Centennial Resource Development (NASDAQ: CDEV) stock rose by 221% so far this year. The company released its financial results for the first quarter of 2021 last Tuesday. The company's production and costs for the quarter were in-line with expectations in spite of the challenges posed by severe winter weather.

The company generated net cash from operating activities of $72.3 million and free cash flow of $10.6 million for the first quarter of 2021. Notably, the company's net loss for the quarter decreased by 94% YoY. The company said it will continue to repay borrowings on its credit facility, and to deleverage its balance sheet through year-end.

There is another important factor that affects the profits of companies in oil and natural gas industry. Yes, that's the cost of production. The company conducted continued improvements in oil extraction, and combined with structural design changes, have resulted in lower drilling and completion costs. That enabled the company to deliver an average well costs $800 below per lateral foot for the first quarter. In addition, the increase in oil and gas prices this year will continue to benefit the company. So, the stock is worth watching for investors who focus on energy industry.

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