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.
The last earnings update was 17 days ago.
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Centennial Resource Development. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Centennial Resource Development's
is considered below, and whether this is a fair price.
Price based on past earnings
Centennial Resource Development's earnings available for a low price, and how does
this compare to other companies in the same industry?
Centennial Resource Development's earnings are expected to grow significantly at over 20% yearly.
Centennial Resource Development's revenue is expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Centennial Resource Development's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Oil and Gas
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Centennial Resource Development
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Centennial Resource Development's finances.
The net worth of a company is the difference between its assets and liabilities.
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.
This treemap shows a more detailed breakdown of
Centennial Resource Development's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.2x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
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, 2016. Mr. Papa serves as the President of Centennial Resource Development, Inc. He serves as a Partner at Riverstone Holdings LLC. He joined Riverstone Holdings in 2015. Mr. Papa served as the Chief Executive Officer and Chairman of EOG Resources Inc., from September 1998 to July 1, 2013. He worked 32 years for EOG in various management positions Mr. Papa served as the Chief Operating Officer at EOG Resources Inc., from September 1997 to September 1998 and President, since December 1996. He served as the President of North America Operations at EOG Resources Inc., from February 1994 to September 1998. Mr. Papa served as the Executive Chairman at EOG Resources Inc. from July 1, 2013. He joined Belco Petroleum Corporation, a predecessor of EOG Resources Inc., in 1981. Prior to that, Mr. Papa worked 13 years for Conoco in various engineering and management positions. He served as the Chairman of Oil States International Inc. from February 2016 to August 2018. He serves as the Chairman of the U.S. Oil and Gas Association. He served as an Independent Director at Oil States International Inc., from February 2001 to August 2018. He has been a Director at Centennial Resource Development, Inc., since November 2015. Mr. Papa has been a Director of Casa de Esperanza since November 2006. He served as a Director of Magellan GP LLC, from July 31, 2003 to April 21, 2005. Mr. Papa served as a Member of EOG Resources' board of directors from August 1999 to December 2014. In February 2010 and 2013, the Harvard Business Review denoted Mr. Papa as one of the 100 Best Performing CEO’s in the World and ranked him as the Best in the US Energy Industry. Additionally, Institutional Investor magazine repeatedly ranked him as the Top Independent E&P CEO. Mr. Papa received an M.B.A. from the University of Houston and a B.S. in Petroleum Engineering from the University of Pittsburgh.
Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
Mark's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
Centennial Resource Development
management team in years:
The tenure for the Centennial Resource Development management team is about average.
COO & VP
Chief Accounting Officer & VP
VP & General Counsel
Director of Investor Relations
Vice President of Accounting
Vice President of Reservoir Engineering and Consultant
Board of Directors Tenure
Average tenure and age of the
Centennial Resource Development
board of directors in years:
The average tenure for the Centennial Resource Development board of directors is less than 3 years, this suggests a new board.
Read This Before Judging Centennial Resource Development, Inc.'s (NASDAQ:CDEV) ROE
Our data shows Centennial Resource Development has a return on equity of 4.1% for the last year. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Centennial Resource Development: 4.1% = US$126m ÷ US$3.2b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Centennial Resource Development's Debt And Its 4.1% Return On Equity Although Centennial Resource Development does use debt, its debt to equity ratio of 0.28 is still low.
Have Insiders Been Buying Centennial Resource Development, Inc. (NASDAQ:CDEV) Shares This Year?
So shareholders might well want to know whether insiders have been buying or selling shares in Centennial Resource Development, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Centennial Resource Development Insider Transactions Over The Last Year.
Can Centennial Resource Development, Inc. (NASDAQ:CDEV) Improve Its Returns?
By way of learning-by-doing, we'll look at ROE to gain a better understanding of Centennial Resource Development, Inc. … Over the last twelve months Centennial Resource Development has recorded a ROE of 6.7%. … Return on Equity = Net Profit ÷ Shareholders' Equity
All You Need To Know About Centennial Resource Development Inc's (NASDAQ:CDEV) Financial Health
Stocks with market capitalization between $2B and $10B, such as Centennial Resource Development Inc (NASDAQ:CDEV) with a size of US$4.4b, do not attract as much attention from the investing community as do the small-caps and large-caps. … Let’s take a look at CDEV’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … See our latest analysis for Centennial Resource Development
Why Centennial Resource Development Inc (NASDAQ:CDEV) Is A Financially Healthy Company
Mid-caps stocks, like Centennial Resource Development Inc (NASDAQ:CDEV) with a market capitalization of US$4.60b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … Don’t forget that this is a general and concentrated examination of Centennial Resource Development's financial health, so you should conduct further analysis. … View our latest analysis for Centennial Resource Development
Does Centennial Resource Development Inc's (NASDAQ:CDEV) PE Ratio Signal A Selling Opportunity?
which is 2.52 times more expensive than the 13.42x average multiple of the Oil and Gas. … Yes, this excessive multiple can initially be deterring, but there are many company-specific elements which are not captured in such a static ratio – such as its growth outlook and debt obligations … In this article, I am going to take you through some key things to consider in order to identify which multiple is the most relevant for
Should You Sell Centennial Resource Development Inc (NASDAQ:CDEV) At This PE Ratio?
and want to better understand how you can grow your money by investing in Centennial Resource Development Inc (NASDAQ:CDEV). … Centennial Resource Development Inc (NASDAQ:CDEV) is trading with a trailing P/E of 33x, which is higher than the industry average of 13.8x. … See our latest analysis for Centennial Resource Development
CDEV’s projected future profit growth is a robust 31.10%, with an equally impressive underlying growth from its revenues expected over the upcoming years. … IPWR’s projected future profit growth is an exceptional 67.22%, with an underlying triple-digit growth from its revenues expected over the upcoming years. … NasdaqGS:SWKS Future Profit May 16th 18 For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.
Stock Pick Of The Day: Centennial Resource Development Inc (NASDAQ:CDEV)
Centennial Resource Development Inc (NASDAQ:CDEV) continues to post impressive revenue growth and its prospects have never been brighter. … Centennial Resource Development's balance sheet is robust, with high levels of cash generated from its core operating activities (0.67x debt) able to service its borrowings. … CDEV has high near term liquidity, with short term assets (cash and other liquid assets) amply covering upcoming one-year liabilities.
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. The company’s assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of acreage blocks primarily in Reeves County in West Texas and Lea County in New Mexico. As of December 31, 2018, it leased or acquired approximately 80,223 net acres; and owned 1,597 net mineral acres in the Delaware Basin. The company was formerly known as Silver Run Acquisition Corporation and changed its name to Centennial Resource Development, Inc. in October 2016. Centennial Resource Development, Inc. was incorporated in 2015 and is headquartered in Denver, Colorado.
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