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Announced

Completed

Centennial Resource Development completed the merger with Colgate Energy in a $5.3bn deal.

Financials

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Transaction Value£4,270m
Consideration TypeOrdinary Shares, Cash
Capital Owned-
Capital Bid For100%
EV/Sales-
EV/EBITDA-
Share Price Premium-
One Off Charge-

Tags

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oil and gas company

Domestic

Merger

United States

Acquisition

Private

Integrated Oil and Gas

Friendly

Majority

Single Bidder

Completed

Synopsis

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Centennial Resource Development, an independent oil and natural gas company focused on the development of oil and associated liquids-rich natural gas reserves in the Permian Basin, completed the merger with Colgate Energy, a privately held, independent oil and natural gas company, in a $5.3bn deal. "This transformative combination significantly increases scale and drives accretion across all our key financial and operating metrics. Colgate’s complementary, high-margin assets are a natural fit for Centennial, creating the largest pure-play E&P company in the Delaware Basin. Importantly, the combined company is expected to provide shareholders with an accelerated capital return program through a fixed dividend coupled with a share repurchase plan. We are excited to partner with Colgate as we share a common vision for the pro forma company that includes a strong balance sheet, a disciplined investment program to drive cash flow and a robust return-of-capital program," Sean Smith, Centennial CEO.

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