Centennial Resource Development Update - Oct 6
Posted: Sat Oct 06, 2018 9:55 am
In the last 3 months, 4 ranked analysts set 12-month price targets for CDEV. The average price target among the analysts is $25.67. The target prices range from $23 to $30.
The most recent report is from Scott Hanold at RBC Capital is dated 10-1-2018. Scott rates it a BUY with a $30 valuation.
CDEV closed at $22.20 on 10/5/2018.
This is Mark Papa's company. He is a "No BS CEO". To see what I mean, go to the company's website and see the 8 slides that he spoke from at the Barclays Conference. All of his predictions from a year ago have come true. Mark thinks oil prices are going a lot higher in 2019.
This company is a pure play on the Delaware Basin. CDEV has 100% of their 2019 production covered by firm takeaway contracts. None of their production will be stranded and none of their oil is hedged, except that they do have some crude oil basis hedges in place to protect them from the big price differentials in the Permian Basin. In Q2 their average realized oil price was $62.90/bbl; much higher than their peers. ~25% of their 2019 natural gas is hedged at $2.78/MMBtu.
Year over year production growth should be over 90%.
My valuation increases by $1 to $31.00/share, but it has a lot more upside from there if oil stays over $70/bbl.
The most recent report is from Scott Hanold at RBC Capital is dated 10-1-2018. Scott rates it a BUY with a $30 valuation.
CDEV closed at $22.20 on 10/5/2018.
This is Mark Papa's company. He is a "No BS CEO". To see what I mean, go to the company's website and see the 8 slides that he spoke from at the Barclays Conference. All of his predictions from a year ago have come true. Mark thinks oil prices are going a lot higher in 2019.
This company is a pure play on the Delaware Basin. CDEV has 100% of their 2019 production covered by firm takeaway contracts. None of their production will be stranded and none of their oil is hedged, except that they do have some crude oil basis hedges in place to protect them from the big price differentials in the Permian Basin. In Q2 their average realized oil price was $62.90/bbl; much higher than their peers. ~25% of their 2019 natural gas is hedged at $2.78/MMBtu.
Year over year production growth should be over 90%.
My valuation increases by $1 to $31.00/share, but it has a lot more upside from there if oil stays over $70/bbl.