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Centennial Resource Likely To Generate Over $300 Million In Positive Cash Flow At $65 WTI Oil

Dec. 04, 2021 7:23 AM ETPermian Resources Corporation (PR) Stock


  • Centennial is projected to generate $317 million in positive cash flow in 2022 at $65 WTI oil.
  • This would help reduce its leverage below 1.0x by the end of 2022.
  • Big Chief and Colgate Energy transactions point to a value of near $7,000 per net acre for land once production value is backed out.
  • This puts Centennial's estimated value at around $6.50 per share, in-line with my previous estimates based on long-term $65 WTI oil.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

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Centennial Resource Development (CDEV) looks capable of generating over $300 million in positive cash flow in 2022 still despite a decline in strip prices to $65 WTI oil. This would help get its leverage under 1.0x by the

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

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