Centennial Resource Development, Inc. Announces Third Quarter 2016 Results

DENVER, Nov. 09, 2016 (GLOBE NEWSWIRE) -- Centennial Resource Development, Inc. (the "Company") (NASDAQ:CDEV) (NASDAQ:CDEVW) today announced the financial and operating results of its subsidiary, Centennial Resource Production, LLC ("CRP"), for the third quarter of 2016. The Company completed its acquisition of an approximate 89% membership interest in CRP on October 11, 2016, and such membership interest constitutes the only significant asset of the Company.

Recent significant events that occurred in October 2016 include the following:

  • On October 11, 2016, the Company consummated the previously announced acquisition of approximately 89% of the outstanding membership interests in CRP.
  • The Company fully repaid $189 million of outstanding debt of CRP at the closing of the acquisition.
  • CRP amended its credit agreement to increase the borrowing base under the revolving credit facility from $140 million to $200 million, leaving $199.6 million in borrowing capacity, net of $0.4 million of outstanding letters of credit at the closing.

CRP's financial and operating performance and significant events for the third quarter of 2016 include the following highlights:

  • Average daily production totaled 8,903 barrels of oil equivalents ("Boe") per day and CRP's average daily oil production was 6,109 barrels per day, representing approximately 69% of total production.
  • Revenue for the quarter totaled $27.3 million, with oil revenues representing approximately 86% of total revenues.
  • Average realized oil price was $41.62 per barrel, excluding the impact of commodity derivative transactions.
  • Lease operating costs, including workover expenses, totaled $3.7 million for the quarter or $4.46 per Boe.
  • CRP had one rig running for most of the third quarter, spudded four wells and completed two wells. The completed wells had an average effective lateral length of 4,496' and an average field estimate cost of $5.1 million. These wells averaged 17 days from spud to total depth.
  • CRP incurred capital costs of approximately $24 million, excluding leasing and acquisition costs, during the third quarter.
  • During the third quarter, CRP completed its third party crude midstream system and is now piping the majority of its crude to either Midland or Crane, Texas.

Hedge Position

The following table illustrates CRP's derivative positions as of September 30, 2016:
  2016   2017
Crude Oil Swaps:      
Notional volume (Bbl)   193,200       675,250  
Weighted average floor price ($/Bbl) $ 55.21     $ 50.41  
Crude Oil Basis Swaps:          
Notional volume (Bbl)   320,300       127,750  
Weighted average floor price ($/Bbl) $ (0.45 )   $ (0.20 )
Natural Gas Swaps:      
Notional volume (MMBtu)       1,460,000  
Weighted average floor price ($/MMBtu)     $ 2.94  

Other Information

        The Company has planned to host a conference call to discuss CRP's third quarter 2016 results at 8:00 a.m., Mountain time, on Thursday, November 10, 2016. Anyone wishing to participate may do so in the following ways: 
  • At the Company's website:  www.cdevinc.com. To participate in the audio-only webcast, please log on 15 minutes in advance of the scheduled call to download the necessary software. A webcast replay will be available approximately two hours after the conference call and will be available through November 17, 2016.
  • By telephone: The telephone dial-in number in the U.S. is (844) 348-0017. For participants outside of the U.S., the dial-in number is (213) 358-0877. The conference ID number is 12970930.
  • If you are unable to participate in the original conference call, a replay will be available beginning at approximately 11:00 a.m., Mountain time, on November 10, 2016, and ending at 11:00 a.m., Mountain time, on November 17, 2016. The replay dial-in number for U.S. participants is (855) 859-2056 and for participants outside of the U.S. is (404) 537-3406. The replay conference ID number is 12970930.

About Centennial Resource Development, Inc.

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

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words "could," "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.

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