur not being combined. Those are the two large value drivers that probably make up 90% or more of that $45 million on recurring synergies. Okay. From a timeframe perspective, is there any kind of high-level indication you can throw out there in terms of when you expect to achieve it? We're going to be working through that, obviously, up until close. I would expect the pro forma organization to be set up the way that we want it to be probably in the first quarter of next year at the latest. Okay. Good. Yeah. We are likely to have multiple steps, not unlike the HighPoint Bonanza Creek example we just went through. There was a fair component of or fraction of the G&A reduction in force that took place at closing. There's some back-office efficiencies related to doing it that way. One of the things we really don't want to do is cut the business too short, so likely to bring more talent and scale into the organization on a transition basis. It's a multi-step process. There's a day zero reduction in force for those that you are confident are redundant, those roles that are redundant. There's a transition period, and since we're bringing three companies together at once, that transition period is likely to have more full-time employees associated with transition than you would if you were simply bringing two companies together. Okay. No, that's very clear for sure. Then maybe just lastly here, obviously, you're focusing a lot on this Watkins area. Like you said, I guess for the Extraction asset base, they call it Hawkeye, having good overlap there. Just in general, obviously, the Western and Southern Flank assets clearly are a new area for the traditional combined Bonanza Creek, HPR asset base. Can you talk to any of the challenges you might expect there from a regulatory perspective? Can you give any kind of high-level ballpark, sort of maybe years of permit inventory that Crestone Peak has in the flat production scenario? Let me touch on permit inventory first. The combined company, so that's BCEI plus HighPoint plus Extraction plus Crestone Peak, has upwards of 400 total permits in inventory, just shy of 400. That includes some permits in Hereford and Grover. If you take those out, you've got over 300 permits in inventory on the core high-quality Wattenberg, plus Watkins Hawkeye. That's a very strong inventory of permits to start from. In terms of challenges, we're really pleased with the degree of integration that we've already begun to draw a line to and created plans for. The Extraction Bonanza Creek was a true merger of equals. We were integrating processes and workflows and people at every level. We're going to have all the requisite experience and knowledge in Civitas from Crestone Peak and Extraction to operate very effectively along the Western Flank, and all the requisite experience and knowledge of HighPoint and Bonanza Creek to operate along the Eastern Flank and north end of Hereford. I'm really confident that we'll have everyone we need, all the workflow, skills, talents, and tools to be the premier operator in DJ. It's really just a question of, along the way, keeping folks up to speed on the progress. If our integration with HighPoint is any indication, we've been at it since four one, and we're damn near complete. That's way ahead of schedule in terms of the integration, and we're way ahead on cost synergies as well. Based on that experience, I'm very confident we can bring a full force of the very best people and workflows of all four companies into Civitas. Okay, great. Thanks a lot, guys. Thank you. We've reached the allotted time for questions. I would like to turn the call back to Eric Greager for any additional or closing remarks. Thank you. I just wanted to thank everyone for joining us this morning on short notice. Feel free to reach out, and we'd love to schedule additional one-on-ones for anyone that didn't get a question asked or didn't get any time. Thank you. Thank you for participating in today's conference call. You may now disconnect your lines at this time, and have a wonderful day.