Another Pure Permian Mini-Major Rises In Centennial, Colgate Merger

Another Pure Permian Mini-Major Rises In Centennial, Colgate Merger

ANDREWS, TX - An oil pumpjack works at dawn in the Permian Basin oil field on January 20, 2016 in ... [+] the oil town of Andrews, Texas. (Photo by Spencer Platt/Getty Images)

In keeping with the emerging shale narrative that “scale equals relevance,” Centennial Resource Development, Inc. announced on Thursday a deal to acquire privately-held Colgate Energy Partners III, LLC in a deal that values Colgate at $3.9 billion. Calling the deal a “merger of equals,” Centennial said in a release that it creates a pure Permian Basin play company with a total enterprise value of $7 billion.