Centennial Resource Development Inc(NASDAQ: CDEV) has added approximately 35,500 net acres in Reeves County in 2016  from the acquisition of leasehold interests from Silverback Exploration, LLC , which closed December 28th, 2016. Centennial Resource Development has delivered a strong well results from the Upper and Lower Wolfcamp A and Wolfcamp B zones across the company’s acreage position. Further, the company has achieved net oil production of over 10,000 barrels per day, as of mid-February 2017. The company has increased proved reserves 156% year-over-year to 83.0 million barrels of oil equivalent (MMBoe) at year-end 2016. Centennial Resource Development has also maintained conservative balance sheet with zero borrowings under CRP’s revolving credit facility and $134 million cash balance at December 31st, 2016.

Moreover, Centennial Resource Development in the fourth quarter has closed the acquisition of Centennial Resource Production and has subsequently added approximately 35,500 net acres adjacent to the existing position through the Silverback acquisition.

On the other hand, Centennial Resource Development has reported a net loss of $8.1 million during the Successor 2016 period and a net loss of $218.7 million in the Predecessor 2016 period, which is inclusive of $15.8 million of transaction costs and $165.4 million of incentive unit compensation expense. This represents a net loss per share of $0.05 for the Successor 2016 period.

Meanwhile, in 2017 Centennial Resource Development expects to grow 2017 oil production approximately 158% from 5,757 Bbls/d in 2016 to 14,850 Bbls/d. CDEV expects to increase 2017 total company production by approximately 191% from 8,429 barrels of oil equivalent per day (“Boe/d”) in 2016 to 24,500 Boe/d. The company is currently operating a five rig program with plans to add a sixth rig in the second quarter of 2017. Further, the company has announced full year 2017 total capital budget of approximately $543 million, which includes $470 million of drilling and completion capital expenditures. The company has planned to drill and complete approximately 60 to 70 wells during 2017. CDEV is on-track to deliver the peer-leading production growth goal of 50,000 barrels of oil per day in 2020.

In addition, for the full year 2017, Centennial Resource Development has hedged 675.3 MBbls of oil at a weighted average fixed price of $50.41 per barrel. These contracts represent approximately 12% of CRP’s total expected oil production in 2017 has hedged 36.5 MBbls of oil in 2018 at a weighted average fixed price of $55.95 per barrel.

Centennial Resource Development stock has risen 82.4% in the last one year (source: Google Finance). CDEV has an average price target of $25, which is a further upside of 37.06%.