Denver-Julesburg (DJ) Basin pure-plays Bonanza Creek Energy Inc. has agreed to merge with Colorado rival HighPoint Resources Corp. in a $376 million transaction that would combine their Weld County acreage and production.

Merger

On a pro forma basis, Bonanza Creek would have 206,000 net acres in Weld County. All the acreage would be unincorporated and “not subject to regulation by municipalities,” with only 8% subject to federal mineral or surface regulations. 

Pro forma production in 4Q2020 is expected to be 50,000 boe/d, 53% weighted to oil.

“The combination of Bonanza Creek and HighPoint creates significant scale in the rural DJ Basin, which will immediately increase free cash flow generation,” said Bonanza Creek CEO Eric Greager, who would remain CEO of the combined...