Silver Run Acquisition Corp. said Oct. 11 it wrapped up its acquisition of Centennial Resource Production LLC, gaining a foothold in the core of the Southern Delaware Basin.

In July, Mark Papa-led Silver Run agreed to acquire 89% controlling interest in Centennial from funds controlled by, and affiliates of, NGP Energy Capital Management LLC. The company paid $1 billion in equity, which also paid off Centennial's $188 million debt.

Combined with Centennial, Silver Run creates a company Papa estimates to hold an enterprise value of $1.7 billion.

RELATED: Papa’s Silver Run Captures Delaware Basin’s Centennial For $1 Billion

Silver Run, now renamed Centennial Resource Development Corp., hit the ground running with $100 million in cash and zero debt. Centennial now trades on the NASDAQ stock exchange under the ticker symbol CDEV.

In connection with the closing of the transaction, Riverstone and certain Riverstone controlled investment funds purchased about $810 million of Silver Run class A common stock. In addition, certain funds managed by Capital World Investors and certain funds managed by Fidelity Management and Research Co. purchased an aggregate of $200 million of Silver Run stock

Proceeds of both stock sales were used to fund a portion of the cash consideration for the acquisition.

Following the closing, Riverstone and its affiliates are the single largest stockholder of Silver Run, with about 51% ownership interest. NGP retained an 11% interest in Centennial.

At the closing, Centennial also entered into an amendment to its credit agreement that, among other things, increased the borrowing base to $200 million from $140 million.

The size of the new company's board of directors increased to eight members from four. The board consists of:

  • Mark G. Papa;
  • Maire A. Baldwin;
  • Karl Bandtel;
  • Pierre F. Lapeyre Jr.;
  • David M. Leuschen;
  • Jeffrey H. Tepper;
  • Robert M. Tichio; and
  • Tony R. Weber, who was appointed by NGP.

Citigroup Global Markets Inc. was capital markets adviser and sole private placement agent to Silver Run, and financial adviser to Riverstone. Deutsche Bank Securities Inc. and Goldman, Sachs & Co. were capital markets advisers to Silver Run. Weil, Gotshal & Manges LLP was legal counsel to Silver Run. Evercore Group LLC was financial adviser to Silver Run's board of directors. Latham & Watkins LLP was legal counsel to Riverstone. Tudor, Pickering, Holt & Co. was financial adviser to Centennial in connection with the transaction. Credit Suisse Securities (USA) LLC and Barclays Capital Inc. were capital markets advisers to Centennial. Vinson & Elkins LLP was legal adviser to Centennial.