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Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · Nov 9, 2020 · 18 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 1
    BCEI + HPR: CONSOLIDATING THE RURAL DJ BASIN November 9, 2020
  2. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 2
    Consolidating the Rural DJ Basin + Increased scale and compelling industrial logic Significant free cash generation and return to shareholders Significant cost and operational synergies Low cost / high margin…
  3. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 3
    Expected Benefits of the Merger + 4Q 2020E production of Increased Scale 50 Mboe/d Free Cash Flow Generation +325% improvement to LFCF in 2021 150 million PV-10 Realizable Cost and Capital Synergies (31 million in 2021(1))…
  4. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 4
    Transaction Overview + Voluntary exchange of HPR bonds (see appendix for additional detail on treatment of HPR bonds); stapled prepackaged bankruptcy as alternative course(1) Transaction BCEI shareholders to retain 68% of pro forma…
  5. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 5
    Transaction Process + Transaction subject to the debt-for-equity conversion of at least 97.5% of HPR bonds via exchange offer and consent solicitation with stapled prepackaged bankruptcy filing as alternative course HPR Prepackaged…
  6. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 6
    Strategy, Values, and Priorities + Strategy and Culture Priorities Balance Open, accessible and Sheet Low-cost operatorship transparent leadership Strength Low leverage Lean and nimble management Low growth Focus on shareholder…
  7. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 7
    Free Cash Flow Priorities + Reinvestment rate based on maintaining consistent production assuming 1 Maintain Base Production expected returns are greater that weighted average cost of capital Target leverage ratio of 0.5x (net…
  8. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 8
    Free Cash Flow Generation + Production (4Q 2020E) 50 Mboe/d +325% (1) 2021E LFCF 130 million Debt 2023 and 2026 Maturities (RBL) (Notes) Pre-Transaction BCEI LFCF Transaction Benefit Pro Forma BCEI LFCF (2) 1 2021E…
  9. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 9
    Debt Repayment and Distribution Strategy + Pro Forma 2021-2023 Estimated Sources and Uses of Cash (Assumes Full Year of Cost Savings) 400 More than 340 million in cumulative levered free cash flow by YE 2023 CFO at 2021E 2022E 2023E…
  10. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 10
    Sustainable Business Model + Pro Forma 2021-2023 Daily Production (Boe/d) 60,000 Average IRRs of 2021-2023 60,000 DUCs 60% Future Locations 30% 50,000 50,000 Aggregate 45% 40,000 40,000 30,000 30,000 20,000 20,000…
  11. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 11
    Increased Scale + 2Q 2020 Production (Mboe/d) and Oil Mix 200 100% 180 160 80% 140 57% 57% 56% 120 60% 100 80 56.4 40% 60 31.5 24.9 40 20% 20 0 0% PDCE MUR SM CPE LPI MR QEP MTDR CDEV MGY BCEI + OASPQ HPR BRY BCEI PVAC…
  12. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 12
    Low Leverage and Low-Cost Operatorship + (1) 2Q 2020 Net Debt / 2021E EBITDAX 6.0x With 2021 estimated LFCF generation of 130 million at NYMEX Strip 5.0x Pricing, leverage ratio expected to improve to 0.3x by YE 2021 4.0x 4.0x…
  13. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 13
    Realizable Cost and Capital Synergies + PV10 ( millions) Example Operational and Capital Synergies 1 Future RMI Existing HPR 1 Overlapping Gas Gathering Lines compressor station Compression avoided Eliminates 3-4 million…
  14. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 14
    Increased Gathering Scale and Optionality + Pro Forma Infrastructure Assets 250 MMcf/d of gas gathering capacity 245 miles of gas gathering, gas-lift, and sales lines Gas 24 pipeline interconnects to 4 midstream gas processors…
  15. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 15
    Pro Forma Operating Practices Drive Results & Value + DJ Basin 12-Month Cumulative Oil Production per 1,000' Lateral Feet (June 2018 to Present) 18,000 50 16,000 45 12-month Cumulative Oil Production per 1000' 40 14,000…
  16. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 16
    ESG Commitment + Meeting/exceeding Colorado air emission standards and groundwater monitoring regulations Reducing carbon footprint via pipeline infrastructure, reduced truck traffic, Leak Detection and Repair (LDAR), and Storage…
  17. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 17
    Transaction Structure Additional Detail + Upon a successful exchange, HPR bonds will be stripped of substantially all protective covenants, including covenants restricting incurrence of secured debt and asset dispositions, which…
  18. Bonanza Creek HighPoint Resources Merger – Bonanza Creek Energy, Inc. – slide 18
    Company Contacts + Scott Landreth Senior Director, Finance, Investor Relations and Treasurer Tel: (720) 225-6679 Email: slandrethbonanzacrk.com 20 20

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