Permian Basin players green light $7-bln merger

USA

TEXAS, May 20, 2022 – Centennial Resource Development and Colgate Energy have agreed to a merger of equals creating a USD 7-billion entity, the two US-based E&P companies announced on Thursday.

According to the deal, Colgate Energy is valued at USD 3.9 billion and shareholders from Centennial Resource Development will take 53% of the company.

The combined company will own 728 square kilometres of net leasehold land, 162 square kilometres of net royalty land and produce around 135,000 boepd.

The transaction is expected to close in H2 2022.

The two companies are involved in plays on the Delaware Basin in the western area of the Permian basin.