CENTENNIAL RESOURCE DEVELOPMENT, INC. (NASDAQ:CDEV) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On August 31, 2018, Centennial Resource Production, LLC, a Delaware limited liability company (“CRP”) and a subsidiary of Centennial Resource Development, Inc., a Delaware corporation, entered into a Crude Oil Purchase and Sale Agreement (the “Purchase Agreement”) with ExxonMobil Oil Corporation (“ExxonMobil”), to which CRP agreed to sell specified quantities of crude oil to ExxonMobil at the prices listed in the Purchase Agreement. to the terms of the Purchase Agreement, CRP will begin delivering up to 20,000 barrels of crude oil per day to ExxonMobil starting on January 1, 2019 (the “Commencement Date”), and this maximum daily quantity will increase on a quarterly basis throughout 2019. Starting on January 1, 2020, CRP will begin delivering 40,000 barrels of crude oil per day to ExxonMobil, and this daily quantity will increase for successive delivery periods to the terms of the Purchase Agreement until it reaches 75,000 barrels of crude oil per day in 2023. The Purchase Agreement contains certain allowances for deviations in the volume of crude oil that CRP deliveries to ExxonMobil in a given delivery period. The Purchase Agreement has a term of five years from the Commencement Date.
to the Purchase Agreement, ExxonMobil will purchase crude oil delivered by CRP prior to January 1, 2020 at a per-barrel price that is based on the arithmetic average of the daily settlement price for “Light SweetCrude Oil” Prompt Month future contracts reported by the New York Mercantile Exchange over the one-month period, as adjusted for certain transportation costs, a differential and other adjustments specified in the Purchase Agreement. From and after January 1, 2020, ExxonMobil will purchase crude oil delivered by CRP at a per-barrel price that is determined using three separate benchmark prices for crude oil, with adjustments for certain transportation costs, differentials and other adjustments, each as is set forth in greater detail in the Purchase Agreement.
The foregoing description of the Purchase Agreement is qualified in its entirety by reference to the full text of the Purchase Agreement, a copy of which is attached hereto as Exhibit10.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
* Confidential treatmenthas been requested for certain portions of this Exhibit to Rule24b-2of the Securities Exchange Act of 1934, which portions have been redacted and provided separately to the Securities and Exchange Commission.
Centennial Resource Development, Inc. ExhibitEX-10.1 2 exhibit101.htm EXHIBIT 10.1 Exhibit Exhibit 10.1CONFIDENTIAL TREATMENT REQUESTED Crude Oil Purchase and Sale AgreementThis Crude Oil Purchase and Sale Agreement (this “Agreement”) is made and entered into effective as of August 31,…To view the full exhibit click here
About CENTENNIAL RESOURCE DEVELOPMENT, INC. (NASDAQ:CDEV)
Centennial Resource Development, Inc., formerly Silver Run Acquisition Corporation, is an independent oil and natural gas company. The Company is focused on the development and acquisition of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin. The Company’s assets and operations, which are held and conducted through Centennial Resource Production, LLC, are concentrated in the Delaware Basin, a sub-basin of the Permian Basin. The Company has more than 40,000 net acres in the southern Delaware Basin primarily in Reeves County in West Texas. It has developed its acreage primarily in the Wolfcamp zone, and is focused on the Avalon and Bone Spring shales.
