Centennial Resource To Buy Silverback Assets In Reeves County For $855 Mln

(RTTNews) - Centennial Resource Development, Inc. (CDEV) said it has agreed to acquire 100 percent of the leasehold interests and related upstream assets in Reeves County from Silverback Exploration, LLC for an aggregate purchase price of $855 million in cash.

Centennial Resource noted that the acquisition includes 35,000 net acres directly offsetting existing Centennial acreage in Reeves County and approximately 3,500 Boe/d of current net production. Pro forma for the transaction, Centennial will be one of the largest operators in the Delaware Basin, with over 77,000 contiguous net acres.

On November 21, 2016, an affiliate of Riverstone Holdings LLC entered into a purchase agreement with Silverback to acquire 100 percent of its leasehold interests and related upstream assets in Reeves County.

On November 27, Riverstone and Centennial entered into an agreement to assign, under which the Riverstone affiliate has agreed to assign, and Centennial has agreed to assume, Riverstone's right to purchase such Silverback assets. The acquisition is expected to close on December 30, 2016.

Centennial noted that the transaction will enable it to increase its 2020 oil production goal from 30,000 Bo/d to 50,000 Bo/d, all the while maintaining one of the lowest debt levels in the industry.