Extraction Oil & Gas — Merger or Acquisition (May 2021)
23 slides from Extraction Oil & Gas's merger presentation, May 10, 2021
Slide 1: Bonanza Creek and Extraction Merger of Equals
Bonanza Creek and Extraction Merger of Equals May 10, 2021
Slide 2: Important Disclosures
Important Disclosures No Offer or Solicitation This communication relates to a proposed business combination transaction (the “Merger”) between Bonanza Creek Energy, Inc. (“BCEI”) and Extraction Oil & Gas, Inc. (“XOG”). Communications in this document do not constitute an offer to sell or the solici
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Forward-Looking Statements and Cautionary Statements Certain statements in this document concerning the Merger, including any statements regarding the expected timetable for completing the Merger, the results, effects, benefits and synergies
Slide 4: Preeminent Pure-play DJ Basin Operator
Preeminent Pure-play DJ Basin Operator Pro Forma Metrics Enterprise Value ~$2.6 Bn1 2021E EBITDA >$750 MM2 LaramieKimball Est. April Net Production 117 MBoe/d (65% liquids / 40% oil) YE20 Proved Reserves 315 MMBoe Larimer Weld Morgan Net acres ~425,000 Annual synergies of ~$25 MM Boulder Broomfield
Slide 5: Delivering on the New E&P Business Model
Delivering on the New E&P Business Model High Quality Asset BaseAbility to maintain production with ~50% reinvestment Front End of Cost Curve~$4.00 / Boe 1Q21 LOE + G&A Significant Free Cash Flow Generation Returning Cash to Shareholders 2021E ~$485 MM Pro Forma FCF ~20% Pro Forma FCF Yield $1.60 /
Slide 6: Merger Overview
Merger Overview Merger of Equals All-stock transaction 50% BCEI and 50% XOG Pro forma enterprise value ~$2.6 Bn1 Leadership & Governance Ben Dell – Chairman Board of Directors: four BCEI representatives, four XOG representatives Eric Greager – CEO Approvals & Timing Unanimously approved by BCEI and
Slide 7: Best-in-Class, Shareholder-Aligned Management Team
Best-in-Class, Shareholder-Aligned Management Team Premier DJ Basin management team Brings to bear best practices from deep DJ Basin experience 100% of executive incentive compensation expected to be in stock Performance shares tied directly to total shareholder return 7
Slide 8: Transaction Accretive on All 2021E Key Metrics
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
Slide 9: Strategy, Values, Priorities
Strategy, Values, Priorities Strategy and Culture Distinctive competencies in operations, consolidation, sustainability and regulation Highly energized management team Best-in-class corporate governance Operational flexibility and optionality across the DJ Committed to all stakeholders Return Cash t
Slide 10: Free Cash Flow Generation & Capital Allocation Priorities
Free Cash Flow Generation & Capital Allocation Priorities 2021E Full Year Pro Forma FCF Generation1Disciplined Business Principles $1,000 ✓ ✓ Anticipated to pay $1.60 per share annual dividend Maintain financial flexibility across commodity and development scenarios Target leverage to ~0.5x or less
Slide 11: Low Leverage and Low-Cost
Low Leverage and Low-Cost 1Q21 Net Debt / 2021E EBITDA 3.7x 0.3x0.3x 1.1x 1.4x1.7x1.8x1.8x 1.9x 2.2x2.4x2.4x2.5x Civitas Peer 1DJ PeerPeer 2Peer 3Peer 4Peer 5Peer 6Peer 7Peer 8Peer 9Peer 10Peer 11 1Q 2021 LOE + Cash G&A ($/Boe) $31.08 ~$4.00$4.24$4.43$6.17$6.54$6.81$7.10$7.48$8.05 $8.69 $12.64$12.66
Slide 12: Scale Leads to Relevance and Liquidity
Scale Leads to Relevance and Liquidity 2021E Wall Street Consensus Production (MBoe/d) and Liquids Mix (%) 193 163 65%61% 132114 75% 9184837266 64594228 2423 DJ PeerPeer 1Peer 2 Civitas 1 Civitas 2021E Wall Street Consensus EBITDA ($MM) $1,256$1,200 $892$860$788>$750 $638 $486$467$448$431 $318$262 $
Slide 13: Compelling Valuation Given Peer Leading Free Cash Flow Generation
Compelling Valuation Given Peer Leading Free Cash Flow Generation Enterprise Value1 / 2021E EBITDA 6.3x6.2x5.9x 5.5x5.1x5.0x4.9x4.8x 4.8x4.4x x3.5x3.4x Civitas Civitas 2021E FCF Yield >20% 14% 10%10%10%8%8% 7%6%6% 4%3% 2% Civitas DJ PeerPeer APeer BPeer CPeer DPeer EPeer FPeer GPeer HPeer IPeer JPee
Slide 14: DJ Basin Optionality
DJ Basin Optionality Combined Position Facilitates Asset Development Optimization Development Area Approximate Net Acres Geography Western 81,000 Suburban / Rural Eastern 117,000 Rural Southern 58,000 Suburban / Rural Northern 168,000 Rural Northern Larimer Weld Western Eastern Morgan April Net Prod
Slide 15: Opportunity-Rich Basin
Opportunity-Rich Basin Civitas is well-positioned to participate in future basin consolidation Numerous privately held companies Asset Locator Map LaramieKimball Opportunity to increase efficiencies with scale Operating expertise across the basin Captured synergies returned to shareholders Civitas w
Slide 16: Sustainability Leadership in Action
Sustainability Leadership in Action Committed to Net Zero Scope 1 and 2 High-grade emissions practices Extraction YoY Emissions Intensity Reductions (mt CO2e/MMBoe) 15.9 Electrification of operations Tankless development 13.9 10.6 5.7 Retrofit legacy facilities Plug bottom-tier wells 201720182019202
Slide 17: Implementing the ESG Vision
Implementing the ESG Vision Responsible Stewardship ✓• Colorado’s First Net-Zero Operator – Aggressive operational emissions-reduction program coupled with a multi-year investment in certified emissions offsets ✓• Electric Vehicle Fleet Conversion Adopting EV fleet this year ✓• Project Canary Certif
Slide 18: Expected Civitas Governance Structure
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 expected to adopt term limits of 7 years
Slide 19: Civitas – A Value Enhancing Combination
Civitas – A Value Enhancing Combination 01 Preferred transaction partner in the basin 02 Maintain flat production at 50% reinvestment rate 03 Doubles financial and operational scale while maintaining <0.5x leverage 04 ~$25 MM annually, equating to over $100 MM of present value 05 Implied pro forma v
Slide 20: Appendix
Appendix
Slide 21: Pro Forma Shareholder Base
Pro Forma Shareholder Base High-quality stockholder base Increased market cap expands investor appeal Current index participation may increase Top 10 holders own ~60% Top 10 Shareholders Kimmeridge Franklin Templeton BlackRock Prudential Fidelity Management CapRe Brigade Dimensional Fund Advisors Be
Slide 22: Hedge Positions Enhance Financial Strength
Hedge Positions Enhance Financial Strength Bonanza Creek Oil Hedges Extraction Oil Hedges 16,500 $34.40 / $49.82 14,269 12,500 $30.00 / 12,000 10,500 12,533 11,315 $54.20 $50.62$30.63 / $50.34 $54.41 $54.49 $55.06 $34.21 / 9,000 $55.06 5,500 $53.13 5,000 $53.13 $50.34 $49.64 $50.01 9,200 $50.05 3,80
Slide 23: Corporate Contact Information
Corporate Contact Information Investor Relations John Wren ir@extractionog.com Scott Landreth slandreth@bonanzacrk.com Media & ESG Policy Brian Cain info@extractionog.com Exhibit 99.2 23
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