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.