Bonanza Creek will pay $175.5 million in cash and issue 1.1 million shares of stock for assets that consist of about 86,400 gross acres and newt production of about 700 Boe/d in the Wattenberg Field. The average working interest in the properties is 40%. The transaction is expected to close early in the third quarter with an effective date of June 1.
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TheStreet Ratings team rates BONANZA CREEK ENERGY INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BONANZA CREEK ENERGY INC (BCEI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."