CDEV (Centennial) just had a very complementary merger with another company Colgate, and changed its ticket to NASDAQ:PR. The merged company will then trade on NYSE starting Sep. 12. This will open them to a flood of additional potential capital. You can trade the stock today on NASDAQ as PR.
Fundamentally, (I have accounting degree) CDEV looks to me as if it has reached a critical upward inflection point toward high earnings and cash flows, combined with pulling on a massive combined asset base in the Permian basin across Texas and New Mexico. The merger brings a lot of know-how across additional vertical activities for petroleum and geological engineering.
With all of this surveying, assessment, analytical, and extraction activities across such a wide asset base, the combined company sits in an interesting position to also potentially lease some of its extraction sites to others for other minerals, in times when oil prices makes a particular site uneconomical.
They have stated no such plans, but their cash flow generation and valuable land assets make this stock worth significantly more than it is currently priced, in my opinion.
With exploding demand for a wide variety of metals, minerals, and specialty materials, this company could truly benefit from its huge asset base, in terms of mineral resources, even if it chooses not to pursue them.
Disclaimer: I bought 100 shares of the stock last week
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