Permian Resources Announces Strong Fourth Quarter 2023 Results and Provides Highly Capital Efficient Full Year 2024 Plan
- Strong production growth with crude oil and total average production reaching 137 MBbls/d and 285 MBoe/d in Q4 2023
- Reduced controllable cash costs by 8% quarter-over-quarter to $7.33 per Boe
- Reported net cash provided by operating activities of $846 million and adjusted free cash flow of $332 million in Q4 2023
- Completed $4.5 billion Earthstone acquisition ahead of schedule, enhancing enterprise value to >$15 billion
- Increased quarterly base dividend by 20% to $0.06 per share for 2024
- Repurchased 5.0 million shares for $67 million in Q4 2023
- Announced total cash capital expenditure budget of $1.9 to $2.1 billion for 2024
- Expects oil and total production to average 145 to 150 MBbls/d and 300 to 325 MBoe/d in 2024
- Anticipates total controllable cash costs of $7.40 to $8.60 per Boe for 2024
- None.
Insights
The recent financial and operational results announced by Permian Resources are indicative of a company that has successfully navigated the challenges of the energy sector, demonstrating a significant increase in production and a decrease in operational costs. The acquisition of Earthstone, which is ahead of schedule in terms of synergy realization, is a strategic move that has placed Permian Resources as a significant player in the Delaware Basin, with a marked increase in enterprise value. The company's ability to exceed production targets while maintaining capital expenditure within budget suggests a robust operational framework and effective cost management.
From a financial perspective, the reported net cash provided by operating activities and the adjusted free cash flow are strong indicators of the company's liquidity and its ability to generate capital for future investments or shareholder returns. The increase in total return of capital, including dividends and share repurchases, reflects a shareholder-friendly capital allocation strategy that could potentially enhance investor confidence and support stock price performance. The company's low leverage, indicated by the net debt-to-LQA EBITDAX ratio of approximately 1x, positions it well for sustainable growth and resilience against market volatility.
Permian Resources' operational efficiency and cost reduction initiatives, as evidenced by the 8% decrease in controllable cash costs quarter-over-quarter, are critical in the current energy market where cost discipline can differentiate successful companies. The 2024 operational plans with a guidance of 145 to 150 MBbls/d in crude oil production and 300 to 325 MBoe/d in total production, alongside a reduced cash capital expenditure budget, reflect a strategy of lean operations aimed at maximizing free cash flow. The focus on capital efficiency and the expected 10% reduction in drilling and completions costs are particularly noteworthy, as they suggest an emphasis on technological advancements and operational optimization.
Moreover, the strategic allocation of the capital budget towards high returning inventory in New Mexico, with an emphasis on the Northern Delaware Basin, aligns with industry trends of prioritizing assets with higher returns. The company's projected growth in proved reserves, particularly the 49% increase in proved developed reserves, is a testament to the effectiveness of its portfolio optimization and development strategy.
Permian Resources' performance in the energy sector, particularly within the context of the Delaware Basin, is notable for its aggressive expansion and focus on high-return, long-dated inventory. The acquisition of Earthstone and the subsequent integration success set a precedent for how energy companies can effectively scale and enhance asset portfolios. The reported 50% reduction in downtime on legacy Earthstone's Midland Basin asset since the acquisition's close, along with improved drilling and completion efficiencies, are indicative of the company's operational prowess.
The energy sector often sees fluctuations in commodity prices and Permian Resources' ability to deliver strong results in such an environment reflects a resilient and adaptable business model. The decision to increase the quarterly base dividend by 20% demonstrates confidence in the company's financial health and a commitment to providing shareholder value. The year-end 2023 total proved reserves growth is a critical metric, as it underpins the company's future production capabilities and potential revenue streams.
Permian Resources’ full year and fourth quarter 2023 information discussed within this release includes results from Earthstone Energy, Inc. (“Earthstone”) for the months of November and December, unless otherwise specified.
Fourth Quarter 2023 Financial and Operational Highlights
-
Closed
$4.5 billion $15 billion - Earthstone synergy capture ahead of schedule
- Continued strong well performance combined with closing of the Earthstone acquisition drove crude oil and total average production to 137 MBbls/d and 285 MBoe/d
-
Decreased controllable cash costs by
8% quarter-over-quarter to$7.33 -
Announced accrued capital expenditures of
$423 million $458 million -
Reported net cash provided by operating activities of
$846 million $332 million $0.47 -
Delivered total return of capital of
$183 million $0.24 -
Quarterly base dividend of
$0.05 -
Variable dividend of
$0.10 -
Repurchased 5.0 million shares for
$67 million $13.32
-
Quarterly base dividend of
-
Since November 1, added ~14,000 net acres and ~5,300 net royalty acres located in the core of the
Delaware Basin
Full Year 2023 Financial and Operational Highlights
- Met or outperformed all of PR standalone’s guidance, significantly exceeding production targets while remaining within original budget on capex and controllable cash costs
-
Generated peer-leading total production growth per debt-adjusted share of ~
35% -
Delivered
~ , or$324 million $0.47 -
Repurchased 10.0 million shares for
~ at an average weighted price of$125 million $12.46 -
Replaced >
100% of PR standalone’s developed locations in 2023 through successful portfolio optimization transactions, effectively increasing inventory life
2024 Financial and Operating Plan
-
Announced highly capital efficient operating plan underpinned by consistent well performance, lower well costs and continued cost discipline
- Crude oil and total average production guidance of 145 to 150 MBbls/d and 300 to 325 MBoe/d
-
Total cash capital expenditure budget of
$1.9 $2.1 billion -
Total controllable cash costs of
$7.40 $8.60
-
Increasing quarterly base dividend by
20% to$0.06
Management Commentary
“In our first full year, Permian Resources had an outstanding 2023, accomplishing all our goals laid out last February. On a standalone basis, the Company delivered oil production at the high-end of our 2023 guidance range, while staying within our capex budget,” said Will Hickey, Co-CEO of Permian Resources. “During the fourth quarter, Permian Resources reported another strong quarter of production outperformance and operational improvements in the midst of closing the Earthstone acquisition. The combined team is exceeding expectations associated with the Earthstone integration and is on-track to reach key operational synergy run rates well ahead of the originally scheduled targets.”
“We are excited to announce our 2024 operational and financial plan, which combines consistent year-over-year well productivity with lower costs and other optimized key inputs to deliver even better capital efficiency than we realized in 2023,” said James Walter, Co-CEO of Permian Resources. “Most importantly, our 2024 plan allows us to maximize shareholder value by delivering industry leading per share annual growth across production, cash flow and free cash flow.”
Financial and Operational Results
Permian Resources continued the efficient development of its core
“In addition to the contribution from incoming Earthstone production, our strong fourth quarter production results were driven by better than expected well performance and minimal production downtime despite winter weather,” said Will Hickey, Co-CEO. “For the full year 2023, our operations team delivered consistent well productivity year-over-year, demonstrating the quality of our high-return, long-dated inventory.”
In the fourth quarter, the Company continued to realize drilling and completions efficiencies while incorporating legacy Earthstone rigs and fleets into its program. Total cash and accrued capital expenditures (“capex”) for the fourth quarter were
Realized prices for the fourth quarter were
The Company demonstrated strong cost control in the fourth quarter, with total controllable cash costs (LOE, GP&T and cash G&A) decreasing
For the fourth quarter, Permian Resources generated net cash provided by operating activities of
Permian Resources continues to maintain a strong financial position and low leverage profile upon closing the Earthstone acquisition. At December 31, 2023, the Company had
Earthstone Integration Update
On November 1, 2023, Permian Resources closed the
Integration of Earthstone has been underway since closing, and both integration and synergy capture are ahead of schedule. Operationally, Permian Resources’ team has been making extensive progress in the field, achieving a
2024 Operational Plans and Targets
With a focus on capital returns, Permian Resources’ 2024 operational budget delivers a highly capital efficient plan that maximizes free cash flow and value for its investors. Assuming planned activity levels and current commodity prices, the Company expects its full year oil and total production to average approximately 145 to 150 MBbls/d and 300 to 325 MBoe/d, respectively. During 2024, Permian Resources expects its well productivity to remain strong year-over-year as a result of its deep inventory of primary
The estimated fiscal year 2024 cash capex budget is approximately
Given the recent Earthstone acquisition, the Company expects an increasing portion of its capital budget to be allocated to high returning inventory in
Through its continued focus on being a low-cost leader, Permian Resources anticipates total controllable cash costs of approximately
(For a detailed table summarizing Permian Resources’ 2024 operational and financial guidance, please see the Appendix of this press release.)
Shareholder Returns
Permian Resources announced today that its Board of Directors (the “Board”) declared a quarterly base cash dividend of
The Company’s fourth quarter total return of capital, inclusive of the base dividend, variable dividend and share repurchases, was
“Consistent with our game plan, we continue to return
Year-End 2023 Proved Reserves
Permian Resources reported year-end 2023 total proved reserves of 925 MMBoe compared to 582 MMBoe at prior year-end. Proved developed reserves were 704 MMBoe (
Netherland Sewell & Associates, Inc., an independent reserve engineering firm, prepared Permian Resources’ year-end reserves estimates for the year ended December 31, 2023. (For additional information relating to our reserves, please see the Appendix of this press release.)
Annual Report on Form 10-K
Permian Resources’ financial statements and related footnotes will be available in its Annual Report on Form 10-K for the year ended December 31, 2023, which is expected to be filed with the Securities and Exchange Commission (“SEC”) on February 29, 2024.
Conference Call and Webcast
Permian Resources will host an investor conference call on Wednesday, February 28, 2024 at 8:00 a.m. Central (9:00 a.m. Eastern) to discuss fourth quarter and full year 2023 operating and financial results. Interested parties may join the call by visiting Permian Resources’ website at www.permianres.com and clicking on the webcast link or by dialing (888) 259-6580 (Conference ID: 41855841) at least 15 minutes prior to the start of the call. A replay of the call will be available on the Company’s website or by phone at (877) 674-7070 (Passcode: 855841) for a 14-day period following the call.
About Permian Resources
Headquartered in
Cautionary Note Regarding Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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. When used in this press release, the words “could,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.
Forward-looking statements may include statements about:
-
volatility of oil, natural gas and NGL prices or a prolonged period of low oil, natural gas or NGL prices and the effects of actions by, or disputes among or between, members of the Organization of Petroleum Exporting Countries (“OPEC”), such as
Saudi Arabia , and other oil and natural gas producing countries, such asRussia , with respect to production levels or other matters related to the price of oil; -
political and economic conditions in or affecting other producing regions or countries, including the
Middle East ,Russia ,Eastern Europe ,Africa andSouth America ; - our business strategy and future drilling plans;
- our reserves and our ability to replace the reserves we produce through drilling and property acquisitions;
- our ability to realize the anticipated benefits and synergies from the Earthstone merger and effectively integrate Earthstone’s assets;
- our drilling prospects, inventories, projects and programs;
- our financial strategy, return of capital program, liquidity and capital required for our development program;
- our realized oil, natural gas and NGL prices;
- the timing and amount of our future production of oil, natural gas and NGLs;
- our ability to identify, complete and effectively integrate acquisitions of properties or businesses;
- our hedging strategy and results;
- our competition and government regulations;
- our ability to obtain permits and governmental approvals;
- our pending legal or environmental matters;
- the marketing and transportation of our oil, natural gas and NGLs;
- our leasehold or business acquisitions;
- costs of developing or operating our properties;
- our anticipated rate of return;
- general economic conditions;
- weather conditions in the areas where we operate;
- credit markets;
- our ability to make dividends, distributions and share repurchases;
- uncertainty regarding our future operating results;
- our plans, objectives, expectations and intentions contained in this press release that are not historical; and
- the other factors described in our most recent Annual Report on Form 10-K, and any updates to those factors set forth in our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
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 many 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, risks relating to the Earthstone merger, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating 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.
Reserve engineering is a process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way. The accuracy 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. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly 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 results 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. 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.
1) Adjusted Net Income, Adjusted Free Cash Flow, Adjusted Free Cash Flow per Adjusted Basic Share and Net Debt-to-LQA EBITDAX are non-GAAP financial measures. See “Non-GAAP Financial Measures” included within the Appendix of this press release for related disclosures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP.
2) Reserves per share calculated utilizing Basic shares outstanding of Class A Common Stock and Class C Common Stock at period year-end.
Details of our 2024 operational and financial guidance are presented below: |
|||
|
2024 FY Guidance |
||
Net average daily production (Boe/d) |
300,000 |
— |
325,000 |
Net average daily oil production (Bbls/d) |
145,000 |
— |
150,000 |
|
|
|
|
Production costs |
|
|
|
Lease operating expenses ($/Boe) |
|
— |
|
Gathering, processing and transportation expenses ($/Boe) |
|
— |
|
Cash general and administrative ($/Boe)(1) |
|
— |
|
Severance and ad valorem taxes (% of revenue) |
|
— |
|
|
|
|
|
Total cash capital expenditure program ($MM) |
|
— |
|
|
|
|
|
Operated drilling program |
|
|
|
TILs (gross) |
~250 |
||
Average working interest |
~ |
||
Average lateral length (feet) |
~9,300 |
||
(1) |
Excludes stock-based compensation. |
Permian Resources Corporation
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net revenues (in thousands): |
|
|
|
|
|
|
|
||||||||
Oil sales |
$ |
962,720 |
|
|
$ |
612,490 |
|
|
$ |
2,696,777 |
|
|
$ |
1,622,035 |
|
Natural gas sales(1) |
|
47,954 |
|
|
|
76,454 |
|
|
|
142,077 |
|
|
|
276,957 |
|
NGL sales(2) |
|
112,012 |
|
|
|
72,612 |
|
|
|
282,039 |
|
|
|
232,273 |
|
Oil and gas sales |
$ |
1,122,686 |
|
|
$ |
761,556 |
|
|
$ |
3,120,893 |
|
|
$ |
2,131,265 |
|
|
|
|
|
|
|
|
|
||||||||
Average sales prices: |
|
|
|
|
|
|
|
||||||||
Oil (per Bbl) |
$ |
76.61 |
|
|
$ |
81.81 |
|
|
$ |
75.84 |
|
|
$ |
88.95 |
|
Effect of derivative settlements on average price (per Bbl) |
|
0.53 |
|
|
|
2.41 |
|
|
|
1.81 |
|
|
|
(4.85 |
) |
Oil including the effects of hedging (per Bbl) |
$ |
77.14 |
|
|
$ |
84.22 |
|
|
$ |
77.65 |
|
|
$ |
84.10 |
|
|
|
|
|
|
|
|
|
||||||||
Average NYMEX WTI price for oil (per Bbl) |
$ |
78.32 |
|
|
$ |
82.64 |
|
|
$ |
77.62 |
|
|
$ |
94.24 |
|
Oil differential from NYMEX |
|
(1.71 |
) |
|
|
(0.84 |
) |
|
|
(1.78 |
) |
|
|
(5.29 |
) |
|
|
|
|
|
|
|
|
||||||||
Natural gas price excluding the effects of GP&T (per Mcf)(1) |
$ |
1.50 |
|
|
$ |
3.64 |
|
|
$ |
1.60 |
|
|
$ |
4.86 |
|
Effect of derivative settlements on average price (per Mcf) |
|
0.09 |
|
|
|
0.43 |
|
|
|
0.29 |
|
|
|
(0.53 |
) |
Natural gas including the effects of hedging (per Mcf) |
$ |
1.59 |
|
|
$ |
4.07 |
|
|
$ |
1.89 |
|
|
$ |
4.33 |
|
|
|
|
|
|
|
|
|
||||||||
Average NYMEX Henry Hub price for natural gas (per MMBtu) |
$ |
2.74 |
|
|
$ |
5.55 |
|
|
$ |
2.53 |
|
|
$ |
6.38 |
|
Natural gas differential from NYMEX |
|
(1.24 |
) |
|
|
(1.91 |
) |
|
|
(0.93 |
) |
|
|
(1.52 |
) |
|
|
|
|
|
|
|
|
||||||||
NGL price excluding the effects of GP&T (per Bbl)(2) |
$ |
21.57 |
|
|
$ |
28.03 |
|
|
$ |
22.83 |
|
|
$ |
35.97 |
|
|
|
|
|
|
|
|
|
||||||||
Net production: |
|
|
|
|
|
|
|
||||||||
Oil (MBbls) |
|
12,566 |
|
|
|
7,487 |
|
|
|
35,560 |
|
|
|
18,235 |
|
Natural gas (MMcf) |
|
44,048 |
|
|
|
24,610 |
|
|
|
119,182 |
|
|
|
59,692 |
|
NGL (MBbls) |
|
6,328 |
|
|
|
2,966 |
|
|
|
15,569 |
|
|
|
6,750 |
|
Total (MBoe)(3) |
|
26,234 |
|
|
|
14,556 |
|
|
|
70,992 |
|
|
|
34,934 |
|
|
|
|
|
|
|
|
|
||||||||
Average daily net production: |
|
|
|
|
|
|
|
||||||||
Oil (Bbls/d) |
|
136,590 |
|
|
|
81,378 |
|
|
|
97,424 |
|
|
|
49,958 |
|
Natural gas (Mcf/d) |
|
478,781 |
|
|
|
267,503 |
|
|
|
326,525 |
|
|
|
163,539 |
|
NGL (Bbls/d) |
|
68,774 |
|
|
|
32,246 |
|
|
|
42,654 |
|
|
|
18,494 |
|
Total (Boe/d)(3) |
|
285,161 |
|
|
|
158,208 |
|
|
|
194,499 |
|
|
|
95,708 |
|
| ____________________________________ | |
(1) |
Natural gas sales for the three months and year ended December 31, 2023 include |
(2) |
NGL sales for the three months and year ended December 31, 2023 include |
(3) |
Calculated by converting natural gas to oil equivalent barrels at a ratio of six Mcf of natural gas to one Boe. |
Permian Resources Corporation
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Operating costs (in thousands): |
|
|
|
|
|
|
|
||||||||
Lease operating expenses |
$ |
130,439 |
|
|
$ |
73,289 |
|
|
$ |
373,772 |
|
|
$ |
171,867 |
|
Severance and ad valorem taxes |
|
84,384 |
|
|
|
54,233 |
|
|
|
240,762 |
|
|
|
155,724 |
|
Gathering, processing, and transportation expense |
|
31,316 |
|
|
|
20,246 |
|
|
|
89,282 |
|
|
|
97,915 |
|
Operating cost metrics: |
|
|
|
|
|
|
|
||||||||
Lease operating expenses (per Boe) |
$ |
4.97 |
|
|
$ |
5.04 |
|
|
$ |
5.26 |
|
|
$ |
4.92 |
|
Severance and ad valorem taxes (% of revenue) |
|
7.5 |
% |
|
|
7.1 |
% |
|
|
7.7 |
% |
|
|
7.3 |
% |
Gathering, processing, and transportation expense (per Boe) |
|
1.19 |
|
|
|
1.39 |
|
|
|
1.26 |
|
|
|
2.80 |
|
Permian Resources Corporation
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Operating revenues |
|
|
|
|
|
|
|
||||||||
Oil and gas sales |
$ |
1,122,686 |
|
|
$ |
761,556 |
|
|
$ |
3,120,893 |
|
|
$ |
2,131,265 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Lease operating expenses |
|
130,439 |
|
|
|
73,289 |
|
|
|
373,772 |
|
|
|
171,867 |
|
Severance and ad valorem taxes |
|
84,384 |
|
|
|
54,233 |
|
|
|
240,762 |
|
|
|
155,724 |
|
Gathering, processing and transportation expenses |
|
31,316 |
|
|
|
20,246 |
|
|
|
89,282 |
|
|
|
97,915 |
|
Depreciation, depletion and amortization |
|
367,427 |
|
|
|
182,052 |
|
|
|
1,007,576 |
|
|
|
444,678 |
|
General and administrative expenses |
|
39,126 |
|
|
|
75,617 |
|
|
|
161,855 |
|
|
|
159,554 |
|
Merger and integration expense |
|
97,260 |
|
|
|
12,469 |
|
|
|
125,331 |
|
|
|
77,424 |
|
Impairment and abandonment expense |
|
5,947 |
|
|
|
244 |
|
|
|
6,681 |
|
|
|
3,875 |
|
Exploration and other expenses |
|
4,669 |
|
|
|
4,765 |
|
|
|
19,337 |
|
|
|
11,378 |
|
Total operating expenses |
|
760,568 |
|
|
|
422,915 |
|
|
|
2,024,596 |
|
|
|
1,122,415 |
|
Net gain (loss) on sale of long-lived assets |
|
82 |
|
|
|
13 |
|
|
|
211 |
|
|
|
(1,314 |
) |
Income from operations |
|
362,200 |
|
|
|
338,654 |
|
|
|
1,096,508 |
|
|
|
1,007,536 |
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense) |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(63,024 |
) |
|
|
(39,358 |
) |
|
|
(177,209 |
) |
|
|
(95,645 |
) |
Net gain (loss) on derivative instruments |
|
190,684 |
|
|
|
(60,019 |
) |
|
|
114,016 |
|
|
|
(42,368 |
) |
Other income (expense) |
|
1,648 |
|
|
|
291 |
|
|
|
2,333 |
|
|
|
609 |
|
Total other income (expense) |
|
129,308 |
|
|
|
(99,086 |
) |
|
|
(60,860 |
) |
|
|
(137,404 |
) |
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
491,508 |
|
|
|
239,568 |
|
|
|
1,035,648 |
|
|
|
870,132 |
|
Income tax expense |
|
(78,889 |
) |
|
|
(40,860 |
) |
|
|
(155,945 |
) |
|
|
(120,292 |
) |
Net income |
|
412,619 |
|
|
|
198,708 |
|
|
|
879,703 |
|
|
|
749,840 |
|
Less: Net income attributable to noncontrolling interest |
|
(157,265 |
) |
|
|
(115,658 |
) |
|
|
(403,397 |
) |
|
|
(234,803 |
) |
Net income attributable to Class A Common Stock |
$ |
255,354 |
|
|
$ |
83,050 |
|
|
$ |
476,306 |
|
|
$ |
515,037 |
|
|
|
|
|
|
|
|
|
||||||||
Income per share of Class A Common Stock: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.56 |
|
|
$ |
0.29 |
|
|
$ |
1.36 |
|
|
$ |
1.80 |
|
Diluted |
$ |
0.51 |
|
|
$ |
0.26 |
|
|
$ |
1.24 |
|
|
$ |
1.61 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average Class A Common Stock outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
459,593 |
|
|
|
288,512 |
|
|
|
349,213 |
|
|
|
286,160 |
|
Diluted |
|
500,919 |
|
|
|
329,454 |
|
|
|
389,096 |
|
|
|
322,816 |
|
Permian Resources Corporation
|
|||||||
|
December 31, 2023 |
|
December 31, 2022 |
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
73,290 |
|
|
$ |
59,545 |
|
Accounts receivable, net |
|
481,060 |
|
|
|
282,846 |
|
Derivative instruments |
|
70,591 |
|
|
|
100,797 |
|
Prepaid and other current assets |
|
25,451 |
|
|
|
20,602 |
|
Total current assets |
|
650,392 |
|
|
|
463,790 |
|
Property and equipment |
|
|
|
||||
Oil and natural gas properties, successful efforts method |
|
|
|
||||
Unproved properties |
|
2,401,317 |
|
|
|
1,424,744 |
|
Proved properties |
|
15,036,687 |
|
|
|
8,869,174 |
|
Accumulated depreciation, depletion and amortization |
|
(3,401,895 |
) |
|
|
(2,419,692 |
) |
Total oil and natural gas properties, net |
|
14,036,109 |
|
|
|
7,874,226 |
|
Other property and equipment, net |
|
43,647 |
|
|
|
15,173 |
|
Total property and equipment, net |
|
14,079,756 |
|
|
|
7,889,399 |
|
Noncurrent assets |
|
|
|
||||
Operating lease right-of-use assets |
|
59,359 |
|
|
|
64,792 |
|
Other noncurrent assets |
|
176,071 |
|
|
|
74,611 |
|
TOTAL ASSETS |
$ |
14,965,578 |
|
|
$ |
8,492,592 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
1,167,525 |
|
|
$ |
562,156 |
|
Operating lease liabilities |
|
33,006 |
|
|
|
29,759 |
|
Other current liabilities |
|
41,022 |
|
|
|
13,654 |
|
Total current liabilities |
|
1,241,553 |
|
|
|
605,569 |
|
Noncurrent liabilities |
|
|
|
||||
Long-term debt, net |
|
3,848,781 |
|
|
|
2,140,798 |
|
Asset retirement obligations |
|
121,417 |
|
|
|
40,947 |
|
Deferred income taxes |
|
422,627 |
|
|
|
4,430 |
|
Operating lease liabilities |
|
28,302 |
|
|
|
41,341 |
|
Other noncurrent liabilities |
|
73,150 |
|
|
|
3,211 |
|
Total liabilities |
|
5,735,830 |
|
|
|
2,836,296 |
|
|
|
|
|
||||
Shareholders’ equity |
|
|
|
||||
Common stock, |
|
|
|
||||
Class A: 544,610,984 shares issued and 540,789,758 shares outstanding at December 31, 2023 and 298,640,260 shares issued and 288,532,257 shares outstanding at December 31, 2022 |
|
54 |
|
|
|
30 |
|
Class C: 230,962,833 shares issued and outstanding at December 31, 2023 and 269,300,000 shares issued and outstanding at December 31, 2022 |
|
23 |
|
|
|
27 |
|
Additional paid-in capital |
|
5,766,881 |
|
|
|
2,698,465 |
|
Retained earnings (accumulated deficit) |
|
569,139 |
|
|
|
237,226 |
|
Total shareholders’ equity |
|
6,336,097 |
|
|
|
2,935,748 |
|
Noncontrolling interest |
|
2,893,651 |
|
|
|
2,720,548 |
|
Total equity |
|
9,229,748 |
|
|
|
5,656,296 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
14,965,578 |
|
|
$ |
8,492,592 |
|
Permian Resources Corporation
|
|||||||
|
Year Ended December 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
879,703 |
|
|
$ |
749,840 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation, depletion and amortization |
|
1,007,576 |
|
|
|
444,678 |
|
Stock-based compensation expense - equity awards |
|
78,418 |
|
|
|
116,480 |
|
Stock-based compensation expense - liability awards |
|
— |
|
|
|
(24,174 |
) |
Impairment and abandonment expense |
|
6,681 |
|
|
|
3,875 |
|
Deferred tax expense (benefit) |
|
152,383 |
|
|
|
119,679 |
|
Net (gain) loss on sale of long-lived assets |
|
(211 |
) |
|
|
1,314 |
|
Non-cash portion of derivative (gain) loss |
|
(14,606 |
) |
|
|
(77,737 |
) |
Amortization of debt issuance costs, debt discount and debt premium |
|
11,326 |
|
|
|
15,362 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
(Increase) decrease in accounts receivable |
|
36,336 |
|
|
|
(66,824 |
) |
(Increase) decrease in prepaid and other assets |
|
(27,267 |
) |
|
|
(1,751 |
) |
Increase (decrease) in accounts payable and other liabilities |
|
83,160 |
|
|
|
90,929 |
|
Net cash provided by operating activities |
|
2,213,499 |
|
|
|
1,371,671 |
|
Cash flows from investing activities: |
|
|
|
||||
Acquisition of oil and natural gas properties, net |
|
(234,288 |
) |
|
|
(8,858 |
) |
Drilling and development capital expenditures |
|
(1,524,899 |
) |
|
|
(771,577 |
) |
Cash (paid) received for businesses acquired in mergers, net of cash received |
|
39,832 |
|
|
|
(496,671 |
) |
Purchases of other property and equipment |
|
(34,483 |
) |
|
|
(3,563 |
) |
Contingent considerations received related to divestiture |
|
60,000 |
|
|
|
— |
|
Proceeds from sales of oil and natural gas properties |
|
115,459 |
|
|
|
75,620 |
|
Net cash used in investing activities |
|
(1,578,379 |
) |
|
|
(1,205,049 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from borrowings under revolving credit facility |
|
1,950,000 |
|
|
|
1,115,000 |
|
Repayment of borrowings under revolving credit facility |
|
(2,335,000 |
) |
|
|
(755,000 |
) |
Repayment of credit facility acquired in mergers |
|
(830,000 |
) |
|
|
(400,000 |
) |
Proceeds from issuance of senior notes |
|
997,500 |
|
|
|
— |
|
Debt issuance costs |
|
(15,169 |
) |
|
|
(19,833 |
) |
Proceeds from exercise of stock options |
|
534 |
|
|
|
109 |
|
Share repurchases |
|
(162,420 |
) |
|
|
(19,010 |
) |
Dividends paid |
|
(141,947 |
) |
|
|
(14,426 |
) |
Distributions paid to noncontrolling interest owners |
|
(94,686 |
) |
|
|
(13,465 |
) |
Net cash (used in) provided by financing activities |
|
(631,188 |
) |
|
|
(106,625 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
3,932 |
|
|
|
59,997 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
69,932 |
|
|
|
9,935 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
73,864 |
|
|
$ |
69,932 |
|
Reconciliation of cash, cash equivalents and restricted cash presented on the consolidated statements of cash flows for the periods presented: |
|||||||
|
Year Ended December 31, |
||||||
|
2023 |
|
2022 |
||||
Cash and cash equivalents |
$ |
73,290 |
|
$ |
59,545 |
||
Restricted cash |
$ |
574 |
|
$ |
10,387 |
||
Total cash, cash equivalents and restricted cash |
$ |
73,864 |
|
$ |
69,932 |
||
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with
Adjusted EBITDAX
Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income attributable to Class A Common Stock before net income attributable to noncontrolling interest, interest expense, income taxes, depreciation, depletion and amortization, impairment and abandonment expense, non-cash gains or losses on derivatives, stock-based compensation (not cash-settled), exploration and other expenses, merger and integration expense, gain/loss from the sale of long-lived assets and non-recurring items. Adjusted EBITDAX is not a measure of net income as determined by GAAP.
Our management believes Adjusted EBITDAX is useful as it allows them to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or nonrecurring items. Our computations of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
The following table presents a reconciliation of Adjusted EBITDAX to net income, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:
|
Three Months Ended |
|||||||||||||||||
(in thousands) |
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|||||||||
Adjusted EBITDAX reconciliation to net income: |
|
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to Class A Common Stock |
$ |
255,354 |
|
|
$ |
45,433 |
|
|
$ |
73,399 |
|
$ |
102,120 |
|
|
$ |
83,050 |
|
Net income attributable to noncontrolling interest |
|
157,265 |
|
|
|
52,896 |
|
|
|
75,555 |
|
|
117,681 |
|
|
|
115,658 |
|
Interest expense |
|
63,024 |
|
|
|
40,582 |
|
|
|
36,826 |
|
|
36,777 |
|
|
|
39,358 |
|
Income tax expense |
|
78,889 |
|
|
|
16,254 |
|
|
|
26,548 |
|
|
34,254 |
|
|
|
40,860 |
|
Depreciation, depletion and amortization |
|
367,427 |
|
|
|
236,204 |
|
|
|
215,726 |
|
|
188,219 |
|
|
|
182,052 |
|
Impairment and abandonment expense |
|
5,947 |
|
|
|
245 |
|
|
|
244 |
|
|
245 |
|
|
|
244 |
|
Non-cash derivative (gain) loss |
|
(180,179 |
) |
|
|
161,672 |
|
|
|
18,678 |
|
|
(14,777 |
) |
|
|
88,635 |
|
Stock-based compensation expense(1) |
|
8,495 |
|
|
|
15,633 |
|
|
|
35,042 |
|
|
16,707 |
|
|
|
54,342 |
|
Exploration and other expenses |
|
4,669 |
|
|
|
5,031 |
|
|
|
5,263 |
|
|
4,374 |
|
|
|
4,765 |
|
Merger and integration expense |
|
97,260 |
|
|
|
10,422 |
|
|
|
4,350 |
|
|
13,299 |
|
|
|
12,469 |
|
(Gain) loss on sale of long-lived assets |
|
(82 |
) |
|
|
(63 |
) |
|
|
— |
|
|
(66 |
) |
|
|
(13 |
) |
Adjusted EBITDAX |
$ |
858,069 |
|
|
$ |
584,309 |
|
|
$ |
491,631 |
|
$ |
498,833 |
|
|
$ |
621,420 |
|
(1) |
Includes stock-based compensation expense for equity awards related to general and administrative employees only. Stock-based compensation amounts for geographical and geophysical personnel are included within the Exploration and other expenses line item. |
Net Debt-to-LQA EBITDAX
Net debt-to-LQA EBITDAX is a non-GAAP financial measure. We define net debt as long-term debt, net, plus unamortized debt discount and debt issuance costs on our senior notes minus cash and cash equivalents.
We define net debt-to-LQA EBITDAX as net debt (defined above) divided by Adjusted EBITDAX (defined and reconciled in the section above) for the three months ended December 31, 2023, on an annualized basis. We refer to this metric to show trends that investors may find useful in understanding our ability to service our debt. This metric is widely used by professional research analysts, including credit analysts, in the valuation and comparison of companies in the oil and gas exploration and production industry. The following table presents a reconciliation of net debt to long-term debt, net and the calculation of net debt-to-LQA EBITDAX for the period presented:
(in thousands) |
December 31, 2023 |
|
Long-term debt, net |
3,848,781 |
|
Unamortized debt discount, debt issuance costs and debt premium on senior notes |
17,018 |
|
Long-term debt |
3,865,799 |
|
Less: cash and cash equivalents |
(73,290 |
) |
Net debt (Non-GAAP) |
3,792,509 |
|
LQA EBITDAX(1) |
3,432,276 |
|
Net debt-to-LQA EBITDAX |
1.1 |
|
| ____________________________________ | |
(1) |
Represents adjusted EBITDAX (defined and reconciled in the section above) for the three months ended December 31, 2023, on an annualized basis. |
Adjusted Shares
Adjusted basic and diluted weighted average shares outstanding (“Adjusted Basic and Diluted Shares”) are non-GAAP financial measures defined as basic and diluted weighted average shares outstanding adjusted to reflect the weighted average shares of our Class C Common Stock outstanding during the period.
Our Adjusted Basic and Diluted Shares provide a comparable per share measurement when presenting results such as adjusted free cash flow and adjusted net income that include the interests of both net income attributable to Class A Common Stock and the net income attributable to our noncontrolling interest. Adjusted Basic and Diluted Shares are used in calculating several metrics that we use as supplemental financial measurements in the evaluation of our business.
The following table presents a reconciliation of Adjusted Basic and Diluted Shares to basic and diluted weighted average shares outstanding, which are the most directly comparable financial measure calculated and presented in accordance with GAAP:
|
Three Months Ended December 31, |
||
(in thousands) |
2023 |
|
2022 |
Basic weighted average shares of Class A Common Stock outstanding |
459,593 |
|
288,512 |
Weighted average shares of Class C Common Stock |
244,039 |
|
269,300 |
Adjusted basic weighted average shares outstanding |
703,632 |
|
557,812 |
|
|
|
|
Basic weighted average shares of Class A Common Stock outstanding |
459,593 |
|
288,512 |
Add: Dilutive effects of Convertible Senior Notes |
28,090 |
|
27,074 |
Add: Dilutive effects of equity awards and ESPP shares |
13,236 |
|
13,868 |
| Diluted weighted average shares of Class A Common Stock outstanding | 500,919 |
329,454 |
|
Weighted average shares of Class C Common Stock |
244,039 |
|
269,300 |
Adjusted diluted weighted average shares outstanding |
744,958 |
|
598,754 |
Free Cash Flow and Adjusted Free Cash Flow
Free cash flow and adjusted free cash flow are supplemental non-GAAP financial measures that are used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define free cash flow as net cash provided by operating activities before changes in working capital, less incurred capital expenditures and adjusted free cash flow as free cash flow before non-recurring merger and integration expense.
Our management believes free cash flow and adjusted free cash flow are useful indicators of the Company’s ability to internally fund its exploration and development activities and to service or incur additional debt, without regard to the timing of settlement of either operating assets and liabilities or accounts payable related to capital expenditures. The Company believes that these measures, as so adjusted, present meaningful indicators of the Company’s actual sources and uses of capital associated with its operations conducted during the applicable period. Our computations of free cash flow and adjusted free cash flow may not be comparable to other similarly titled measures of other companies. Free cash flow and adjusted free cash flow should not be considered as alternatives to, or more meaningful than, net cash provided by operating activities as determined in accordance with GAAP or as indicators of our operating performance or liquidity.
Free cash flow and adjusted free cash flow are not financial measures that are determined in accordance with GAAP. Accordingly, the following table presents a reconciliation of free cash flow and adjusted free cash flow to net cash provided by operating activities, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:
|
Accrued Capital Expenditures(1) |
|
Cash Capital Expenditures(2) |
||||||||||||
|
Three Months Ended December 31, |
|
Three Months Ended December 31, |
||||||||||||
(in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating activities |
$ |
845,994 |
|
|
$ |
528,295 |
|
|
$ |
845,994 |
|
|
$ |
528,295 |
|
Changes in working capital: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
(94,123 |
) |
|
|
60,071 |
|
|
|
(94,123 |
) |
|
|
60,071 |
|
Prepaid and other assets |
|
(543 |
) |
|
|
1,713 |
|
|
|
(543 |
) |
|
|
1,713 |
|
Accounts payable and other liabilities |
|
(58,365 |
) |
|
|
(21,290 |
) |
|
|
(58,365 |
) |
|
|
(21,290 |
) |
Operating cash flow before working capital changes |
|
692,963 |
|
|
|
568,789 |
|
|
|
692,963 |
|
|
|
568,789 |
|
Less: total capital expenditures incurred/paid |
|
(422,917 |
) |
|
|
(325,200 |
) |
|
|
(458,206 |
) |
|
|
(373,685 |
) |
Free cash flow |
|
270,046 |
|
|
|
243,589 |
|
|
|
234,757 |
|
|
|
195,104 |
|
Merger and integration expense |
|
97,260 |
|
|
|
12,469 |
|
|
|
97,260 |
|
|
|
12,469 |
|
Adjusted free cash flow |
$ |
367,306 |
|
|
$ |
256,058 |
|
|
$ |
332,017 |
|
|
$ |
207,573 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted basic weighted average shares outstanding |
|
703,632 |
|
|
|
557,812 |
|
|
|
703,632 |
|
|
|
557,812 |
|
Adjusted free cash flow per adjusted basic share |
$ |
0.52 |
|
|
$ |
0.46 |
|
|
$ |
0.47 |
|
|
$ |
0.37 |
|
| ____________________________________ | |
(1) |
Utilizes activity-based capital expenditures incurred during the period. |
(2) |
Utilizes cash capital expenditures paid during the period. |
Adjusted Net Income
Adjusted net income is not a financial measure that is determined in accordance with GAAP. Accordingly, the following table presents a reconciliation of adjusted net income to net income, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:
|
Three Months Ended December 31, |
||||||
(in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
Net income attributable to Class A Common Stock |
$ |
255,354 |
|
|
$ |
83,050 |
|
Net income attributable to noncontrolling interest |
|
157,265 |
|
|
|
115,658 |
|
Non-cash derivative (gain) loss |
|
(180,179 |
) |
|
|
88,635 |
|
Merger and integration expense |
|
97,260 |
|
|
|
12,469 |
|
Impairment and abandonment expense |
|
5,947 |
|
|
|
244 |
|
(Gain) loss on sale of long-lived assets |
|
(82 |
) |
|
|
(13 |
) |
Adjusted net income excluding above items |
|
335,565 |
|
|
|
300,043 |
|
Income tax (expense) benefit attributable to the above items(1) |
|
(18,047 |
) |
|
|
(48,823 |
) |
Adjusted Net Income |
$ |
317,518 |
|
|
$ |
251,220 |
|
|
|
|
|
||||
Adjusted basic weighted average shares outstanding (Non-GAAP)(2) |
|
703,632 |
|
|
|
557,812 |
|
Adjusted net income per adjusted basic share |
$ |
0.45 |
|
|
$ |
0.45 |
|
| ____________________________________ | |
(1) |
Income tax (expense) benefit for adjustments made to adjusted net income is calculated using PR's federal and state-apportioned statutory tax rate of |
(2) |
Adjusted basic weighted average shares outstanding is a Non-GAAP measure that has been computed and reconciled to the nearest GAAP metric in the preceding table above. |
The following table summarizes the approximate volumes and average contract prices of the hedge contracts the Company had in place as of December 31, 2023 and additional contracts entered into through February 23, 2024:
|
Period |
|
Volume (Bbls) |
|
Volume (Bbls/d) |
|
Wtd. Avg. Crude Price ($/Bbl)(1) |
Crude oil swaps |
January 2024 - March 2024 |
|
2,919,100 |
|
32,078 |
|
|
|
April 2024 - June 2024 |
|
2,975,500 |
|
32,698 |
|
76.24 |
|
July 2024 - September 2024 |
|
2,990,000 |
|
32,500 |
|
75.40 |
|
October 2024 - December 2024 |
|
2,990,000 |
|
32,500 |
|
74.61 |
|
January 2025 - March 2025 |
|
1,575,000 |
|
17,500 |
|
73.33 |
|
April 2025 - June 2025 |
|
1,592,500 |
|
17,500 |
|
72.27 |
|
July 2025 - September 2025 |
|
1,610,000 |
|
17,500 |
|
71.25 |
|
October 2025 - December 2025 |
|
1,610,000 |
|
17,500 |
|
70.34 |
|
Period |
|
Volume (Bbls) |
|
Volume (Bbls/d) |
|
Wtd. Avg. Collar Price Ranges ($/Bbl)(2) |
||
Crude oil collars |
January 2024 - March 2024 |
|
182,000 |
|
2,000 |
|
|
- |
|
|
April 2024 - June 2024 |
|
182,000 |
|
2,000 |
|
60.00 |
- |
76.01 |
|
July 2024 - September 2024 |
|
184,000 |
|
2,000 |
|
60.00 |
- |
76.01 |
|
October 2024 - December 2024 |
|
184,000 |
|
2,000 |
|
60.00 |
- |
76.01 |
|
Period |
|
Volume (Bbls) |
|
Volume (Bbls/d) |
|
Wtd. Avg. Put Price ($/Bbl)(3) |
|
Deferred Premium ($/Bbl)(3) |
Deferred premium puts |
January 2024 - March 2024 |
|
227,500 |
|
2,500 |
|
65.00 |
|
4.96 |
|
April 2024 - June 2024 |
|
227,500 |
|
2,500 |
|
65.00 |
|
4.96 |
|
July 2024 - September 2024 |
|
230,000 |
|
2,500 |
|
65.00 |
|
4.96 |
|
October 2024 - December 2024 |
|
230,000 |
|
2,500 |
|
65.00 |
|
4.96 |
|
Period |
|
Volume (Bbls) |
|
Volume (Bbls/d) |
|
Wtd. Avg. Differential ($/Bbl)(4) |
Crude oil basis differential swaps |
January 2024 - March 2024 |
|
3,148,600 |
|
34,600 |
|
|
|
April 2024 - June 2024 |
|
3,385,018 |
|
37,198 |
|
0.95 |
|
July 2024 - September 2024 |
|
3,404,000 |
|
37,000 |
|
0.95 |
|
October 2024 - December 2024 |
|
3,404,000 |
|
37,000 |
|
0.95 |
|
January 2025 - March 2025 |
|
1,575,000 |
|
17,500 |
|
1.09 |
|
April 2025 - June 2025 |
|
1,592,500 |
|
17,500 |
|
1.09 |
|
July 2025 - September 2025 |
|
1,610,000 |
|
17,500 |
|
1.09 |
|
October 2025 - December 2025 |
|
1,610,000 |
|
17,500 |
|
1.09 |
|
Period |
|
Volume (Bbls) |
|
Volume (Bbls/d) |
|
Wtd. Avg. Differential ($/Bbl)(5) |
Crude oil roll differential swaps |
January 2024 - March 2024 |
|
3,148,600 |
|
34,600 |
|
|
|
April 2024 - June 2024 |
|
3,385,018 |
|
37,198 |
|
0.45 |
|
July 2024 - September 2024 |
|
3,404,000 |
|
37,000 |
|
0.45 |
|
October 2024 - December 2024 |
|
3,404,000 |
|
37,000 |
|
0.45 |
|
January 2025 - March 2025 |
|
1,575,000 |
|
17,500 |
|
0.37 |
|
April 2025 - June 2025 |
|
1,592,500 |
|
17,500 |
|
0.37 |
|
July 2025 - September 2025 |
|
1,610,000 |
|
17,500 |
|
0.37 |
|
October 2025 - December 2025 |
|
1,610,000 |
|
17,500 |
|
0.37 |
| ____________________________________ | |
(1) |
These crude oil swap transactions are settled based on the NYMEX WTI index price on each trading day within the specified monthly settlement period versus the contractual swap price for the volumes stipulated. |
(2) |
These crude oil collars are settled based on the NYMEX WTI index price on each trading day within the specified monthly settlement period versus the contractual floor and ceiling prices for the volumes stipulated. |
(3) |
These crude oil deferred premium puts are settled based on the NYMEX WTI index price on each trading day within the specified monthly settlement period versus the contractual put prices for the volumes stipulated. |
(4) |
These crude oil basis swap transactions are settled based on the difference between the arithmetic average of ARGUS |
(5) |
These crude oil roll swap transactions are settled based on the difference between the arithmetic average of NYMEX WTI calendar month prices and the physical crude oil delivery month price. |
|
Period |
|
Volume (MMBtu) |
|
Volume (MMBtu/d) |
|
Wtd. Avg. Gas Price ($/MMBtu)(1) |
Natural gas swaps |
January 2024 - March 2024 |
|
4,104,919 |
|
45,109 |
|
|
|
April 2024 - June 2024 |
|
5,906,321 |
|
64,905 |
|
3.29 |
|
July 2024 - September 2024 |
|
5,949,388 |
|
64,667 |
|
3.43 |
|
October 2024 - December 2024 |
|
5,933,899 |
|
64,499 |
|
3.86 |
|
January 2025 - March 2025 |
|
3,600,000 |
|
40,000 |
|
4.32 |
|
April 2025 - June 2025 |
|
3,640,000 |
|
40,000 |
|
3.65 |
|
July 2025 - September 2025 |
|
3,680,000 |
|
40,000 |
|
3.83 |
|
October 2025 - December 2025 |
|
3,680,000 |
|
40,000 |
|
4.20 |
|
Period |
|
Volume (MMBtu) |
|
Volume (MMBtu/d) |
|
Wtd. Avg. Differential ($/MMBtu)(2) |
Natural gas basis differential swaps |
January 2024 - March 2024 |
|
12,740,000 |
|
140,000 |
|
|
|
April 2024 - June 2024 |
|
10,920,000 |
|
120,000 |
|
(0.99) |
|
July 2024 - September 2024 |
|
11,040,000 |
|
120,000 |
|
(0.99) |
|
October 2024 - December 2024 |
|
11,040,000 |
|
120,000 |
|
(0.98) |
|
January 2025 - March 2025 |
|
3,600,000 |
|
40,000 |
|
(0.74) |
|
April 2025 - June 2025 |
|
3,640,000 |
|
40,000 |
|
(0.74) |
|
July 2025 - September 2025 |
|
3,680,000 |
|
40,000 |
|
(0.74) |
|
October 2025 - December 2025 |
|
3,680,000 |
|
40,000 |
|
(0.74) |
|
Period |
|
Volume (MMBtu) |
|
Volume (MMBtu/d) |
|
Wtd. Avg. Differential ($/MMBtu)(3) |
Natural gas basis differential swaps |
January 2024 - March 2024 |
|
3,640,000 |
|
40,000 |
|
|
|
Period |
|
Volume (MMBtu) |
|
Volume (MMBtu/d) |
|
Wtd. Avg. Collar Price Ranges ($/MMBtu)(4) |
||
Natural gas collars |
January 2024 - March 2024 |
|
6,815,081 |
|
74,891 |
|
|
- |
|
|
April 2024 - June 2024 |
|
5,013,679 |
|
55,095 |
|
2.68 |
- |
5.04 |
|
July 2024 - September 2024 |
|
5,090,612 |
|
55,333 |
|
2.68 |
- |
5.06 |
|
October 2024 - December 2024 |
|
5,106,101 |
|
55,501 |
|
2.75 |
- |
5.29 |
| ____________________________________ | |
(1) |
These natural gas swap contracts are settled based on the NYMEX Henry Hub price on each trading day within the specified monthly settlement period versus the contractual swap price for the volumes stipulated. |
(2) |
These 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 each applicable monthly settlement period. |
(3) |
These natural gas basis swap contracts are settled based on the difference between the Houston Ship Channel (“HSC”) price and the NYMEX price of natural gas during each applicable monthly settlement period. |
(4) |
These natural gas collars are settled based on the NYMEX Henry Hub price on each trading day within the specified monthly settlement period versus the contractual floor and ceiling prices for the volumes stipulated. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227219426/en/
Hays Mabry – Sr. Director, Investor Relations
Mae Herrington – Engineering Advisor, Investor Relations
(832) 240-3265
ir@permianres.com
Source: Permian Resources Corporation
FAQ
What were Permian Resources' Q4 2023 crude oil and total average production figures?
How much did Permian Resources reduce their controllable cash costs by in Q4 2023?
What was the total cash capital expenditure budget announced by Permian Resources for 2024?
What is the expected range for total controllable cash costs per Boe for Permian Resources in 2024?
What was the increase in Permian Resources' quarterly base dividend for 2024?
