Jackson Walker Handles Oil and Gas Hedging Transactions for $2B Credit Facility to Complete Merger of Oil and Gas Companies Creating Colorado’s First Carbon Neutral Energy Producer

January 25, 2022 | Client Results

Jackson Walker handled the oil and gas hedging transactions for a $2 billion credit facility involving the merger of two publicly traded Denver-based oil and gas companies to form Civitas Resources, Inc., Colorado’s first carbon neutral energy producer. The transaction, which consolidated Extraction Oil & Gas, Inc., Bonanza Creek Energy, Inc., and Crestone Peak Resources, LLC, was listed among the “Top 10 M&A Deals of 2021” by The Texas Lawbook.

“This representation focused on complex oil, gas, and other hedging transactions across 15 banks, which managed price and other market risks inherent in the energy industry,” said Houston partner Jesse S. Lotay, who led the Jackson Walker team.

Civitas focuses on developing and producing crude oil, natural gas, and natural gas liquids in Colorado’s Denver-Julesburg (DJ) Basin. The company operates on approximately 500,000 net acres in Weld County with a production base of about 160,000 barrels of oil equivalent per day.

For more information about the merger, view the Denver Business Journal article “Three-way merger creates Civitas Resources, a Denver-based oil company” and the Denver Post article “Newly formed Civitas continues oil-gas consolidation in Colorado with deal with Crestone Peak Resources.” Also, see The Texas Lawbook’s announcement of “The Top 10 M&A Deals of 2021” for details.

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Since Jackson Walker’s founding in 1887, our attorneys have represented some of the most influential companies and business leaders in the world. Today, we remain firmly rooted in Texas while serving clients around the globe. With more than 400 attorneys across seven offices, we are the second-largest firm in Texas and have been recognized by Law360 as a “Texas Powerhouse” and an “elite law firm” that regularly provides counsel to industry-leading clients on highly complex transactions ranging from millions to billions. To explore the Firm’s experience in commodities and derivatives transactions, visit the Energy practice page.