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Bonanza Creek Energy Inc

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

HomeSWOT AnalysisEnergyBonanza Creek Energy Inc

Introduction

This study on Bonanza Creek Energy Inc is part of our coverage of the top 10,000 companies in the world. It is constantly updated to ensure the latest content is available.

Full access to this study on Bonanza Creek Energy Inc is available for Premium members only.

We identify potential new products and/or services that are distinct from the analytical sections. Additionally, we predict upcoming market trends and anticipate how Bonanza Creek Energy Inc can collaborate with other organisations.

Company Description

Bonanza Creek Energy Inc. is a publicly-traded energy company headquartered in Denver, Colorado. Founded in 2009, Bonanza Creek Energy Inc. specializes in the acquisition and development of oil and natural gas properties. Its main products and services include exploration, development and production of crude oil, natural gas and natural gas liquids. Bonanza Creek Energy Inc. mainly serves markets in the United States, including the Rocky Mountain and Mid-Continent regions.

Industry Overview

Bonanza Creek Energy Inc is a company operating in the oil and natural gas industry. The total industry size of oil and natural gas in the US is estimated to be around $400 billion. The industry employs around 500,000 people in the US and around the world. In the US, the majority of employees are based in the Gulf Coast region and in the West, while internationally, employees are spread across Europe, Africa, and Asia.

Industry Classification

In terms of formal classification, Platform Executive has tagged Bonanza Creek Energy Inc as a business operating within the Oil and Gas Operations industry.

Table of Contents

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Method of using oxidized hydrocarbons to improve oil recovery
Patent ID: 10849956
Date: October 20, 2020.

Patent Title: Method of producing oil and gas from heavy oil deposits
Patent ID: 10849953
Date: October 20, 2020.

Patent Title: Method of producing oil and gas from fractured reservoirs
Patent ID: 10849950
Date: October 20, 2020.

Patent Title: System and method of producing oil and gas from low permeability reservoirs
Patent ID: 10849947
Date: October 20, 2020.

Patent Title: System and method of producing oil and gas from low permeability reservoirs
Patent ID: 10849944
Date: October 20, 2020.

Patent Title: Method of producing oil and gas from low permeability reservoirs
Patent ID: 10849941
Date: October 20, 2020.

Patent Title: Method of producing oil and gas from low permeability reservoirs
Patent ID: 10849938
Date: October 20, 2020.

Patent Title: Method of producing oil and gas from low permeability reservoirs
Patent ID: 10849935
Date: October 20, 2020.

Patent Title: Method of producing oil and gas from low permeability reservoirs
Patent ID: 10849932
Date: October 20, 2020.

Patent Title: Method of producing oil and gas from low permeability reservoirs
Patent ID: 10849929
Date: October 20, 2020.

Major Products & Services

The main products and/or services commercialised by this business include the following:

  • Oil and Natural Gas Exploration and Production
  • Oil and Natural Gas Reserves Acquisition
  • Oil and Natural Gas Processing and Marketing
  • Natural Gas Storage
  • Oil Field Services
  • Midstream and Downstream Services
  • Land Services

Key Competitors

We have identified the following organisations as being key competitors:

  • Concho Resources
  • Devon Energy Corporation
  • EOG Resources
  • Anadarko Petroleum Corporation
  • Encana Corporation
  • WPX Energy
  • Apache Corporation
  • Noble Energy
  • Occidental Petroleum Corporation
  • Cimarex Energy Co.
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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Shareholders: Bonanza Creek Energy Inc’s shareholders include the company’s owners, investors, and other equity holders.

2. Employees: Bonanza Creek Energy Inc’s employees are its most important stakeholders, as the company relies on its employees to provide the services and products necessary for success.

3. Customers: Bonanza Creek Energy Inc’s customers are also important stakeholders, as the company’s profitability depends on the satisfaction of its customers.

4. Suppliers: Suppliers are another important stakeholder group, as they provide the necessary materials, parts, and services that the company requires in order to produce its products and services.

5. Government: Government agencies and organisations are also important stakeholders, as they regulate the industry, provide subsidies and other forms of support, and are a potential source of funding.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like Bonanza Creek Energy Inc different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand Bonanza Creek Energy Inc and its position within the marketplace.

Bonanza Creek Energy Inc. offers a suite of renewable energy products and services to its customers. The company's products and services include wind energy, solar energy, and geothermal energy. Its products and services are designed to help customers reduce their carbon footprints and lower their energy costs.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Experienced Management Team: Bonanza Creek Energy Inc. has a highly experienced management team that brings decades of experience in the oil and gas industry, giving the company a competitive advantage.

Strategic Focus: Bonanza Creek Energy Inc. has a well-defined strategy that focuses on the development and optimisation of oil and gas assets in the Greater Green River Basin. This strategy has allowed the company to reduce operational costs while increasing production.

Financial Strength: Bonanza Creek Energy Inc. has a strong balance sheet with a low debt to equity ratio and access to a variety of capital sources. This financial strength provides the company with flexibility to pursue growth opportunities.

Technology: Bonanza Creek Energy Inc. has adopted advanced technologies to maximize production, reduce costs, and improve safety. The company has also utilized 3-D seismic technology to better understand the subsurface geology and identify targets for exploration and development.

High Quality Assets: Bonanza Creek Energy Inc. owns a diverse portfolio of high quality assets located in the Lower 48 and Alaska, offering the company a competitive advantage in the oil and gas industry.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

  • Corporate/Industrial Customers
  • Institutional Customers
  • Retail Customers
  • Government Customers
  • Wholesale Customers
  • International Customers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Key Market Trends
Renewable Energy: Bonanza Creek Energy Inc. will need to stay up to date with the latest advances in renewable energy, as this sector is expected to grow significantly in the next few years. This means that the company should invest in research and development, as well as work to identify potential opportunities in the renewables space.

Shifting Consumer Preferences: The preferences of consumers are changing rapidly, and Bonanza Creek Energy Inc. must pay attention to this trend. Consumers are increasingly looking for green and sustainable energy sources, and the company must be prepared to meet these demands.

Technological Advances: Technology is rapidly advancing and Bonanza Creek Energy Inc. must stay up to date with the latest advancements. This means investing in research and development, as well as exploring potential opportunities in the energy sector.

Regulatory Changes: Regulatory changes, particularly in the energy sector, could have a significant impact on Bonanza Creek Energy Inc. The company must stay abreast of the latest changes and adjust their business model accordingly. This could include taking advantage of regulatory incentives, or investing in new technology to meet the changing standards.

Key Performance Indicators

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for Bonanza Creek Energy Inc include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Financials

Key Personnel

Income Statement

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Data analytics services - Bonanza Creek Energy Inc could provide data analytics services to help customers better understand their energy usage, identify areas of improvement, and make informed decisions about energy usage.

Innovative energy solutions - Bonanza Creek Energy Inc could develop innovative energy technologies such as solar energy, wind energy, and other renewable energy sources to provide customers with more efficient and cost-effective energy solutions.

Energy efficiency auditing - Bonanza Creek Energy Inc could provide energy efficiency audits to help customers identify areas of their home or business that could benefit from energy efficiency improvements and upgrades.

Online educational resources - Bonanza Creek Energy Inc could create online educational resources to help customers understand energy use and identify ways to save money and reduce their environmental impact.

Energy management consulting - Bonanza Creek Energy Inc could offer energy management consulting services to help customers develop strategies to reduce their energy consumption and optimize their energy use.

Energy storage solutions - Bonanza Creek Energy Inc could develop energy storage solutions to help customers store energy for later use and reduce their reliance on the electrical grid.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Occidental Petroleum Corporation
2. Apache Corporation
3. Newfield Exploration Company
4. Devon Energy Corporation
5. Anadarko Petroleum Corporation
6. EOG Resources, Inc.
7. Marathon Oil Corporation
8. Hess Corporation
9. Cimarex Energy Co.
10. Continental Resources, Inc.

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

  • Competitive rivalry
  • Supplier power
  • Buyer power
  • Threat of substitution
  • Threat of new entries
Porter's 5 forces is a framework that is used to analyse an industry and how it affects business within that industry. The 5 forces are:

1. Supplier Power

2. Buyer Power

3. Threat of New Entrants

4. Threat of Substitutes

5. Rivalry Amongst Firms In relation to Bonanza Creek Energy Inc, the company scores relatively HIGH in supplier power, buyer power, and threat of new entrants. However, the company scores relatively LOW in threat of substitutes and rivalry amongst firms.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

  • Political
  • Economic
  • Social
  • Technological
  • Legal
  • Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

PESTLE Analysis

CATWOE Analysis

CATWOE

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

  • Customers
  • Actors
  • Transformation process
  • World view
  • Owners
  • Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: Bonanza Creek Energy Inc. customers are primarily oil and gas producers, primarily located in the United States, who purchase the company's oil and gas production.

Actors: The primary actors in the Bonanza Creek Energy Inc. organisation are the employees, management, and shareholders of the company. The company also has customers and suppliers.

Transformation process: The transformation process of Bonanza Creek Energy Inc. involves the exploration, development, and production of oil and gas. The company employs a range of technologies and processes to extract oil and gas from the earth, and to transport it to customers.

World view: Bonanza Creek Energy Inc. has a strong commitment to sustainability and responsible energy production. The company is committed to minimizing its environmental impact and to operating in a safe, responsible manner. The company also strives to create value for its shareholders, customers, and employees.

Owners: Bonanza Creek Energy Inc. is owned by its shareholders, who are primarily institutional investors such as pension funds, mutual funds, and hedge funds.

Environmental constraints: Bonanza Creek Energy Inc. is subject to a range of environmental regulations, which it must comply with in order to operate. These regulations include those related to air and water quality, waste disposal, and the protection of wildlife and natural habitats. The company is also subject to market conditions, including the price of oil and gas, which can have a direct impact on the company's profitability.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Bonanza Creek Energy Inc business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

SWOT Analysis

Strengths

Below is a list of the strengths we have identified for the business:

1. Bonanza Creek Energy has a strong operational and strategic balance sheet.

2. Bonanza Creek Energy has a diversified resource mix that includes both natural gas and oil.

3. Bonanza Creek Energy has a strong management team with a strong track record of success.

4. Bonanza Creek Energy has an extensive pipeline and storage infrastructure that allows for efficient and timely delivery of energy products.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Increase operational efficiency: Bonanza Creek Energy Inc. can focus on improving their operational efficiency and refining current processes to reduce costs and increase productivity. This could include streamlining their supply chain management, increasing automation, and investing in more advanced technology.

2. Expand geographically: Bonanza Creek Energy Inc. should consider expanding its operations to other oil-producing regions such as the Middle East, Africa, and Latin America. Doing so would allow the company to access new markets, increase its customer base, and ultimately increase its profits.

3. Capitalize on emerging technologies: Bonanza Creek Energy Inc. should take advantage of emerging technologies such as artificial intelligence, big data, and blockchain. These technologies can help the company increase its visibility in the market, improve decision-making processes, and optimize operations.

4. Invest in renewable energy: Bonanza Creek Energy Inc. should invest in renewable energy sources such as solar, wind, and hydro, which can help reduce their reliance on traditional sources of energy and reduce their carbon footprint. Doing so would also help them meet their sustainability goals and put them in a better position to capitalise on future trends in the energy sector.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of Diversification: Bonanza Creek Energy Inc. is primarily focused on oil and gas exploration and production in the United States, which makes it susceptible to fluctuations in global oil prices.

2. High Debt Levels: As of December 31, 2018, Bonanza Creek Energy Inc. had $1.4 billion of debt outstanding. This high level of debt leaves the company less able to weather downturns in the oil market.

3. Limited Scale: Bonanza Creek Energy Inc. is a relatively small oil and gas company with a market capitalization of only $943 million as of December 31, 2018. This limited scale may make it difficult for the company to compete against larger and more diversified oil and gas companies.

4. High Cost of Production: Bonanza Creek Energy Inc.’s average production costs were $50.02 per barrel of oil equivalent (BOE) in 2018. This high cost of production may make it difficult for the company to generate profits if oil prices fall.

Threats

Below is a list of the threats we have identified for the business:

1. Competitive pressures: Bonanza Creek Energy Inc. faces competitive pressures from other oil and gas companies. This includes local competitors as well as larger oil and gas companies with deeper pockets. These companies may be able to outspend Bonanza Creek on exploration and development, eroding the company's competitive edge.

2. Market volatility: The oil and gas market can be highly volatile, with prices fluctuating on a daily basis. This can lead to significant swings in the company's income and profits, making it difficult to plan for the future.

3. Operational risks: Bonanza Creek Energy Inc. is exposed to operational risks such as safety, production delays, equipment failure, and environmental compliance. Poorly managed operations can lead to significant costs, fines, and reputational damage.

4. Access to capital: Access to capital is an important factor in the oil and gas industry. Bonanza Creek may find it difficult to raise capital to fund exploration and development activities if investors are wary of the market or the company's prospects.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.
This (concise) 5C analysis examines the external and internal environment for Bonanza Creek Energy Inc. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Bonanza Creek Energy Inc, as well as areas where the company needs to improve its operations or strategy.
Company: Bonanza Creek Energy Inc. is an oil and gas exploration and production company based in Denver, Colorado. The company is focused on developing the Niobrara, Codell, and Greenhorn formations located in the Denver-Julesburg Basin.

Collaborators: Bonanza Creek Energy Inc. works with a number of partners and collaborators in the oil and gas industry, including service providers, suppliers, and other oil and gas companies.

Customers: Bonanza Creek Energy Inc.’s primary customers are refineries and other large-scale end-users of oil and gas.

Competitors: Bonanza Creek Energy Inc. is a small company, and its primary competitors are larger oil and gas companies with more resources and larger production capabilities.

Content: Bonanza Creek Energy Inc. produces its own content, including weekly operational updates, quarterly investor reports, and other marketing materials. The company also works with external content creators to promote its products and services.
5C Analysis

MOST Analysis

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

  • Mission
  • Objectives
  • Strategy
  • Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Innovation Scorecard

Below is a guide to each score:

Industry score:

A The industry is amongst the most innovative; with the leading players all driving the sector forward.
Example industry: PaaS
B The industry and its leading players have a good track record of innovation; and can quickly react to change.
Example industry: Pharmaceutical
C Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate.
Example industry: FMCG
DBusinesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption.
Example industry: Retail Banking
E The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change.
Example industry: Publishing

 

Company score:

1 The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2 The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3 The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5 The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.
The team at Platform Executive has judged Bonanza Creek Energy Inc as having an innovation score of C2.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on Bonanza Creek Energy Inc forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

  • Corporate websites
  • Proprietary research databases
  • SEC Filings
  • Corporate press releases
  • News articles
  • Financial data API's
  • Product-matching algorithm

Further Information

Premium members: If you cannot find the desired information or data set for the business you are researching then please reach out to our research and analysis team. We can tailor reports to meet your requiremnents, with a fast turnaround time.

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Disclaimer

All Rights Reserved.

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 23rd May 2023

Industry Keywords