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Centennial (CDEV) Gains 8% as Q4 Earnings Beat Estimates
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Centennial Resource Development, Inc. rallied 8.1% since it reported strong fourth-quarter 2021 results on Feb 23. The stock price appreciation was also backed by the launch of its shareholder return program.
Centennial reported fourth-quarter 2021 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 30 cents. The figure also turned around from the year-ago adjusted loss of 17 cents per share.
Quarterly revenues from oil and gas sales increased to $316 million from the prior year’s $148 million. Also, the top line beat the consensus mark of $288 million.
The strong quarterly results were aided by Centennial’s higher oil equivalent production and realized commodity prices.
Stock Buyback Plan
Centennial announced the launch of its stock repurchase program of $350 million. The authorization of the plan is for two years.
Operations:
Production
Overall production of 62,649 barrels of oil equivalent per day (Boe/d) increased from the year-ago period’s 59,708 Boe/d. Of the total output, 55% comprised crude oil.
Oil volumes increased from 30,196 Bbls/d to 34,468 barrels per day (Bbls/d) for the December quarter. Natural gas liquids (NGLs) production totaled 10,412 Bbls/d, down from the year-ago quarter’s 11,226 Bbls/d. Natural gas production of 106,613 thousand cubic feet per day (Mcf/d) decreased from the year-ago quarter’s 109,712 Mcf/d.
Price Realizations
Average realized crude price (excluding the effects of derivative settlements) was reported at $72.78 a barrel, up from $40.36 in fourth-quarter 2020. Also, the same for natural gas rose to $4.41 per Mcf from the prior year’s $1.76. Furthermore, NGLs price rose to $44.28 per barrel for the fourth quarter from the year-ago level of $17.65.
Operating Costs
Centennial’s total operating costs were $177.6 million for fourth-quarter 2021, lower than $194.9 million in the year-ago period due to decreased exploration and other expenses.
On a per Boe basis, the company’s fourth-quarter lease operating expenses were $5.01, higher than the year-ago level of $4.78. Also, gathering, processing and transportation costs flared up to $3.75 per Boe from the year-ago period’s $3.27.
Capital Expenditure & Balance Sheet
For the December quarter, it incurred a capital expenditure of $86.5 million, of which $85.2 million was allocated for drilling, completion and facilities.
At fourth quarter-end, cash and cash equivalents were reported at $9.4 million. Long-term net debt outstanding amounted to $825.6 million. Centennial had a net debt to capitalization of 23.1%. At fourth quarter-end, it had proforma total liquidity of $729 million.
Cash Flow & Free Cash Flow
The company’s constant focus on cost reduction helped it generate net cash of $192.5 million from operating activities compared with $41.1 million in the year-ago period. Free cash flow generated during the quarter under review was $84.8 million, up from $32.6 million in the year-ago period.
Reserve Grows
Centennial announced its proved reserves for 2021-end at 305 MMBoe, representing growth from 299 MMBoe at the end of the prior year.
Guidance:
For 2022, Centennial projects net average daily production in the band of 61,500 Boe/d to 67,500 Boe/d. The capital budget set by Centennial is in the range of $365 million to $425 million.
Zacks Rank & Other Stocks to Consider
Centennial sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include Exxon Mobil Corporation (XOM - Free Report) , ConocoPhillips (COP - Free Report) and Chevron Corporation (CVX - Free Report) . While ExxonMobil and ConocoPhillips sport a Zacks Rank #1, Chevron carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ExxonMobil is banking on its key upstream projects centered around Permian – the most prolific basing in the United States – and offshore Guyana resources.
ExxonMobil reported strong fourth-quarter results, thanks to improved realized oil and natural gas prices as well as higher refining and chemical margins. In the past seven days, ExxonMobil has witnessed upward earnings estimate revisions for 2022.
Considering production and proved reserves, ConocoPhillips is one of the leading upstream energy players. In the past 30 days, ConocoPhillips has witnessed upward earnings estimate revisions in the past 30 days.
ConocoPhillips’ estimate for earnings for 2022 is pegged at $9.74 per share, suggesting a year-over-year increase of 62.1%.
In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s assets in the most prolific basin of the United States have minimal royal payments, thereby securing handsome cashflows in the long run.
In the past 30 days, Chevron has witnessed upward earnings estimate revisions for 2022.
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Centennial (CDEV) Gains 8% as Q4 Earnings Beat Estimates
Centennial Resource Development, Inc. rallied 8.1% since it reported strong fourth-quarter 2021 results on Feb 23. The stock price appreciation was also backed by the launch of its shareholder return program.
Centennial reported fourth-quarter 2021 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 30 cents. The figure also turned around from the year-ago adjusted loss of 17 cents per share.
Quarterly revenues from oil and gas sales increased to $316 million from the prior year’s $148 million. Also, the top line beat the consensus mark of $288 million.
The strong quarterly results were aided by Centennial’s higher oil equivalent production and realized commodity prices.
Stock Buyback Plan
Centennial announced the launch of its stock repurchase program of $350 million. The authorization of the plan is for two years.
Operations:
Production
Overall production of 62,649 barrels of oil equivalent per day (Boe/d) increased from the year-ago period’s 59,708 Boe/d. Of the total output, 55% comprised crude oil.
Oil volumes increased from 30,196 Bbls/d to 34,468 barrels per day (Bbls/d) for the December quarter. Natural gas liquids (NGLs) production totaled 10,412 Bbls/d, down from the year-ago quarter’s 11,226 Bbls/d. Natural gas production of 106,613 thousand cubic feet per day (Mcf/d) decreased from the year-ago quarter’s 109,712 Mcf/d.
Price Realizations
Average realized crude price (excluding the effects of derivative settlements) was reported at $72.78 a barrel, up from $40.36 in fourth-quarter 2020. Also, the same for natural gas rose to $4.41 per Mcf from the prior year’s $1.76. Furthermore, NGLs price rose to $44.28 per barrel for the fourth quarter from the year-ago level of $17.65.
Operating Costs
Centennial’s total operating costs were $177.6 million for fourth-quarter 2021, lower than $194.9 million in the year-ago period due to decreased exploration and other expenses.
On a per Boe basis, the company’s fourth-quarter lease operating expenses were $5.01, higher than the year-ago level of $4.78. Also, gathering, processing and transportation costs flared up to $3.75 per Boe from the year-ago period’s $3.27.
Capital Expenditure & Balance Sheet
For the December quarter, it incurred a capital expenditure of $86.5 million, of which $85.2 million was allocated for drilling, completion and facilities.
At fourth quarter-end, cash and cash equivalents were reported at $9.4 million. Long-term net debt outstanding amounted to $825.6 million. Centennial had a net debt to capitalization of 23.1%. At fourth quarter-end, it had proforma total liquidity of $729 million.
Cash Flow & Free Cash Flow
The company’s constant focus on cost reduction helped it generate net cash of $192.5 million from operating activities compared with $41.1 million in the year-ago period. Free cash flow generated during the quarter under review was $84.8 million, up from $32.6 million in the year-ago period.
Reserve Grows
Centennial announced its proved reserves for 2021-end at 305 MMBoe, representing growth from 299 MMBoe at the end of the prior year.
Guidance:
For 2022, Centennial projects net average daily production in the band of 61,500 Boe/d to 67,500 Boe/d. The capital budget set by Centennial is in the range of $365 million to $425 million.
Zacks Rank & Other Stocks to Consider
Centennial sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include Exxon Mobil Corporation (XOM - Free Report) , ConocoPhillips (COP - Free Report) and Chevron Corporation (CVX - Free Report) . While ExxonMobil and ConocoPhillips sport a Zacks Rank #1, Chevron carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ExxonMobil is banking on its key upstream projects centered around Permian – the most prolific basing in the United States – and offshore Guyana resources.
ExxonMobil reported strong fourth-quarter results, thanks to improved realized oil and natural gas prices as well as higher refining and chemical margins. In the past seven days, ExxonMobil has witnessed upward earnings estimate revisions for 2022.
Considering production and proved reserves, ConocoPhillips is one of the leading upstream energy players. In the past 30 days, ConocoPhillips has witnessed upward earnings estimate revisions in the past 30 days.
ConocoPhillips’ estimate for earnings for 2022 is pegged at $9.74 per share, suggesting a year-over-year increase of 62.1%.
In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s assets in the most prolific basin of the United States have minimal royal payments, thereby securing handsome cashflows in the long run.
In the past 30 days, Chevron has witnessed upward earnings estimate revisions for 2022.