The announcement Silver Run released on June 22nd of this year to acquire Centennial Resource Production (CRP) is complete and finalized. Riverstone agreed the following month to assign its rights to buy controlling interest in the company to Silver Run Acquisition. According to the definitive agreement, Silver Run assumed responsibilities to purchase an estimated 89 percent interest on behalf of Riverstone. At the time of the agreement, the combined company had an enterprise value at nearly $1.8 million. Silver Run’s board of directors and CRP mutually agreed to all conditions and terms included in the acquisition transaction, in October 2016.
Once the transaction was completed, Riverstone owns 89 percent and NGP has 11 percent ownership in Centennial Resource Production. Other conditions stipulated in the transaction are the selection of four members joining the Silver Run’s board of directors. It’s now an eight-member board, including Tony R. Weber, Mark G. Papa, David M. Leuschen, and Marie A. Baldwin. The definitive agreement also requested a name change for CRS to Centennial Resource Development, Incorporation at the closing of the acquisition transaction. Riverstone and managed funds by Capital World Investors (CWI) and Fidelity Management & Research Company (FMRC) purchased shares of stock in Silver Run. CWI bought $810 million in shares and FMRC acquired $200 million in shares at $10 per share.
Riverstone Holdings LLC is an investment firm, specializing in growth capital and acquisition in the energy and power industry. The company and its affiliated funds own majority interest in Silver Run, approximately 51 percent or more ownership rights. A month after Riverstone entered into the definitive agreement in July, the firm announced the sale of Rock Oil Holdings. The oil and gas company is located in Houston, TX and Denver, CO and concentrates on the Permian Basin. Riverstone reached an agreement to sell the company for $980 million to SM Energy Company, which closed in October.
The investment firm closed a merger and acquisition transaction and sales transaction during the same month. Silver Run concentrates on M&A, capital stock purchase, and reorganization in the oil, energy, and power industries. The acquisition company is planning to pursue development and buyouts of unconventional oil and natural gas reserves in Permian Basin. Riverstone manages $80 billion in the energy services, power and coal, and assets exploration & production sectors of the energy industry. The firm was founded in 2000 by David Leuschen and Pierre Lapeyre who also serves on Silver Run’s board of directors.