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EX - 99.1 2 ex991cdevq32021 earningsrel.htm EX - 99.1 CENTENNIAL RESOURCE DEVELOPMENT , INC Centennial Resource Development Announces Third Quarter 2021 Results , Non - Core Divestiture and Increases 2021 Production Targets DENVER , Nov. 3 , 2021 ( GLOBE NEWSWIRE ) -- Centennial Resource Development , Inc. ( " Centennial ” or the " Company " ) ( NASDAQ : CDEV ) today announced third quarter 2021 financial and operational results . Recent Financial and Operational Highlights • Generated record free cash flow , a 126 % increase compared to the prior quarter • Repaid $ 50 million in borrowings under the Company's credit facility during the quarter • Improved leverage metrics significantly quarter - over - quarter • Announced pending sale of non - core asset in southern Reeves County , Texas Increased daily crude oil production 5 % compared to the prior quarter Increased full - year oil and total company production guidance Financial Results For the third quarter , Centennial generated net cash from operating activities of $ 153.5 million and free cash flow¹ of $ 77.2 million . The Company reported net income during the quarter of $ 37.1 million , or $ 0.12 per diluted share , compared to a net loss of $ 51.5 million , or $ ( 0.19 ) loss per diluted share , in the prior year period . Average daily crude oil production during the third quarter was 33,529 barrels of oil per day ( " Bbls / d " ) compared to 35,292 Bbls / d in the prior year period . Total equivalent production for the quarter averaged 65,121 barrels of oil equivalent per day ( " Boe / d " ) compared to 68,934 Boe / d in the prior year period . Third quarter average daily crude oil and total equivalent production increased 5 % and 6 % , respectively , quarter - over - quarter . “ Centennial delivered a strong third quarter . Solid well results coupled with higher commodity prices drove record free cash flow and a material reduction in leverage , ” said Sean R. Smith , Chief Executive Officer . “ Assuming receipt of the proceeds from our pending divestiture and strip pricing , we anticipate ending the year with a net debt - to - LTM EBITDAX² ratio of approximately 1.5x . " Third Quarter Operational Results Using multi - well pads and extended laterals , Centennial continues to efficiently develop its Delaware Basin acreage position . In Lea County , New Mexico , the three - well Crunch Berry 6 Federal Com pad ( 70 % working interest ( “ WI " ) ) was completed in the Third Bone Spring Sand interval with average 9,500 - foot laterals . The wells averaged 2,047 Boe / d , or 1,607 Bbls / d of oil , per well for the 30 - day initial production ( “ IP ” ) period . " With the robust results from the Crunch Berry wells and current strip prices , we expect these wells to pay - out in less than six months , ” said Smith . Located on the western portion of Centennial's New Mexico position , the Mozzarella Fed Com ( 91 % WI ) and Gouda Federal Com ( 95 % WI ) represent a four - well development in the Third Bone Spring Sand interval with average 10,050 - foot laterals . The wells averaged 2,147 Boe / d , or 1,615 Bbls / d of oil , per well for the 30 - day IP period .