Permian Resources Corporation · NYSE:PR
Permian Resources — Q3 2023 Earnings Presentation
23 slides from Permian Resources's earnings presentation, Nov 7, 2023
Slide 1: Q3'23 Earnings Presentation
NOVEMBER 7, 2023 Q3’23 Earnings Presentation
Slide 2: Important Information
Important Information Forward-Looking Statements The information in this presentation 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 stat
Slide 3: Earthstone Acquisition – Reinforcing PR's Position as 2nd Largest Permian Pure-Play
Earthstone Acquisition – Reinforcing PR’s Position as the 2nd Largest Permian Pure-Play Delaware Basin Acreage Position On November 1st, Permian Resources closed the $4.5 Bn acquisition of Earthstone Energy Transaction Highlights Enhances Position as Premier Combined business has >400,000 Permian ne
Slide 4: Continuing Momentum After Earthstone Transaction Close
Continuing Momentum After Earthstone Transaction Close • Earthstone acquisition closed on November 1st Integration update • Integration underway with all teams leveraging lessons from successful Colgate / Centennial merger • Utilize PR’s extensive Delaware Basin knowledge and incremental scale to de
Slide 5: On Schedule to Capture Significant Operational and Financial Synergies
On Schedule to Capture Significant Operational and Financial Synergies Leveraging deep Delaware Basin experience and Tangible Synergy incremental scale to deliver significant synergies Realization • Expect to implement PR’s peer-leading cycle times and well costs • Permian Resources delivering >10%
Slide 6: Permian Resources – Pro Forma Company Overview
Permian Resources – Pro Forma Company Overview Largest pure-play Delaware Basin E&P company with >400,000 net acres, ~68,000 net royalty acres and PR Key Statistics Premier Delaware ~300 MBoe/d of Q3’23 production1 Basin Pure-Play Scale and balance sheet strength provide flexibility to E&P Company
Slide 7: Permian Resources Standalone Q3'23 Highlights
Permian Resources Standalone Q3’23 Highlights Permian Resources Q3’23 Activity and Financial Summary2 Production Overview Actual Total Production (MBoe/d) 172.0 Oil Production (MBbls/d) 89.8 • Closed $4.5 Bn Earthstone acquisition on November 1, enhancing Permian Resources’ position as the second la
Slide 8: Operational Execution Driving Strong Financial Results
Operational Execution Driving Strong Financial Results Differentiated Production Growth Coupled with Lower Costs Generates Increased Free Cash Flow Oil Production (MBbls/d) Controllable Cash Costs ($/Boe)1 Total Capex ($ MM) Free Cash Flow ($ MM) 89.8 $178 $386 +6% 84.4 $8.11 -5% -2% $7.92 $367 78.3
Slide 9: Establishing New Level of D&C Efficiencies
Establishing New Level of D&C Efficiencies Overview Drilling Efficiencies Permian Resources’ Drilling and Completions teams delivered Drilled Feet per Day (Avg.) Spud to Rig Release Days (Avg.) an outstanding operational quarter, building on their track 1,325' +14% 18 record of continual efficienc
Slide 10: Continued Execution on Capital Return Strategy
Continued Execution on Capital Return Strategy Q3’23 Return of Capital PR Total Return of Capital Q3’23 BASE DIVIDEND ($’s in millions, except per share data) • Base dividend paid quarterly at $0.05 per share PR Adj. Free Cash Flow1,2 $165 • Sustainable base dividend growth in 2024 with increase t
Slide 11: Value Additive Scale Results in Improved Business
Value Additive Scale Results in Improved Business Increased FCF per Share and Shareholder Returns Meaningful Size and Scale High-Return Delaware-Focused Capital Allocation Illustrative 2024 Free Cash Flow per Share Gross Permian Production1 (MBoe/d) 1,456 Expecting >30% Accretion 727 674 <10%
Slide 12: Compelling Value Proposition Continues with Premier Assets & Increased Scale
Compelling Value Proposition Continues with Premier Assets & Increased Scale PR equity has outperformed key indices and Permian …And still provides significant upside to its valuation peers with >$10 Bn market cap since its formation… versus peers 12.4x Total Shareholder Return Since MOE EV / 2024E
Slide 13: Appendix
Appendix
Slide 14: Permian Resources Q3'23 Operational and Financial Overview
Permian Resources Q3’23 Operational and Financial Overview Market Statistics ($’s in mm, except per share data) Per Share Key Statistics ($’s in mm, except per share data) Total (Basic) Common Shares Outstanding (11/1/23) 773.8 Share Price (11/3/23) $14.84 Total Oil and Gas Revenue $758.5 - Market C
Slide 15: Strong Balance Sheet Supports Business Plan and Shareholder Returns
Strong Balance Sheet Supports Business Plan and Shareholder Returns Overview PR Capital Structure Overview Committed to maintaining a strong balance sheet with significant financial PR Actual Pro Forma1 flexibility Capitalization 9/30/23 9/30/23 Cash and cash equivalents $212 -- Elected commitme
Slide 16: Earthstone Q3'23 Operational and Financial Overview
Earthstone Q3’23 Operational and Financial Overview Earthstone Q3’23 Standalone Results1 ESTE Total Production (MBoe/d) • Prior to the transaction close on November 1, 2023, Earthstone reported 117.0 Q3’23 financial and operating results: – Closed the Novo acquisition on August 15, 2023 105.5 – Deli
Slide 17: Permian Resources Publishes Inaugural Corporate Sustainability Report
Permian Resources Publishes Inaugural Corporate Sustainability Report 2022 ESG Highlights • Reduced methane emissions rate by 11%1 • Increased water recycle rate by 83%1 • Joined the Permian Strategic Partnership (PSP) to further our commitment to improving the quality of life for those living and w
Slide 18: Focus on ESG Excellence
Focus on ESG Excellence ENIVRONMENTAL SOCIAL GOVERNANCE REDUCING EMISSIONS BENEFITING COMMUNITIES SHAREHOLDER ALIGNMENT Continued focus on further reduction in GHG emissions We are dedicated to making positive impacts in the Our performance-focused compensation intensity through the elimination of r
Slide 19: Hedge Book Overview
Hedge Book Overview1 Hedge Position Detail for the Combined Company Bal. 2023 FY 2024 FY 2025 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 WTI Fixed Price Swaps Total Volume (Bbl) 2,401,200 2,401,200 2,284,100 2,247,500 2,254,000 2,254,000 9,039,600 990,000 1,001,000 1,012,000 1,012,000 4,015,000 Daily
Slide 20: Reconciliation of Adjusted EBITDAX to Net Income (Loss)
Reconciliation of Adjusted EBITDAX to Net Income (Loss) Adjusted EBITDAX Reconciliation1 FY’22 FY’23 ($ in thousands, unless specified) Q2 Q3 Q4 FY’22 Q1 Q2 Q3 Net income (loss) attributable to Class A Common Stock $191,826 $224,359 $83,050 $515,037 $102,120 $73,399 $45,433 Net income (loss) attribu
Slide 21: Reconciliation of Free Cash Flow and Adjusted Free Cash Flow
Reconciliation of Free Cash Flow and Adjusted Free Cash Flow Free Cash Flow Reconciliation1 Free Cash Flow Reconciliation1 Based on Accrued Capital Expenditures Based on Cash Capital Expenditures Three Months Ended September 30, Three Months Ended September 30, ($ in thousands) 2023 2022 ($ in thous
Slide 22: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Adjusted Net Income Reconciliation1 Three Months Ended September 30, ($ in thousands) 2023 2022 Net income (loss) attributable to Class A Common Stock $45,433 $224,359 Net income (loss) attributable to noncontrolling interest 52,896 119,145 Non-cash derivative (
Slide 23: Reconciliation of Net Debt-to-LQA EBITDAX
Reconciliation of Net Debt-to-LQA EBITDAX Net Debt-to-LQA EBITDAX Reconciliation1 ($ in thousands) September 30, 2023 Long-term debt, net $2,254,178 Unamortized debt discount and debt issuance costs on senior notes 61,621 Long-term debt 2,315,799 Less: cash and cash equivalents (211,703) Net debt (N