DENVER and MIDLAND, Texas — Centennial Resource Development Inc. and Colgate Energy Partners III LLC have entered into an agreement to combine in a merger of equals. The combined company will be the largest pure-play exploration, development and production company in the Delaware Basin with approximately 180,000 net leasehold acres, 40,000 net royalty acres and total current production of approximately 135,000 Boe/d.

The approximately $7.0 billion merger of equals values Colgate at approximately $3.9 billion and is comprised of 269.3 million shares of Centennial stock, $525 million of cash and the assumption of approximately $1.4 billion of Colgate’s outstanding net debt. The cash consideration and the repayment of Colgate’s outstanding credit facility borrowings at closing are expected to be funded with cash on hand and borrowings under an upsized revolving credit facility.

The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2022.

For more information, visit www.cdevinc.com or call (720) 499-1400.