Press Release: GMT Exploration : Blog Coverage Centennial Resource Development Acquires Northern Delaware Properties for $350 Million

Upcoming AWS Coverage on Buckeye Partners Post-Earnings ResultsLONDON, UK / ACCESSWIRE / May 2, 2017 / Active Wall St. blog coverage looks at the headline from Centennial Resource Development, Inc. (NASDAQ: CDEV) as the Company announced on May 01, 2017, that it entered into a definitive agreement to acquire certain undeveloped acreage and producing oil and gas properties in the core of the Northern Delaware Basin from GMT Exploration Company ("GMT") for total consideration of approximately $350 million in cash, subject to purchase price adjustments and customary closing conditions. The Company also announced that pro-forma for the pending acquisition Centennial is raising its 2020 production target to 60,000 barrels of oil per day ("Bbls/d") from the previous target of 50,000 Bbls/d. Register with us now for your free membership and blog access at:http://www.activewallst.com/register/One of Centennial Resource Development's competitors within the Oil & Gas Pipelines space, Buckeye Partners, L.P. (NYSE: BPL), announced on April 07, 2017, that it will release its Q1 2017 earnings results on May 05, 2017. AWS will be initiating a research report on Buckeye Partners in the coming days.Today, AWS is promoting its blog coverage on CDEV; touching on BPL. Get all of our free blog coverage and more by clicking on the link below:http://www.activewallst.com/register/Acquisition DetailsCentennial Resource Development's acquired property included 11,860 net acres located in Southern New Mexico directly north of the prolific Red Hills area, out of which 79% is operated with 85% average working interest. The site had average net production of approximately 2,100 barrels' equivalent per day ("Boe/d") during Q1 2017.The acquisition increases Centennial Resource Development's Delaware Basin position to ~88,000 net acres from ~76,000 net acres at year-end 2016. The Company noted that approximately 67% area is held by production and that it expects less than one operated drilling rig is required to hold acreage. Based on a thorough technical review by Centennial's geoscience team, the Company is optimistic about the exploration and development potential on the newly acquired acreage.Centennial Resource Development has significant subsurface control through 36 existing horizontal wells on the acquired acreage as well as significant industry activity surrounding the acreage. Centennial's current development assumptions include 255 gross horizontal locations in the Avalon Shale, 2nd and 3rd Bone Spring and Wolfcamp A formations, based on 660-foot to 1,056-foot spacing. Based on this analysis, the Company believes additional development and downspacing potential may exist across the acquired acreage position.Updated 2017 Operational Plans and TargetsBased on this newly combined entity, Centennial Resource Development has raised its 2020 oil production target to 60,000 barrels per day. Pro-forma for the pending acquisition, Centennial Resource Development is increasing the mid-point of its 2017 production guidance to 25,750 Boe/d from the previously announced 24,500 Boe/d. Additionally, the Company is raising the mid-point of its 2017 oil production guidance from 14,850 Bbls/d to 15,750 Bbls/d.While there are currently no operated rigs on the GMT acreage, Centennial Resource Development expects to add one operated horizontal rig on the acquired acreage during Q3 2017 and spud approximately five gross horizontal wells through year-end. Four wells are expected to be completed and placed on production late this year. Well costs on the acquired acreage are estimated to be similar to the Company's Reeves County wells, or approximately $6.0 to $7.0 million for a 4,500-foot lateral. Due to the incremental activity associated with the GMT acquisition, Centennial Resource Development has increased the mid-point of its full-year 2017 drilling and completion capital expenditure guidance by approximately $38 million.Financing and Liquidity HighlightsCentennial Resource Development intends to finance the purchase price of the acquisition from GMT through proceeds from one or more capital markets transactions. The Company anticipates that the financing will be leverage neutral on a forward-looking and pro-forma basis. The acquisition is expected to close during Q2 2017.Centennial Resource Development recently completed its regularly scheduled semi-annual borrowing base redetermination which resulted in a $100 million increase in its borrowing base to $350 million and compared to $250 million at year-end 2016. The next borrowing base re-determination is scheduled to occur in the fall of 2017. As of March 31, 2017, the Company had no borrowings outstanding on its revolving credit facility.Q1 2017 Production UpdateCentennial Resource Development announced that during Q1 2017, its estimated average daily oil production volumes were approximately 10,500 Bbls/d, which represents an increase of 65%, compared to average daily oil production volumes for the period from October 11, 2016, through December 31, 2016. Estimated oil production during the quarter was higher than the Company's internal expectations, which was driven by continued strong well results across its acreage position in Reeves County, Texas. Centennial Resource Development plans to release detailed results for the first quarter of 2017 on May 10, 2017, and to discuss these results on a conference call scheduled for May 11, 2017.Stock PerformanceAt the close of trading session on Monday, May 01, 2017, following the announcement, Centennial Resource Development's stock price slipped 3.52% to end the day at $15.91. A total volume of 2.40 million shares were exchanged during the session, which was above the 3-month average volume of 1.33 million shares. 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