Bonanza Creek and Extraction to Combine in Merger of Equals, Creating Colorado’s First Net-Zero Producer Civitas Resources

Vinson & Elkins advised Bonanza Creek Energy, Inc. (“Bonanza Creek”) in connection with its entry into a definitive agreement to combine with Extraction Oil & Gas, Inc. (“Extraction”) in an all-stock merger of equals transaction. The combined company, to be named Civitas Resources, Inc., will be the largest pure-play energy producer in Colorado’s Denver-Julesburg Basin, with an enterprise value of approximately $2.6 billion based on the equity market capitalizations of Bonanza Creek and Extraction as of May 7, 2021.