Deal insight
| |
7 Pages

Permian M&A: Centennial pays US$855m for Silverback's Reeves County acreage


Permian M&A: Centennial pays US$855m for Silverback's Reeves County acreage

Report summary

Centennial Resource Development, a recently formed pure-play Permian operator, will acquire 35,000 net acres in the Delaware Basin of west Texas from Silverback Exploration for US$855 million. The assets, located in Reeves County, are adjacent to Centennial's existing position and include current net production of approximately 3,500 boe/d. Centennial will operate 95% of the acreage, with an average working interest of 88%. The acquisition acreage, located in our Reeves Core sub-play, boasts a breakeven price of US$40/bbl, which is among the lowest in the US Lower 48. The deal provides Centennial with additional horizontal inventory that will extend field development life and allow for long-term production growth. Further, the continuity of its pro forma acreage position will allow the company to add value with extended laterals and operational synergies.

What's included?

This report includes 1 file(s)

  • Permian M&A: Centennial pays US$855m for Silverback's Reeves County acreage PDF - 689.02 KB 7 Pages, 7 Tables, 2 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

In this report there are 9 tables or charts, including:

  • Executive summary
    • Notable 2016 Delaware Basin deals
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Silverback and Centennial horizontal well locations in the Delaware Basin
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions

Mailenquiries@woodmac.com
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...