Denver-based Centennial Resource Development Inc., whose operations are focused on the Permian Basin, is sticking to its guidance of upping production by 10-15% this year.

In an earnings call, CEO Sean Smith said the company was holding to its current two-rig program. “Should we want to add a third rig in the future because prices remain strong down the road, we could make that decision. I do think there is a fair amount of lead time that you would need to put in place. But again, I’ll reemphasize that our two-rig program to-date provides the growth that others may need to add a rig to accomplish,” he said.

The company’s operations cover 73,000 net acres in the oil-weighted core of the northern and southern Delaware Basin, a sub-basin of the prolific Permian Basin.

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