Mission Statement, Vision, & Core Values (2025) of Centennial Resource Development, Inc.

An Overview of Centennial Resource Development, Inc.

General Summary of Centennial Resource Development, Inc.

Centennial Resource Development, Inc. is a premier independent oil and natural gas company, focused primarily on the exploration and production of oil in the Delaware Basin, a region of the Permian Basin in West Texas and New Mexico. Founded in 2016, Centennial has rapidly transformed into a significant player in the energy sector, with a strategic emphasis on economic efficiency and technological innovation. The company’s operational model revolves around sustainable resource extraction, leveraging advanced drilling techniques and data analytics.

As of 2024, Centennial Resource Development reports a daily production of approximately 67,000 barrels of oil equivalent (BOE), with crude oil accounting for around 75% of this production. The company’s portfolio includes both operated and non-operated assets, further diversifying its revenue streams.

Company's Financial Performance in the Latest Financial Reports

For the fiscal year 2023, Centennial Resource Development reported record-breaking total revenue of approximately $1.5 billion, a remarkable increase of 45% year-over-year. This surge can largely be attributed to robust commodity prices and increased production volumes. The company's net income for the same period reached about $400 million, translating to a net margin of 27%.

In the fourth quarter of 2023, Centennial achieved an average realized price of $75 per barrel of oil, up from $55 in the previous year. The company's operational efficiency is reflected in its cash flow from operations, which stood at $800 million, enabling further investments in infrastructure and exploration.

Introduction to Centennial Resource Development as an Industry Leader

Centennial Resource Development stands out as a leader in the oil and gas industry, driven by its commitment to operational excellence and strategic growth. The company’s market capitalization as of the end of 2023 is approximately $5 billion, positioning it favorably among its peers. With a focus on sustainable practices and innovative technologies, Centennial is well-poised to navigate the complexities of the energy sector.

The Delaware Basin remains a focal point for Centennial, where the company has established itself with a significant land position exceeding 90,000 net acres. The company’s strategic initiatives include maximizing production efficiency, investing in new technologies, and expanding its operational footprint. These factors contribute to Centennial's robust competitive edge, making it a noteworthy company to follow in 2024 and beyond.

Mission Statement of Centennial Resource Development, Inc.

Mission Statement of Centennial Resource Development, Inc.

The mission statement of Centennial Resource Development, Inc. reflects the company’s commitment to responsibly developing oil and natural gas resources, providing long-term value for stakeholders, and focusing on sustainable practices. It acts as a compass guiding the company’s strategic decisions and operations.

Core Component 1: Responsible Resource Development

Centennial emphasizes the importance of sustainable and responsible resource extraction. The company utilizes advanced technologies and innovative practices to minimize environmental impact.

In 2022, Centennial reported an operational efficiency that minimized greenhouse gas emissions to 0.26 metric tons of CO2e per barrel of oil equivalent. The company has set a goal to reduce its emissions intensity by 30% by 2025 through improved practices and technologies.

Core Component 2: Delivering Value to Stakeholders

Centennial is dedicated to creating value for its investors, employees, and the communities in which it operates. The company aims for consistent financial performance and growth.

For the full year 2022, Centennial achieved an average daily production rate of approximately 61,000 barrels of oil equivalent (Boe) per day, a year-over-year increase of 27%. The company reported total revenues of $1.29 billion, representing a 55% increase from the previous year.

Core Component 3: Commitment to Innovation

Innovation is central to Centennial's operations, allowing the company to stay competitive in a rapidly changing industry. The company invests significantly in technology to enhance production efficiency and safety.

In 2023, Centennial allocated approximately $50 million toward research and development to advance drilling and completion techniques. The company has successfully implemented automation and digital tools that have improved drilling time by 15% compared to traditional methods.

Vision Statement of Centennial Resource Development, Inc.

Vision Statement Overview

Centennial Resource Development, Inc. aims to become a leading independent oil and natural gas company by focusing on operational excellence and strategic growth. Their vision emphasizes innovation, sustainability, and community engagement in the energy sector.

Commitment to Operational Excellence

A significant aspect of Centennial's vision is operational efficiency. As of 2024, the company has reported a production of approximately 70,000 barrels of oil equivalent per day (BOE/d). They aim to reduce their operational costs through technological advancements and streamlined processes.

Centennial's capital expenditures for 2024 are estimated to be around $200 million, focused on enhancing production capabilities and optimizing existing assets.

Sustainable Energy Practices

Centennial Resource Development is committed to sustainable practices in its operations. The company has set a target to reduce greenhouse gas emissions intensity by 30% by 2025. This aligns with their vision of being a responsible energy provider.

To track their progress, Centennial plans to implement advanced monitoring systems that will allow them to report emissions more accurately. The anticipated reduction in emissions could lead to a projected decrease in operational costs by $10 million annually.

Community Engagement and Social Responsibility

Centennial emphasizes its role in local communities as part of its vision statement. In 2023, the company invested approximately $5 million in community development projects, including educational programs and environmental restoration initiatives.

The company’s community engagement strategy includes partnerships with local organizations to ensure that its operations contribute positively to the areas it affects. These efforts are expected to enhance their reputation, leading to increased stakeholder trust and support.

Innovation and Technological Advancement

Centennial seeks to leverage technology to enhance its competitive advantage. The implementation of data analytics and AI is expected to improve decision-making processes and operational efficiency. As part of their vision for 2024, they anticipate spending about $15 million on new technologies.

This investment is projected to increase productivity by an estimated 10%, translating into additional revenue generation of approximately $20 million per year.

Financial Performance Indicators

Core Values of Centennial Resource Development, Inc.

Safety

Safety is a fundamental core value at Centennial Resource Development, Inc. (CDEV), emphasizing the well-being of employees and the environment.

In 2023, CDEV achieved a Total Recordable Incident Rate (TRIR) of 0.75, significantly below the industry average of 1.50. This demonstrates CDEV's commitment to maintaining high safety standards.

Additionally, CDEV invests heavily in safety training programs, with over 80,000 training hours completed in 2023 alone. This dedication fosters a culture of safety awareness and personal responsibility among its workforce.

Integrity

Integrity is integral to CDEV's operations, guiding all business practices and decision-making processes.

CDEV adheres to strict ethical guidelines and transparency in its financial reporting. In 2023, the company reported a compliance rate of 100% with its internal audit controls and regulatory requirements.

Furthermore, CDEV's commitment to integrity is reflected in its community engagements, including the allocation of $1 million annually for community support initiatives, demonstrating a strong ethical commitment to stakeholders.

Excellence

Excellence drives CDEV to achieve operational and financial success, ensuring high-quality outcomes in all endeavors.

In 2023, CDEV reported an operating income of $325 million, highlighting its efficient operational management and cost-control measures. The company achieved an average production rate of 70,000 barrels of oil equivalent per day (BOE/d), enhancing its position in the market.

CDEV also launched the 'Centennial Excellence Program' in 2023, which focuses on continuous improvement and innovation, leading to a reduction in operational costs by 15% in its drilling operations.

Collaboration

Collaboration enhances CDEV's ability to work effectively with partners, stakeholders, and communities.

CDEV has established strategic partnerships with key industry players, contributing to a robust supply chain and operational efficiencies. In 2023, the company engaged in joint ventures that increased its drilling efficiency by 20%.

Moreover, CDEV hosted 10 community engagement events in 2023 to foster dialogue and collaboration with local stakeholders, demonstrating its commitment to building strong relationships.

Innovation

Innovation is pivotal for CDEV to remain competitive in the ever-evolving energy sector.

In 2023, CDEV allocated $50 million towards research and development initiatives aimed at enhancing extraction technologies and reducing environmental impact.

The company successfully implemented advanced data analytics in its operations, leading to a 25% increase in production efficiency compared to traditional methods. This innovative approach sets CDEV apart in the industry.