Permian Resources (PR) 10-Q 5 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 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	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock Class A
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		264,257,387
Common Stock Class C
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		12,003,183

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 58,922	$ 117,315
Accounts receivable, net	88,817	78,786
Derivative instruments	3,871	433
Prepaid and other current assets	14,277	6,051
Total current assets	165,887	202,585
Oil and natural gas properties, successful efforts method
Unproved properties	1,801,965	1,952,680
Proved properties	2,402,331	1,602,002
Accumulated depreciation, depletion and amortization	(395,675)	(173,906)
Total oil and natural gas properties, net	3,808,621	3,380,776
Other property and equipment, net	7,828	5,465
Total property and equipment, net	3,816,449	3,386,241
Noncurrent assets
Derivative instruments	0	662
Other noncurrent assets	35,036	27,081
TOTAL ASSETS	4,017,372	3,616,569
Current liabilities
Accounts payable and accrued expenses	210,608	199,533
Derivative instruments	0	240
Other current liabilities	655	0
Total current liabilities	211,263	199,773
Noncurrent liabilities
Long-term debt, net	531,390	390,764
Asset retirement obligations	13,156	12,161
Deferred tax liability	53,380	9,899
Derivative instruments	2,437	0
Other long-term liabilities	540	0
Total liabilities	812,166	612,597
Commitments and contingencies (Note 12)
Shareholders’ equity
Additional paid-in capital	2,827,756	2,767,558
Retained earnings	235,558	66,639
Total shareholders’ equity	3,063,342	2,834,225
Noncontrolling interest	141,864	169,747
Total equity	3,205,206	3,003,972
TOTAL LIABILITIES AND EQUITY	4,017,372	3,616,569
Preferred Stock Series A
Shareholders’ equity
Preferred stock, $0.0001 par value, 1,000,000 shares authorized:	0	0
Common Stock Class A
Shareholders’ equity
Common stock, $0.0001 par value, 620,000,000 shares authorized:	27	26
Common Stock Class C
Shareholders’ equity
Common stock, $0.0001 par value, 620,000,000 shares authorized:	$ 1	$ 2

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares	Sep. 30, 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)	265,771,082	261,337,636
Common stock, shares outstanding (shares)	264,214,812	260,327,920
Common Stock Class C
Common stock, shares issued (shares)	12,003,183	15,661,338
Common stock, shares outstanding (shares)	12,003,183	15,661,338

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Operating revenues
Oil and gas sales	$ 234,880	$ 111,611	$ 668,541	$ 263,772
Operating expenses
Lease operating expenses	23,706	11,373	59,164	26,924
Severance and ad valorem taxes	14,410	6,448	42,791	14,358
Gathering, processing and transportation expenses	16,090	9,925	45,214	22,572
Depreciation, depletion and amortization	83,423	42,387	224,379	102,847
Impairment and abandonment expenses	8,612	0	10,396	(29)
Exploration expense	2,712	1,622	8,026	4,092
General and administrative expenses	16,561	13,311	44,667	36,017
Total operating expenses	165,514	85,066	434,637	206,781
Income from operations	69,366	26,545	233,904	56,991
Other income (expense)
Gain (loss) on sale of oil and natural gas properties	52	(141)	(74)	7,216
Interest expense	(6,534)	(1,015)	(18,138)	(2,132)
Net gain (loss) on derivative instruments	(9,571)	(896)	14,969	5,392
Other income (expense)	13	0	(4)	0
Other income (expense)	(16,040)	(2,052)	(3,247)	10,476
Income before income taxes	53,326	24,493	230,657	67,467
Income tax expense	(11,652)	(8,233)	(50,729)	(17,302)
Net income	41,674	16,260	179,928	50,165
Less: Net income attributable to noncontrolling interest	2,386	1,813	11,009	5,133
Net income attributable to Class A Common Stock	$ 39,288	$ 14,447	$ 168,919	$ 45,032
Income per share of Class A Common Stock:
Basic (USD per share)	$ 0.15	$ 0.06	$ 0.64	$ 0.20
Diluted (USD per share)	$ 0.15	$ 0.06	$ 0.63	$ 0.19

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 179,928	$ 50,165
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	224,379	102,847
Stock-based compensation expense	14,329	9,420
Undeveloped leasehold abandonment expense	10,396	(29)
Exploratory dry hole cost	395	0
Deferred tax expense	50,729	17,302
(Gain) loss on sale of oil and natural gas properties	74	(7,216)
Non-cash mark-to-market derivative gain	(579)	(5,126)
Amortization of debt issuance costs	1,258	348
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(18,327)	(28,172)
(Increase) decrease in prepaid and other assets	(52)	(12,890)
Increase (decrease) in accounts payable and other liabilities	32,165	10,501
Net cash provided by operating activities	494,695	137,150
Cash flows from investing activities:
Acquisitions of oil and natural gas properties	(114,870)	(419,471)
Drilling and development capital expenditures	(723,100)	(354,515)
Purchases of other property and equipment	(4,409)	(3,482)
Proceeds from sales of oil and natural gas properties	147,413	10,714
Net cash used in investing activities	(694,966)	(766,754)
Cash flows from financing activities:
Issuance of Class A common shares	0	340,750
Underwriters discount and offering costs	0	(7,233)
Proceeds from revolving credit facility	295,000	190,000
Repayment of revolving credit facility	(155,000)	(25,000)
Proceeds from stock options exercised	847	0
Restricted stock used for tax withholdings	(1,119)	0
Debt issuance costs	(4,217)	(415)
Net cash provided by financing activities	135,511	498,102
Net decrease in cash and cash equivalents and restricted cash	(64,760)	(131,502)
Cash and cash equivalents and restricted cash, beginning of period	125,915	134,083
Cash, cash equivalents and restricted cash, end of period	61,155	2,581
Supplemental cash flow information
Cash paid for interest	15,587	1,915
Supplemental non-cash activity
Accrued capital expenditures included in accounts payable and accrued expenses	97,844	102,152
Asset retirement obligations incurred, including revisions to estimates	1,040	1,016
Total cash, cash equivalents and restricted cash	$ 125,915	$ 134,083

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS 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
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)					6,236,000
Warrants exercised					$ 1				(1)
Restricted stock issued (in shares)					841,000
Restricted stock forfeited (in shares)					(9,000)
Conversion of common and preferred shares (in shares)					26,100,000			(104,000)
Conversion of common and preferred shares					$ 3				(3)
Sale of unregistered Class A common shares (in shares)					23,500,000
Sale of unregistered Class A common shares	340,750				$ 2				340,748		340,750
Underwriters' discount and offering expense	(7,233)								(7,233)		(7,233)
Stock-based compensation	9,420								9,420		9,420
Change in equity due to issuance of shares by Centennial Resource Production, LLC									(2,682)		(2,682)	2,682
Net income	50,165									45,032	45,032	5,133
Common shares outstanding at end of period (in shares) at Sep. 30, 2017					257,760,000	19,156,000
Balance at end of period at Sep. 30, 2017	2,946,037				$ 26	$ 2	$ 0	$ 0	2,704,298	36,103	2,740,429	205,608
Preferred shares outstanding at end of period (in shares) at Sep. 30, 2017							0	0
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)					919,000
Restricted stock forfeited (in shares)					(136,000)
Conversion of common and preferred shares (in shares)					3,658,000	(3,658,000)
Conversion of common and preferred shares	7,249				$ 1	$ (1)			46,141		46,141	(38,892)
Restricted stock used for tax withholding (in shares)					(60,000)
Restricted stock used for tax withholding	$ (1,119)								(1,119)		(1,119)
Option Exercises (in shares)	52,331				52,000
Option Exercises	$ 847								847		847
Stock-based compensation	14,329								14,329		14,329
Net income	179,928									168,919	168,919	11,009
Common shares outstanding at end of period (in shares) at Sep. 30, 2018		264,214,812	12,003,183		265,771,000	12,003,000
Balance at end of period at Sep. 30, 2018	$ 3,205,206				$ 27	$ 1	$ 0	$ 0	$ 2,827,756	$ 235,558	$ 3,063,342	$ 141,864
Preferred shares outstanding at end of period (in shares) at Sep. 30, 2018				1			0	0

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	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 United States Securities and Exchange Commission (“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. Noncontrolling interest represents third-party ownership in the Company’s consolidated subsidiary, and it 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 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 revenues 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 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which updates the disclosure requirements for fair value measurements in Accounting Standard Codification (“ASC”) Topic 820, Fair Value Measurement (“ASC Topic 820”). Certain disclosure requirements under ASC Topic 820 were removed, modified or added in order to improve the effectiveness of the fair value note to the financial statement. This update will be effective for financial statements issued for fiscal years beginning after December 31, 2019, including interim periods within those fiscal years. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until the effective date. The Company is currently assessing the impact of this update on the Company's consolidated financial statements. In August 2016, the FASB issued 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 nine months ended September 30, 2018 . In February 2016, the FASB issued ASU 2016-02, Leases , which created ASC Topic 842, Leases (“ASC Topic 842”), superseding current lease requirements under ASC Topic 840, Leases . Subsequently in 2018, the FASB issued various ASUs which provide a practical expedient for the evaluation of existing land easement agreements, optionality in the adoption transition method, and additional implementation guidance. ASC Topic 842 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. The standard permits retrospective application using either of the following methodologies: (i) application of the new standard at the earliest presented period or (ii) application of the new standard at the adoption date with a cumulative-effect adjustment recognized to retained earnings. The Company will adopt this guidance as of January 1, 2019, the effective date, and plans to recognize a cumulative-effect adjustment at the time of adoption. Although the Company is still in the process of evaluating the effect of adopting ASC Topic 842 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 such as drilling rig contracts and office rental agreements. The Company is continuing to evaluate 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	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Property Acquisitions and Divestiture	Note 2—Property Acquisitions and Divestiture 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 positions 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 in 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 September 30, 2018 , amounted to $0.2 million and mainly consisted of advisory and legal fees. 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	9 Months Ended
	Sep. 30, 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) September 30, 2018 December 31, 2017 Accrued oil and gas sales receivable, net $ 68,128 $ 52,891 Joint interest billings 20,093 25,256 Receivables for divestitures 416 — Other 180 639 Accounts receivable, net $ 88,817 $ 78,786 Accounts payable and accrued expenses are comprised of the following: (in thousands) September 30, 2018 December 31, 2017 Accounts payable $ 27,252 $ 64,004 Accrued capital expenditures 107,786 90,511 Revenues payable 47,995 23,390 Accrued interest 5,310 1,936 Accrued employee compensation and benefits 7,338 8,350 Accrued expenses and other 14,927 11,342 Accounts payable and accrued expenses $ 210,608 $ 199,533

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Long-Term Debt	Note 4—Long-Term Debt Credit Agreement On May 4, 2018 , CRP, the Company’s consolidated subsidiary, entered into an amended and restated credit agreement with a syndicate of banks that as of September 30, 2018 , had a borrowing base of $800.0 million and elected commitments of $600.0 million . The credit agreement provides for a five -year secured revolving credit facility, maturing on May 4, 2023 . As of September 30, 2018 , the Company had $140.0 million borrowings outstanding and $459.1 million in available borrowing capacity, which was net of $0.9 million in letters of credit outstanding. The amount available to be borrowed under the Company’s credit agreement is equal to the lesser of (i) the borrowing base, (ii) aggregate elected commitments, or (iii) $1.5 billion . The borrowing base is redetermined semi-annually each April 1 and October 1 by the lenders in their sole discretion. It 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 exceed the revised borrowing capacity, CRP could be required to immediately repay a portion of its debt outstanding under the credit agreement. In connection with the October 2018 semi-annual credit facility redetermination, the borrowing base under the revolving credit facility was increased from $800.0 million to $1.0 billion and the lenders increased their aggregate elected commitments from $600.0 million to $800.0 million . 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 May 4, 2023 , 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: (i) incur additional indebtedness; (ii) make investments and loans; (iii) enter into mergers; (iv) make or declare dividends; (v) enter into commodity hedges exceeding a specified percentage of the Company’s expected production; (vi) enter into interest rate hedges exceeding a specified percentage of its outstanding indebtedness; (vii) incur liens; (viii) sell assets; and (ix) 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 September 30, 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 September 30, 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 $8.6 million as of September 30, 2018 and $9.2 million as of December 31, 2017 .

Asset Retirement Obligations

Asset Retirement Obligations	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 2018 (in thousands): Asset retirement obligations at January 1, 2018 $ 12,161 Liabilities acquired 42 Liabilities incurred 1,051 Liabilities divested and settled (672 ) Accretion expense 585 Revisions to estimated cash flows (11 ) Asset retirement obligations at September 30, 2018 $ 13,156 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 gas property balance.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 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 September 30, 2018 , the Company had 9,795,116 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. The following table summarizes stock-based compensation expense recognized for the periods presented: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Restricted stock awards $ 2,393 $ 1,490 $ 6,157 $ 3,364 Stock option awards 2,337 2,104 6,853 5,825 Performance stock units 611 231 1,319 231 Total stock-based compensation expense $ 5,341 $ 3,825 $ 14,329 $ 9,420 Restricted Stock The following table provides information about restricted stock awards outstanding during the nine months ended September 30, 2018 : Awards Weighted Average Grant Date Fair Value Unvested balance as of December 31, 2017 1,009,716 $ 17.64 Granted 919,306 18.38 Vested (236,701 ) 16.92 Forfeited (136,051 ) 17.70 Unvested balance as of September 30, 2018 1,556,270 18.18 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 $18.38 per share and $17.21 per share for the nine months ended September 30, 2018 and 2017 , respectively. The total fair value of restricted stock awards that vested during the nine months ended September 30, 2018 was $4.4 million , and no awards vested during the nine months ended September 30, 2017 . Unrecognized compensation cost related to restricted shares that were unvested as of September 30, 2018 was $23.5 million , which the Company expects to recognize over a weighted average period of 2.3 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 weighted average asset volatility of the Company and identified set of comparable companies. Expected term is based on the simplified method and is estimated as the mid-point between 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 nine months ended September 30, 2018 and 2017 : For the Nine Months Ended September 30, 2018 2017 Weighted average grant-date fair value per share $ 7.74 $ 7.15 Expected term (in years) 6 6 Expected stock volatility 41.4 % 38.1 % Dividend yield — % — % Risk-free interest rate 2.6 % 2.0 % The following table provides information about stock option awards outstanding during the nine months ended September 30, 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 358,500 17.78 Exercised (52,331 ) 16.18 $ 192 Forfeited (225,337 ) 15.80 Expired (4,166 ) 16.60 Outstanding as of September 30, 2018 4,366,667 16.30 8.4 24,218 Exercisable as of September 30, 2018 1,223,811 15.98 8.2 7,179 The total fair value of stock options that vested during the nine months ended September 30, 2018 was $3.7 million , and no awards vested during the nine months ended September 30, 2017 . As of September 30, 2018 , there was $13.5 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 1.6 years. Performance Stock Units The Company grants to certain executive officers performance stock units that are subject to market-based vesting criteria as well as a three -year service period. Vesting at the end of the three -year service period is subject to the condition that the Company’s stock price increases by a greater percentage, or decreases by a lesser percentage, than the average percentage increase or decrease, respectively, of the stock prices of a peer group of companies. The market-based conditions must be met in order for the stock awards to vest, and it is, therefore, possible that no shares could vest. However, the Company recognizes compensation expense for the performance stock units subject to market conditions regardless of whether it becomes probable that these conditions will be achieved or not and compensation expense is not reversed if vesting does not actually occur. The grant-date fair value was estimated using a Monte Carlo valuation model. The Monte Carlo valuation model is based on random projections of stock price paths and must be repeated numerous times to achieve a probabilistic assessment. Expected volatility was calculated based on the historical volatility of our common stock, and the risk-free interest rate is based on U.S. Treasury yield curve rates with maturities consistent with the three -year vesting period. The following table summarizes the key assumptions and related information used to determine the grant-date fair value of performance stock units awarded during the nine months ended September 30, 2018 and 2017 : For the Nine Months Ended September 30, 2018 2017 Weighted average grant-date fair value per share $ 22.35 $ 21.53 Number of simulations 1,000,000 1,000,000 Expected stock volatility 40.2 % 41.6 % Dividend yield — % — % Risk-free interest rate 2.8 % 1.5 % The following table provides information about performance stock units outstanding during the nine months ended September 30, 2018 : Awards Weighted Average Grant-Date Fair Value Outstanding as of December 31, 2017 193,391 $ 21.53 Vested — — Granted 193,068 22.35 Forfeited — — Outstanding as of September 30, 2018 386,459 21.94 As of September 30, 2018 , there was $6.6 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 2.4 years.

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 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, 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 known as fixed price swaps to realize a known price for a specific volume of production as well as 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 in price 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 September 30, 2018 : Period Volume (Bbls) Volume (Bbls/d) Weighted Average Differential ($/Bbl) (1) Crude oil basis swaps October 2018 - December 2018 828,000 9,000 $ (2.38 ) January 2019 - March 2019 540,000 6,000 (5.34 ) April 2019 - June 2019 91,000 1,000 (10.00 ) July 2019 - September 2019 1,380,000 15,000 (9.03 ) October 2019 - December 2019 920,000 10,000 (4.24 ) (1) The oil basis swap transactions are settled based on the difference between the arithmetic average of ARGUS MIDLAND WTI and ARGUS WTI CUSHING indices, during the relevant calculation period. Period Volume (MMBtu) Volume (MMBtu/d) Weighted Average Fixed Price ($/MMBtu) (1) Natural Gas Swaps - Henry Hub January 2019 - December 2019 10,950,000 30,000 $ 2.78 Natural Gas Swaps - West Texas WAHA January 2019 - December 2019 5,475,000 15,000 1.61 Period Volume (MMBtu) Volume (MMBtu/d) Weighted Average Differential ($/MMBtu) (2) Natural gas basis swaps October 2018 - December 2018 460,000 5,000 $ (0.43 ) January 2019 - December 2019 12,775,000 35,000 (1.31 ) (1) The natural gas swap contracts are settled based on either i) the NYMEX Henry Hub price or ii) the Inside FERC West Texas WAHA price of natural gas as of the specified settlement date, as applicable. (2) The natural gas basis swap contracts are settled based on the difference between the Inside FERC’s West Texas WAHA price 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 fair value 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 September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Net gain (loss) on derivative instruments $ (9,571 ) $ (896 ) $ 14,969 $ 5,392 Offsetting of Derivative Assets and Liabilities. The Company’s commodity derivatives 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 September 30, 2018 December 31, 2017 Derivative Assets Derivative instruments Current assets $ 10,184 $ 720 Derivative instruments Noncurrent assets 418 662 Total derivative assets $ 10,602 $ 1,382 Derivative Liabilities Derivative instruments Current liabilities $ 6,313 $ 527 Derivative instruments Noncurrent liabilities 2,855 — Total derivative liabilities $ 9,168 $ 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	9 Months Ended
	Sep. 30, 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 presents 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 September 30, 2018 and December 31, 2017 : Fair Value Measurements Gross Amounts of Assets and Liabilities Netting Adjustments (1) Net Amounts Presented on the Balance Sheets Level 1 Level 2 Level 3 (in thousands) September 30, 2018 Financial assets Commodity derivative asset - current $ — $ 10,184 $ — $ (6,313 ) $ 3,871 Commodity derivative asset - noncurrent — 418 — (418 ) — Total financial assets $ — $ 10,602 $ — $ (6,731 ) $ 3,871 Financial liabilities Commodity derivative liability - current $ — $ 6,313 $ — $ (6,313 ) $ — Commodity derivative liability - noncurrent — 2,855 — (418 ) 2,437 Total financial liabilities $ — $ 9,168 $ — $ (6,731 ) $ 2,437 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. 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 September 30, 2018 and December 31, 2017 , the fair value of the Senior Notes was $399.0 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	9 Months Ended
	Sep. 30, 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 September 30, 2018 , the noncontrolling interest ownership of CRP decreased to 4.3% from 5.7% as of December 31, 2017 . The decrease was mainly the result of the exchange of CRP Common Units (and corresponding shares of Class C Common Stock) for Class A Common Stock. 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	9 Months Ended
	Sep. 30, 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. 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 September 30, 2018 and 2017 . 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 September 30, For the Nine Months Ended September 30, (in thousands, except per share data) 2018 2017 2018 2017 Net income attributable to Class A Common Stock $ 39,288 $ 14,447 $ 168,919 $ 45,032 Add: Income from conversion of Class C Common Stock 1,717 1,193 — 3,196 Adjusted net income attributable to Class A Common Stock 41,005 15,640 168,919 48,228 Basic net earnings per share of Class A Common Stock $ 0.15 $ 0.06 $ 0.64 $ 0.20 Diluted net earnings per share of Class A Common Stock $ 0.15 $ 0.06 $ 0.63 $ 0.19 Basic weighted average shares of Class A Common Stock outstanding 263,959 223,622 263,029 227,557 Add: Dilutive effects of equity awards 3,766 2,598 3,625 4,481 Add: Dilutive effects of conversion 12,189 19,156 — 19,156 Diluted weighted average shares of Class A Common Stock outstanding 279,914 245,376 266,654 251,194 For the three and nine months ended September 30, 2018 and 2017 , the following shares were excluded from the diluted earnings per share calculation as their impacts were anti-dilutive: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Out-of-the-money stock options 142 1,501 318 1,046 Weighted average shares of Class C Common Stock — — 13,056 — Performance stock units — — 52 —

Transactions with Related Parti

Transactions with Related Parties	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Transactions with Related Parties	Note 11—Transactions with Related Parties The Company obtains services related to its drilling and completion activities from related parties from time to time. The Company believes that the terms of the arrangements with these related parties are no less favorable to either party than those held with unaffiliated parties. The following table summarizes the costs incurred for such services which were either included as part of oil and natural gas properties in the Consolidated Balance Sheet or as lease operating expense in the Consolidated Statements of Operations, as well as the related payables outstanding as of the balance sheet dates: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Costs of goods/services provided Liberty Oilfield Services, LLC (1) $ — $ 30,434 $ — $ 70,616 Schlumberger Limited and affiliates (2) 2,872 — 2,872 — Oil States International, Inc. (3) 647 2,443 5,047 6,375 (in thousands) September 30, 2018 December 31, 2017 Accounts payable and accrued expenses Schlumberger Limited and affiliates (2) $ 1,290 $ — Oil States International, Inc. (3) — 1,518 (1) This entity is a Riverstone affiliate. Riverstone and its affiliates, beneficially own more than 10% equity interest in the Company and are therefore considered related parties. (2) On August 8, 2018, Mark G. Papa, the Company’s Chief Executive Officer and Chairman of the Board, was elected as a director of the Board of Schlumberger Limited (“Schlumberger”), an oilfield services company. As a result, Schlumberger and its affiliates are considered related parties of the Company. Any goods/services acquired from Schlumberger and its affiliates on or after August 8, 2018, are classified as related party transactions. (3) Mark G. Papa served as a director and Chairman of the Board of Oil States International, Inc. (“Oil States”), an energy services company. Effective August 7, 2018, Mr. Papa resigned from Oil States’ Board and they were no longer a related party of the Company. Any goods/services acquired on or after August 7, 2018 from Oil States are no longer classified as related party transactions.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 12—Commitments and Contingencies Commitments In 2018, the Company entered into various natural gas transportation agreements whereby it is required to deliver approximately 491 million MMBtu, in aggregate, over a term ranging from one to four years or else pay for any volume deficiencies. These delivery commitments are tied to the Company’s natural gas production, and the aggregate financial obligation under these contracts is $38.4 million , representing the minimum commitments pursuant to the terms of these agreements as of September 30, 2018 . Actual expenditures under these contracts may exceed this minimum commitment amount. The following table summarizes the natural gas volumes the Company is required to deliver by period under these agreements as well as its existing natural gas transportation agreements: Period Total Volume Commitments (MMBtu) (1) Volume (MMBtu/d) (1) October 2018 - December 2018 16,200,000 176,000 January 2019 - December 2019 116,800,000 320,000 January 2020 - December 2020 194,800,000 533,600 January 2021 - December 2021 158,100,000 433,200 January 2022 - October 2022 19,700,000 64,800 Total 505,600,000 (1) The amounts reflected within this table are the total gross volumes the Company is required to deliver per the agreements. These volumetric quantities are therefore not comparable to the Company’s net production presented in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation as the amounts therein are reflected net of all royalties, overriding royalties and production due to others. In May 2018, the Company entered into a three -year supply agreement to purchase frac sand from an in-basin sand mine in West Texas. Under the terms of the agreement, the Company is obligated to purchase a minimum volume of sand at a fixed sales price. The aggregate financial obligation under this contract is $23.8 million , which represents the minimum commitments pursuant to the terms of the agreement as of September 30, 2018 . Actual expenditures under this contract may exceed this minimum commitment amount. Delivery Commitments In August 2018, the Company entered into two firm crude oil sales agreements with large integrated oil companies. Utilizing these companies’ existing transport capacity out of the Permian Basin, the agreements provide for firm gross sales ranging from approximately 40,000 to 105,000 Bbls/d in aggregate over the next six years. These amounts represent the total gross volumes the Company is required to deliver per the agreements, which are not comparable to the Company’s net production presented in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation as amounts therein are reflected net of all royalties, overriding royalties and production due to others. These sales agreements require the Company to physically deliver the aforementioned volumes of crude oil over the contractual terms of the agreements. The Company believes its current production and reserves are sufficient to fulfill these delivery commitments, but if the physical delivery commitments are not met, a financial obligation may arise. However, the aggregate amount of any such potential financial obligation under these contracts is not determinable since the amount and timing of any volumetric shortfalls, as well as the difference between the prevailing market price and contract price at such time, cannot be predicted with accuracy. The Company routinely enters into or extends operating agreements, office and equipment leases, drilling and completion rig contracts, among others, in the ordinary course of business. Other than those discussed above, there have been no material, non-routine changes in commitments during the nine months ended September 30, 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 a contingent liability to be recognized as of the date of these consolidated financial statements.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenues	Note 13—Revenues Revenue from Contracts with Customers Sales of crude oil and natural 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 contract 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 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 September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Operating revenues (in thousands): Oil sales $ 184,510 $ 87,286 $ 533,507 $ 204,702 Natural gas sales 14,311 12,852 46,612 33,226 NGL sales 36,059 11,473 88,422 25,844 Oil and gas sales $ 234,880 $ 111,611 $ 668,541 $ 263,772 Oil sales The Company’s crude 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 and fractionation 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 volumes are 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 Sheets. As of September 30, 2018 and December 31, 2017 , such receivable balances were $68.1 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 nine months ended September 30, 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	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 14—Subsequent Events Credit Facility Amendment In connection with the October 2018 semi-annual credit facility redetermination, the borrowing base under the revolving credit facility was increased from $800.0 million to $1.0 billion and the lenders increased their aggregate elected commitments from $600.0 million to $800.0 million .

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 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 United States Securities and Exchange Commission (“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. Noncontrolling interest represents third-party ownership in the Company’s consolidated subsidiary, and it 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 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 revenues 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	Recently Issued Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which updates the disclosure requirements for fair value measurements in Accounting Standard Codification (“ASC”) Topic 820, Fair Value Measurement (“ASC Topic 820”). Certain disclosure requirements under ASC Topic 820 were removed, modified or added in order to improve the effectiveness of the fair value note to the financial statement. This update will be effective for financial statements issued for fiscal years beginning after December 31, 2019, including interim periods within those fiscal years. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until the effective date. The Company is currently assessing the impact of this update on the Company's consolidated financial statements. In August 2016, the FASB issued 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 nine months ended September 30, 2018 . In February 2016, the FASB issued ASU 2016-02, Leases , which created ASC Topic 842, Leases (“ASC Topic 842”), superseding current lease requirements under ASC Topic 840, Leases . Subsequently in 2018, the FASB issued various ASUs which provide a practical expedient for the evaluation of existing land easement agreements, optionality in the adoption transition method, and additional implementation guidance. ASC Topic 842 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. The standard permits retrospective application using either of the following methodologies: (i) application of the new standard at the earliest presented period or (ii) application of the new standard at the adoption date with a cumulative-effect adjustment recognized to retained earnings. The Company will adopt this guidance as of January 1, 2019, the effective date, and plans to recognize a cumulative-effect adjustment at the time of adoption. Although the Company is still in the process of evaluating the effect of adopting ASC Topic 842 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 such as drilling rig contracts and office rental agreements. The Company is continuing to evaluate 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, Accounts_2

Accounts Receivable, Accounts Payable and Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	Accounts receivable are comprised of the following: (in thousands) September 30, 2018 December 31, 2017 Accrued oil and gas sales receivable, net $ 68,128 $ 52,891 Joint interest billings 20,093 25,256 Receivables for divestitures 416 — Other 180 639 Accounts receivable, net $ 88,817 $ 78,786
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses are comprised of the following: (in thousands) September 30, 2018 December 31, 2017 Accounts payable $ 27,252 $ 64,004 Accrued capital expenditures 107,786 90,511 Revenues payable 47,995 23,390 Accrued interest 5,310 1,936 Accrued employee compensation and benefits 7,338 8,350 Accrued expenses and other 14,927 11,342 Accounts payable and accrued expenses $ 210,608 $ 199,533

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 2018 (in thousands): Asset retirement obligations at January 1, 2018 $ 12,161 Liabilities acquired 42 Liabilities incurred 1,051 Liabilities divested and settled (672 ) Accretion expense 585 Revisions to estimated cash flows (11 ) Asset retirement obligations at September 30, 2018 $ 13,156

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Compensation Expense	The following table summarizes stock-based compensation expense recognized for the periods presented: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Restricted stock awards $ 2,393 $ 1,490 $ 6,157 $ 3,364 Stock option awards 2,337 2,104 6,853 5,825 Performance stock units 611 231 1,319 231 Total stock-based compensation expense $ 5,341 $ 3,825 $ 14,329 $ 9,420
Nonvested Restricted Stock Shares Activity	The following table provides information about restricted stock awards outstanding during the nine months ended September 30, 2018 : Awards Weighted Average Grant Date Fair Value Unvested balance as of December 31, 2017 1,009,716 $ 17.64 Granted 919,306 18.38 Vested (236,701 ) 16.92 Forfeited (136,051 ) 17.70 Unvested balance as of September 30, 2018 1,556,270 18.18
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 nine months ended September 30, 2018 and 2017 : For the Nine Months Ended September 30, 2018 2017 Weighted average grant-date fair value per share $ 7.74 $ 7.15 Expected term (in years) 6 6 Expected stock volatility 41.4 % 38.1 % Dividend yield — % — % Risk-free interest rate 2.6 % 2.0 %
Summary of Stock Option Activity	The following table provides information about stock option awards outstanding during the nine months ended September 30, 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 358,500 17.78 Exercised (52,331 ) 16.18 $ 192 Forfeited (225,337 ) 15.80 Expired (4,166 ) 16.60 Outstanding as of September 30, 2018 4,366,667 16.30 8.4 24,218 Exercisable as of September 30, 2018 1,223,811 15.98 8.2 7,179
Summary of Performance Stock Units Valuation Inputs	The following table summarizes the key assumptions and related information used to determine the grant-date fair value of performance stock units awarded during the nine months ended September 30, 2018 and 2017 : For the Nine Months Ended September 30, 2018 2017 Weighted average grant-date fair value per share $ 22.35 $ 21.53 Number of simulations 1,000,000 1,000,000 Expected stock volatility 40.2 % 41.6 % Dividend yield — % — % Risk-free interest rate 2.8 % 1.5 %
Summary of Performance Stock Units Activity	The following table provides information about performance stock units outstanding during the nine months ended September 30, 2018 : Awards Weighted Average Grant-Date Fair Value Outstanding as of December 31, 2017 193,391 $ 21.53 Vested — — Granted 193,068 22.35 Forfeited — — Outstanding as of September 30, 2018 386,459 21.94

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2018 : Period Volume (Bbls) Volume (Bbls/d) Weighted Average Differential ($/Bbl) (1) Crude oil basis swaps October 2018 - December 2018 828,000 9,000 $ (2.38 ) January 2019 - March 2019 540,000 6,000 (5.34 ) April 2019 - June 2019 91,000 1,000 (10.00 ) July 2019 - September 2019 1,380,000 15,000 (9.03 ) October 2019 - December 2019 920,000 10,000 (4.24 ) (1) The oil basis swap transactions are settled based on the difference between the arithmetic average of ARGUS MIDLAND WTI and ARGUS WTI CUSHING indices, during the relevant calculation period. Period Volume (MMBtu) Volume (MMBtu/d) Weighted Average Fixed Price ($/MMBtu) (1) Natural Gas Swaps - Henry Hub January 2019 - December 2019 10,950,000 30,000 $ 2.78 Natural Gas Swaps - West Texas WAHA January 2019 - December 2019 5,475,000 15,000 1.61 Period Volume (MMBtu) Volume (MMBtu/d) Weighted Average Differential ($/MMBtu) (2) Natural gas basis swaps October 2018 - December 2018 460,000 5,000 $ (0.43 ) January 2019 - December 2019 12,775,000 35,000 (1.31 ) (1) The natural gas swap contracts are settled based on either i) the NYMEX Henry Hub price or ii) the Inside FERC West Texas WAHA price of natural gas as of the specified settlement date, as applicable. (2) The natural gas basis swap contracts are settled based on the difference between the Inside FERC’s West Texas WAHA price 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 September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Net gain (loss) on derivative instruments $ (9,571 ) $ (896 ) $ 14,969 $ 5,392
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 September 30, 2018 December 31, 2017 Derivative Assets Derivative instruments Current assets $ 10,184 $ 720 Derivative instruments Noncurrent assets 418 662 Total derivative assets $ 10,602 $ 1,382 Derivative Liabilities Derivative instruments Current liabilities $ 6,313 $ 527 Derivative instruments Noncurrent liabilities 2,855 — Total derivative liabilities $ 9,168 $ 527

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of Netted Assets and Liabilities Measured on Recurring Basis, Fair Value	The following table presents 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 September 30, 2018 and December 31, 2017 : Fair Value Measurements Gross Amounts of Assets and Liabilities Netting Adjustments (1) Net Amounts Presented on the Balance Sheets Level 1 Level 2 Level 3 (in thousands) September 30, 2018 Financial assets Commodity derivative asset - current $ — $ 10,184 $ — $ (6,313 ) $ 3,871 Commodity derivative asset - noncurrent — 418 — (418 ) — Total financial assets $ — $ 10,602 $ — $ (6,731 ) $ 3,871 Financial liabilities Commodity derivative liability - current $ — $ 6,313 $ — $ (6,313 ) $ — Commodity derivative liability - noncurrent — 2,855 — (418 ) 2,437 Total financial liabilities $ — $ 9,168 $ — $ (6,731 ) $ 2,437 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)	9 Months Ended
	Sep. 30, 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 September 30, For the Nine Months Ended September 30, (in thousands, except per share data) 2018 2017 2018 2017 Net income attributable to Class A Common Stock $ 39,288 $ 14,447 $ 168,919 $ 45,032 Add: Income from conversion of Class C Common Stock 1,717 1,193 — 3,196 Adjusted net income attributable to Class A Common Stock 41,005 15,640 168,919 48,228 Basic net earnings per share of Class A Common Stock $ 0.15 $ 0.06 $ 0.64 $ 0.20 Diluted net earnings per share of Class A Common Stock $ 0.15 $ 0.06 $ 0.63 $ 0.19 Basic weighted average shares of Class A Common Stock outstanding 263,959 223,622 263,029 227,557 Add: Dilutive effects of equity awards 3,766 2,598 3,625 4,481 Add: Dilutive effects of conversion 12,189 19,156 — 19,156 Diluted weighted average shares of Class A Common Stock outstanding 279,914 245,376 266,654 251,194
Summary of Shares Excluded From Diluted Earnings Per Share Calculation	For the three and nine months ended September 30, 2018 and 2017 , the following shares were excluded from the diluted earnings per share calculation as their impacts were anti-dilutive: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Out-of-the-money stock options 142 1,501 318 1,046 Weighted average shares of Class C Common Stock — — 13,056 — Performance stock units — — 52 —

Transactions with Related Par_2

Transactions with Related Parties (Tables)	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Schedule of Costs Incurred and Payable with Related Parties	The following table summarizes the costs incurred for such services which were either included as part of oil and natural gas properties in the Consolidated Balance Sheet or as lease operating expense in the Consolidated Statements of Operations, as well as the related payables outstanding as of the balance sheet dates: For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Costs of goods/services provided Liberty Oilfield Services, LLC (1) $ — $ 30,434 $ — $ 70,616 Schlumberger Limited and affiliates (2) 2,872 — 2,872 — Oil States International, Inc. (3) 647 2,443 5,047 6,375 (in thousands) September 30, 2018 December 31, 2017 Accounts payable and accrued expenses Schlumberger Limited and affiliates (2) $ 1,290 $ — Oil States International, Inc. (3) — 1,518 (1) This entity is a Riverstone affiliate. Riverstone and its affiliates, beneficially own more than 10% equity interest in the Company and are therefore considered related parties. (2) On August 8, 2018, Mark G. Papa, the Company’s Chief Executive Officer and Chairman of the Board, was elected as a director of the Board of Schlumberger Limited (“Schlumberger”), an oilfield services company. As a result, Schlumberger and its affiliates are considered related parties of the Company. Any goods/services acquired from Schlumberger and its affiliates on or after August 8, 2018, are classified as related party transactions. (3) Mark G. Papa served as a director and Chairman of the Board of Oil States International, Inc. (“Oil States”), an energy services company. Effective August 7, 2018, Mr. Papa resigned from Oil States’ Board and they were no longer a related party of the Company. Any goods/services acquired on or after August 7, 2018 from Oil States are no longer classified as related party transactions.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Volume Commitments	The following table summarizes the natural gas volumes the Company is required to deliver by period under these agreements as well as its existing natural gas transportation agreements: Period Total Volume Commitments (MMBtu) (1) Volume (MMBtu/d) (1) October 2018 - December 2018 16,200,000 176,000 January 2019 - December 2019 116,800,000 320,000 January 2020 - December 2020 194,800,000 533,600 January 2021 - December 2021 158,100,000 433,200 January 2022 - October 2022 19,700,000 64,800 Total 505,600,000 (1) The amounts reflected within this table are the total gross volumes the Company is required to deliver per the agreements. These volumetric quantities are therefore not comparable to the Company’s net production presented in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation as the amounts therein are reflected net of all royalties, overriding royalties and production due to others.

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 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 September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Operating revenues (in thousands): Oil sales $ 184,510 $ 87,286 $ 533,507 $ 204,702 Natural gas sales 14,311 12,852 46,612 33,226 NGL sales 36,059 11,473 88,422 25,844 Oil and gas sales $ 234,880 $ 111,611 $ 668,541 $ 263,772

Property Acquisitions and Div_2

Property Acquisitions and Divestiture - Additional Information (Details)	Mar. 02, 2018USD ($)aWells	Feb. 08, 2018USD ($)a	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)	Dec. 21, 2017USD ($)
Business Acquisition [Line Items]
Purchase price of undeveloped net acres			$ 114,870,000	$ 419,471,000
Unproved properties acquired			1,801,965,000		$ 1,952,680,000
Proved properties			2,402,331,000		$ 1,602,002,000
Proceeds from sale			147,413,000	$ 10,714,000
Northern Delaware Basin
Business Acquisition [Line Items]
Undeveloped net acres acquired | a		4,000
Purchase price of undeveloped net acres		$ 94,700,000
Gas and oil area, working interest, percent		92.00%
Amount placed in escrow						$ 8,600,000
Settlement adjustments		$ 200,000
Net purchase price of undeveloped net acres		94,500,000
Unproved properties acquired		80,700,000
Proved properties		$ 13,800,000
Capitalized transaction costs			$ 200,000
Reeves County
Business Acquisition [Line Items]
Undeveloped net acres acquired | a	8,600
Number of wells sold (in wells) | Wells	12
Proceeds from sale	$ 140,700,000
Average working interest	32.00%
Gain (loss) on sale	$ 0

Accounts Receivable, Accounts_3

Accounts Receivable, Accounts Payable and Accrued Expenses - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued oil and gas sales receivable, net	$ 68,128	$ 52,891
Joint interest billings	20,093	25,256
Receivables for divestitures	416	0
Other	180	639
Accounts receivable, net	$ 88,817	$ 78,786

Accounts Receivable, Accounts_4

Accounts Receivable, Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable	$ 27,252	$ 64,004
Accrued capital expenditures	107,786	90,511
Revenues payable	47,995	23,390
Accrued interest	5,310	1,936
Accrued employee compensation and benefits	7,338	8,350
Accrued expenses and other	14,927	11,342
Accounts payable and accrued expenses	$ 210,608	$ 199,533

Long-Term Debt (Details)

Long-Term Debt (Details)	May 04, 2018	Nov. 30, 2017USD ($)	Sep. 30, 2018USD ($)redetermination	Nov. 02, 2018USD ($)	Dec. 31, 2017USD ($)
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Borrowing base			$ 800,000,000
Elected commitments			600,000,000
Line of credit, term	5 years
Borrowings, outstanding amount			140,000,000
Remaining borrowing capacity, net of current borrowings outstanding			459,100,000
Maximum borrowing base			$ 1,500,000,000
Number of optional borrowing base redeterminations | redetermination			2
Letter of Credit | Line of Credit
Debt Instrument [Line Items]
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			$ 8,600,000		$ 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%
Subsequent Event | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Borrowing base				$ 1,000,000,000
Elected commitments				$ 800,000,000

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset retirement obligations at January 1, 2018	$ 12,161
Liabilities acquired	42
Liabilities incurred	1,051
Liabilities divested and settled	(672)
Accretion expense	585
Revisions to estimated cash flows	(11)
Asset retirement obligations at September 30, 2018	$ 13,156

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Oct. 07, 2016
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value (in dollars per share)	$ 18.38	$ 17.21
Fair value of vested restricted stock awards	$ 4,400,000	$ 0
Unrecognized compensation costs	$ 23,500,000
Unrecognized compensation costs, period for recognition	2 years 3 months 25 days
Stock option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs, period for recognition	1 year 7 months 6 days
Unrecognized compensation costs	$ 13,500,000
Fair value of stock options vested	$ 3,700,000	$ 0
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Weighted average grant-date fair value (in dollars per share)	$ 22.35	$ 21.53
Unrecognized compensation costs	$ 6,600,000
Unrecognized compensation costs, period for recognition	2 years 4 months 13 days
Service period		3 years
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)	9,795,116
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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity based compensation expense	$ 5,341	$ 3,825	$ 14,329	$ 9,420
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity based compensation expense	2,393	1,490	6,157	3,364
Stock option awards
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity based compensation expense	2,337	2,104	6,853	5,825
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total equity based compensation expense	$ 611	$ 231	$ 1,319	$ 231

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock (Details) - Restricted stock awards - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Awards
Unvested balance, beginning of period (in shares)	1,009,716
Granted (in shares)	919,306
Vested (in shares)	(236,701)
Forfeited (in shares)	(136,051)
Unvested balance, end of period (in shares)	1,556,270
Weighted Average Grant Date Fair Value
Beginning of period (in dollars per share)	$ 17.64
Granted (in dollars per share)	18.38	$ 17.21
Vested (in dollars per share)	16.92
Forfeited (in dollar per share)	17.70
End of period (in dollars per share)	$ 18.18

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions Used For Stock Options (Details) - Stock option awards - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value per share (in dollars per share)	$ 7.74	$ 7.15
Expected term (in years)	6 years	6 years
Expected stock volatility	41.40%	38.10%
Dividend yield	0.00%	0.00%
Risk-free interest rate	2.60%	2.00%

Stock-Based Compensation - Opti

Stock-Based Compensation - Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Options
Outstanding, beginning of period (in shares) | shares	4,290,001
Granted (in shares) | shares	358,500
Exercised (in shares) | shares	(52,331)
Forfeited (in shares) | shares	(225,337)
Expired (in shares) | shares	(4,166)
Outstanding, end of period (in shares) | shares	4,366,667
Exercisable (in shares) | shares	1,223,811
Weighted Average Exercise Price
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 16.15
Granted (in dollars per share) | $ / shares	17.78
Exercised (in dollars per share) | $ / shares	16.18
Forfeited (in dollars per share) | $ / shares	15.80
Expired (in dollars per share) | $ / shares	16.60
Outstanding, end of period (in dollars per share) | $ / shares	16.30
Exercisable (in dollars per share) | $ / shares	$ 15.98
Outstanding, weighted average remaining term	8 years 4 months 17 days
Exercisable, weighted average remaining term	8 years 2 months 15 days
Exercised, aggregate intrinsic value | $	$ 192,100
Outstanding, aggregate intrinsic value | $	24,218
Exercisable, aggregate intrinsic value | $	$ 7,179

Stock-Based Compensation - As_2

Stock-Based Compensation - Assumptions For Performance Stock Units (Details) - Performance stock units	9 Months Ended
	Sep. 30, 2018simulation$ / shares	Sep. 30, 2017simulation$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value (in dollars per share) | $ / shares	$ 22.35	$ 21.53
Number of simulations | simulation	1,000,000	1,000,000
Expected stock volatility	40.20%	41.60%
Dividend yield	0.00%	0.00%
Risk-free interest rate	2.80%	1.50%

Stock-Based Compensation - Perf

Stock-Based Compensation - Performance Stock Unit Activity (Details) - Performance stock units - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Awards
Outstanding, beginning of period (in shares)	193,391
Vested (in shares)	0
Granted (in shares)	193,068
Forfeited (in shares)	0
Outstanding, end of period (in shares)	386,459
Weighted Average Grant Date Fair Value
Beginning of period (in dollars per share)	$ 21.53
Vested (in dollars per share)	0
Granted (in dollars per share)	22.35	$ 21.53
Forfeited (in dollar per share)	0
End of period (in dollars per share)	$ 21.94

Derivative Instruments - Schedu

Derivative Instruments - Schedule of Derivative Instruments (Details) - Not Designated as Hedging Instrument bbl / d in Thousands, bbl in Thousands, MMBTU in Thousands	9 Months Ended
	Sep. 30, 2018MMBTUbbl / d$ / bbl$ / MMBTUbbl
Crude Oil Basis Swap - Period One
Derivative [Line Items]
Volume (Bbl) | bbl	828
Volume (Bbls/d) | bbl / d	9
Weighted Average Differential ($/Bbl or $/MMBtu) | $ / bbl	(2.38)
Crude Oil Basis Swap - Period Two
Derivative [Line Items]
Volume (Bbl) | bbl	540
Volume (Bbls/d) | bbl / d	6
Weighted Average Differential ($/Bbl or $/MMBtu) | $ / bbl	(5.34)
Crude Oil Basis Swap - Period Three
Derivative [Line Items]
Volume (Bbl) | bbl	91
Volume (Bbls/d) | bbl / d	1
Weighted Average Differential ($/Bbl or $/MMBtu) | $ / bbl	(10)
Crude Oil Basis Swap - Period Four
Derivative [Line Items]
Volume (Bbl) | bbl	1,380
Volume (Bbls/d) | bbl / d	15
Weighted Average Differential ($/Bbl or $/MMBtu) | $ / bbl	(9.03)
Crude Oil Basis Swap - Period Five
Derivative [Line Items]
Volume (Bbl) | bbl	920
Volume (Bbls/d) | bbl / d	10
Weighted Average Differential ($/Bbl or $/MMBtu) | $ / bbl	(4.24)
Natural Gas Swaps - Henry Hub - Next Year
Derivative [Line Items]
Volume (MMBtu)	10,950
Volume (MMBtu/d)	30
Weighted Average Fixed Price ($/MMBtu) | $ / MMBTU	2.78
Natural Gas Swaps - West Texas WAHA - Next Year
Derivative [Line Items]
Volume (MMBtu)	5,475
Volume (MMBtu/d)	15
Weighted Average Fixed Price ($/MMBtu) | $ / MMBTU	1.61
Natural Gas Basis Swap - Period One
Derivative [Line Items]
Weighted Average Differential ($/Bbl or $/MMBtu) | $ / MMBTU	(0.43)
Volume (MMBtu)	460
Volume (MMBtu/d)	5
Natural Gas Basis Swap - Next Year
Derivative [Line Items]
Weighted Average Differential ($/Bbl or $/MMBtu) | $ / MMBTU	(1.31)
Volume (MMBtu)	12,775
Volume (MMBtu/d)	35

Derivative Instruments - Gains

Derivative Instruments - Gains and Losses from Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Net gain (loss) on derivative instruments	$ (9,571)	$ (896)	$ 14,969	$ 5,392

Derivative Instruments - Fair V

Derivative Instruments - Fair Value of Derivative Instruments Balance Sheet Classification (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Derivative Assets
Gross Asset/Liability Amounts	$ 10,602	$ 1,382
Derivative Liabilities
Gross Asset/Liability Amounts	9,168	527
Current assets
Derivative Assets
Gross Asset/Liability Amounts	10,184	720
Noncurrent assets
Derivative Assets
Gross Asset/Liability Amounts	418	662
Current liabilities
Derivative Liabilities
Gross Asset/Liability Amounts	6,313	527
Noncurrent liabilities
Derivative Liabilities
Gross Asset/Liability Amounts	$ 2,855	$ 0

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Positions Measured at Fair Value (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Financial assets
Commodity derivative asset - current	$ 3,871,000	$ 433,000
Commodity derivative asset - noncurrent	0	662,000
Financial liabilities
Commodity derivative liability - current	0	240,000
Commodity derivative liability - noncurrent	2,437,000	0
Fair Value, Measurements, Recurring
Financial assets
Netting Adjustments	(6,731,000)	(287,000)
Total financial assets	3,871,000	1,095,000
Financial liabilities
Netting Adjustments	(6,731,000)
Total financial liabilities	2,437,000
Fair Value, Measurements, Recurring | Level 1
Financial assets
Derivative asset, gross	0	0
Financial liabilities
Derivative liability, gross	0
Fair Value, Measurements, Recurring | Level 2
Financial assets
Derivative asset, gross	10,602,000	1,382,000
Financial liabilities
Derivative liability, gross	9,168,000
Fair Value, Measurements, Recurring | Level 3
Financial assets
Derivative asset, gross	0	0
Financial liabilities
Derivative liability, gross	0
Current assets | Fair Value, Measurements, Recurring
Financial assets
Netting Adjustments	(6,313,000)	(287,000)
Commodity derivative asset - current	3,871,000	433,000
Current assets | Fair Value, Measurements, Recurring | Level 1
Financial assets
Derivative asset, gross	0	0
Current assets | Fair Value, Measurements, Recurring | Level 2
Financial assets
Derivative asset, gross	10,184,000	720,000
Current assets | Fair Value, Measurements, Recurring | Level 3
Financial assets
Derivative asset, gross	0	0
Noncurrent assets | Fair Value, Measurements, Recurring
Financial assets
Netting Adjustments	(418,000)	0
Commodity derivative asset - noncurrent	0	662,000
Noncurrent assets | Fair Value, Measurements, Recurring | Level 1
Financial assets
Derivative asset, gross	0	0
Noncurrent assets | Fair Value, Measurements, Recurring | Level 2
Financial assets
Derivative asset, gross	418,000	662,000
Noncurrent assets | Fair Value, Measurements, Recurring | Level 3
Financial assets
Derivative asset, gross	0	0
Current liabilities | Fair Value, Measurements, Recurring
Financial liabilities
Netting Adjustments	(6,313,000)	(287,000)
Commodity derivative liability - current	0	240,000
Current liabilities | Fair Value, Measurements, Recurring | Level 1
Financial liabilities
Derivative liability, gross	0	0
Current liabilities | Fair Value, Measurements, Recurring | Level 2
Financial liabilities
Derivative liability, gross	6,313,000	527,000
Current liabilities | Fair Value, Measurements, Recurring | Level 3
Financial liabilities
Derivative liability, gross	0	$ 0
Noncurrent liabilities | Fair Value, Measurements, Recurring
Financial liabilities
Netting Adjustments	(418,000)
Commodity derivative liability - noncurrent	2,437,000
Noncurrent liabilities | Fair Value, Measurements, Recurring | Level 1
Financial liabilities
Derivative liability, gross	0
Noncurrent liabilities | Fair Value, Measurements, Recurring | Level 2
Financial liabilities
Derivative liability, gross	2,855,000
Noncurrent liabilities | Fair Value, Measurements, Recurring | Level 3
Financial liabilities
Derivative liability, gross	$ 0

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 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	$ 399	$ 407.5

Shareholders' Equity and Nonc_2

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 common shares (in shares) | shares	3,347,647
Income tax benefit as a result of the conversion of common shares | $	$ 6,700,000

Shareholders' Equity and Nonc_3

Shareholders' Equity and Noncontrolling Interest - Noncontrolling Interest (Details)	Sep. 30, 2018	Dec. 31, 2017	Oct. 10, 2016
Centennial Resource Production, LLC | Centennial Contributors
Noncontrolling Interest [Line Items]
Ownership interest of non-controlling interest	4.30%	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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net income attributable to Class A Common Stock	$ 39,288	$ 14,447	$ 168,919	$ 45,032
Add: Income from conversion of Class C Common Stock	1,717	1,193	0	3,196
Adjusted net income attributable to Class A Common Stock	$ 41,005	$ 15,640	$ 168,919	$ 48,228
Basic net earnings per share of Class A Common Stock (USD per share)	$ 0.15	$ 0.06	$ 0.64	$ 0.20
Diluted net earnings per share of Class A Common Stock (USD per share)	$ 0.15	$ 0.06	$ 0.63	$ 0.19
Basic weighted average shares of Class A Common Stock outstanding (in shares)	263,959	223,622	263,029	227,557
Add: Dilutive effects of equity awards (in shares)	3,766	2,598	3,625	4,481
Add: Dilutive effects of conversion (in shares)	12,189	19,156	0	19,156
Diluted weighted average shares of Class A Common Stock outstanding (in shares)	279,914	245,376	266,654	251,194

Earnings Per Share - Summary of

Earnings Per Share - Summary of Shares Excluded From Diluted Earnings Per Share Calculation (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock option awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-diluted shares excluded from computation of earnings per share (in shares)	142	1,501	318	1,046
Common Stock Class C | Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-diluted shares excluded from computation of earnings per share (in shares)	0	0	13,056	0
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-diluted shares excluded from computation of earnings per share (in shares)	0	0	52	0

Transactions with Related Par_3

Transactions with Related Parties - Schedule of Costs Incurred with Related Parties (Details) - Affiliated Entity - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Liberty Oilfield Services, LLC
Related Party Transaction [Line Items]
Costs of goods/services provided	$ 0	$ 30,434	$ 0	$ 70,616
Schlumberger Technology Corporation
Related Party Transaction [Line Items]
Costs of goods/services provided	2,872	0	2,872	0
Oil States Energy Services, LLC
Related Party Transaction [Line Items]
Costs of goods/services provided	$ 647	$ 2,443	$ 5,047	$ 6,375

Transactions with Related Par_4

Transactions with Related Parties - Schedule of Payables with Related Parties (Details) - Affiliated Entity - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schlumberger Technology Corporation
Related Party Transaction [Line Items]
Accounts payable and accrued expenses	$ 1,290	$ 0
Oil States Energy Services, LLC
Related Party Transaction [Line Items]
Accounts payable and accrued expenses	$ 0	$ 1,518

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) MMBTU in Millions, $ in Millions	Aug. 31, 2018bbl / d	Aug. 31, 2018	May 31, 2018	Sep. 30, 2018USD ($)MMBTU
Transportation Service Agreement
Oil and Gas Delivery Commitments and Contracts [Line Items]
Energy commitment (in MMBtus) | MMBTU				491
Minimum remaining commitments under agreement | $				$ 38.4
Transportation Service Agreement | Minimum
Oil and Gas Delivery Commitments and Contracts [Line Items]
Delivery commitment term				1 year
Transportation Service Agreement | Maximum
Oil and Gas Delivery Commitments and Contracts [Line Items]
Delivery commitment term				4 years
Supply Agreement
Oil and Gas Delivery Commitments and Contracts [Line Items]
Minimum remaining commitments under agreement | $				$ 23.8
Supply commitment term			3 years
Permian Basin Agreement
Oil and Gas Delivery Commitments and Contracts [Line Items]
Supply commitment term		6 years
Permian Basin Agreement | Minimum
Oil and Gas Delivery Commitments and Contracts [Line Items]
Supply commitment, firm gross sales per day (in barrels) | bbl / d	40,000
Permian Basin Agreement | Maximum
Oil and Gas Delivery Commitments and Contracts [Line Items]
Supply commitment, firm gross sales per day (in barrels) | bbl / d	105,000

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Volume Commitments (Details)	Sep. 30, 2018MMBTU
Total Volume Commitments (MMBtu) (1)
2,018	16,200,000
2,019	116,800,000
2,020	194,800,000
2,021	158,100,000
2,022	19,700,000
Total Volume Commitments (MMBtu) (1)	505,600,000
Volume (MMBtu/d) (1)
2,018	176,000
2,019	320,000
2,020	533,600
2,021	433,200
2,022	64,800

Revenues - Schedule of Disaggre

Revenues - Schedule of Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Oil and gas sales	$ 234,880	$ 111,611	$ 668,541	$ 263,772
Oil sales
Disaggregation of Revenue [Line Items]
Oil and gas sales	184,510	87,286	533,507	204,702
Natural gas sales
Disaggregation of Revenue [Line Items]
Oil and gas sales	14,311	12,852	46,612	33,226
NGL sales
Disaggregation of Revenue [Line Items]
Oil and gas sales	$ 36,059	$ 11,473	$ 88,422	$ 25,844

Revenues - Performance Obligat

Revenues - Performance Obligation Payment Terms (Details)	9 Months Ended
	Sep. 30, 2018
Natural Gas and NGL sales | Minimum
Disaggregation of Revenue [Line Items]
Performance obligations billing cycle	30 days
Natural Gas and NGL sales | Maximum
Disaggregation of Revenue [Line Items]
Performance obligations billing cycle	90 days
Oil sales
Disaggregation of Revenue [Line Items]
Performance obligations billing cycle	30 days

Revenues - Additional Informati

Revenues - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Accrued oil and gas sales receivable, net	$ 68,128	$ 52,891

Subsequent Events (Details)

Subsequent Events (Details) - Line of Credit - Revolving Credit Facility - USD ($)	Nov. 02, 2018	Sep. 30, 2018
Subsequent Event [Line Items]
Borrowing base		$ 800,000,000
Elected commitments		$ 600,000,000
Subsequent Event
Subsequent Event [Line Items]
Borrowing base	$ 1,000,000,000
Elected commitments	$ 800,000,000

Uncategorized Items - cdev-2018

Label	Element	Value	[1]
Restricted Cash	us-gaap_RestrictedCash	$ 0
Restricted Cash	us-gaap_RestrictedCash	$ 2,233,000
[1]	Included in Prepaid and other current assets line item on the Consolidated Balance Sheets