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.
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
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.
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
Having Wood Mac analysis is table-stakes. Others are nice to have.
Analyst Metal Mining Producer
Wood Mac has the highest quality data and is demanded by our staff.
Portfolio Manager Integrated Oil Company
Others can provide data but we value the quality of the Wood Mac analysis above other sources.
Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.
We work across every sector of oil, gas, power,renewables,chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.
Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.
At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.
Deal insight | Dec 2016
Permian M&A: Centennial pays US$855m for Silverback's Reeves County acreage
Have questions?Just let us know how to contact you and we will respond to you as soon as possible.