Permian Operators Colgate, Centennial to Combine in $7 Billion Merger

The $7 billion “merger of equals transaction” of Centennial Resource Developement and Colgate Energy will create the largest pure-play E&P company in the Delaware Basin of the Permian.

Permian Operators Colgate, Centennial to Combine in $7 Billion Merger

“Colgate’s complementary, high-margin assets are a natural fit for Centennial, creating the largest pure-play E&P company in the Delaware Basin,” Centennial CEO Sean Smith said in a joint release. (Source: Hart Energy)

Colgate Energy agreed on May 19 to combine with Centennial Resource Development Inc., squashing recent rumors that Colgate was seeking an IPO.

The $7 billion “merger of equals transaction” will create the largest pure-play E&P company in the Delaware Basin of the Permian with approximately 180,000 net leasehold acres and 135,000 boe/d of current production.

“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,” Centennial CEO Sean Smith commented in a joint company release.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.