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 companies said.

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 said.

Centennial shares were up 6.5% to $7.98 in premarket trading.

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 [e-mail]

(END) Dow Jones Newswires

05-19-22 0756ET