Kirkland Advises Extraction on Business Combination with Crestone to Create $4.5 Billion DJ Basin E&P Company
Kirkland & Ellis counseled Extraction Oil & Gas, Inc. (NASDAQ: XOG) on the purchase of Crestone Peak Resources, a leading energy producer in the Denver-Julesburg Basin, by Civitas Resources, Inc., a Colorado energy leader that will be formed upon closing of the recently-announced merger of Bonanza Creek Energy, Inc. (NYSE: BCEI) and Extraction. Kirkland also counseled Extraction on the merger of Bonanza and Extraction. The parties announced that Civitas has materially advanced its consolidation strategy in the DJ Basin by entering into a definitive agreement to acquire Crestone Peak Resources. 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 Kirkland team was led by corporate partners Doug Bacon, Julian Seiguer, Enoch Varner and Alex Rose and associates Camille Walker, Brittany Scheier, Tess Dennis and Sara Phipps; capital markets partner Bryan Flannery and associates Logan Weissler and Samantha Siegler; asset partners Anthony Speier and Chris Heasley and associate Alia Heintz; tax partner Mark Dundon and associates Joe Tobias and Courtney Loyack; finance partners Will Bos and Mitch McClellan and associates Shan Khan and Aisha Noor; executive compensation partners Stephen Jacobson and Stephanie Jeane and associate Tony Guan; labor and employee benefits partners Jeffrey Quinn, Jackson Phinney, R.D. Kohut and Sydney Jones; and international trade partners Mario Mancuso and Luci Hague and associates Carrie Schroll and William Phalen.
