DB:241A

Stock Analysis Report

Centennial Resource Development

Executive Summary

Centennial Resource Development, Inc., an independent oil and natural gas company, focuses on the development of unconventional oil and associated liquids-rich natural gas reserves in the United States.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Risks

  • Centennial Resource Development has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Centennial Resource Development's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.0%

DB:241A

-1.9%

DE Oil and Gas

-1.5%

DE Market


1 Year Return

-75.0%

DB:241A

16.1%

DE Oil and Gas

-10.4%

DE Market

241A underperformed the Oil and Gas industry which returned 16.1% over the past year.

241A underperformed the Market in Germany which returned -10.4% over the past year.


Share holder returns

241AIndustryMarket
7 Day-7.0%-1.9%-1.5%
30 Day-28.8%-8.1%-4.6%
90 Day-57.5%-7.3%-4.6%
1 Year-75.0%-75.0%19.9%16.1%-7.6%-10.4%
3 Yearn/a23.0%11.4%9.4%0.03%
5 Yearn/a97.9%68.2%25.6%8.1%

Price Volatility Vs. Market

How volatile is Centennial Resource Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Centennial Resource Development undervalued based on future cash flows and its price relative to the stock market?

15.35x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Centennial Resource Development to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Centennial Resource Development to establish if it is available at substantial discount.


Price Based on Earnings

Centennial Resource Development is overvalued based on earnings compared to the Europe Oil and Gas industry average.

Centennial Resource Development is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Centennial Resource Development is good value based on expected growth next year.


Price Based on Value of Assets

Centennial Resource Development is good value based on assets compared to the DE Oil and Gas industry average.


Next Steps

Future Growth

How is Centennial Resource Development expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

40.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Centennial Resource Development's revenue is expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).

Centennial Resource Development's earnings are expected to grow significantly at over 20% yearly.

Centennial Resource Development's revenue growth is expected to exceed the Germany market average.

Centennial Resource Development's earnings growth is expected to exceed the Germany market average.

Centennial Resource Development's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Centennial Resource Development is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Centennial Resource Development performed over the past 5 years?

49.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Centennial Resource Development has delivered over 20% year on year earnings growth in the past 5 years.

Centennial Resource Development's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Centennial Resource Development's 1-year earnings growth is negative, it can't be compared to the Europe Oil and Gas industry average.


Return on Equity

Centennial Resource Development has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Centennial Resource Development used its assets less efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Centennial Resource Development has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Centennial Resource Development's financial position?


Financial Position Analysis

Centennial Resource Development's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Centennial Resource Development's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Centennial Resource Development's level of debt (27%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Centennial Resource Development's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (71.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is Centennial Resource Development's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Centennial Resource Development's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Centennial Resource Development's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Centennial Resource Development has not reported any payouts.

Unable to verify if Centennial Resource Development's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Centennial Resource Development has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Centennial Resource Development's dividends in 3 years as they are not expected to pay a notable one for Germany.


Next Steps

Management

What is the CEO of Centennial Resource Development's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Mark Papa (72yo)

3.8yrs

Tenure

US$2,693,240

Compensation

Mr. Mark G. Papa has been the Chief Executive Officer at Centennial Resource Development, Inc., (Formerly, Silver Run Acquisition Corporation) since November 2015 and has been its Chairman since October 12 ...


CEO Compensation Analysis

Mark's remuneration is higher than average for companies of similar size in Germany.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

49yo

Average Age

The tenure for the Centennial Resource Development management team is about average.


Board Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

The average tenure for the Centennial Resource Development board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Centennial Resource Development individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$209,24013 Aug 19
George Glyphis
EntityIndividual
Role
Chief Financial Officer
CFO, VP
Shares50,000
Max PriceUS$4.18

Ownership Breakdown


Management Team

  • Mark Papa (72yo)

    Chairman

    • Tenure: 3.8yrs
    • Compensation: US$2.69m
  • Terry Sherban (60yo)

    Vice President of Reservoir Engineering and Consultant

    • Tenure: 0.0yrs
  • Brent Jensen (49yo)

    Chief Accounting Officer & VP

    • Tenure: 2.4yrs
    • Compensation: US$1.76m
  • Ward Polzin (56yo)

    Consultant

    • Tenure: 0.0yrs
    • Compensation: US$326.92k
  • Stephen Coats (48yo)

    Secretary

    • Tenure: 3.8yrs
  • Jamie Wheat (49yo)

    Vice President of Accounting

    • Tenure: 2.4yrs
  • Davis O'Connor (64yo)

    VP & General Counsel

    • Tenure: 2.8yrs
    • Compensation: US$2.39m
  • Hays Mabry

    Director of Investor Relations

    • Tenure: 0.0yrs
  • George Glyphis (49yo)

    CFO, VP

    • Tenure: 2.8yrs
    • Compensation: US$3.26m
  • Sean Smith (46yo)

    COO & VP

    • Tenure: 0.0yrs
    • Compensation: US$4.11m

Board Members

  • Tony Weber (57yo)

    Independent Director

    • Tenure: 2.8yrs
  • Jeffrey Tepper (54yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$246.79k
  • Mark Papa (72yo)

    Chairman

    • Tenure: 3.8yrs
    • Compensation: US$2.69m
  • David Leuschen (67yo)

    Director

    • Tenure: 2.8yrs
  • Pierre Lapeyre (56yo)

    Director

    • Tenure: 2.8yrs
  • Robert Tichio (42yo)

    Director

    • Tenure: 2.8yrs
  • Maire Baldwin (53yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$255.08k
  • Karl Bandtel (53yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$246.79k
  • Matt Hyde (63yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$226.88k

Company Information

Centennial Resource Development, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Centennial Resource Development, Inc.
  • Ticker: 241A
  • Exchange: DB
  • Founded: 2015
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$1.132b
  • Listing Market Cap: US$1.020b
  • Shares outstanding: 264.44m
  • Website: https://www.cdevinc.com

Number of Employees


Location

  • Centennial Resource Development, Inc.
  • 1001 Seventeenth Street
  • Suite 1800
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CDEVNasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDApr 2016
CDEV *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNApr 2016
241ADB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2016
0HVDLSE (London Stock Exchange)YesClass A Common StockGBUSDApr 2016

Biography

Centennial Resource Development, Inc., an independent oil and natural gas company, focuses on the development of unconventional oil and associated liquids-rich natural gas reserves in the United States. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 22:17
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.