Centennial Resource Development Inc. recently closed the previously announced sale of noncore assets to affiliates of Henry Resources LLC and Pickering Energy Partners LP for a cash purchase price of $101 million.
“This divestiture enhances our financial flexibility as we head into next year,” Centennial CEO Sean R. Smith commented in a company release on Dec. 1.
Centennial Resource Development is a Denver-based independent oil and natural gas company focused on the Permian Basin whose approximately 71,500 net acres are concentrated in the Delaware Basin.
The properties sold include approximately 6,200 net leasehold acres and related assets located on the southernmost portion of the company’s Reeves County, Texas position. Third quarter estimated average net production associated with the divested acreage was approximately 1,600 boe/d (64% oil), or less than 3% of total company production.
According to statements made by Smith in early November, Centennial’s near-term capital is focused on other areas of its portfolio and plans for proceeds from the sale were to reduce borrowings on the company’s revolver.
As of Sept. 30, Centennial had roughly $494 million of liquidity with no senior note maturities until early 2026. The company expected net debt / last 12-month EBITDAX to be about 1.5 times by year-end 2021, according to an investor presentation published on Nov. 3.
Recommended Reading
Murphy Shares Drop on 4Q Miss, but ’25 Plans Show Promise
2025-02-02 - Murphy Oil’s fourth-quarter 2024 output missed analysts’ expectations, but analysts see upside with a robust Eagle Ford Shale drilling program and the international E&P’s discovery offshore Vietnam.
Q&A: Petrie Partners Co-Founder Offers the Private Equity Perspective
2025-02-19 - Applying veteran wisdom to the oil and gas finance landscape, trends for 2025 begin to emerge.
Hess Corp. Bucks E&P Trend, Grows Bakken Production by 7%
2025-01-29 - Hess Corp. “continues to make the most of its independent status,” delivering earnings driven by higher crude production and lower operating costs, an analyst said.
Michael Hillebrand Appointed Chairman of IPAA
2025-01-28 - Oil and gas executive Michael Hillebrand has been appointed chairman of the Independent Petroleum Association of America’s board of directors for a two-year term.
Italy's Intesa Sanpaolo Adds to List of Banks Shunning Papua LNG Project
2025-02-13 - Italy's largest banking group, Intesa Sanpaolo, is the latest in a list of banks unwilling to finance a $10 billion LNG project in Papua New Guinea being developed by France's TotalEnergies, Australia's Santos and the U.S.' Exxon Mobil.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.