Centennial Resource Development, Inc. (NASDAQ:CDEV) Q4 2019 Earnings Conference Call - Final Transcript

Feb 25, 2020 • 10:00 am ET

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Centennial Resource Development, Inc. (NASDAQ:CDEV) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, and welcome to Centennial Resource Development's Conference Call to discuss its Fourth Quarter and Full Year 2019 Earnings. Today's call is being recorded. A replay of the call will be accessible until March 10th 2020 by dialing 855-859-2056 and entering the conference ID number 7679910 or by visiting Centennial's website at www.cdevinc.com.

At this time, I will turn the call over to Hays Mabry, Centennial's Director of Investor Relations for some opening remarks. Please go ahead.

Executive
Hays Mabry

Thank you, Rebecca. And thank you all for joining us on the Company's fourth quarter and full year 2019 earnings call. Presenting on the call today are Mark Papa, our Chairman and Chief Executive Officer, George Glyphis, our Chief Financial Officer, and Sean Smith, our Chief Operating Officer.

Yesterday, February 24th, we filed a Form 8-K with an earnings release reporting full year earnings results for the Company and operational results for our subsidiary Centennial Resource Production LLC. We also posted an earnings presentation to our website that we will reference during today's call. You can find the presentation on our website homepage or under presentations at www.cdevinc.com.

I would like to note that many of the comments during this earnings call are forward-looking statements that involve risk and uncertainties that could affect our actual results and plans. Many of these risks are beyond our control and are discussed in more detail in the Risk Factors in the forward-looking statement section of our filings with the SEC, including our annual report on Form 10-K for the year ended 2019, which was also filed with the SEC yesterday.

Although we believe the expectations expressed are based on reasonable assumptions, they are not guarantees of future performance and actual results or developments may differ materially. We may also refer to non-GAAP financial measures that help facilitate comparisons across periods and with our peers. For any non-GAAP measure we use, a reconciliation to the nearest corresponding GAAP measure can be found in the earnings release or presentation which are both available on our website.

And with that, I'll now turn the call over to Mr. Mark Papa, Chairman and CEO.

Executive
Mark G. Papa

Thanks Hays. Good morning and welcome to Centennial's fourth quarter earnings call. Our presentation sequence on this call will be as follows. George will first discuss our quarterly and full-year financial results, the monetization of our saltwater disposal assets and 2020 guidance; Sean will then provide an operational update, including recent efficiencies, well results and year-end reserves; and then I'll follow with my macro view, our current strategy emanating from the macro and management's succession plans.

Now I'll ask George to review our financial results.

Executive
George S. Glyphis

Thank you, Mark. Centennial finished 2019 with strong fourth quarter results. As you can reference on Slide 19 of the earnings presentation net oil production for the fourth quarter averaged approximately 45,000 barrels per day, which was up 13% over the prior year period and 7% over Q3. Average net oil equivalent production totaled 79,734 barrels per day, which was up