Centennial Resource Development to buy upstream assets of Silverback for $885M
Centennial Resource Development announced that it has agreed to acquire 100% of the leasehold interests and related upstream assets in Reeves County from Silverback Exploration. On November 21, an affiliate of Riverstone Holdings entered into a purchase agreement with Silverback to acquire 100% of its leasehold interests and related upstream assets in Reeves County for an aggregate purchase price of $855M in cash, subject to certain adjustments. On November 27, Riverstone and Centennial entered into an agreement to assign, under which the Riverstone affiliate has agreed to assign, and Centennial has agreed to assume, Riverstone's right to purchase such Silverback assets, subject to the satisfaction of certain conditions. The acquisition is expected to close on December 30, 2016. Certain third parties have the right, exercisable within 30 days of receipt of a notice of Centennial's acquisition, to acquire up to ~80% of ~10,000 net acres within the ~35,000 net acres at the purchase price paid by Centennial.