Centennial Resource, Colgate Energy Partners III to Merge
By Michael Dabaie
Centennial Resource Development Inc. agreed to merge with
Colgate Energy Partners III LLC, the companies said.
Under the deal, existing Centennial shareholders will own about
53% of the combined company, and existing Colgate owners will own
about 47%, they said.
The combined company will be a pure-play exploration and
production company in the Delaware Basin with about 180,000 net
leasehold acres, 40,000 net royalty acres and total current
production of about 135,000 barrels of oil equivalent a day, the
The deal values Colgate at about $3.9 billion and comprises
269.3 million shares of Centennial stock, $525 million of cash and
the assumption of about $1.4 billion of Colgate's debt, they
Centennial shares were up 6.5% to $7.98 in premarket
Centennial in early December said it closed a sale of noncore
assets to affiliates of Henry Resources LLC and Pickering Energy
Partners LP for a cash purchase price of $101 million.
Write to Michael Dabaie at email@example.com
(END) Dow Jones Newswires
May 19, 2022 07:56 ET (11:56 GMT)
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