Page 1

EX - 99.1 2 ex991cdevq12021 earningsrel.htm EX - 99.1 CENTENNIAL RESOURCE DEVELOPMENT , INC Centennial Resource Development Announces First Quarter 2021 Results DENVER , May 4 , 2021 ( GLOBE NEWSWIRE ) -- Centennial Resource Development , Inc. ( “ Centennial ” or the " Company " ) ( NASDAQ : CDEV ) today announced first quarter 2021 financial and operational results . Recent Financial and Operational Highlights • Generated free cash flow for the third consecutive quarter • Increased pro forma liquidity by 22 % compared to year - end • Issued $ 170 million of 3.25 % convertible senior notes due 2028 • . Redeemed at par $ 127 million of 8.00 % second lien senior secured notes due 2025 Delivered first quarter average well costs below $ 800 per lateral foot Financial Results For the first quarter , Centennial generated net cash from operating activities of $ 72.3 million and free cash flow of $ 10.6 million . The Company reported a net loss during the quarter of $ 34.6 million , or $ 0.12 per diluted share , compared to a net loss of $ 548.0 million , or $ 1.99 per diluted share , in the prior year period . Total equivalent production during the first quarter averaged 54,202 barrels of oil equivalent per day ( " Boe / d " ) compared to 71,820 Boe / d in the prior year period . Average daily crude oil production for the quarter was 28,239 barrels of oil per day ( " Bbls / d " ) compared to 41,512 Bbls / d in the prior year period . Impacted by Winter Storm Uri and related power outages , a majority of the Company's production was offline during a seven - day period in February . " Our team successfully resumed operational activity during the quarter , while delivering production and costs in - line with expectations in spite of the challenges posed by severe winter weather , ” said Sean R. Smith , Chief Executive Officer . “ Most importantly , Centennial has now transitioned to a sustainable free cash flow generating company . At current strip pricing , we expect to continue to repay borrowings on our credit facility and organically delever the balance sheet through year - end . " In addition to its impact on production , severe winter weather during the quarter also affected certain revenue and cost items . For the first quarter , revenue from natural gas sales increased 100 % compared to the prior quarter , driven by higher natural gas prices due to extreme cold temperatures across the state of Texas and surrounding regions . Additionally , Centennial incurred higher than expected lease operating expense ( “ LOE ” ) related to elevated electricity costs . LOE for the quarter totaled $ 25.9 million and , excluding one - time costs , was estimated to be $ 24.1 million , or $ 4.93 per Boe . Lastly , higher natural gas prices drove an increase in gathering , processing and transportation expense . " Higher natural gas revenue more than offset increased operating costs during the quarter . We expect our unit cost metrics to return to normalized levels beginning in the second quarter and have reiterated our full - year production and cost targets , ” said Smith .