Denver-based Centennial Resource Development LLC may be the first US E&P company to debut on the public markets in more than a year. On June 22, the Permian Basin player filed a Form S-1 with the US Securities and Exchange Commission for a proposed initial public offering.
Centennial put a $100 million placeholder value on the IPO. It plans to list an unspecified number of shares on the NASDAQ stock exchange under the ticker symbol CDEV. The company said it hopes to complete the IPO later this year.
Low oil and gas prices have forced other energy companies backed by private equity firms to postpone public offerings during the past 12 to 18 months, and this could be an encouraging sign for other privately-held companies that would like to go public.
Centennial is focused on the development and acquisition of unconventional oil and liquids-rich natural gas reserves in the Permian Basin. Its assets are mainly in the Delaware Basin, a sub-basin of the Permian, in Reeves, Ward, and Pecos counties in West Texas. The company was formed by an affiliate of Natural Gas Partners and is also backed by the Carlyle Group, another private equity firm. Centennial plans to use the IPO proceeds for working capital and to provide liquidity for its operations. It also would repay a $65 million term loan and the balance on its revolving credit facility.
Ward Polzin is Centennial’s CEO. He previously served as a managing director at Houston-based Tudor, Pickering, Holt & Co. Securities Inc., heading the firm’s E&P A&D practice. Before that, he was US country manager for Canada’s Enerplus Corp., where he was responsible for its Bakken program. Polzin began his oil and gas career with BP. He holds a BS degree in petroleum engineering from the Colorado School of Mines and an MBA from Rice University.
The last oil and gas company to successfully list on a public market was NGP-backed pipeline operator Penntex Midstream Partners, which raised $225 million in June 2015.