Centennial Resource Development Inc (NASDAQ:CDEV) issued operational and financial results for the third quarter 2017. For the third quarter, the company posted net income of $14.4 million as compared to $5.1 million in the same quarter of 2016. Mark G. Papa, the CEO and Chairman, expressed that the company’s well results from the Wolfcamp outperformed their original well forecasts. In fact, they are responding positively to their latest completion designs. This enabled them once again to enhance their full-year production targets and lowering DD&A. Based on performance year-to-date, they project recording a remarkable full-cycle IRR on their entire 2017 capital program.
Centennial posted a number of robust wells across several intervals in the Delaware Basin, counting its best well to date. The firm completed the Matador 6-33 3H in the Upper Wolfcamp A, which posted a preliminary thirty-day production pace of 2,154 Boe/d. The well recorded an effective lateral of around 4,300 feet with a preliminary 30-day production rate of 375 “Bbls/d” per 1,000 foot of lateral. In addition, in the Upper Wolfcamp A, the company drilled C.H. Knight 6H with an around 4,400-foot effective lateral and resulted in 1,620 Boe/d for the preliminary thirty-day production period.
The CEO of Centennial reported that the Matador exhibits their most productive well so far on a per lateral foot basis. They have produced more than 100,000 barrels of oil over the course of its preliminary ninety days on production.
Their technical team is in the late phases of frac optimization, counting the effective execution of proppant intensity and filtering the count of clusters per stage. While merely public for a year, the company’s technical team is the best among their mid-cap E&P competitors as showcased by recent performance. During the third quarter of 2017, Centennial Resource finalized a long-term proppant supply deal with a local sand provider.