Post Earnings Coverage as Centennial Resource Development Reported Annual Results for FY16

Upcoming AWS Coverage on Shell Midstream Partners Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 4, 2017 / Active Wall St. announces its post-earnings coverage on Centennial Resource Development, Inc. (NASDAQ: CDEV). The Company posted its financial results for the full year fiscal 2016 (FY16) on March 22, 2017. The Denver, Colorado-based Company’s total average daily production volume increased on a year-over-year basis in the reported period. Register with us now for your free membership at:

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One of Centennial Resource Development’s competitors within the Oil & Gas Pipelines space, Shell Midstream Partners, L.P. (NYSE: SHLX), reported on February 23, 2017, its 4th quarter 2016 Unaudited Results. AWS will be initiating a research report on Shell Midstream in the coming days.

Today, AWS is promoting its earnings coverage on CDEV; touching on SHLX. Get our free coverage by signing up to:

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Earnings Reviewed

The Company has provided operational and financial data with reference to the periods from January 01, 2016 through October 10, 2016 (Predecessor FY16 period) and October 11, 2016 through December 31, 2016 (Successor FY16 period), compared to the period from January 01, 2015 through December 31, 2015 (Predecessor FY15).

Earnings Figures

For successor FY16 period, Centennial reported total revenues of $29.72 million, while it had posted total revenues of $69.12 million in predecessor FY16 period. Meanwhile, the combined revenues for FY16 stood at $98.83 million compared to $90.46 million in predecessor FY15 period.

Centennial’s combined oil sales revenue increased to $84.10 million in FY16 from $77.64 million in FY15. Natural gas’ combined sales revenues also were up to $9.49 million in FY16 from $7.97 million in FY15. Furthermore, the combined NGL sales revenues grew to $5.24 million in FY16 from $4.85 million in FY15.

The Company reported net loss attributable to Centennial Resource Development of $8.08 million, or $0.05 per diluted share, in the successor FY16 period and $218.72 million in the predecessor FY16 period. Meanwhile, the Company’s net loss attributable to Centennial Resource Development during Predecessor FY15 period was $38.33 million.

Operating Metrics

During the successor FY16 period, the Company incurred lease operating expenses of $3.54 million. Furthermore, lease operating expenses during predecessor FY16 stood at $11.04 million. The Company’s combined lease operating expenses in FY16 were $14.58 million versus $21.17 million in predecessor FY15 period.

Furthermore, total operating loss during successor FY16 and predecessor FY16 period were $7.06 million and $206.67 million, respectively. Meanwhile, the Company’s total operating loss in predecessor FY15 period was $53.41 million.

Centennial’s drilling and completion (D&C) capital expenditures, including facilities and capital workovers, were approximately $44.4 million in the successor FY16 period and $53.3 million during the predecessor FY16 period.

Production Numbers

In the combined period of FY16, Centennial’s oil production volume rose to 2,107 thousand barrels (MBbls) from 1,830 MBbls in FY15. The annual production volume of natural gas in combined FY16 period totaled 3,773 thousand cubic feet (MMcf) in Q4 FY16, which was higher than 3,058 MMcf in FY15. Natural gas liquids (NGL) production volume also increased during combined FY16 period to 349 MBbls, from 331 MBbls in FY15. Furthermore, total production during combined FY16 period was 3,085 thousand barrels of oil equivalent (MBOE) compared to 2,671 MBOE in FY15. Meanwhile, average production during combined FY16 period was 8,429 barrels of oil equivalent per day (Boe/d), compared to 7,317 Boe/d in FY15.

Formation of the Company

On October 11, 2016, Silver Run Acquisition Corp. acquired 89% controlling interest in Centennial Resource Production LLC, an independent oil and natural gas Company from funds controlled by and affiliates of NGP Energy Capital Management LLC. The transaction was approved by the Boards of Directors of both companies and was approved at a special meeting of Silver Run’s stockholders on October 07, 2016. Subsequently, Silver Run was renamed as Centennial Resource Development Inc. and its common stock and warrants started trading on October 12, 2016, on the NASDAQ under the symbols “CDEV” and “CDEVW”.

Guidance

For full year FY17, Centennial expects oil production to grow by approximately 158% to 14,850 Bbls/d from 5,757 Bbls/d in combined FY16. The Company forecasts total production to grow by approximately 191% to 24,500 Boe/d in FY17 from 8,429 Boe/d in combined period of FY16. The Company has also announced total capital budget of approximately $543 million for FY17, which includes $470 million of D&C capital expenditures. Furthermore, the Company intends to drill and complete approximately 60 to 70 wells in FY17.

Stock Performance

At the close of trading session on Monday, April 03, 2017, Centennial Resource Development’s stock price rose slightly by 0.33% to end the day at $18.29. A total volume of 1.69 million shares were exchanged during the session. The stock currently has a market cap of $3.72 billion.

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