CDEV - Centennial Resource raised at Truist on 'transformational' merger

Centennial Resource Development ( NASDAQ: CDEV ) +3.1% in Wednesday's trading after Truist Securities upgraded shares to Buy from Hold with a $13 price tag, raised from $7, saying the "near-term transformational" merger with Colgate Energy places the company "among the best SMID cap E&Ps."

The merger "not only brings strong production and financials that both companies possessed, but the deal will likely result in higher quality total inventory, improved realized prices, operational efficiencies, higher NRI [and] external accretive transactions," Truist analyst Neal Dingmann wrote.

Centennial ( CDEV ) on its own is positioned well after a "strong Q2 with $137M free cash flow along with numerous July completions along with Colgate bringing in an active program with even stronger realized pricing."

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

Centennial Resource Development ( CDEV ) recently reported Q2 GAAP earnings of $0.60/share on revenues of $472.6M .

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