HighPoint Resources News: 7 Things for HPR Stock Investors to Know

HighPoint Resources (NYSE:HPR) stock is blasting off on Monday to start the trading week. And while there is no company-specific news today, Wall Street appears to be reacting to recent mergers and acquisitions (M&A) news.

Image of an oil wells with an orange-red sky at dusk
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Last Monday, HPR and Bonanza Creek Energy (NYSE:BCEI) announced that the two companies were merging in a deal worth about $376 million. This is a massive move for both energy firms, and will create a number of positive catalysts moving forward. That said, let’s take a look at few major points from the HPR stock announcement:

  • According to the release, “Bonanza Creek will issue 9.8 million shares of common stock and up to $100 million in senior unsecured notes in the transaction.”
  • The move will create a completely new company with increased business size and scale in the Denver-Julesburg (DJ) Basin of Colorado.
  • In turn, this entity will own nearly 206,000 acres.
  • The new company will also be able to produce 50,000 barrels of oil equivalent per day.
  • Also, for fiscal year 2021, the companies expect full-year production to be between 45,000 and 50,000 barrels of oil equivalent per day.
  • And Bonanza Creek “expects its combined cash costs to be between $9.00 and $10.00” per barrel of oil equivalent.

Scot Woodall, CEO and president of HighPoint Resources, had this to say about the HPR stock news:

“This transaction will create a premier DJ Basin player with a peer leading cost structure and a large, attractive rural footprint. The transaction provides HighPoint stakeholders with the opportunity to participate in a larger DJ Basin producer with both an attractive balance sheet and free cash flow profile.”

HPR stock was up more than 43% as of Monday morning.

On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Nick Clarkson is a web editor at InvestorPlace.

Article printed from InvestorPlace Media, https://investorplace.com/2020/11/highpoint-resources-news-7-things-for-hpr-stock-investors-to-know/.

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