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Centennial Resource Development 1Q results

Centennial Resource Development

Centennial Resource Development announced first quarter of 2022 financial and operational results. The company reported a generated record free cash flow of $89 million.

Highlights

Centennial reported generating net cash from operating activities of $160.1 million and a net income of $15.8; $0.05 per diluted share. Moreover, the average crude oil production for the first quarter was 32,741 barrels of oil per day. In addition, the total equivalent production during the quarter was of 61,359 barrels of oil equivalent per day.

Furthermore, the company fully repaid all borrowings under the credit facility and delivered strong well results. Also, Centennial reduced leverage for the fourth consecutive quarter and continued to drive operational efficiencies.

Likewise, during the quarter the company reported the competition of eighteen wells through four separate developments; these include two six-well developments. Also, the total capital expenditures incurred for the quarter were $114.7 million. Inclusive of $111.6 million in drilling, completion and facilities costs; an additional $3.1 million spent on infrastructure, land and other.

Additionally, Centennial repaid all of the outstanding borrowings under its $750 million revolving credit facility. Moreover, total net debt and total debt when the quarter ended were $765 million and $816 million respectively.

CEO statement

“During the first quarter, Centennial generated strong well results across both the Northern and Southern Delaware Basin while continuing to drive additional operational efficiencies. This execution, coupled with supportive commodity prices, enabled us to achieve record free cash flow and reduce leverage during the quarter,” said Sean R. Smith, Chief Executive Officer. “We are well-positioned to deliver on our key 2022 objectives of generating strong production growth, further strengthening our balance sheet and initiating our share repurchase program.”

“First quarter well performance highlights the quality of Centennial’s portfolio across the Delaware Basin. The higher natural gas and NGL mix on our Texas asset provides enhanced economics at current prices. In New Mexico, our successful execution of larger scale development targeting the Bone Spring Sand interval continues to produce strong returns,” said Smith. “As a result, we expect our average completed well during the quarter to pay-out in approximately four months, assuming strip pricing.”

Also recommended: VAALCO Energy Inc. 1Q 2022 results

About Centennial Resource Development

Centennial Resource Development Inc. is an independent oil and natural gas company. Its main focus is on the devolpment of oil and associated liquids-rich natural gas reserves in the Permian Basin where most of its operations are concentrated at.

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