Centennial Resource Development Announces Closing of Non-Core Asset Divestiture

Rhea-AI Summary

Centennial Resource Development (NASDAQ: CDEV) has finalized the sale of non-core assets to affiliates of Henry Resources and Pickering Energy for $101 million. The transaction includes approximately 6,200 net leasehold acres in Reeves County, Texas, with standard closing adjustments. CEO Sean R. Smith stated that the funds will be used to pay down borrowings on the company’s revolver, improving financial flexibility for the upcoming year.

Positive

• Sale of non-core assets for $101 million enhances financial flexibility.
• Proceeds will be utilized to reduce borrowings on the company's revolver.

Negative

• None.

DENVER, Dec. 01, 2021 (GLOBE NEWSWIRE) -- Centennial Resource Development, Inc. (“Centennial” or the “Company”) (NASDAQ: CDEV) today announced it has closed the previously announced sale of non-core assets to affiliates of Henry Resources, LLC and Pickering Energy Partners, LP for a cash purchase price of $101 million, subject to customary closing adjustments. 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.

“We are pleased to have closed this transaction and plan to utilize the proceeds to reduce borrowings on the Company’s revolver,” said Sean R. Smith, Chief Executive Officer. “This divestiture enhances our financial flexibility as we head into next year.”

About Centennial Resource Development, Inc.

Centennial Resource Development, Inc. is an independent oil and natural gas company focused on the development of oil and associated liquids-rich natural gas reserves in the Permian Basin. The Company’s assets and operations, which are held and conducted through Centennial Resource Production, LLC, are concentrated in the Delaware Basin, a sub-basin of the Permian Basin. For additional information about the Company, please visit www.cdevinc.com.

Contact:
Hays Mabry
Sr. Director, Investor Relations
(832) 240-3265
ir@cdevinc.com

FAQ

What is the cash purchase price of the assets sold by CDEV?

The cash purchase price is $101 million, subject to customary closing adjustments.

What will Centennial Resource Development do with the proceeds from the asset sale?

The proceeds will be used to reduce borrowings on the company's revolver.

Which assets were sold by Centennial Resource Development?

Approximately 6,200 net leasehold acres in Reeves County, Texas, were sold.

Who are the buyers of the non-core assets from CDEV?

The buyers are affiliates of Henry Resources, LLC and Pickering Energy Partners, LP.