Permian Resources (PR) 10-Q 8 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document And Entity Information [Line Items]
Entity Registrant Name	Centennial Resource Development, Inc.
Entity Central Index Key	1,658,566
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock Class A
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		263,745,887
Common Stock Class C
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		12,313,691

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 38,224	$ 117,315
Accounts receivable, net	108,431	78,786
Derivative instruments	7,148	433
Prepaid and other current assets	12,521	6,051
Total current assets	166,324	202,585
Oil and natural gas properties, successful efforts method
Unproved properties	1,881,979	1,952,680
Proved properties	1,855,890	1,602,002
Accumulated depreciation, depletion and amortization	(238,676)	(173,906)
Total oil and natural gas properties, net	3,499,193	3,380,776
Other property and equipment, net	6,251	5,465
Total property and equipment, net	3,505,444	3,386,241
Noncurrent assets
Derivative instruments	1,188	662
Other noncurrent assets	19,607	27,081
Total assets	3,692,563	3,616,569
Current liabilities
Accounts payable and accrued expenses	180,048	199,533
Derivative instruments	0	240
Other current liabilities	483	0
Total current liabilities	180,531	199,773
Noncurrent liabilities
Long-term debt, net	390,921	390,764
Asset retirement obligations	12,356	12,161
Deferred tax liability	22,367	9,899
Other long-term liabilities	670	0
Total liabilities	606,845	612,597
Shareholders’ equity
Commitments and contingencies (Note 12)
Common stock, $0.0001 par value, 620,000,000 shares authorized:
Additional paid-in capital	2,814,051	2,767,558
Retained earnings	132,729	66,639
Total shareholders’ equity	2,946,808	2,834,225
Noncontrolling interest	138,910	169,747
Total equity	3,085,718	3,003,972
Total liabilities and equity	3,692,563	3,616,569
Preferred Stock Series A
Preferred stock, $0.0001 par value, 1,000,000 shares authorized:
Preferred stock	0	0
Common Stock Class A
Common stock, $0.0001 par value, 620,000,000 shares authorized:
Common stock	27	26
Common Stock Class C
Common stock, $0.0001 par value, 620,000,000 shares authorized:
Common stock	$ 1	$ 2

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Preferred stock, par value (USD per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (shares)	1,000,000	1,000,000
Common stock, par value (USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (shares)	620,000,000	620,000,000
Series A Preferred Stock
Preferred stock, shares issued (shares)	1	1
Preferred stock, shares outstanding (shares)	1	1
Common Stock Class A
Common stock, shares issued (shares)	264,858,498	261,337,636
Common stock, shares outstanding (shares)	263,738,776	260,327,920
Common Stock Class C
Common stock, shares issued (shares)	12,313,691	15,661,338
Common stock, shares outstanding (shares)	12,313,691	15,661,338

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating revenues
Oil and gas sales	$ 215,898	$ 61,097
Operating expenses
Lease operating expenses	16,276	7,278
Severance and ad valorem taxes	14,173	3,187
Gathering, processing and transportation expenses	13,828	5,244
Depreciation, depletion and amortization	66,010	26,160
Impairment and abandonment expenses	0	(29)
Exploration expense	3,447	1,181
General and administrative expenses	14,297	10,884
Total operating expenses	128,031	53,905
Income from operations	87,867	7,192
Other income (expense)
Gain (loss) on sale of oil and natural gas properties	15	166
Interest expense	(5,813)	(410)
Net gain (loss) on derivative instruments	7,843	3,759
Other income (expense)	(3)	0
Other income (expense)	2,042	3,515
Income before income taxes	89,909	10,707
Income tax expense	19,137	0
Net income	70,772	10,707
Less: Net income attributable to noncontrolling interest	4,682	884
Net income attributable to Class A Common Stock	$ 66,090	$ 9,823
Income per share of Class A Common Stock:
Basic (USD per share)	$ 0.25	$ 0.04
Diluted (USD per share)	$ 0.25	$ 0.04

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 70,772	$ 10,707
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	66,010	26,160
Stock-based compensation expense	4,333	2,610
Exploratory dry hole cost	221	0
Deferred tax expense	19,137	0
(Gain) loss on sale of oil and natural gas properties	(15)	(166)
Non-cash portion of derivative (gain) loss	(7,482)	(4,156)
Amortization of debt issuance costs	379	93
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(29,555)	(9,143)
Increase in prepaid and other assets	(7)	(382)
Increase (decrease) in accounts payable and other liabilities	8,033	(6,475)
Net cash provided by operating activities	131,826	19,248
Cash flows from investing activities:
Acquisitions of oil and natural gas properties	(101,753)	(38,678)
Drilling and development capital expenditures	(250,548)	(62,121)
Purchases of other property and equipment	(1,763)	(1,139)
Proceeds from sales of oil and natural gas properties	135,481	3,518
Net cash used in investing activities	(218,583)	(98,420)
Cash flows from financing activities:
Proceeds from revolving credit facility	85,000	0
Repayment of revolving credit facility	(85,000)	0
Proceeds from stock options exercised	164	0
Restricted stock used for tax withholdings	(192)	0
Debt issuance costs	(906)	(37)
Net cash used in financing activities	(934)	(37)
Net decrease in cash and cash equivalents and restricted cash	(87,691)	(79,209)
Cash and cash equivalents and restricted cash, beginning of period	125,915	134,083
Cash and cash equivalents, end of period	38,224	54,874
Supplemental cash flow information
Cash paid for interest	784	226
Supplemental non-cash activity
Accrued capital expenditures included in accounts payable and accrued expenses	111,824	63,978
Asset retirement obligations incurred, including revisions to estimates	$ 243	$ 274

CONSOLIDATED STATEMENT OF SHARE

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Total	Common Stock Class A	Common Stock Class C	Series A Preferred Stock	Common StockCommon Stock Class A	Common StockCommon Stock Class C	Preferred StockSeries A Preferred Stock	Preferred StockSeries B Preferred Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Total Shareholders’ Equity	Noncontrolling Interest	Conversion of Class C Common Stock to Class A Common Stock	Conversion of Class C Common Stock to Class A Common StockCommon StockCommon Stock Class A	Conversion of Class C Common Stock to Class A Common StockCommon StockCommon Stock Class C	Conversion of Class C Common Stock to Class A Common StockAdditional Paid-In Capital	Conversion of Class C Common Stock to Class A Common StockTotal Shareholders’ Equity	Conversion of Class C Common Stock to Class A Common StockNoncontrolling Interest
Common shares outstanding at beginning of period (in shares) at Dec. 31, 2016					201,092,000	19,156,000
Balance at beginning of period at Dec. 31, 2016	$ 2,552,935				$ 20	$ 2	$ 0	$ 0	$ 2,364,049	$ (8,929)	$ 2,355,142	$ 197,793
Preferred shares outstanding at beginning of period (in shares) at Dec. 31, 2016							0	104,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Warrants exercised (in shares)					6,233,000
Warrants exercised					$ 1				(1)
Restricted stock issued (in shares)					268,000
Stock-based compensation	2,610								2,610		2,610
Change in equity due to issuance of shares by Centennial Resource Production, LLC									2,846		2,846	(2,846)
Net income	10,707									9,823	9,823	884
Common shares outstanding at end of period (in shares) at Mar. 31, 2017					207,593,000	19,156,000
Balance at end of period at Mar. 31, 2017	2,566,252				$ 21	$ 2	$ 0	$ 0	2,369,504	894	2,370,421	195,831
Preferred shares outstanding at end of period (in shares) at Mar. 31, 2017							0	104,000
Common shares outstanding at beginning of period (in shares) at Dec. 31, 2017		260,327,920	15,661,338		261,338,000	15,661,000
Balance at beginning of period at Dec. 31, 2017	3,003,972				$ 26	$ 2	$ 0	$ 0	2,767,558	66,639	2,834,225	169,747
Preferred shares outstanding at beginning of period (in shares) at Dec. 31, 2017				1			0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock issued (in shares)					199,000
Restricted stock forfeited (in shares)					(26,000)
Restricted stock used for tax withholding (in shares)					(10,000)
Restricted stock used for tax withholding	(192)								(192)		(192)
Option Exercises (in shares)					10,000
Option Exercises	164								164		164
Stock-based compensation	4,333								4,333		4,333
Conversion of common shares from Class C to Class A, net of tax (in shares)														3,347,000	(3,347,000)
Conversion of common shares from Class C to Class A, net of tax													$ 6,669	$ 1	$ (1)	$ 42,188	$ 42,188	$ (35,519)
Net income	70,772									66,090	66,090	4,682
Common shares outstanding at end of period (in shares) at Mar. 31, 2018		263,738,776	12,313,691		264,858,000	12,314,000
Balance at end of period at Mar. 31, 2018	$ 3,085,718				$ 27	$ 1	$ 0	$ 0	$ 2,814,051	$ 132,729	$ 2,946,808	$ 138,910
Preferred shares outstanding at end of period (in shares) at Mar. 31, 2018				1			0	0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Note 1—Basis of Presentation Description of Business Centennial Resource Development, Inc. is an independent oil and natural gas company focused on the development of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin. The Company’s assets are concentrated in the Delaware Basin, a sub-basin of the Permian Basin, and its properties consist primarily of large, contiguous acreage blocks primarily in Reeves County in West Texas and Lea County in New Mexico. Unless otherwise specified or the context otherwise requires, all references in these notes to “Centennial” or the “Company” are to Centennial Resource Development, Inc. and its consolidated subsidiary, Centennial Resource Production, LLC (“CRP”). Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules and regulations of the SEC for interim financial reporting. Accordingly, certain disclosures normally included in an Annual Report on Form 10-K have been omitted. The consolidated financial statements and related notes included in this Quarterly Report should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the period ended December 31, 2017 (the “2017 Annual Report”). Except as disclosed herein, there have been no material changes to the information disclosed in the notes to the consolidated financial statements included in the Company’s 2017 Annual Report. In the opinion of management, all normal, recurring adjustments and accruals considered necessary to present fairly, in all material respects, the Company’s interim financial results, have been included. Operating results for the periods presented are not necessarily indicative of expected results for the full year. The consolidated financial statements include the accounts of the Company and its majority owned subsidiary CRP, and CRP’s wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current presentation on the accompanying consolidated financial statements. Such reclassifications had no impact on net income, cash flows or shareholders’ equity previously reported. Noncontrolling interests represent third-party ownership in the Company’s consolidated subsidiary and is presented as a component of equity. See Note 9—Shareholders' Equity and Noncontrolling Interest for further discussion of noncontrolling interest. Use of Estimates The preparation of the Company’s consolidated financial statements requires the Company’s management to make various assumptions, judgments and estimates to determine the reported amounts of assets, liabilities, revenues and expenses, and in the disclosures of commitments and contingencies. Changes in these assumptions, judgments and estimates will occur as a result of the passage of time and the occurrence of future events and, accordingly, actual results could differ from amounts previously established. The more significant areas requiring the use of assumptions, judgments and estimates include: (i) oil and natural gas reserves; (ii) cash flow estimates used in impairment tests of long-lived assets; (iii) depreciation, depletion and amortization; (iv) asset retirement obligations; (v) determining fair value and allocating purchase price in connection with business combinations and asset acquisitions; (vi) accrued revenue and related receivables; (vii) accrued liabilities; (viii) valuation of derivative instruments; and (ix) deferred income taxes. Income Taxes Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to the Company’s year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent and temporary differences and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes. Recently Issued Accounting Standards In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments . This update applies to all entities that are required to present a statement of cash flows. This update provides guidance on eight specific cash flow issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. This update will be effective for financial statements issued for fiscal years beginning after December 31, 2017, including interim periods within those fiscal years with early adoption permitted. This update should be applied using the retrospective transition method. The Company adopted ASU 2016-15 in the first quarter of 2018. As a result of adoption, there were no changes to the presentation of cash flow activities in the statement of cash flows for the three months ended March 31, 2018 . In February 2016, the FASB issued ASU 2016-02, Leases , which created Accounting Standard Codification (“ASC”) Topic 842, Leases (“ASC Topic 842”), superseding current lease requirements under ASC Topic 840, Leases . Subsequently in January 2018, the FASB issued ASU 2018-01, which provides a practical expedient for the evaluation of existing land easement agreements under ASU 2016-02. ASU 2016-02 and its related amendments apply to any entity that enters into a lease, with some specified scope exemptions. Under ASC Topic 842, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. While there were no major changes to the lessor accounting, changes were made to align key aspects with the revenue recognition guidance. ASC topic 842 will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Although the Company is still in the process of evaluating the effect of adopting ASU 2016-02 and its related amendments, the adoption is expected to result in the recognition of assets and liabilities on its consolidated balance sheet for current operating leases. The Company is currently evaluating existing arrangements to determine if they qualify for lease accounting under ASC Topic 842. In May 2014, the FASB issued ASU 2014-09, which created ASC Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), superseding revenue recognition requirements in ASC Topic 605, Revenue Recognition , and most industry-specific guidance. The FASB subsequently issued various ASUs which deferred the effective date of ASC Topic 606 and provided additional implementation guidance. ASC Topic 606 provides companies with a single model for use in accounting for revenue arising from contracts with customers. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. In addition, new qualitative and quantitative disclosure requirements aim to enable financial statement users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASC Topic 606 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The standard permits retrospective application using either of the following methodologies: (i) restatement of each prior reporting period presented or (ii) recognition of a cumulative-effect adjustment as of the date of initial application. The Company has selected the modified retrospective method and has adopted this guidance as of January 1, 2018, the effective date. The Company has completed its review of the impact of the new standard on its significant contracts and concluded that there was not a material impact to the presentation of revenues or expenses as a result of the adoption of this standard. Refer to Note 13—Revenues for additional disclosures required by the new standard.

Property Acquisitions and Dives

Property Acquisitions and Divestiture	3 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
Property Acquisitions	Note 2—Property Acquisitions and Divestiture 2018 Acquisition On February 8, 2018 , the Company completed the acquisition of approximately 4,000 undeveloped net acres, as well as certain producing properties, in Lea County, New Mexico for an unadjusted purchase price of $94.7 million . The operated acreage position contains an approximate 92% average working interest and is largely contiguous to Centennial’s existing position located in the northern Delaware Basin. Upon signing the purchase and sale agreement, the Company placed $8.6 million of cash in escrow accounts on December 21, 2017 , and such deposits were applied as a payment against the purchase price upon closing of the transactions. The Company presented the cash in escrow as restricted cash within the line item Other Noncurrent Assets on the Consolidated Balance Sheet as of December 31, 2017 . The acquisition was recorded as an asset acquisition under ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . Accordingly, the purchase consideration has been allocated to the oil and natural gas properties based on their relative fair values measured as of the acquisition date. After settlement statement adjustments of $0.2 million , the Company paid a net purchase price of $94.5 million . On a relative fair value basis, $80.7 million was allocated to unproved properties and $13.8 million to proved properties. Transaction costs incurred and capitalized as of March 31, 2018 , amounted to $0.2 million and mainly consisted of advisory and legal fees. 2018 Disposition On March 2, 2018 , the Company completed the sale of approximately 8,600 undeveloped net acres and 12 gross producing wells located in Reeves County, Texas for a total unadjusted sales price of $140.7 million . The divested acreage represents a largely non-operated position ( 32% average working interest) on the western portion of Centennial’s position in Reeves County. There was no gain or loss recognized as a result of this divestiture, which constituted a partial sale of oil and gas properties in accordance with ASC 932 , Extractive Activities - Oil and Gas . The Company used the net proceeds from the sale to fund the 2018 acquisition discussed above and for general corporate purposes.

Accounts Receivable, Accounts P

Accounts Receivable, Accounts Payable and Accrued Expenses	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts Receivable, Accounts Payable and Accrued Expenses	Note 3—Accounts Receivable, Accounts Payable and Accrued Expenses Accounts receivable are comprised of the following: (in thousands) March 31, 2018 December 31, 2017 Accrued oil and gas sales receivable $ 76,545 $ 52,891 Joint interest billings 22,157 25,256 Receivables for divestitures 9,602 — Other 127 639 Accounts receivable, net $ 108,431 $ 78,786 Accounts payable and accrued expenses are comprised of the following: (in thousands) March 31, 2018 December 31, 2017 Accounts payable $ 37,136 $ 64,004 Accrued capital expenditures 92,113 90,511 Revenues payable 29,523 23,390 Accrued interest 7,311 1,936 Accrued employee compensation and benefits 2,974 8,350 Accrued expenses and other 10,991 11,342 Accounts payable and accrued expenses $ 180,048 $ 199,533

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Long-Term Debt	Note 4—Long-Term Debt Credit Agreement CRP, the Company’s consolidated subsidiary, has a revolving credit agreement with a syndicate of banks that as of March 31, 2018 , had a borrowing base of $575.0 million and elected commitments of $475.0 million . This aggregate commitment by lenders is available to the Company for borrowing. A portion of the revolving credit facility in an aggregate amount not to exceed $15.0 million may be used to issue letters of credit for the account of CRP or other designated subsidiaries of the Company. As of March 31, 2018 , the Company had no borrowings outstanding and $474.1 million in available borrowing capacity, which was net of $0.9 million in letters of credit outstanding. The amount available to be borrowed under CRP’s revolving credit facility is subject to a borrowing base that is redetermined semi-annually each April 1 and October 1 by the lenders in their sole discretion. CRP’s credit agreement also allows for two optional borrowing base redeterminations on January 1 and July 1. The borrowing base depends on, among other things, the quantities of CRP’s proved oil and natural gas reserves, estimated cash flows from these reserves and the Company’s commodity hedge positions. Upon a redetermination of the borrowing base, if actual borrowings in excess of the revised borrowing capacity are outstanding, CRP could be required to immediately repay a portion of its debt outstanding under the credit agreement. In connection with the April 2018 semi-annual redetermination, on May 4, 2018 the Company amended and restated its existing credit agreement with a majority of the lenders to the Company’s existing credit agreement. Refer to Note 14—Subsequent Events for additional information on the new credit facility. Interest and commitment fees are accrued based on a borrowing base utilization grid set forth in the credit agreement and are discussed in “ Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” later in this Quarterly Report. Commitment fees are accrued on the unused portion of the aggregate lender commitment amount and are included in interest expense in the Consolidated Statements of Operations. The credit facility provides for interest only payments until October 15, 2019, when the credit agreement expires and all outstanding borrowings are due. CRP’s credit agreement contains restrictive covenants that limit its ability to, among other things: incur additional indebtedness; make investments and loans; enter into mergers; make or declare dividends; enter into commodity hedges exceeding a specified percentage of the Company’s expected production; enter into interest rate hedges exceeding a specified percentage of its outstanding indebtedness; incur liens; sell assets; and engage in transactions with affiliates. CRP’s credit agreement also requires it to maintain compliance with the following financial ratios: (i) a current ratio, which is the ratio of CRP’s consolidated current assets (including unused commitments under its revolving credit facility and excluding non-cash derivative assets and certain restricted cash) to its consolidated current liabilities (excluding the current portion of long-term debt under the credit agreement and non-cash derivative liabilities), of not less than 1.0 to 1.0 ; and (ii) a leverage ratio, which is the ratio of Total Funded Debt (as defined in CRP’s credit agreement) to consolidated EBITDAX (as defined in CRP’s credit agreement) for the rolling four fiscal quarter period ending on such day, of not greater than 4.0 to 1.0 . CRP was in compliance with the covenants and the financial ratios described above as of March 31, 2018 and through the filing of this Quarterly Report. 5.375% Senior Unsecured Notes due 2026 On November 30, 2017 , CRP issued at par $400.0 million of 5.375% senior notes due 2026 (the “Senior Notes”) in a 144A private placement that resulted in net proceeds to CRP of $391.0 million , after deducting $9.0 million in debt issuance costs. Interest is payable on the Senior Notes semi-annually in arrears on each January 15 and July 15 , commencing July 15, 2018 . The Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by each of CRP’s current subsidiaries that guarantee CRP’s revolving credit facility. The Senior Notes are not guaranteed by the Company nor is the Company subject to the terms of the indenture governing the Senior Notes. At any time prior to January 15, 2021 , CRP may, on any one or more occasions, redeem up to 35% of the aggregate principal amount of the Senior Notes with an amount of cash not greater than the net cash proceeds of certain equity offerings at a redemption price equal to 105.375% of the principal amount of the Senior Notes redeemed, plus any accrued and unpaid interest to the date of redemption; provided that at least 65% of the aggregate principal amount issued under the indenture governing the Senior Notes remains outstanding immediately after such redemption, and the redemption occurs within 180 days of the closing date of such equity offering. At any time prior to January 15, 2021 , CRP may, on any one or more occasions, redeem all or a part of the Senior Notes at a redemption price equal to 100% of the principal amount of the Senior Notes redeemed, plus a “make-whole” premium, and any accrued and unpaid interest as of the date of redemption. On and after January 15, 2021 , CRP may redeem the Senior Notes, in whole or in part, at redemption prices (expressed as percentages of principal amount) equal to 102.688% for the 12-month period beginning on January 15, 2021 , 101.344% for the 12-month period beginning January 15, 2022 , and 100% beginning on January 15, 2023 , plus accrued and unpaid interest to the redemption date. If CRP experiences certain defined changes of control (and, in some cases, followed by a ratings decline), each holder of the Senior Notes may require CRP to repurchase all or a portion of its Senior Notes for cash at a price equal to 101% of the aggregate principal amount of such Senior Notes, plus any accrued but unpaid interest to the date of repurchase. The indenture governing the Senior Notes contains covenants that, among other things and subject to certain exceptions and qualifications, limit CRP’s ability and the ability of CRP’s restricted subsidiaries to: (i) incur or guarantee additional indebtedness or issue certain types of preferred stock; (ii) pay dividends on capital stock or redeem, repurchase or retire capital stock or subordinated indebtedness; (iii) transfer or sell assets; (iv) make investments; (v) create certain liens; (vi) enter into agreements that restrict dividends or other payments from their subsidiaries to them; (vii) consolidate, merge or transfer all or substantially all of their assets; (viii) engage in transactions with affiliates; and (ix) create unrestricted subsidiaries. CRP was in compliance with these covenants as of March 31, 2018 and through the filing of this Quarterly Report. Upon an Event of Default (as defined in the indenture governing the Senior Notes), the trustee or the holders of at least 25% of the aggregate principal amount of then outstanding Senior Notes may declare the Senior Notes immediately due and payable. In addition, a default resulting from certain events of bankruptcy or insolvency with respect to CRP, any restricted subsidiary of CRP that is a significant subsidiary, or any group of restricted subsidiaries that, taken together, would constitute a significant subsidiary, will automatically cause all outstanding Senior Notes to become due and payable. Debt issuance costs netted against the principal balance of the Senior Notes amounted to $9.1 million as of March 31, 2018 and $9.2 million as of December 31, 2017 .

Asset Retirement Obligations

Asset Retirement Obligations	3 Months Ended
	Mar. 31, 2018
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Note 5—Asset Retirement Obligations The following table summarizes the changes in the Company’s asset retirement obligations (“ARO”) for the three months ended March 31, 2018 (in thousands): Asset retirement obligations at January 1, 2018 $ 12,161 Liabilities acquired 16 Liabilities incurred 253 Liabilities divested (253 ) Accretion expense 189 Revisions to estimated cash flows (10 ) Asset retirement obligations at March 31, 2018 $ 12,356 ARO reflect the present value of the estimated future costs associated with the plugging and abandonment of oil and natural gas wells, removal of equipment and facilities from leased acreage and land restoration in accordance with applicable local, state and federal laws. Inherent in the fair value calculation of ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates and timing of settlement. To the extent future revisions to these assumptions impact the value of the existing ARO liability, a corresponding offsetting adjustment is made to the oil and natural gas property balance.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Note 6—Stock-Based Compensation Long Term Incentive Plan On October 7, 2016, the stockholders of the Company approved the Centennial Resource Development, Inc. 2016 Long Term Incentive Plan (the “LTIP”). An aggregate of 16,500,000 shares of Class A Common Stock were authorized for issuance under the LTIP, and as of March 31, 2018 , the Company had 10,691,760 shares of Class A Common Stock available for future grants. The LTIP provides for grants of stock options (including incentive stock options and nonqualified stock options), stock appreciation rights, restricted stock, dividend equivalents, restricted stock units and other stock or cash-based awards. Stock-based compensation expense is recognized within both General and administrative expenses and Exploration expense in the Consolidated Statements of Operations. The expense amounts in the table below may not be representative of future expense amounts to be recognized as the value of future awards may vary from historical award amounts. Upon adoption of ASU 2016-09 in October 2016, the Company elected to account for forfeitures of awards granted under the LTIP as they occur in determining compensation expense. For the Three Months Ended March 31, (in thousands) 2018 2017 Restricted stock awards $ 1,775 $ 856 Stock option awards 2,206 1,754 Performance stock units 352 — Total stock-based compensation expense $ 4,333 $ 2,610 Restricted Stock The following table provides information about restricted stock awards outstanding during the three months ended March 31, 2018 : Awards Weighted Average Grant Date Fair Value Unvested balance as of December 31, 2017 1,009,716 $ 17.64 Granted 199,320 $ 19.00 Vested (63,367 ) $ 18.50 Forfeited (25,948 ) $ 16.85 Unvested balance as of March 31, 2018 1,119,721 $ 17.85 The Company grants service-based restricted stock awards to executive officers and employees, which generally vest ratably over a three -year service period, and to directors, which generally vest over a one -year service period. Compensation cost for the service-based restricted stock awards is based upon the grant-date fair value of the award, and such costs are recognized ratably over the applicable vesting period. The weighted average grant-date fair value for restricted stock awards granted was $19.00 per share and $18.82 per share for the three months ended March 31, 2018 and 2017 , respectively. The total fair value of restricted stock awards that vested during the three-month period ended March 31, 2018 was $1.2 million . Unrecognized compensation cost related to restricted shares that were unvested as of March 31, 2018 was $16.6 million , which the Company expects to recognize over a weighted average period of 2.2 years. Stock Options Stock options that have been granted under the LTIP expire ten years from the grant date and vest ratably over a three -year service period. The exercise price for an option granted under the LTIP is the closing price of the Company’s Class A Common Stock as reported on the NASDAQ on the date of grant. Compensation cost related to stock options is based on the grant-date fair value of the award, recognized ratably over the applicable vesting period. The Company estimates the fair value using the Black-Scholes option-pricing model. Expected volatilities are based on the re-levered asset volatility implied by a set of comparable companies. Expected term is based on the simplified method and is estimated as the average of the weighted average vesting term and the time to expiration as of the grant date. The Company uses U.S. Treasury bond rates in effect at the grant date for its risk-free interest rates. The following table summarizes the assumptions and related information used to determine the grant-date fair value of stock options awarded during the three months ended March 31, 2018 : For the Three Months Ended March 31, 2018 2017 Weighted average grant-date fair value per share $ 7.96 7.21 Expected term (in years) 6 6 Expected stock volatility 37 % 38.2 % Dividend yield — % — % Risk-free interest rate 2.3 % 2.0 % The following table provides information about stock option awards outstanding during the three months ended March 31, 2018 : Options Weighted Average Exercise Price Weighted Average Remaining Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2017 4,290,001 $ 16.15 Granted 37,000 $ 20.00 Exercised (10,000 ) $ 16.43 Forfeited (47,668 ) $ 14.95 Outstanding as of March 31, 2018 4,269,333 $ 16.20 8.78 $ 9,417 Exercisable as of March 31, 2018 1,211,612 $ 15.83 8.69 $ 2,911 Unvested Options at March 31, 2018 3,057,721 $ 16.28 8.81 $ 6,506 As of March 31, 2018 , there was $16.6 million of unrecognized compensation cost related to unvested stock options, which the Company expects to recognize on a pro-rata basis over a weighted average period of 1.77 years. Performance Stock Units During the three months ended March 31, 2018 , there was no significant performance stock units activity. As of March 31, 2018 , there was $3.2 million of unrecognized compensation cost related to performance stock units that were unvested, which the Company expects to recognize on a pro-rata basis over a weighted average period of 2.3 years.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Note 7—Derivative Instruments The Company is exposed to certain risks relating to its ongoing business operations and may use derivative instruments to manage its exposure to commodity price risk from time to time. Commodity Derivative Contracts Historically, prices received for crude oil and natural gas production have been volatile because of supply and demand factors, worldwide political factors, general economic conditions and seasonal weather patterns. The Company periodically uses derivative instruments, such as swaps, costless collars and basis swaps, to mitigate its exposure to declines in commodity prices and to the corresponding negative impacts such declines can have on its cash flow from operations, returns on capital and other financial results. While the use of these instruments limits the downside risk of adverse price changes, their use may also limit future revenues from favorable price changes. The Company does not enter into derivative contracts for speculative or trading purposes. Commodity Swap Contracts. The Company opportunistically uses commodity derivative instruments. Currently, the Company utilizes basis swaps to hedge the difference between the index price and a local index price. All transactions are settled in cash with one party paying the other for the resulting difference multiplied by the contract volume. The following table summarizes the approximate volumes and average contract prices of swap contracts the Company had in place as of March 31, 2018 : Period Volume (Bbl) Weighted Average Differential ($/Bbl) (1) Crude oil basis swaps April 2018 - June 2018 455,000 $ 0.18 April 2018 - December 2018 1,375,000 $ 0.00 (1) The oil basis swap contracts are settled based on the difference between the arithmetic average of ARGUS MIDLAND WTI and ARGUS WTI CUSHING settlements during the relevant calculation period. Period Volume (MMBtu) Weighted Average Differential ($/MMBtu) (1) Natural gas basis swaps April 2018 - December 2018 1,375,000 $ (0.43 ) January 2019 - December 2019 1,825,000 $ (0.43 ) (1) The natural gas basis swap contracts are settled based on the difference between Inside FERC’s West Texas WAHA price of natural gas and the NYMEX price of Natural Gas during the relevant calculation period. Derivative Instrument Reporting. The Company’s oil and natural gas derivative instruments have not been designated as hedges for accounting purposes; therefore, all gains and losses are recognized in the Company’s Consolidated Statements of Operations. All derivative instruments are recorded at fair value in the Consolidated Balance Sheets, other than derivative instruments that meet the “normal purchase normal sale” exclusion, and any gains and losses are recognized in current period earnings. The following table presents gains and losses for derivative instruments not designated as hedges for accounting purposes for the periods presented: For the Three Months Ended March 31, (in thousands) 2018 2017 Realized gain (loss) on derivative instruments $ 361 $ (397 ) Unrealized gain (loss) on derivative instruments 7,482 4,156 Net gain (loss) on derivative instruments $ 7,843 $ 3,759 Offsetting of Derivative Assets and Liabilities. The Company’s commodity derivatives are measured at fair value and are included in the accompanying Consolidated Balance Sheets as derivative assets and liabilities. The Company nets its financial derivative instrument fair value amounts executed with the same counterparty pursuant to ISDA master netting agreements, which provide for net settlement over the term of the contract and in the event of default or termination of the contract. The table below summarizes the fair value amounts and the classification in the Consolidated Balance Sheets of the Company’s derivative contracts outstanding at the respective balance sheet dates. Refer to Note 8—Fair Value Measurements for details of the gross and net derivative assets, liabilities and offset amounts as presented in the Consolidated Balance Sheets. Gross Asset/Liability Amounts (in thousands) Balance Sheet Classification March 31, 2018 December 31, 2017 Derivative Assets Derivative instruments Current assets $ 7,148 $ 720 Derivative instruments Noncurrent assets 1,188 662 Total derivative assets $ 8,336 $ 1,382 Derivative Liabilities Derivative instruments Current liabilities $ — $ 527 Contingent Features in Financial Derivative Instruments. None of the Company’s derivative instruments contain credit-risk-related contingent features. Counterparties to the Company’s financial derivative contracts are high credit-quality financial institutions that are lenders under CRP’s credit agreement. The Company uses only credit agreement participants to hedge with, since these institutions are secured equally with the holders of any CRP bank debt, which eliminates the potential need to post collateral when the Company is in a derivative liability position. As a result, the Company is not required to post letters of credit or corporate guarantees for its derivative counterparties in order to secure contract performance obligations. In addition, the Company is exposed to credit risk associated with its derivative contracts from non-performance by its counterparties. The Company mitigates its exposure to any single counterparty by contracting with a number of financial institutions, each of which has a high credit rating and is a lender under CRP’s credit facility as referenced above.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 8—Fair Value Measurements Recurring Fair Value Measurements The Company follows FASB ASC Topic 820, Fair Value Measurement and Disclosure, which establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: • Level 1: Quoted Prices in Active Markets for Identical Assets – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Significant Other Observable Inputs – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3: Significant Unobservable Inputs – inputs to the valuation methodology are unobservable and significant to the fair value measurement. The following table is a listing of the Company’s netted asset or liability positions that have been measured at fair value and where they have been classified within the fair value hierarchy as of March 31, 2018 and December 31, 2017 : (in thousands) Level 1 Level 2 Level 3 Netting Adjustments (1) Net Amounts Presented on the Balance Sheets March 31, 2018 Financial assets Commodity derivative asset - current $ — $ 7,148 $ — $ — $ 7,148 Commodity derivative asset - noncurrent — 1,188 — — 1,188 Total financial assets $ — $ 8,336 $ — $ — $ 8,336 December 31, 2017 Financial Assets Commodity derivative asset - current $ — $ 720 $ — $ (287 ) $ 433 Commodity derivative asset - noncurrent — 662 — — 662 Total financial assets $ — $ 1,382 $ — $ (287 ) $ 1,095 Financial liabilities Commodity derivative liability - current $ — $ 527 $ — $ (287 ) $ 240 (1) The Company has agreements in place with all of its counterparties that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements or contract termination. Both financial and non-financial assets and liabilities are categorized within the above fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgement and considers factors specific to the asset or liability. The following is a description of the valuation methodologies used by the Company as well as the general classification of such instruments pursuant to the above fair value hierarchy. There were no transfers between any of the fair value levels during any period presented. Derivatives The Company uses Level 2 inputs to measure the fair value of oil and natural gas commodity derivatives. The Company uses industry-standard models that consider various assumptions including current market and contractual prices for the underlying instruments, implied market volatility, time value, nonperformance risk, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument and can be supported by observable data. The Company utilizes its counterparties’ valuations to assess the reasonableness of its own valuations. Nonrecurring Fair Value Measurements The fair value measurements of assets acquired and liabilities assumed are measured on a nonrecurring basis on the acquisition date using an income valuation technique based on inputs that are not observable in the market and therefore represent Level 3 inputs. Significant inputs to the valuation of acquired oil and natural gas properties include estimates of: (i) reserves; (ii) production rates; (iii) future operating and development costs; (iv) future commodity prices, including price differentials; (v) future cash flows; and (vi) a market participant-based weighted average cost of capital rate. These inputs require significant judgments and estimates by the Company’s management at the time of the valuation. Refer to Note 2—Property Acquisitions and Divestiture for additional information on the fair value of assets acquired during 2018 and 2017 . The initial measurement of ARO at fair value is calculated using discounted cash flow techniques and is based on internal estimates of future retirement costs associated with property, plant and equipment. Significant Level 3 inputs used in the calculation of ARO include plugging costs and reserve lives. Refer to Note 5—Asset Retirement Obligations for additional information on the Company’s ARO. Other Financial Instruments The carrying amounts of the Company’s cash, cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate their fair values because of the short-term maturities and/or liquid nature of these assets and liabilities. The carrying values of the amounts outstanding under CRP’s credit agreement, if any, approximate fair value because its variable interest rates are tied to current market rates and the applicable credit spreads represent current market rates for the credit risk profile of the Company. As of March 31, 2018 and December 31, 2017 , the fair value of the Senior Notes was $392.5 million and $407.5 million , respectively, which were determined using quoted market prices for this same debt security, a Level 1 classification in the fair value hierarchy.

Shareholders' Equity and Noncon

Shareholders' Equity and Noncontrolling Interest	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Shareholders' Equity and Noncontrolling Interest	Note 9—Shareholders' Equity and Noncontrolling Interest Shareholders’ Equity On March 7, 2018 , Silver Run Sponsor, LLC (“Silver Run Sponsor”), the Riverstone Purchasers and the Centennial Contributors completed an underwritten public offering of 25,000,000 shares of Class A Common Stock. No cash proceeds were received by the Company in connection with this offering and 3,347,647 shares of CRP Common Units (and corresponding shares of Class C Common Stock) were converted to shares of Class A Common Stock on a one -to-one basis. A tax benefit of $6.7 million was recorded in equity as a result of the conversion of shares from the noncontrolling interest owner. Noncontrolling Interest The noncontrolling interest relates to CRP Common Units that were originally issued to the Centennial Contributors in connection with the Business Combination and continue to be held by holders other than the Company. At the date of the Business Combination, the noncontrolling interest represented 10.9% of the ownership in CRP. The noncontrolling interest percentage is affected by various equity transactions such as, CRP Common Unit and Class C Common Stock exchanges and Class A Common Stock activities. As of March 31, 2018 , the noncontrolling interest ownership of CRP decreased to 4.5% from 5.7% as of December 31, 2017 . The decrease was the result of the exchange of CRP Common Units (and corresponding shares of Class C Common Stock) for Class A Common Stock in March 2018 as discussed in the preceding section above. The Company consolidates the financial position, results of operations and cash flows of CRP and reflects that portion retained by other holders of CRP Common Units as a noncontrolling interest. Refer to the Consolidated Statements of Shareholders’ Equity for a summary of the activity attributable to the noncontrolling interest during the period.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Note 10—Earnings Per Share Basic earnings per share (“EPS”) is calculated by dividing net income available to Class A Common Stock by the weighted average shares of Class A Common Stock outstanding during each period. Diluted EPS is calculated by dividing adjusted net income available to Class A Common Stock by the weighted average shares of diluted Class A Common Stock outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted EPS calculation consists of (i) unvested restricted stock and performance stock units, outstanding stock options and warrants using the treasury stock method, and (ii) the Company’s Class C Common Stock using the “if-converted” method, which is net of tax. The two-class method of computing earnings per share is required for entities that have participating securities. The two-class method is an earnings allocation formula that determines earnings per share for participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. Shares of the Company’s unvested restricted stock and performance stock units are eligible to receive dividends; however, dividend rights will be forfeited if the award does not vest. Accordingly, these shares are not considered participating securities. Shares of the Company’s Class C Common Stock and warrants do not share in earnings or losses and are therefore not participating securities. The Company’s shares of Series B Preferred Stock had a non-forfeitable right to participate in distributions with common stockholders on a pro-rata, as-converted basis and as such were considered participating securities for the three months ended March 31, 2017 . All of Company’s shares of Series B Preferred Stock were converted into shares of Class A Common Stock on May 25, 2017 in accordance with their terms. As such, the Company no longer has any participating securities as of March 31, 2018 . The following table reflects the allocation of net income to common shareholders and EPS computations for the periods indicated based on a weighted average number of common stock outstanding for the period: For the Three Months Ended March 31, (in thousands, except per share data) 2018 2017 Net income attributable to Class A Common Stock $ 66,090 $ 9,823 Less: Income allocable to participating securities — 1,125 Adjusted net income attributable to Class A Common Stock 66,090 8,698 Basic net earnings per share of Class A Common Stock $ 0.25 $ 0.04 Diluted net earnings per share of Class A Common Stock $ 0.25 $ 0.04 Basic weighted average shares of Class A Common Stock outstanding 261,324 201,776 Add: Dilutive effects of equity awards 3,859 3,166 Diluted weighted average shares of Class A Common Stock outstanding 265,183 204,942 For the three months ended March 31, 2018 , the diluted earnings per share calculation excludes 0.2 million stock options that were out-of-the-money and 14.7 million weighted average shares of Class C Common Stock as their impacts were anti-dilutive. For the three months ended March 31, 2017 , the diluted earnings per share calculation excludes 4.1 million stock options that were out-of-the-money and 19.1 million weighted average shares of Class C Common Stock as their impacts were anti-dilutive.

Transactions with Related Parti

Transactions with Related Parties	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Transactions with Related Parties	Note 11—Transactions with Related Parties Customer and Supplier Relationships Riverstone Affiliated Companies Riverstone and its affiliates, beneficially own more than 10% equity interest in the Company and are therefore considered related parties. From time to time, the Company obtains services related to its drilling and completion activities from affiliates of Riverstone. In particular, the Company has paid the following amounts to certain affiliates of Riverstone for such services: (i) approximately $12.5 million during the three months ended March 31, 2017 to Liberty Oilfield Services, LLC; and (ii) approximately $2.0 million and $1.1 million during the three months ended March 31, 2018 and 2017 , respectively, to Permian Tank and Manufacturing, Inc . (“Permian”) . Included in Accounts payable and accrued expenses on the Consolidated Balance Sheets was $0.9 million and $0.3 million due to Permian as of March 31, 2018 and December 31, 2017 , respectively. Other Affiliated Companies Mark G. Papa, the Company’s President, Chief Executive Officer and Chairman of the Board, serves as a director and Chairman of the Board of Oil States International, Inc., an energy services company publicly traded on the New York Stock Exchange (“Oil States”). From time to time, the Company obtains services related to drilling and completion activities from Oil States. In particular, the Company paid approximately $2.3 million and $0.7 million for the three months ended March 31, 2018 and 2017 , respectively, to Oil States. Included in Accounts payable and accrued expenses on the Consolidated Balance Sheets was $1.6 million and $1.5 million due to Oil States as of March 31, 2018 and December 31, 2017 , respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 12—Commitments and Contingencies Commitments In March 2018, the Company entered into a natural gas transportation agreement whereby it is required to deliver approximately 18,500,000 MMBtu over a two -year term or else pay for any volume deficiencies. This delivery commitment is tied to the Company’s natural gas production in Reeves County, Texas, and the aggregate financial commitment of $11.0 million under this contract represents the minimum commitments pursuant to the terms of the agreement as of March 31, 2018. Actual expenditures under this contract may exceed this minimum commitment amount. The Company routinely enters or extends operating agreements, office and equipment leases, drilling and completion rig contracts, among others, in the ordinary course of business. Other than the above, there have been no material, non-routine changes in commitments during the three months ended March 31, 2018 . Please refer to Note 13—Commitments and Contingencies included in Part II, Item 8 in the Company’s 2017 Annual Report. Contingencies The Company may at times be subject to various commercial or regulatory claims, litigation or other legal proceedings that arise in the ordinary course of business. While the outcome of these lawsuits and claims cannot be predicted with certainty, management believes it is remote that the impact of such matters that are reasonably possible to occur will have a material adverse effect on the Company’s financial position, results of operations or cash flows. Management is unaware of any pending litigation brought against the Company requiring the reserve of a contingent liability as of the date of these consolidated financial statements.

Revenues

Revenues	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenues	Note 13—Revenues Revenue from Contracts with Customers Sales of oil and gas are recognized at the point control of the product is transferred to the customer and collectability is reasonably assured. Virtually all of the Company’s contracts’ pricing provisions are tied to a market index, with certain adjustments based on, among other factors, transportation costs to an active spot market and quality differentials. As a result, the price of the oil, natural gas, and NGLs fluctuates to remain competitive with other available oil, natural gas, and NGLs supplies both globally (in the case of crude oil) and locally. Oil and gas revenues presented within the Consolidated Statements of Operations relate to the sale of oil, natural gas, and NGLs as shown below: For the Three Months Ended March 31, 2018 2017 Operating revenues (in thousands): Oil sales $ 174,841 $ 46,681 Natural gas sales 18,580 8,241 NGL sales 22,477 6,175 Oil and gas sales $ 215,898 $ 61,097 Oil sales The Company’s oil sales contracts are generally structured whereby oil is delivered to the purchaser at a contractually agreed-upon delivery point at which the purchaser takes custody, title, and risk of loss of the product. This delivery point is usually at the wellhead or at the inlet of a transportation pipeline. Revenue is recognized when control transfers to the purchaser at the delivery point based on the net price received from the purchaser. Any downstream transportation costs incurred by crude purchasers are reflected as a net reduction to oil sales revenues. Natural gas and NGL sales Under certain natural gas processing contracts, liquids rich natural gas is delivered to a midstream processing entity at the inlet of the gas plant processing system. The midstream processing entity gathers and processes the natural gas and remits proceeds to Centennial for the resulting sales of NGLs and residue gas. For these contracts, the Company evaluates when control is transferred and revenue should be recognized. Where the Company has concluded that control transfers at the tailgate of the processing facility, fees incurred prior to transfer of control are presented as gathering, processing and transportation expenses (“GP&T”) within the Consolidated Statements of Operations, rather than as a net reduction to natural gas and NGL sales. In the Company’s other natural gas processing agreements, it has the election to take its residue gas ‘in-kind’ at the tailgate of the midstream processing plant and then subsequently market the product. For these contracts, the Company recognizes revenue when control transfers to purchasers at delivery points downstream of the processing plant. The gathering, processing and compression fees are presented as GP&T, and any transportation costs incurred subsequent to the point of transfer of control are reflected as a net reduction to natural gas and NGL sales revenues presented in the table above. Performance obligations For all commodity products, the Company records revenue in the month production is delivered to the purchaser. Settlement statements for certain natural gas and NGL sales may not be received for 30 to 90 days after the date production is delivered and for crude oil, generally within 30 days after delivery has occurred. However, payment is unconditional once the performance obligations have been satisfied. At this time, the volume and price can be reasonably estimated and amounts due from customers are accrued in accounts receivable, net in the Consolidated Balance Sheet. As of March 31, 2018 and December 31, 2017, such receivable balances were $76.5 million and $52.9 million , respectively. The Company records any differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. Historically, any identified differences between revenue estimates and actual revenue received have not been significant. For the three months ended March 31, 2018, revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. Transaction price allocated to remaining performance obligations For the Company’s product sales that have a contract term greater than one year, the Company has utilized the practical expedient in ASC Topic 606 which states the Company is not required to disclose the transaction price allocated to the remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these sales contracts, monthly sales of a product generally represent a separate performance obligation; therefore, future commodity volumes to be delivered and sold are wholly unsatisfied and disclosure of the transaction price allocated to such unsatisfied performance obligations is not required.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 14—Subsequent Events Credit Agreement On May 4, 2018 , the Company entered into an amended and restated credit agreement (the “Amended Agreement”) with a majority of the lenders to the Company’s existing credit agreement. Under the Amended Agreement, the borrowing base increased from $575.0 million to $800.0 million and elected commitments increased from $475.0 million to $600.0 million . The credit facility under the Amended Agreement has a term of five years. The Amended Agreement’s interest rate and utilization fee structure is similar to the existing credit agreement described in Note 4—Long-Term Debt . However, the Amended Agreement provides for lower rates and fees, which vary depending on the percentage of the borrowing base utilized, as follows: the LIBOR margin decreased from the range of 225 to 325 basis points to 150 to 250 basis points; the alternate base rate margin decreased from the range or 125 to 225 basis points to 50 to 150 basis points; and the commitment fees, which are paid on unused amounts of the revolving credit facility, were reduced from 50 basis points to a range of 37.5 to 50 basis points.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules and regulations of the SEC for interim financial reporting. Accordingly, certain disclosures normally included in an Annual Report on Form 10-K have been omitted. The consolidated financial statements and related notes included in this Quarterly Report should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the period ended December 31, 2017 (the “2017 Annual Report”). Except as disclosed herein, there have been no material changes to the information disclosed in the notes to the consolidated financial statements included in the Company’s 2017 Annual Report. In the opinion of management, all normal, recurring adjustments and accruals considered necessary to present fairly, in all material respects, the Company’s interim financial results, have been included. Operating results for the periods presented are not necessarily indicative of expected results for the full year.
Principles of Consolidation	The consolidated financial statements include the accounts of the Company and its majority owned subsidiary CRP, and CRP’s wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current presentation on the accompanying consolidated financial statements. Such reclassifications had no impact on net income, cash flows or shareholders’ equity previously reported. Noncontrolling interests represent third-party ownership in the Company’s consolidated subsidiary and is presented as a component of equity. See Note 9—Shareholders' Equity and Noncontrolling Interest for further discussion of noncontrolling interest.
Use of Estimates	The preparation of the Company’s consolidated financial statements requires the Company’s management to make various assumptions, judgments and estimates to determine the reported amounts of assets, liabilities, revenues and expenses, and in the disclosures of commitments and contingencies. Changes in these assumptions, judgments and estimates will occur as a result of the passage of time and the occurrence of future events and, accordingly, actual results could differ from amounts previously established. The more significant areas requiring the use of assumptions, judgments and estimates include: (i) oil and natural gas reserves; (ii) cash flow estimates used in impairment tests of long-lived assets; (iii) depreciation, depletion and amortization; (iv) asset retirement obligations; (v) determining fair value and allocating purchase price in connection with business combinations and asset acquisitions; (vi) accrued revenue and related receivables; (vii) accrued liabilities; (viii) valuation of derivative instruments; and (ix) deferred income taxes.
Income Taxes	Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to the Company’s year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent and temporary differences and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes.
Recently Issued Accounting Standards	In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments . This update applies to all entities that are required to present a statement of cash flows. This update provides guidance on eight specific cash flow issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. This update will be effective for financial statements issued for fiscal years beginning after December 31, 2017, including interim periods within those fiscal years with early adoption permitted. This update should be applied using the retrospective transition method. The Company adopted ASU 2016-15 in the first quarter of 2018. As a result of adoption, there were no changes to the presentation of cash flow activities in the statement of cash flows for the three months ended March 31, 2018 . In February 2016, the FASB issued ASU 2016-02, Leases , which created Accounting Standard Codification (“ASC”) Topic 842, Leases (“ASC Topic 842”), superseding current lease requirements under ASC Topic 840, Leases . Subsequently in January 2018, the FASB issued ASU 2018-01, which provides a practical expedient for the evaluation of existing land easement agreements under ASU 2016-02. ASU 2016-02 and its related amendments apply to any entity that enters into a lease, with some specified scope exemptions. Under ASC Topic 842, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. While there were no major changes to the lessor accounting, changes were made to align key aspects with the revenue recognition guidance. ASC topic 842 will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Although the Company is still in the process of evaluating the effect of adopting ASU 2016-02 and its related amendments, the adoption is expected to result in the recognition of assets and liabilities on its consolidated balance sheet for current operating leases. The Company is currently evaluating existing arrangements to determine if they qualify for lease accounting under ASC Topic 842. In May 2014, the FASB issued ASU 2014-09, which created ASC Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), superseding revenue recognition requirements in ASC Topic 605, Revenue Recognition , and most industry-specific guidance. The FASB subsequently issued various ASUs which deferred the effective date of ASC Topic 606 and provided additional implementation guidance. ASC Topic 606 provides companies with a single model for use in accounting for revenue arising from contracts with customers. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. In addition, new qualitative and quantitative disclosure requirements aim to enable financial statement users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASC Topic 606 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The standard permits retrospective application using either of the following methodologies: (i) restatement of each prior reporting period presented or (ii) recognition of a cumulative-effect adjustment as of the date of initial application. The Company has selected the modified retrospective method and has adopted this guidance as of January 1, 2018, the effective date. The Company has completed its review of the impact of the new standard on its significant contracts and concluded that there was not a material impact to the presentation of revenues or expenses as a result of the adoption of this standard. Refer to Note 13—Revenues for additional disclosures required by the new standard.

Accounts Receivable, Accounts22

Accounts Receivable, Accounts Payable and Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	Accounts receivable are comprised of the following: (in thousands) March 31, 2018 December 31, 2017 Accrued oil and gas sales receivable $ 76,545 $ 52,891 Joint interest billings 22,157 25,256 Receivables for divestitures 9,602 — Other 127 639 Accounts receivable, net $ 108,431 $ 78,786
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses are comprised of the following: (in thousands) March 31, 2018 December 31, 2017 Accounts payable $ 37,136 $ 64,004 Accrued capital expenditures 92,113 90,511 Revenues payable 29,523 23,390 Accrued interest 7,311 1,936 Accrued employee compensation and benefits 2,974 8,350 Accrued expenses and other 10,991 11,342 Accounts payable and accrued expenses $ 180,048 $ 199,533

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	3 Months Ended
	Mar. 31, 2018
Asset Retirement Obligation Disclosure [Abstract]
Schedule of Asset Retirement Obligations	The following table summarizes the changes in the Company’s asset retirement obligations (“ARO”) for the three months ended March 31, 2018 (in thousands): Asset retirement obligations at January 1, 2018 $ 12,161 Liabilities acquired 16 Liabilities incurred 253 Liabilities divested (253 ) Accretion expense 189 Revisions to estimated cash flows (10 ) Asset retirement obligations at March 31, 2018 $ 12,356

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Compensation Expense	Upon adoption of ASU 2016-09 in October 2016, the Company elected to account for forfeitures of awards granted under the LTIP as they occur in determining compensation expense. For the Three Months Ended March 31, (in thousands) 2018 2017 Restricted stock awards $ 1,775 $ 856 Stock option awards 2,206 1,754 Performance stock units 352 — Total stock-based compensation expense $ 4,333 $ 2,610
Nonvested Restricted Stock Shares Activity	The following table provides information about restricted stock awards outstanding during the three months ended March 31, 2018 : Awards Weighted Average Grant Date Fair Value Unvested balance as of December 31, 2017 1,009,716 $ 17.64 Granted 199,320 $ 19.00 Vested (63,367 ) $ 18.50 Forfeited (25,948 ) $ 16.85 Unvested balance as of March 31, 2018 1,119,721 $ 17.85
Summary of Stock Option Valuation Inputs	The following table summarizes the assumptions and related information used to determine the grant-date fair value of stock options awarded during the three months ended March 31, 2018 : For the Three Months Ended March 31, 2018 2017 Weighted average grant-date fair value per share $ 7.96 7.21 Expected term (in years) 6 6 Expected stock volatility 37 % 38.2 % Dividend yield — % — % Risk-free interest rate 2.3 % 2.0 %
Summary of Stock Option Activity	The following table provides information about stock option awards outstanding during the three months ended March 31, 2018 : Options Weighted Average Exercise Price Weighted Average Remaining Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2017 4,290,001 $ 16.15 Granted 37,000 $ 20.00 Exercised (10,000 ) $ 16.43 Forfeited (47,668 ) $ 14.95 Outstanding as of March 31, 2018 4,269,333 $ 16.20 8.78 $ 9,417 Exercisable as of March 31, 2018 1,211,612 $ 15.83 8.69 $ 2,911 Unvested Options at March 31, 2018 3,057,721 $ 16.28 8.81 $ 6,506

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments	The following table summarizes the approximate volumes and average contract prices of swap contracts the Company had in place as of March 31, 2018 : Period Volume (Bbl) Weighted Average Differential ($/Bbl) (1) Crude oil basis swaps April 2018 - June 2018 455,000 $ 0.18 April 2018 - December 2018 1,375,000 $ 0.00 (1) The oil basis swap contracts are settled based on the difference between the arithmetic average of ARGUS MIDLAND WTI and ARGUS WTI CUSHING settlements during the relevant calculation period. Period Volume (MMBtu) Weighted Average Differential ($/MMBtu) (1) Natural gas basis swaps April 2018 - December 2018 1,375,000 $ (0.43 ) January 2019 - December 2019 1,825,000 $ (0.43 ) (1) The natural gas basis swap contracts are settled based on the difference between Inside FERC’s West Texas WAHA price of natural gas and the NYMEX price of Natural Gas during the relevant calculation period.
Schedule of Gains and Losses from Derivative Instruments	The following table presents gains and losses for derivative instruments not designated as hedges for accounting purposes for the periods presented: For the Three Months Ended March 31, (in thousands) 2018 2017 Realized gain (loss) on derivative instruments $ 361 $ (397 ) Unrealized gain (loss) on derivative instruments 7,482 4,156 Net gain (loss) on derivative instruments $ 7,843 $ 3,759
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The table below summarizes the fair value amounts and the classification in the Consolidated Balance Sheets of the Company’s derivative contracts outstanding at the respective balance sheet dates. Refer to Note 8—Fair Value Measurements for details of the gross and net derivative assets, liabilities and offset amounts as presented in the Consolidated Balance Sheets. Gross Asset/Liability Amounts (in thousands) Balance Sheet Classification March 31, 2018 December 31, 2017 Derivative Assets Derivative instruments Current assets $ 7,148 $ 720 Derivative instruments Noncurrent assets 1,188 662 Total derivative assets $ 8,336 $ 1,382 Derivative Liabilities Derivative instruments Current liabilities $ — $ 527

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of Netted Assets and Liabilities Measured on Recurring Basis, Fair Value	The following table is a listing of the Company’s netted asset or liability positions that have been measured at fair value and where they have been classified within the fair value hierarchy as of March 31, 2018 and December 31, 2017 : (in thousands) Level 1 Level 2 Level 3 Netting Adjustments (1) Net Amounts Presented on the Balance Sheets March 31, 2018 Financial assets Commodity derivative asset - current $ — $ 7,148 $ — $ — $ 7,148 Commodity derivative asset - noncurrent — 1,188 — — 1,188 Total financial assets $ — $ 8,336 $ — $ — $ 8,336 December 31, 2017 Financial Assets Commodity derivative asset - current $ — $ 720 $ — $ (287 ) $ 433 Commodity derivative asset - noncurrent — 662 — — 662 Total financial assets $ — $ 1,382 $ — $ (287 ) $ 1,095 Financial liabilities Commodity derivative liability - current $ — $ 527 $ — $ (287 ) $ 240 (1) The Company has agreements in place with all of its counterparties that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements or contract termination.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table reflects the allocation of net income to common shareholders and EPS computations for the periods indicated based on a weighted average number of common stock outstanding for the period: For the Three Months Ended March 31, (in thousands, except per share data) 2018 2017 Net income attributable to Class A Common Stock $ 66,090 $ 9,823 Less: Income allocable to participating securities — 1,125 Adjusted net income attributable to Class A Common Stock 66,090 8,698 Basic net earnings per share of Class A Common Stock $ 0.25 $ 0.04 Diluted net earnings per share of Class A Common Stock $ 0.25 $ 0.04 Basic weighted average shares of Class A Common Stock outstanding 261,324 201,776 Add: Dilutive effects of equity awards 3,859 3,166 Diluted weighted average shares of Class A Common Stock outstanding 265,183 204,942

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Summary of Oil and Gas Revenues	Oil and gas revenues presented within the Consolidated Statements of Operations relate to the sale of oil, natural gas, and NGLs as shown below: For the Three Months Ended March 31, 2018 2017 Operating revenues (in thousands): Oil sales $ 174,841 $ 46,681 Natural gas sales 18,580 8,241 NGL sales 22,477 6,175 Oil and gas sales $ 215,898 $ 61,097

Property Acquisitions and Div29

Property Acquisitions and Divestiture - Additional Information (Details) $ in Thousands	Mar. 02, 2018USD ($)aWells	Feb. 08, 2018USD ($)a	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)	Dec. 21, 2017USD ($)
Business Acquisition [Line Items]
Gross purchase price of undeveloped net acres			$ 101,753	$ 38,678
Unproved properties acquired			1,881,979		$ 1,952,680
Proved properties			1,855,890		$ 1,602,002
Proceeds from sale			$ 135,481	$ 3,518
Northern Delaware Basin
Business Acquisition [Line Items]
Undeveloped net acres acquired | a		4,000
Gross purchase price of undeveloped net acres		$ 94,700
Gas and oil area, working interest, percent		92.00%
Amount placed in escrow						$ 8,600
Settlement adjustments		$ 200
Net purchase price of undeveloped net acres		94,500
Unproved properties acquired		80,700
Proved properties		13,800
Capitalized transaction costs		$ 200
Reeves County
Business Acquisition [Line Items]
Undeveloped net acres acquired | a	8,600
Number of wells sold (in wells) | Wells	12
Proceeds from sale	$ 140,700
Non-operated position	32.00%
Gain (loss) on sale	$ 0

Accounts Receivable, Accounts30

Accounts Receivable, Accounts Payable and Accrued Expenses - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued oil and gas sales receivable	$ 76,545	$ 52,891
Joint interest billings	22,157	25,256
Receivables for divestitures	9,602	0
Other	127	639
Accounts receivable, net	$ 108,431	$ 78,786

Accounts Receivable, Accounts31

Accounts Receivable, Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable	$ 37,136	$ 64,004
Accrued capital expenditures	92,113	90,511
Revenues payable	29,523	23,390
Accrued interest	7,311	1,936
Accrued employee compensation and benefits	2,974	8,350
Accrued expenses and other	10,991	11,342
Accounts payable and accrued expenses	$ 180,048	$ 199,533

Long-Term Debt (Details)

Long-Term Debt (Details)	Nov. 30, 2017USD ($)	Dec. 28, 2016redetermination	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Borrowing base			$ 575,000,000
Elected commitments			475,000,000
Remaining borrowing capacity			474,100,000
Number of optional borrowing base redeterminations | redetermination		2
Letter of Credit | Line of Credit
Debt Instrument [Line Items]
Borrowing base			15,000,000
Letters of credit outstanding			900,000
Minimum | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Debt instrument, covenant, minimum current ratio		1
Maximum | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Debt instrument, covenant, maximum leverage ratio		4
Senior Notes Due 2026 | Senior Notes
Debt Instrument [Line Items]
Long-term debt	$ 400,000,000
Interest rate, stated percentage	5.375%
Proceeds from borrowings, net of issuance costs	$ 391,000,000
Debt issuance costs	$ 9,000,000
Percentage of principal amount, eligible to be redeemed	35.00%
Percentage of principal amount, redeemable	65.00%
Percentage of principal amount, change in control	101.00%
Percentage of principal amount, event of default	25.00%
Debt issuance costs netted to Senior Notes			$ 9,100,000	$ 9,200,000
Debt Instrument, Redemption, Period One | Senior Notes Due 2026 | Senior Notes
Debt Instrument [Line Items]
Redemption price percentage	105.375%
Debt Instrument, Redemption, Period Two | Senior Notes Due 2026 | Senior Notes
Debt Instrument [Line Items]
Redemption price percentage	102.688%
Debt Instrument, Redemption, Period Three | Senior Notes Due 2026 | Senior Notes
Debt Instrument [Line Items]
Redemption price percentage	101.344%
Debt Instrument, Redemption, Period Four | Senior Notes Due 2026 | Senior Notes
Debt Instrument [Line Items]
Redemption price percentage	100.00%

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset retirement obligations at January 1, 2018	$ 12,161
Liabilities acquired	16
Liabilities incurred	253
Liabilities divested	(253)
Accretion expense	189
Revisions to estimated cash flows	(10)
Asset retirement obligations at March 31, 2018	$ 12,356

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Oct. 07, 2016
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share)	$ 19	$ 18.82
Fair value of vested restricted stock awards	$ 1.2
Unrecognized compensation costs	$ 16.6
Unrecognized compensation costs, period for recognition	2 years 2 months 12 days
Stock option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs, period for recognition	1 year 9 months 7 days
Unrecognized compensation costs	$ 16.6
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 3.2
Unrecognized compensation costs, period for recognition	2 years 3 months
2016 Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)			16,500,000
Number of shares available for grant (in shares)	10,691,760
2016 Long Term Incentive Plan | Stock option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Option expiration period	10 years
Officer and employees | Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Director | Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year

Stock-Based Compensation - Comp

Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity based compensation expense	$ 4,333	$ 2,610
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity based compensation expense	1,775	856
Stock option awards
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity based compensation expense	2,206	1,754
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity based compensation expense	$ 352	$ 0

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock (Details) - Restricted stock awards - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Awards
Outstanding, beginning of period (in shares)	1,009,716
Granted (in shares)	199,320
Vested (in shares)	(63,367)
Forfeited (in shares)	(25,948)
Outstanding, end of period (in shares)	1,119,721
Weighted Average Grant Date Fair Value
Outstanding, beginning of period (in dollars per share)	$ 17.64
Granted (in dollars per share)	19	$ 18.82
Vested (in dollars per share)	18.50
Forfeited (in dollar per share)	16.85
Outstanding, end of period (in dollars per share)	$ 17.85

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions Used For Stock Options (Details) - Stock option awards - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value per share (in dollars per share)	$ 7.96	$ 7.21
Expected term (in years)	6 years	6 years
Expected stock volatility	37.00%	38.20%
Dividend yield	0.00%	0.00%
Risk-free interest rate	2.30%	2.00%

Stock-Based Compensation - Opti

Stock-Based Compensation - Option Activity (Details) - Stock option awards $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares
Options
Outstanding, beginning of period (in shares) | shares	4,290,001
Granted (in shares) | shares	37,000
Exercised (in shares) | shares	(10,000)
Forfeited (in shares) | shares	(47,668)
Outstanding, end of period (in shares) | shares	4,269,333
Exercisable (in shares) | shares	1,211,612
Unvested (in shares) | shares	3,057,721
Weighted Average Exercise Price
Outstanding, beginning of period (In dollars per share) | $ / shares	$ 16.15
Granted (in dollars per share) | $ / shares	20
Exercised (in dollars per share) | $ / shares	16.43
Forfeited (in dollars per share) | $ / shares	14.95
Outstanding, end of period (In dollars per share) | $ / shares	16.20
Exercisable (in dollars per share) | $ / shares	15.83
Unvested (in dollars per share) | $ / shares	$ 16.28
Outstanding, weighted average remaining term	8 years 9 months 11 days
Exercisable, weighted average remaining term	8 years 8 months 9 days
Unvested, weighted average remaining term	8 years 9 months 22 days
Outstanding, aggregate intrinsic value | $	$ 9,417
Exercisable, aggregate intrinsic value | $	2,911
Unvested, aggregate intrinsic value | $	$ 6,506

Derivative Instruments - Sched

Derivative Instruments - Schedule of Derivative Instruments - Not Designated as Hedging Instrument bbl in Thousands, MMBTU in Thousands	3 Months Ended
	Mar. 31, 2018MMBTU$ / MMBTU$ / bblbbl
Crude Oil Basis Swap - Oil Next Quarter
Derivative [Line Items]
Volume (Bbl) | bbl	455
Weighted Average Fixed Price ($/Bbl or $/MMBtu) | $ / bbl	(0.18)
Crude Oil Basis Swap - Oil Remainder of Current Year
Derivative [Line Items]
Volume (Bbl) | bbl	1,375
Weighted Average Fixed Price ($/Bbl or $/MMBtu) | $ / bbl	0
Natural Gas Basis Swap - Remainder of Current Year
Derivative [Line Items]
Volume (MMBtu) | MMBTU	1,375
Weighted Average Fixed Price ($/Bbl or $/MMBtu) | $ / MMBTU	(0.43)
Natural Gas Basis Swap - Next Year
Derivative [Line Items]
Volume (MMBtu) | MMBTU	1,825
Weighted Average Fixed Price ($/Bbl or $/MMBtu) | $ / MMBTU	(0.43)

Derivative Instruments - Gains

Derivative Instruments - Gains and Losses from Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Realized gain (loss) on derivative instruments	$ 361	$ (397)
Unrealized gain (loss) on derivative instruments	7,482	4,156
Net gain (loss) on derivative instruments	$ 7,843	$ 3,759

Derivative Instruments - Fair V

Derivative Instruments - Fair Value of Derivative Instruments Balance Sheet Classification (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Derivative Assets
Gross Asset/Liability Amounts	$ 8,336	$ 1,382
Current assets
Derivative Assets
Gross Asset/Liability Amounts	7,148	720
Noncurrent assets
Derivative Assets
Gross Asset/Liability Amounts	1,188	662
Current liabilities
Derivative Liabilities
Gross Asset/Liability Amounts	$ 0	$ 527

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Positions Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financial assets
Commodity derivative asset - current	$ 7,148	$ 433
Commodity derivative asset - noncurrent	1,188	662
Fair Value, Measurements, Recurring
Financial assets
Netting Adjustments	0	(287)
Total financial assets	8,336	1,095
Fair Value, Measurements, Recurring | Level 1
Financial assets
Derivative asset (liability), net	0	0
Financial liabilities
Derivative asset (liability), net	0	0
Fair Value, Measurements, Recurring | Level 2
Financial assets
Derivative asset (liability), net	8,336	1,382
Financial liabilities
Derivative asset (liability), net	8,336	1,382
Fair Value, Measurements, Recurring | Level 3
Financial assets
Derivative asset (liability), net	0	0
Financial liabilities
Derivative asset (liability), net	0	0
Current assets | Fair Value, Measurements, Recurring
Financial assets
Netting Adjustments	0	(287)
Commodity derivative asset - current	7,148	433
Current assets | Fair Value, Measurements, Recurring | Level 1
Financial assets
Derivative asset (liability), net	0	0
Financial liabilities
Derivative asset (liability), net	0	0
Current assets | Fair Value, Measurements, Recurring | Level 2
Financial assets
Derivative asset (liability), net	7,148	720
Financial liabilities
Derivative asset (liability), net	7,148	720
Current assets | Fair Value, Measurements, Recurring | Level 3
Financial assets
Derivative asset (liability), net	0	0
Financial liabilities
Derivative asset (liability), net	0	0
Noncurrent assets | Fair Value, Measurements, Recurring
Financial assets
Netting Adjustments	0	0
Commodity derivative asset - noncurrent	1,188	662
Noncurrent assets | Fair Value, Measurements, Recurring | Level 1
Financial assets
Derivative asset (liability), net	0	0
Financial liabilities
Derivative asset (liability), net	0	0
Noncurrent assets | Fair Value, Measurements, Recurring | Level 2
Financial assets
Derivative asset (liability), net	1,188	662
Financial liabilities
Derivative asset (liability), net	1,188	662
Noncurrent assets | Fair Value, Measurements, Recurring | Level 3
Financial assets
Derivative asset (liability), net	0	0
Financial liabilities
Derivative asset (liability), net	$ 0	0
Current liabilities | Fair Value, Measurements, Recurring
Financial liabilities
Netting Adjustments		(287)
Commodity derivative liability - current		240
Current liabilities | Fair Value, Measurements, Recurring | Level 1
Financial assets
Derivative asset (liability), net		0
Financial liabilities
Derivative asset (liability), net		0
Current liabilities | Fair Value, Measurements, Recurring | Level 2
Financial assets
Derivative asset (liability), net		527
Financial liabilities
Derivative asset (liability), net		527
Current liabilities | Fair Value, Measurements, Recurring | Level 3
Financial assets
Derivative asset (liability), net		0
Financial liabilities
Derivative asset (liability), net		$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Senior Notes Due 2026 | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of senior notes	$ 392.5	$ 407.5

Shareholders' Equity and Nonc44

Shareholders' Equity and Noncontrolling Interest - Shareholders' Equity (Details) - Common Stock Class A	Mar. 07, 2018USD ($)shares
Public Offering
Class of Stock [Line Items]
Shares issued in transaction (in shares) | shares	25,000,000
Gross proceeds | $	$ 0
Conversion of Class C Common Stock to Class A Common Stock
Class of Stock [Line Items]
Conversion of class b preferred to class a common (in shares) | shares	3,347,647
Income tax benefit | $	$ 6,700,000

Shareholders' Equity and Nonc45

Shareholders' Equity and Noncontrolling Interest - Noncontrolling Interest (Details)	Mar. 31, 2018	Dec. 31, 2017	Oct. 10, 2016
Centennial Resource Production, LLC | Centennial Contributors
Noncontrolling Interest [Line Items]
Ownership interest of non-controlling interest	4.50%	5.70%	10.90%

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income attributable to Class A Common Stock	$ 66,090	$ 9,823
Less: Income allocable to participating securities	0	1,125
Adjusted net income attributable to Class A Common Stock	$ 66,090	$ 8,698
Basic net earnings per share of Class A Common Stock (USD per share)	$ 0.25	$ 0.04
Diluted net earnings per share of Class A Common Stock (USD per share)	$ 0.25	$ 0.04
Basic weighted average shares of Class A Common Stock outstanding (in shares)	261,324	201,776
Add: Dilutive effects of equity awards (in shares)	3,859	3,166
Diluted weighted average shares of Class A Common Stock outstanding (in shares)	265,183	204,942

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Anti-diluted shares excluded from computation of earnings per share (in shares)	0.2	4.1
Common Stock Class C | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Anti-diluted shares excluded from computation of earnings per share (in shares)	14.7	19.1

Transactions with Related Par48

Transactions with Related Parties (Details) - Affiliated Entity - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Liberty Oilfield Services, LLC
Related Party Transaction [Line Items]
Expenses to related party		$ 12.5
Permian Tank And Manufacturing, Inc
Related Party Transaction [Line Items]
Expenses to related party	$ 2	1.1
Accounts payable with related party	0.9		$ 0.3
Oil States Energy Services, LLC
Related Party Transaction [Line Items]
Expenses to related party	2.3	$ 0.7
Accounts payable with related party	$ 1.6		$ 1.5

Commitments and Contingencies A

Commitments and Contingencies Additional Information (Details) - Transportation Service Agreement MMBTU in Thousands, $ in Millions	1 Months Ended
	Mar. 31, 2018USD ($)MMBTU
Supply Commitment [Line Items]
Energy commitment per day (in MMbtus) | MMBTU	18,500
Supply commitment term	2 years
Minimum remaining commitments under agreement | $	$ 11

Revenues - Schedule of Disaggre

Revenues - Schedule of Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Oil and gas sales	$ 215,898	$ 61,097
Accrued oil and gas sales receivable	76,545		$ 52,891
Oil sales
Disaggregation of Revenue [Line Items]
Oil and gas sales	174,841	46,681
Natural gas sales
Disaggregation of Revenue [Line Items]
Oil and gas sales	18,580	8,241
NGL sales
Disaggregation of Revenue [Line Items]
Oil and gas sales	$ 22,477	$ 6,175

Subsequent Events (Details)

Subsequent Events (Details) - Revolving Credit Facility - Line of Credit - USD ($)	May 04, 2018	Nov. 02, 2017	Mar. 31, 2018
Subsequent Event [Line Items]
Borrowing base			$ 575,000,000
Elected commitments			$ 475,000,000
Commitment fee percentage		0.50%
Subsequent Event
Subsequent Event [Line Items]
Borrowing base	$ 800,000,000
Elected commitments	$ 600,000,000
Line of credit, term	5 years
Minimum | Subsequent Event
Subsequent Event [Line Items]
Commitment fee percentage	0.375%
Minimum | LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate		2.25%
Minimum | LIBOR | Subsequent Event
Subsequent Event [Line Items]
Basis spread on variable rate	1.50%
Minimum | Base Rate
Subsequent Event [Line Items]
Basis spread on variable rate		1.25%
Minimum | Base Rate | Subsequent Event
Subsequent Event [Line Items]
Basis spread on variable rate	0.50%
Maximum | Subsequent Event
Subsequent Event [Line Items]
Commitment fee percentage	0.50%
Maximum | LIBOR
Subsequent Event [Line Items]
Basis spread on variable rate		3.25%
Maximum | LIBOR | Subsequent Event
Subsequent Event [Line Items]
Basis spread on variable rate	2.50%
Maximum | Base Rate
Subsequent Event [Line Items]
Basis spread on variable rate		2.25%
Maximum | Base Rate | Subsequent Event
Subsequent Event [Line Items]
Basis spread on variable rate	1.50%