Civitas Looking to Acquire both Extraction and Crestone Peak Resources

As announced on the City/ County of Broomfield’s Oil and Gas news page, “Broomfield’s elected officials and staff are aware of today’s announcement that Civitas Resources, Inc., a company that will be formed upon the closing of the merger between Extraction and Bonanza Creek, will acquire Crestone Peak Resources, Inc. In addition to continuing to monitor the Extraction merger, which is expected to close in the third quarter, staff and our legal team are working on understanding and addressing the impact of this acquisition, and will provide pertinent updates when we have them.”

It’s unclear what this will mean for Broomfield residents who continue to see the impact of oil and gas development so close to homes, schools, recreation areas, and water sources, and after Extraction’s bankruptcy this past year has left so many of us scratching our heads. Extraction’s development of resources in Broomfield is far from over, with the yet-to be determined-timeline on the impending drilling of dozens of wells on the United, Northwest A&B, and Interchange A&B pads. Merging with Crestone Peak Resources may raise red flags for some, as past communications and on-record conversations with Extraction have always highlighted their dedication to the local communities as a Denver-based company. Alternatively, as stated in this story by Oil and Gas 360, “Crestone’s primary shareholder is Canada Pension Plan Investment Board (‘CPP Investments’). CPP Investments will become Civitas’ largest shareholder and will designate one member to the Civitas board upon closing.” With the majority of shareholders in another country with a heavy prioritization on shareholder returns and dividends, one might wonder if the health and safety of the local community will be in the forefront of the corporate strategy of this soon-to-be mega-conglomerate.