Centennial strives for lowest net debt to total cap within industry

By Devika Patel

Knoxville, Tenn., June 18 – Centennial Resource Development, Inc. plans to keep its debt low.

The company aims to have the lowest debt in its industry with a net debt to total cap ratio that will remain below 25%.

“We are debt adverse at Centennial,” vice president and chief operating officer Sean R. Smith said at the J.P. Morgan 2018 Energy Conference in New York on Monday.

“You will not see us eclipse the 20% to 25% debt to cap ratio.

“We are debt averse and our plan is to remain that way as long as we’re a public entity.

“It’s not prudent to run a commodity business with any kind of high debt,” Smith said.

The company hopes to have the lowest debt in the industry.

“But not only are we going to have our lowest debt to our peers, but certainly we’re going to attempt to be the lowest in the industry for the foreseeable future,” Smith said.

“Our current position is 10% net debt to total cap and we’ve got a hard governor at the 20% to 25% net debt to cap and will not ever go over that amount,” he said.

Denver-based Centennial is an independent oil and natural gas company with properties in the core of the Southern Delaware Basin.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.