CDEV - Centennial Resource Colgate Energy complete merger deal

Permian Resources announced Thursday the completion of the merger of Centennial Resource Development ( NASDAQ: CDEV ) and Colgate Energy Partners, creating the largest pure-play E&P company in the Delaware Basin.

Permian Resources currently operates an eight-rig drilling program, which will be reduced to a seven-rig program in November, expected to deliver total production of 140K-150K boe/day (~52% oil) during Q4.

For its FY 2023 development plan, the company expects to spud and complete ~145 and 150 gross wells, respectively, with production of 150K-165K boe/day and generating $1.1B-$1.3B of free cash flow for the full year.

The company said it plans to return capital to shareholders through a combination of a base dividend plus a variable return framework, comprised of variable dividends and/or share repurchases.

Will Hickey and James Walter will lead the company as co-CEOs.

Permian Resources' common stock is expected to begin trading on Nasdaq starting September 2 under the "PR" ticker symbol.

In May, Centennial ( CDEV ) announced its merger with privately held Colgate for $3.9B in cash, stock and the assumption of debt.

Citing the "transformational" merger that places the company "among the best SMID cap E&Ps," Truist Securities recently upgraded Centennial shares to Buy .

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