(XOG): Johnson Fistel Investigates Proposed Sale of Extraction Oil & Gas; Are Shareholders Getting a Fair Deal?

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May 10, 2021, 09:24 ET

SAN DIEGO, May 10, 2021 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of Extraction Oil & Gas, Inc. (NASDAQ: XOG) ("Extraction" or the "Company") breached their fiduciary duties in connection with the proposed sale of the Company to Bonanza Creek Energy, Inc. (NYSE: BCEI) ("Bonanza Creek").

On May 10, 2021, Extraction announced that it had entered into a definitive merger agreement with Bonanza Creek. Under the terms of the deal, Extraction shareholders will receive a fixed exchange ratio of 1.1711 shares of Bonanza Creek common shares for each share of Extraction common stock owned on the closing date. Based on Bonanza Creek's closing stock price on May 7, 2021, this represents a total consideration of approximately $43.85 per Extraction share.

Extraction shareholders will be subject to the future price fluctuation of Bonanza Creek's stock price.

The investigation concerns whether the Extraction board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Extraction shares of common stock. Nationally recognized, Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given analysts' projections for future earnings and revenue growth; also, one Wall Street analyst has a $51.00 price target on the stock.

If you are a shareholder of Extraction and believe the proposed buyout price is too low or you're interested in learning more about the investigation, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number.

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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
[email protected]

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SOURCE Johnson Fistel, LLP