When a company such as BCEI conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the BCEI split history from start to finish, an original position size of 1000 shares would have turned into 8.96153708284045 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into BCEI shares, starting with a $10,000 purchase of BCEI, presented on a split-history-adjusted basis factoring in the complete BCEI split history.

About BCEI

Bonanza Creek Energy is an exploration and production company focused on the acquisition, development, and extraction of oil and associated natural gas in the U.S. Co.'s oil and assets and operations are concentrated in the rural portions of the Wattenberg Field in Colorado. Co.'s development and extraction activities are primarily directed at the horizontal development of the Niobrara and Codell formations in the Denver-Julesburg Basin. According to our BCEI split history records, BCEI has had 1 split.

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