U.S. shale producer Centennial launches land sale in Texas

September 23 (Reuters) – U.S. shale oil producer Centennial Resource Development Inc (CDEV.O) is seeking buyers for properties spanning approximately 6,000 net acres in Texas’ southern Delaware Basin, according to the company handling the sale .

The assets, estimated to produce around 1,600 barrels of oil equivalent per day in October, could be valued at around $ 100 million at a sale, two sources familiar with the matter said.

Centennial has retained Dallas, Texas-based Ten Oaks Energy Advisors for the sale of the assets and offers are expected Oct. 15, according to a listing posted on the Ten Oaks website.

The sources requested anonymity as the sales plans were confidential. Centennial and Ten Oaks did not respond to requests for comment.

Founded by shale pioneer Mark Papa, Centennial joins a wave of U.S. shale producers looking to sell assets and capitalize on this year’s strong oil price rebound following the coronavirus-induced crisis in 2020.

US crude oil was trading at around $ 73.15 a barrel on Friday, up more than 50% this year.

The surge has given companies the ability to part with some of their assets and use the proceeds to clean up their balance sheets and reward investors through dividends or share buybacks.

For Centennial, its priority is likely to reduce leverage, one of the sources said. As of June 30, the company had long-term net debt of over $ 1 billion and cash of $ 446 million.

Among other companies looking to sell assets, rival Pioneer Natural Resources Co (PXD.N) is also seeking buyers for its Delaware Basin assets, Reuters reported this month.

Reporting by Shariq Khan; Editing by Edmund Blair

Our standards: Thomson Reuters Trust Principles.

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