Acquisition of Centennial Resource Production complete

In October 2016, Silver Run Acquisition Corporation announced its acquisition completion of an 89% controlling interest of Centennial Resource Production, LLC (CRP). CRP is an independent natural gas and oil corporation with properties located in the Southern Delaware Basin core. This is made possible by funds controlled by and affiliated with NGP Energy Capital Management, LLC (NGP). This transaction was approved by both companies’ board of directors and was approved at a special meeting held with the Silver Run’s stockholders on October 7, 2016. With this transaction, Silver Run is now renamed Centennial Resource Development, Inc. Also, in the closing of this transaction, Riverstone and some of their controlled investment funds bought around $810 million of class A common stock from Silver Run at $10.00 per share. This includes $175 million from the Riverstone Energy Limited. Additionally, the management of certain funds from Capital World Investors and the management of certain funds from Fidelity Management and the Research Company bought an aggregate of $200 million of class A common stock from Silver Run at $10.00 per share. Both stock sales’ proceeds were utilized to fund a cash consideration portion for the transaction. And after the closing, Riverstone and its affiliates are now the single biggest stockholder for Silver Run with around 51% ownership interest. 11% interest in CRP is retained by NGP.

About Silver Run, Riverstone Holdings, and NGP

Silver Run Acquisition Corporation is an entity with a special focus on energy, and their purpose is to enter into a capital stock exchange, merger, stock purchase, asset acquisition, similar business combination, or reorganization. Following the transaction, this company focuses on the acquisition and development of associated liquids rich natural gas reserves and unconventional oil. Riverstone Holding LLC is a private investment firm found in 2000 by Pierre Lapeyre, Jr. and David M. Leuschen, and they focus on power and energy. This company conducts growth capital investments and buyouts in the midstream, exploration & production, renewable sectors, power, and oilfield services of the energy sector. They have offices in London, New York, Houston, and Mexico City, and they have committed more than $31 billion to over 120 investments in North America, Europe, Latin America, Africa, and Asia. And lastly, NGR was found in 1988, and it’s a premier private equity firm within the natural resources industry. It has approximately $17 billion of cumulative equity commitments that is organized to create strategic investments in the natural resources and energy sectors.

 

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