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

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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 contains

  • Document

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

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Table of contents

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

Tables and charts

This report includes 9 images and tables including:

Images

  • Notable 2016 Delaware Basin deals
  • Silverback and Centennial horizontal well locations in the Delaware Basin

Tables

  • Executive summary: Table 1
  • Upstream assets: Table 1
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Deal analysis: Table 3
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2

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