Permian Resources Corporation · NYSE:PR
Permian Resources — Q1 2024 Earnings Presentation
22 slides from Permian Resources's earnings presentation, May 7, 2024
Slide 1: Q1'24 Earnings Presentation
M AY 7 , 2 0 2 4 Q1’24 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 >400,000 net acres, ~75,000 net royalty acres and Premier Delaware PR Key Statistics ~320 MBoe/d of FY’24E production1 Basin Pure-Play Scale and balance sheet strength provide flexibility to E&P Company quickl
Slide 4: Q1'24 is Permian Resources' Best Quarter to-Date
Q1’24 is Permian Resources’ Best Quarter to-Date P Production Outperformance Due to Accelerated Earthstone Efficiencies and Continued Strong Well Results P Robust Free Cash Flow Driven by Operational Execution and Realization of Cost Synergies P Earthstone Integration Completed Ahead of Schedule (<6
Slide 5: Permian Resources Financial and Operational Highlights
Permian Resources Financial and Operational Highlights Q1’24 Highlights Production Overview Q1’24 Total Production (MBoe/d) 319.5 • Reported crude oil and total average production of 151.8 MBbls/d Oil Production (MBbls/d) 151.8 and 319.5 MBoe/d (~48% oil) during the quarter % Oil / % Liquids 48% / 7
Slide 6: Continued Execution on Capital Return Strategy
Continued Execution on Capital Return Strategy Q1’24 Return of Capital PR Total Return of Capital Q1’24 P BASE DIVIDEND ($’s in millions, except per share data) • Base dividend paid quarterly at $0.06 per share PR Adj. Free Cash Flow1 $324 • Represents 20% increase from previous quarter base dividen
Slide 7: Efficiencies Across Combined Asset Base Help Drive Production Outperformance
Efficiencies Across Combined Asset Base Help Drive Production Outperformance PR has improved D&C efficiencies while maximizing operational runtime, contributing to accelerated activity and robust Q1’24 production performance Drilling Efficiencies Completion Efficiencies Production Downtime Days per
Slide 8: Earthstone Synergy Capture Continues to Exceed Expectations
Earthstone Synergy Capture Continues to Exceed Expectations High-Grading of ESTE Rigs and Fleets Complete LOE & Midstream Improvements Expanding Margins Q1’24 Synergy Update: Active ESTE Rigs / Frac Fleets (Since Closing) ($ / Boe) D&C cost reductions currently exceeding 6 original underwriting ES
Slide 9: Increasing Earthstone Annual Synergies by $50 MM to $225 MM
Increasing Earthstone Annual Synergies by $50 MM to $225 MM Primary Synergies Synergies Timing / Value Category Updated Commentary Timing Annual Value • PR’s peer-leading costs implemented across combined asset base P DC&F Complete Increasing >40% • Reduced legacy Earthstone well costs by ~15% to da
Slide 10: Strategic Bolt-Ons & Continued Ground Game Execution Drive Shareholder Value
Strategic Bolt-Ons & Continued Ground Game Execution Drive Shareholder Value PR announced two bolt-on acquisitions located in Eddy County and ~150 grassroots transactions PR Recent Acquisitions Maps BOLT-ON ACQUISITIONS • During Q1’24, PR closed one bolt-on acquisition and signed a definitive agreem
Slide 11: Revised 2024 Guidance Summary
Revised 2024 Guidance Summary Full Year Standalone Guidance Summary Updated Standalone Oil Guidance (MBbls/d)1 • Increasing standalone production guidance ranges to 148 - 152 MBbl/d and 310 - 330 MBoe/d 150.0 – ~2% increase to oil production – ~2% increase to total production 2.5 • No other changes
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 >$10 B market cap since its formation… versus peers 14.4x Total Shareholder Return Since MOE EV / 2024E E
Slide 13: Appendix
Appendix
Slide 14: Permian Resources Q1'24 Operational and Financial Overview
Permian Resources Q1’24 Operational and Financial Overview Market Statistics ($’s in MM, except per share data) Pre-Hedge Realizations Common Shares Outstanding (4/30/24) 769.9 Oil (per Bbl) $76.13 Share Price (5/3/24) $16.93 Natural Gas (per Mcf)2 $1.24 Market Capitalization $13,035 NGL (per Bbl)2
Slide 15: Revised Standalone 2024 Guidance Detail
Revised Standalone 2024 Guidance Detail Revised Standalone Commentary Additional Commentary FY’24 Guidance Anticipate full year production to be slightly Production weighted towards H1’24, given acceleration of Net Average Daily Production (Boe/d) 310,000 - 330,000 • Oil and total production incre
Slide 16: Strong Balance Sheet Supports Business Plan and Shareholder Returns
Strong Balance Sheet Supports Business Plan and Shareholder Returns Overview Capital Structure Overview ($ MM) Committed to maintaining a strong balance sheet with significant financial flexibility Pro Forma3 Recently completed regularly scheduled bank redetermination 3/31/24 Capitalization2 – E
Slide 17: Hedge Book Overview (as of April 30, 2024)
Hedge Book Overview (as of April 30, 2024) Bal. 2024 FY 2025 FY 2026 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 Q4 2026 WTI Fixed Price Swaps Total Volume (Bbl) 3,612,500 3,634,000 3,634,000 10,880,500 2,250,000 2,275,000 2,300,000 2,300,000 9,125,000 405,000 409,500 414,000 414,000 1,642,500 Daily Vol
Slide 18: Focus on ESG Excellence
Focus on ESG Excellence ENVIRONMENTAL SOCIAL GOVERNANCE REDUCING EMISSIONS DIVERSITY SHAREHOLDER ALIGNMENT Continued focus on further reduction in GHG emissions We are committed to a diverse workforce because we Our performance-focused compensation intensity through the elimination of routine flarin
Slide 19: Reconciliation of Adjusted EBITDAX to Net Income
Reconciliation of Adjusted EBITDAX to Net Income Adjusted EBITDAX Reconciliation1 FY’23 FY’24 ($ in thousands, unless specified) Q1 Q2 Q3 Q4 FY’23 Q1 Net income attributable to Class A Common Stock $102,120 $73,399 $45,433 $255,354 $476,306 $146,575 Net income attributable to noncontrolling interest
Slide 20: Reconciliation of Adjusted Operating Cash Flow and Adjusted Free Cash Flow
Reconciliation of Adjusted Operating Cash Flow and Adjusted Free Cash Flow Adjusted Operating Cash Flow and Adjusted Free Cash Flow Reconciliation1 Based on Cash Capital Expenditures Three Months Ended March 31, (in thousands, except per share data) 2024 2023 Net cash provided by operating activitie
Slide 21: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Adjusted Net Income Reconciliation1 Three Months Ended March 31, ($ in thousands) 2024 2023 Net income attributable to Class A Common Stock $146,575 $102,120 Net income attributable to noncontrolling interest 83,020 117,681 Non-cash derivative (gain) loss 128,47
Slide 22: Reconciliation of Net Debt-to-LQA EBITDAX
Reconciliation of Net Debt-to-LQA EBITDAX Net Debt-to-LQA EBITDAX Reconciliation1 ($ in thousands) March 31, 2024 Long-term debt, net $3,909,418 Unamortized debt discount, premium and issuance costs on senior notes 16,381 Long-term debt 3,925,799 Less: cash and cash equivalents (12,692) Net debt (No