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Centennial's Borrowing Base Reaffirmed at $700 Million

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   |    Tuesday,October 13,2020

Centennial Resource Development's 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.

CEO Sean Smith said: "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. 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."

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