Letter from the CEO
A Letter From Our CEO
Providing the Energy for a Brighter Tomorrow
It is with great enthusiasm that we release our 2020 Environmental, Social, and Governance (ESG) update. The Bonanza Creek team is committed to building a sustainable energy company that supports the communities where we live and work. This effort is undertaken at all levels of our organization and is an integral part of what makes Bonanza Creek a premier operator in the DJ Basin.
In order to maintain support for our ongoing operations, we must ensure that we are responsible stewards of the air, water, and land affected by our operations. To ensure we are able to do that, we take the measurement of our impact and the implementation of ESG best practices seriously. Every day we go to work, our goal is not just to produce the energy that drives the communities where we operate, but also to make those places safer and more prosperous with our presence.
In 2020, we took steps to map our ESG performance to the standards set forth by Institutional Shareholder Services (ISS) to increase transparency for our stakeholders. We believe this framework allows us to effectively communicate the strong performance our company realizes day in and day out to all of those interested in the positive impact Bonanza Creek has on the environment and community.
A major facet of our strategy over the course of the year was the centralization of our production facilities. This allows us to stay on the leading edge of technology and best practices for complying with the control of emissions. Currently we produce 77% of our crude oil through these centralized production facilities (CPFs) up from 50% in 2018. This centralization has translated into a 63% reduction in hauling and trucking emissions field wide.
In addition to the strategic innovation that allows us to capture more emissions, we remained focus on the health and safety of our employees. A culture of safety allows us to work efficiently and ensure that the people who make Bonanza a sustainable energy producer can remain focused on best-in-class performance. Our Total Recordable Incident Rate declined to 0.81 in 2020, down from 0.84 in 2019, highlighting the effectiveness of our safety programs and the seriousness with which our employees approach safety on the job.
Moving into 2021, we are excited with the position the company is in, thanks to the dedicated work of our employees, to build a company that will not only last the test of time but will improve the communities we touch in the process. Our consistent implementation of new technology and evolving industry best practices will allow us to continuously improve Bonanza Creek’s positive impact within the communities in which we operate.
We look forward to providing updates on our ESG efforts within the framework provided by ISS so our stakeholders have clarity on our progress. We are excited about our role as stewards and leaders in both the energy and ESG spaces in the DJ Basin.
President and Chief Executive Officer
Our policy is to manage all operations with respect for the environment and the health and safety of employees, customers, contractors, and the public.