Kekst CNC handles Extraction Oil & Gas as it combines with Bonanza Creek Energy in what the Colorado companies bill as a “merger of equals.”

The combined company called Civitas Resources Inc. will be owned 50/50 by Extraction and Bonanza shareholders and be valued in the $2.6B range.

The Wall Street Journal notes the deal is the latest example of consolidation in the US oil & gas sector as it emerges from the COVID-19 pandemic.

Extraction CEO Tom Tyree said the merger will create one of the most durable, profitable and progressive producers in Colorado’s Denver-Julesburg Basin.

Civitas will be the state’s “first net-zero oil & gas producers through the continuing reduction in operational emissions coupled with a multi-year investment in certified emissions offsets,” said Tyree.

The deal is expected to close during the third quarter.

Kekst CNC has Daniel Yunger, Jon Morgan, Simone Leung, Hallie Wolff and JM Shekian working the Extraction merger.