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Smith, Chief Executive Officer. In July, Centennial completed the second phase of its electric substation in Reeves County, Texas, enabling it to convert more well-sites from generator power to the electrical grid, ificantly reducing field emissions and equipment rental costs. Upon the pending completion of phase three, Centennial expects to reduce the of generators from in the third quarter to approximately 10 at year-end Centennial also continued its transition from electric submersible pumps to more reliable and lower cost gas lift, converting fifteen units during the quarter.

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Smith, Chief Executive Officer. In July, Centennial completed the second phase of its electric substation in Reeves County, Texas, enabling it to convert more well-sites from generator power to the electrical grid, ificantly reducing field emissions and equipment rental costs. Upon the pending completion of phase three, Centennial expects to reduce the of generators from in the third quarter to approximately 10 at year-end Centennial also continued its transition from electric submersible pumps to more reliable and lower cost gas lift, converting fifteen units during the quarter.

As a result of these ongoing initiatives, third quarter LOE per unit decreased seven percent va to the prior quarter. Updated Operational Plans and Targets Centennial chah drilling activity during the quarter and plans to continue operating a one-rig program for the remainder of the year. The Company also slightly reduced its full-year capital expenditure budget, as a result of lower facilities and infrastructure capital.

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Furthermore, the Company adjusted its estimates for operated wells spud and completed during the full-year. Centennial recently entered into additional oil and natural gas hedges primarily for in order to further protect against potential volatility in commodity prices. In addition, Centennial has certain crude oil basis swaps and natural gas hedges in place for Sfx remainder of and in Subject to market conditions, the Company expects to implement additional oil and natural gas hedges for over time.

Conference Call and Webcast Centennial will host an investor conference call on Tuesday, November 3, at a. caa

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Mountain a. Eastern to discuss third quarter operating and financial. About Centennial Resource Development, Inc.

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Centennial Resource Development, Inc. For additional information iin the Company, please visit www. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements.

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We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and un of which are beyond our control, incident to the development, production, gathering and sale of oil and natural gas. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating oil and gas reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures and the other risks described in our filings with the SEC.

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Reserve engineering is a process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way. The Ssx of any oil and gas reserve estimate depends on the quality of available data, the interpretation of such data, and price and cost assumptions made by reserve engineers.

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In addition, the of drilling, testing and production activities may justify revisions of estimates that were made ly. If ificant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ ificantly from the quantities of oil and natural gas that are ultimately recovered. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, our actual and plans could differ materially from those expressed in any forward-looking statements.

All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement.

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This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.

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