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Acquisition of Extraction – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · May 10, 2021 · 21 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. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 1
    Bonanza Creek and Extraction Merger of Equals May 10, 2021
  2. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 2
    Preeminent Pure-play DJ Basin Operator Pro Forma Metrics Laramie Kimball Enterprise Value 2.6 Bn1 2021E EBITDA 750 MM2 Larimer Weld Est. April Net Production 117 MBoe/d (65% liquids / 40% oil) YE20 Proved Reserves 315 MMBoe…
  3. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 3
    Delivering on the New E&P Business Model Ability to maintain production with 50% High Quality Asset Base reinvestment Front End of Cost Curve 4.00 / Boe 1Q21 LOE + G&A Significant Free Cash Flow 2021E 485 MM Pro Forma FCF…
  4. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 4
    Merger Overview All-stock transaction Merger of 50% BCEI and 50% XOG Equals Pro forma enterprise value 2.6 Bn1 Ben Dell Chairman Leadership & Board of Directors: four BCEI representatives, four XOG representatives Governance…
  5. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 5
    Best-in-Class, Shareholder-Aligned Management Team Eric Greager Matt Owens Marianella Foschi Skip Marter Sandi Garbiso Brian Cain CEO COO CFO General Counsel CAO VP ESG Premier DJ Basin management team Brings to bear best…
  6. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 6
    Transaction Accretive on All 2021E Key Metrics Pro Forma for Synergies Cash flow per share Dividends per share Inventory quality Credit profile and cost of capital 8
  7. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 7
    Strategy, Values, Priorities Strategy and Culture Fortress Priorities Balance Distinctive competencies in Sheet Front end of the North operations, consolidation, American cost curve sustainability and regulation Generating FCF and…
  8. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 8
    Free Cash Flow Generation & Capital Allocation Priorities 2021E Full Year Pro Forma FCF Generation1 Disciplined Business Principles 1,000 Anticipated to pay 1.60 per share annual dividend Pay Base Dividend Maintain financial…
  9. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 9
    Low Leverage and Low-Cost 1Q21 Net Debt / 2021E EBITDA 3.7x 2.4x 2.4x 2.5x 2.2x 1.8x 1.8x 1.9x 1.7x 1.4x 1.1x 0.3x 0.3x Civitas Civitas Peer 1 DJ Peer Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer…
  10. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 10
    Scale Leads to Relevance and Liquidity 2021E Wall Street Consensus Production (MBoe/d) and Liquids Mix (%) 193 75% 163 65% 61% 132 114 91 84 83 72 66 64 59 42 28 24 23 1 DJ Peer Peer 1 Peer 2 Civitas Civitas Peer 3 Peer 4…
  11. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 11
    Compelling Valuation Given Peer Leading Free Cash Flow Generation Enterprise Value1 / 2021E EBITDA 6.3x 6.2x 5.9x 5.5x 5.1x 5.0x 4.9x 4.8x 4.8x 4.4x 3.9x 3.5x 3.4x Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8…
  12. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 12
    DJ Basin Optionality Combined Position Facilitates Asset Development Optimization Approximate Civitas Leasehold Positions Development Area Net Acres Geography Northern Western 81,000 Suburban / Rural Larimer Weld Eastern 117,000…
  13. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 13
    Opportunity-Rich Basin Asset Locator Map Civitas is well-positioned to participate in future Laramie Kimball basin consolidation Numerous privately held companies Opportunity to increase efficiencies with scale Larimer Weld…
  14. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 14
    Sustainability Leadership in Action Committed to Net Zero Scope 1 and 2 Extraction YoY Emissions Intensity Reductions (mt CO2e/MMBoe) High-grade emissions practices 15.9 13.9 Electrification of operations 10.6 5.7 Tankless…
  15. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 15
    Implementing the ESG Vision Responsible Stewardship Colorados First Net-Zero Operator Electric Vehicle Fleet Conversion Aggressive operational emissions-reduction program coupled Adopting EV fleet this year with a multi-year…
  16. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 16
    Expected Civitas Governance Structure Leading-Edge Policies Board brings together diverse group with decades of relevant experience Compensated primarily in stock, held through duration of service Dedicated ESG committee New board…
  17. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 17
    Civitas A Value Enhancing Combination Creates the premier pure-play DJ Basin operator 01 Preferred transaction partner in the basin Accelerates cash-return business model 02 Maintain flat production at 50% reinvestment rate…
  18. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 18
    Appendix
  19. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 19
    Pro Forma Shareholder Base Top 10 Shareholders High-quality stockholder base Kimmeridge Franklin Templeton BlackRock Increased market cap expands investor appeal Prudential Fidelity Management CapRe Current index…
  20. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 20
    Hedge Positions Enhance Financial Strength Bonanza Creek Oil Hedges Extraction Oil Hedges 16,500 34.40 / 49.82 14,269 12,500 12,533 12,000 11,315 30.00 / 10,500 50.62 30.63 / 9,000 9,200 50.34 55.06 54.20 55.06 50.34 5,500…
  21. Acquisition of Extraction – Bonanza Creek Energy, Inc. – slide 21
    Corporate Contact Information Investor Relations John Wren irextractionog.com Scott Landreth slandrethbonanzacrk.com Media & ESG Policy Brian Cain infoextractionog.com 23

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