Centennial Resource Development, Inc. (CDEV) stock rose to 3.75% – Learn why?

Centennial Resource Development, Inc. (CDEV) inclined to 4.75% in the premarket. However, the last trading session closed at $7.2 with an increase of 8.11%.

Second Quarter 2021 Results

CDEV announced second-quarter 2021 operational results on 3rd August 2021. According to the report:

  • The company generated a record amount of free cash flow and lowered the overall amount of debt.
  • Leverage measures have improved dramatically from quarter to quarter.
  • In comparison to the previous quarter, daily crude oil output increased by 13%.
  • The Northern and Southern Delaware Basins had an excellent performance.
  • Continually improved operating efficiency
  • Oil hedges for 2022 have been added at competitive pricing.

Moreover, the company spent $83.2 million on capital expenditures in the first quarter. Drilling, completion, and facilities expenditures totaled $82.3 million in the second quarter, which included two more spuds than expected owing to improved drilling efficiency. Last but not least, a total of $0.9 million was spent on infrastructure, land, and other capital projects. 

New Appointment to Board of Directors

CDEV announced on 22 July 2021 that Vidisha Prasad is the new addition to the Board of Directors. Ms. Prasad is the Managing Partner of Adya Partners. It is a multi-strategy investment and consulting business specializing in private secondary investments, early-stage venture financing, and strategic advice in the energy, energy transition, and technology industries. Moreover, Ms. Prasad has almost two decades of expertise in energy investments, strategic and Board consulting, and business mergers, etc. Lastly, she has also worked on more than $80 billion in domestic and cross-border M&A advising.

First Quarter 2021 Results

CDEV released the first quarter 2021 results on 4th May 2021. According to the report released by the company:

  • For the third straight quarter, CDEV generated free cash flow.
  • Compared to the previous year’s conclusion, pro forma liquidity increased by 22%.
  • $170 million of convertible senior notes with a 3.25 percent coupon due in 2028 were issued.
  • $127 million of 8.00 percent senior secured notes due in 2025 were redeemed.
  • The average cost per lateral foot in the first quarter was less than $800.

Centennial generated a total of $72.3 million in net cash from operations and reported losses of $34.6 million, compared to a net loss of $548.0 million, for the same period last year. Despite the obstacles provided by harsh winter weather, CDEV’s team effectively resumed operational activities throughout the quarter. This helped them to achieve production and expenses in line with expectations. Most significantly, CDEV has evolved into a corporation that generates consistent free cash flow.