Permian Resources Corporation · NYSE:PR
Permian Resources — Q3 2022 Earnings Presentation
20 slides from Permian Resources's earnings presentation, Nov 8, 2022
Slide 1: Q3 2022 Earnings Presentation
NOVEMBER 8, 2022 Q3 2022 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 Premier Delaware ~180,000 net acres, ~40,000 net royalty acres and PR Key Statistics Basin Pure-Play ~157,500 Boe/d of FY 2023E production1 Eddy E&P Company Scaled cash flow base and balance sheet provide incr
Slide 4: Permian Resources Q3'22 Highlights
Permian Resources Q3’22 Highlights Q3’22 Financial Summary Production Overview Average Daily Production (Boe/d) 92,003 Average Daily Oil Production (Bo/d) 48,499 • Closed transformational merger of equals between Centennial and % Oil 53% Colgate on September 1st, creating $8.5bn Permian Basin pure-p
Slide 5: Differentiated Size and Scale in the Premier Oil Basin
Differentiated Size and Scale in the Premier Oil Basin Significant Low-Cost Scaled Oil Production Differentiated Acreage Production Base Supports Strong Margins Position in the Permian 2023E Total Production (Mboe/d) 2023E Oil Production (Mbo/d) Permian Basin Net Acres (# 000s) 180 82 158 PDCE CHRD
Slide 6: Initiating Dividend Program with Q3 2022 Base Dividend
Initiating Dividend Program with Q3 2022 Base Dividend Inaugural Base Dividend Base Dividend Yield (%) 1 Declared inaugural $0.05 per share quarterly 3.1% dividend in Q3 2022 ($0.20 per share annually) 2.8% • Dividend will be paid on November 29 th, to shareholders of record as of November 21st 2.0%
Slide 7: Return of Capital Program Overview
Return of Capital Program Overview PR Shareholder Returns Framework Illustrative Return Mechanics PR Quarterly FCF Variable Return of Capital - Base Dividend Base Dividend Expected to begin Q1’231 Excess Free Cash Flow Variable Return of at least 50% of free cash flow after x Payout Ratio (50%) $0.0
Slide 8: Meaningful Cost Savings & Operational Synergies
Meaningful Cost Savings & Operational Synergies Tangible Synergy Combining Best Practices to Drive Cost Savings Realization P • Implementing D&C design changes to reduce cycle times and well costs Targeting ~$65mm of • Applied shared best practices, including new bottom hole assembly annual cost syn
Slide 9: Strong Balance Sheet Supports Business Plan and Shareholders
Strong Balance Sheet Supports Business Plan and Shareholders Overview PR Capital Structure Overview (as of 9/30/22) Permian Resources is committed to maintaining a strong balance sheet Actual with significant financial flexibility ($, millions) 9/30/22 Cash and cash equivalents $45.5 Closed on a
Slide 10: Maturity Profile Provides Financial Flexibility
Maturity Profile Provides Financial Flexibility Permian Resources Debt Maturity Profile ($mm)1 $2,500 Borrowing Base RBL Borrowings $1,500 Elected 5.375% Notes due 2026 Commitments 7.750% Notes due 2026 6.875% Notes due 2027 3.250% Convert. Notes due 2028 5.875% Notes due 2029 Staggered maturity p
Slide 11: Proactively Managing Natural Gas Pricing and Transportation
Proactively Managing Natural Gas Pricing and Transportation FY 2023E Residue Gas Price Exposure Proactive Management P Advantaged Pricing • Entered into a revised midstream contract in September to Expect ~33% of FY 2023 sell a significant portion of residue natural gas at Houston residue gas volume
Slide 12: Combined Focus on ESG Excellence
Combined Focus on ESG Excellence MINIMIZING OUR IMPACT BENEFITING COMMUNITIES Minimizing surface disturbance through comprehensive planning and We are dedicated to making positive impacts in the communities where we live reducing water usage through recycling are principal components of our and work
Slide 13: Establishing the Premier Permian Pure-Play
Establishing the Premier Permian Pure-Play Eddy Lea • Premier asset quality and inventory depth Delaware Basin • Significant operational & financial scale New Mexico • Disciplined, differentiated growth Loving Winkler Culberson Texas • Sustainable free cash flow generation Reeves • Accelerated, robu
Slide 14: Appendix
Appendix
Slide 15: Q4 2022 and FY 2023 Preliminary Outlook
Q4 2022 and FY 2023 Preliminary Outlook FY 2023 Overview FY 2023 Preliminary Outlook Currently operating an eight-rig drilling program and expect to reduce to a seven-rig program in November 2022 Total Production Oil Production Potential to reduce rig count during 2023, assuming expected operati
Slide 16: Differentiated Shareholder Alignment
Differentiated Shareholder Alignment % of Total Equity Owned by CEO1 Permian Resources has adopted a performance-focused compensation 8% philosophy, driving differentiated shareholder alignment 7% Significant senior leadership insider ownership: 6% Significant CEO ownership of ~6% One of the lar
Slide 17: Quarterly Financial Results
Quarterly Financial Results Financial Summary ($mm, unless otherwise noted)1 FY 2021 FY 2022 ($ in millions, unless specified) Q1 Q2 Q3 Q4 FY 2021 Q1 Q2 Q3 Average Daily Production (Boe/d) 54,202 61,647 65,121 62,649 60,939 61,359 70,240 92,003 Average Daily Oil Production (Bo/d) 28,239 31,912 33,52
Slide 18: Hedge Book Overview
Hedge Book Overview Hedge Position Detail FY 2022 FY 2023 FY 2024 Q4 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 WTI Fixed Price Swaps Total Volume (Bbl) 2,530,000 1,575,000 1,592,500 1,472,000 1,472,000 6,111,500 1,092,000 1,092,000 1,104,000 1,104,000 4,392,000 Daily Volume (Bbl/d) 27,500 17,500 17,500 16,0
Slide 19: Reconciliation of Adjusted EBITDAX to Net Income (Loss)
Reconciliation of Adjusted EBITDAX to Net Income (Loss) Adjusted EBITDAX Reconciliation ($ thousands)1 FY 2022 ($ in thousands, unless specified) FY 2021 Q1 Q2 Q3 Net income (loss) attributable to Class A Common Stock $138,175 $15,802 $191,826 $224,359 Net income (loss) attributable to noncontrollin
Slide 20: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Free Cash Flow Reconciliation ($ thousands)1 Three Months Ended September 30, ($ in thousands) 2022 2021 Net cash provided by operating activities $388,277 $153,507 Changes in working capital: Accounts receivable ($55,998) $9,515 Prepaid and other assets ($6,163) ($1,81