Permian Resources Corporation · NYSE:PR
Permian Resources — Q1 2023 Earnings Presentation
20 slides from Permian Resources's earnings presentation, May 8, 2023
Slide 1: Q1'23 Earnings Presentation
M AY 8 , 2 0 2 3 Q1’23 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: Permian Resources – Company Overview
Permian Resources – Company Overview Largest pure-play Delaware Basin E&P company with ~180,000 net acres, ~43,000 net royalty acres and ~162 PR Key Statistics Premier Delaware MBoe/d of FY’23E production1 Basin Pure-Play Scale and balance sheet strength provide flexibility to E&P Company quickl
Slide 4: Permian Resources Q1'23 Highlights
Permian Resources Q1’23 Highlights Q1’23 Activity and Financial Summary Production Overview Actual Q1 Guidance2 Total Production (MBoe/d) 153.8 150.3 - 153.5 P Oil Production (MBbls/d) 78.3 77.3 - 78.9 P • Delivered total production of 153.8 MBoe/d, ahead of guidance, % Oil 51% and oil production of
Slide 5: Executing on Capital Return Strategy
Executing on Capital Return Strategy BASE DIVIDEND P Total Return of Capital Q1’23 • Base dividend paid quarterly at $0.05 per share • Commitment to sustainable base dividend growth ($’s in millions, except per share data) Adj. Free Cash Flow1,2 $146 P VARIABLE DIVIDEND Base Dividend ($ / Share) $0.
Slide 6: Executed on Successful Integration To Maximize Value Creation
Executed on Successful Integration To Maximize Value Creation Integration Complete P Synergy Realization P Continued Execution P • Headquartered in Midland, TX, with • Successfully combined best practices • Exceeded mid-point of Q4’22 oil essentially all operational and to drive meaningful cost savi
Slide 7: 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 flexibility Actual – In April, credit facility borrowing base was reaffirmed at $2.5 billion and maintained ($ mm) 3
Slide 8: Hedge Book Overview
Hedge Book Overview Position Highlights Crude Oil Hedge Position2 26,500 26,000 (Bbls/d) • Recently added incremental crude oil swaps at 9,000 7,000 17,000 17,000 attractive prices: WTI Collars – 3,000 Bbls/d at ~$77 / Bbl for H2’23 WTI Swaps 17,500 19,000 5,000 5,000 – 5,000 Bbls/d at ~$72 / Bbl fo
Slide 9: Executing on the Ground Game to Drive Shareholder Value
Executing on the Ground Game to Drive Shareholder Value PR executed >45 transactions, including bolt-on’s, acreage trades and grassroots Permian Resources Acreage Position leasing / working interest acquisitions during Q1’23 P BOLT-ON ACQUISITION • Closed previously announced acquisition offset to e
Slide 10: Royalty Portfolio Drives Higher Capital Efficiency, Enhanced Returns
Royalty Portfolio Drives Higher Capital Efficiency, Enhanced Returns PR Current Acreage Stats Royalty Map Locator ~180,000 Net Average 8/8ths Average Working Leasehold Acres NRI of ~78% Interest of ~85% Eddy Royalty Acres Located ~85% of Royalties Located ~43,000 Net Royalty Acres Lea ~60% NM / ~40%
Slide 11: Compelling Value Proposition Continues with Premier Assets
Compelling Value Proposition Continues with Premier Assets PR equity has outperformed Permian peers and key …And still provides significant upside to its valuation indices since closing the merger… versus peers Total Shareholder Return Since Merger EV / 2023E EBITDAX 12.9x 35% (9/1/2022 – 5/5/2023)
Slide 12: Appendix
Appendix
Slide 13: Q1'23 Financial Summary
Q1’23 Financial Summary Market Statistics ($’s in mm, except per share data) Per Share Key Statistics ($’s in mm, except per share data) Total (Basic) Common Shares Outstanding 559.9 Share Price (5/5/23) $10.19 Total Oil and Gas Revenue $616.3 - Market Capitalization $5,705 Adjusted EBITDAX3 $498.8
Slide 14: Free Cash Flow and Capital Expenditure Reporting
Free Cash Flow and Capital Expenditure Reporting Permian Resources utilizes cash capital expenditures in its free cash flow calculation to determine its variable return program, as the Company believes this is more representative of actual cash generated during a quarter and available to distribute
Slide 15: Focus on ESG Excellence
Focus on ESG Excellence ENIVRONMENTAL SOCIAL GOVERNANCE REDUCING EMISSIONS BENEFITING COMMUNITIES SHAREHOLDER ALIGNMENT Continued focus on further reduction in GHG emissions We are dedicated to making positive impacts in the Our performance-focused compensation intensity through the elimination of r
Slide 16: Hedge Book Overview
Hedge Book Overview1 Hedge Position Detail Bal. 2023 FY 2024 FY 2025 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 WTI Fixed Price Swaps Total Volume (Bbls) 1,592,500 1,748,000 1,748,000 5,088,500 1,547,000 1,547,000 1,564,000 1,564,000 6,222,000 450,000 455,000 460,000 460,000 1,825,000 Daily Vol
Slide 17: Reconciliation of Adjusted EBITDAX to Net Income (Loss)
Reconciliation of Adjusted EBITDAX to Net Income (Loss) Adjusted EBITDAX Reconciliation1 FY’22 FY’23 ($ in thousands, unless specified) Q1 Q2 Q3 Q4 FY’22 Q1 Net income (loss) attributable to Class A Common Stock $15,802 $191,826 $224,359 $83,050 $515,037 $102,120 Net income (loss) attributable to no
Slide 18: Reconciliation of Free Cash Flow and Adjusted Free Cash Flow
Reconciliation of Free Cash Flow and Adjusted Free Cash Flow Free Cash Flow Reconciliation1 Free Cash Flow Reconciliation1 Based on Accrued Capital Expenditures Based on Cash Capital Expenditures Three Months Ended March 31, Three Months Ended March 31, ($ in thousands) 2023 2022 ($ in thousands) 20
Slide 19: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Adjusted Net Income Reconciliation1 Three Months Ended March 31, ($ in thousands) 2023 2022 Net income (loss) attributable to Class A Common Stock $102,120 $15,802 Net income (loss) attributable to noncontrolling interest $117,681 — Non-cash derivative (gain) lo
Slide 20: Reconciliation of Net Debt-to-LQA EBITDAX
Reconciliation of Net Debt-to-LQA EBITDAX Net Debt-to-LQA EBITDAX Reconciliation1 ($ in thousands) March 31, 2023 Long-term debt, net $2,042,916 Unamortized debt discount and debt issuance costs on senior notes 57,883 Long-term debt 2,100,799 Less: cash and cash equivalents (25,593) Net debt (Non-GA