Bonanza Creek Energy Inc (BCEI) WACC Analysis

As of May 29, 2025, Bonanza Creek Energy Inc (BCEI) carries a Weighted Average Cost of Capital (WACC) of 9.4%. WACC reflects the blended rate Bonanza Creek Energy Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.1%, the cost of debt is 4.0%, and the effective tax rate is 27.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 0.93 – 1.45
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0

What It Means for Investors

With a selected WACC of 9.4%, Bonanza Creek Energy Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.