Centennial Resource Development Announces Reaffirmation of Borrowing Base and Improvement to Liquidity Position

Centennial Resource Development Announces Reaffirmation of Borrowing Base and
Improvement to Liquidity Position

DENVER, Oct. 13,  2020 (GLOBE  NEWSWIRE) --  Centennial Resource  Development,
Inc. (“Centennial” or the “Company”)  (NASDAQ: CDEV) today announced that  its
bank group, led  by JPMorgan Chase  Bank, N.A., has  reaffirmed the  Company’s
$700 million  borrowing base.  As  a result,  given  a reduction  in  revolver
borrowings and outstanding letters of credit, Centennial’s liquidity  position
has improved since June 30, 2020.

As of September 30,  2020, after making repayments  of $15 million during  the
third quarter, Centennial had $355 million of borrowings outstanding under its
revolving credit facility  and approximately $5  million in cash  on hand.  At
September 30, 2020, Centennial’s pro  forma total liquidity was $314  million,
based on its balance sheet position, the $32 million availability blocker  and
$4 million  in  current  outstanding  letters of  credit.  As  a  result,  the
Company’s liquidity increased by approximately $17 million, or 6%, compared to
the prior quarter.

“Centennial  appreciates  the  ongoing  support  from  its  lenders  with  the
reaffirmation of  the borrowing  base. We  believe this  outcome reflects  our
high-quality asset base and recent reductions to field-level costs,” said Sean
R. Smith,  Chief Executive  Officer.  “Additionally, we  are pleased  to  have
organically increased the Company’s liquidity position through debt  repayment
and anticipate an improving free cash  flow and liquidity profile through  the
end of the year.”

About Centennial Resource Development, Inc.

Centennial Resource Development, Inc.  is an independent  oil and natural  gas
company focused  on  the  development of  unconventional  oil  and  associated
liquids-rich natural gas reserves in  the Permian Basin. The Company’s  assets
and operations,  which  are held  and  conducted through  Centennial  Resource
Production, LLC, are concentrated  in the Delaware Basin,  a sub-basin of  the
Permian Basin.  For additional  information about  the Company,  please  visit

Cautionary Note Regarding Forward-Looking Statements

The information in  this press release  includes “forward-looking  statements”
within the meaning of Section 27A of  the Securities Act of 1933, as  amended,
and Section  21E of  the Securities  Exchange  Act of  1934, as  amended.  All
statements, other than statements  of historical fact  included in this  press
release,  regarding  our  strategy,  future  operations,  financial  position,
estimated  revenues  and  losses,   projected  costs,  prospects,  plans   and
objectives of management  are forward-looking  statements. When  used in  this
press release, the  words “could,” “may,”  “believe,” “anticipate,”  “intend,”
“estimate,”  “expect,”  “project,”  “goal”,   “plan”,  “target”  and   similar
expressions are intended to identify forward-looking statements, although  not
all  forward-looking  statements   contain  such   identifying  words.   These
forward-looking statements are based on management’s current expectations  and
assumptions  about  future  events  and  are  based  on  currently   available
information as to the outcome and timing of future events.

Forward-looking statements may include statements about:

  o volatility of oil, natural gas and NGL prices or a prolonged period of low
    oil, natural gas or NGL prices and the effects of actions by, or  disputes
    among or  between,  members of  the  Organization of  Petroleum  Exporting
    Countries (“OPEC”), such as  Saudi Arabia, and other  oil and natural  gas
    producing countries, such as Russia, with respect to production levels  or
    other matters related to the price of oil;
  o the effects of  excess supply of  oil and natural  gas resulting from  the
    reduced demand caused by the COVID-19 pandemic and the actions by  certain
    oil and natural gas producing countries;
  o our business strategy and future drilling plans;
  o our reserves and our  ability to replace the  reserves we produce  through
    drilling and property acquisitions;
  o our drilling prospects, inventories, projects and programs;
  o our financial strategy, liquidity and capital required for our development
  o our realized oil, natural gas and NGL prices;
  o the timing and  amount of our  future production of  oil, natural gas  and
  o our hedging strategy and results;
  o our competition and government regulations;
  o our ability to obtain permits and governmental approvals;
  o our pending legal or environmental matters;
  o the marketing and transportation of our oil, natural gas and NGLs;
  o our leasehold or business acquisitions;
  o cost of developing our properties;
  o our anticipated rate of return;
  o general economic conditions;
  o credit markets;
  o uncertainty regarding our future operating results;
  o our plans, objectives, expectations and intentions contained in this press
    release that are not historical; and
  o the other factors described in our Annual Report on Form 10-K for the year
    ended December 31, 2019, and any updates to those factors set forth in our
    subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

We caution you that these forward-looking statements are subject to all of the
risks and uncertainties, most  of which are difficult  to predict and many  of
which are  beyond  our  control,  incident  to  the  development,  production,
gathering and sale of oil  and natural gas. These  risks include, but are  not
limited to, commodity  price volatility,  inflation, lack  of availability  of
drilling and production equipment and services, environmental risks,  drilling
and other operating  risks, regulatory  changes, the  uncertainty inherent  in
estimating reserves and in  projecting future rates  of production, cash  flow
and access to capital,  the timing of development  expenditures and the  other
risks described in our filings with the SEC.

Reserve engineering is  a process of  estimating underground accumulations  of
oil and natural gas that cannot be  measured in an exact way. The accuracy  of
any  reserve  estimate  depends  on   the  quality  of  available  data,   the
interpretation of such  data and price  and cost assumptions  made by  reserve
engineers. In  addition,  the  results of  drilling,  testing  and  production
activities may justify revisions  of estimates that  were made previously.  If
significant,  such  revisions  would  change  the  schedule  of  any   further
production and development drilling. Accordingly, reserve estimates may differ
significantly from the quantities of oil  and natural gas that are  ultimately

Should one  or more  of the  risks or  uncertainties described  in this  press
release occur, or  should underlying assumptions  prove incorrect, our  actual
results and  plans  could  differ  materially  from  those  expressed  in  any
forward-looking  statements.  All  forward-looking  statements,  expressed  or
implied, included  in this  press  release are  expressly qualified  in  their
entirety by this cautionary statement.  This cautionary statement should  also
be  considered   in   connection  with   any   subsequent  written   or   oral
forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update
any forward-looking statements, all  of which are  expressly qualified by  the
statements in this section, to reflect events or circumstances after the  date
of this press release.

Hays Mabry
Director, Investor Relations
(832) 240-3265
[email protected]

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