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Permian Producer Centennial to Buy Colgate for $2.5 Billion

  • Colgate has been one of most active drillers in Permian Basin
  • Shares of Centennial Resource gained in pre-market trading
Updated on

Centennial Resource Development Inc., a shale oil producer in the Permian Basin, agreed to acquire private equity-backed rival Colgate Energy in a cash-and-stock deal valued at about $2.5 billion.

The deal creates “the largest pure-play E&P company” in the Delaware Basin, which forms part of the Permian, Sean Smith, chief executive officer of Centennial, said in a statement Thursday.