Permian Resources Corporation · NYSE:PR
Permian Resources — Barclays CEO Energy-Power Conference 2022
22 slides from Permian Resources's conference presentation, Sep 6, 2022
Slide 1: Barclays CEO Energy-Power Conference
SEPTEMBER 6, 2022 Barclays CEO Energy-Power Conference
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: Management Introduction
Management Introduction Will Hickey Colgate Execution Track Record Co-Chief Executive Officer • Opportunistic, value-driven approach to strategic Built Core Delaware transactions • Previously President, Co-CEO and Co- Founder of Colgate Energy Position • Executed 5 large acquisitions, 100+ bolt-on a
Slide 4: Colgate Value Creation History
Colgate Value Creation History 1 Colgate’s Select A&D / Trade Partners Consistently among best results in Permian Basin New Mexico Counterparties Execution (6-mo Cumulative Boe/ft)1 20.2 20.1 Track Record 19.3 18.5 Among the 15.1 11.8 Penroc Oil Best in the 10.9 10.4 Eddy Lea Chi Operating Permian E
Slide 5: Colgate's Track Record of Delivering Consistent, Differentiated Returns
Colgate’s Track Record of Delivering Consistent, Differentiated Returns P P Cash P GAAP-Based Total Shareholder Returns Returns Returns >$420MM of dividends from inception to ~55% IRR and ~8x MOIC from initial Generated ~24% Return on Capital announcement, representing >150% of investment in Decembe
Slide 6: Merger of Equals Rationale for Centennial and Colgate
Merger of Equals Rationale for Centennial and Colgate Combined Business Uniquely Positioned to Drive Value Creation ✓ Robust free cash flow generation ✓ Positioned to deliver significant shareholder returns ✓ Differentiated asset quality and inventory depth support attractive growth profile and robu
Slide 7: Permian Resources Company Overview
Permian Resources Company Overview Largest pure-play Delaware Basin E&P company with ~180,000 net acres, ~40,000 net royalty acres and ~157,500 Premier Delaware New Mexico Boe/d of FY 2023E production1 Eddy Basin Pure-Play E&P Scaled cash flow base and balance sheet provide increased Company fle
Slide 8: Mission Statement and Vision
Mission Statement and Vision Our Mission: To deliver leading shareholder returns by leveraging our high- quality asset base and technical expertise to sustainably and responsibly develop our oil and natural gas resources to meet the world’s need for affordable, abundant energy. Our Vision: To be the
Slide 9: Differentiated Shareholder Alignment
Differentiated Shareholder Alignment % of Total Equity Owned by CEO1,2 Permian Resources has adopted a performance-focused compensation 8% philosophy, driving differentiated shareholder alignment 7% Differentiated alignment across the organization: Significant senior leadership insider ownership:
Slide 10: FY 2023 Preliminary Outlook
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 Total Production Oil Production Potential to reduce rig count during the year, assuming expected operational efficien
Slide 11: Meaningful Cost Savings & Operational Synergies
Meaningful Cost Savings & Operational Synergies Combining Best Practices to Drive Cost Savings Tangible Synergy Realization • Implementing D&C design changes to reduce Targeting ~$65mm of annual overall cycle times and lower well costs cost synergies across D&C capital, LOE and G&A • Leveraging comp
Slide 12: Return of Capital Program Overview
Return of Capital Program Overview Peer Leading Return of Capital Program Illustrative Return Mechanics 1) Base quarterly dividend of $0.05 per share (~$116mm annually) to be paid on an Definition ongoing basis effective immediately (paid in Q4 2022 following Q3 earnings) Quarterly FCF - Base Divide
Slide 13: Return of Capital Program Benchmarking
Return of Capital Program Benchmarking Base Dividend Yield (%) Robust Return of Capital with the 3.5% Resiliency to Endure Through Cycles 2.8% 2.5% 2.2% • Base dividend yield of ~2.5% at the top of 2.1% 2.0% 1.8% 1.7% the E&P peer group and above the S&P 500 average 1.0% 0.7% 0.0% -- -- -- • Resilie
Slide 14: 2023 Free Cash Flow & Shareholder Return Outlook
2023 Free Cash Flow & Shareholder Return Outlook Free Cash Flow Target FY 2023 Free Cash Flow & Uses of Cash Overview Expect to generate $1.1 - $1.3bn of free cash >$2.4bn flow in FY 2023 Free cash flow highly resilient to commodity price ~$1.2bn volatility ~$1.1bn - $1.3bn ~$116mm Incremental V
Slide 15: Strong Balance Sheet Supports Business Plan and Shareholders
Strong Balance Sheet Supports Business Plan and Shareholders Overview Leverage Overview Permian Resources is committed to maintaining a ~0.9x strong balance sheet with significant financial flexibility < 0.9x ~ 0.5x – 1.0x Anticipate ~0.9x Net Debt / LQA EBITDAX at Q3’22 Long-term leverage tar
Slide 16: Commitment to ESG Excellence
Commitment to ESG Excellence MINIMIZING OUR IMPACT BENEFITTING COMMUNITIES Minimizing surface disturbance through We are dedicated to making positive impacts in the comprehensive planning and reducing water usage communities where we live and work, participating in through recycling are principal co
Slide 17: Establishing the Premier Permian Pure-Play
Establishing the Premier Permian Pure-Play Eddy New Mexico Lea • Premier asset quality and inventory depth Delaware Basin • Significant operational & financial scale Winkler • Disciplined, differentiated growth Culberson Loving Texas • Sustainable free cash flow generation Reeves Ward • Accelerated,
Slide 18: Appendix
Appendix
Slide 19: Hedge Book Overview
Hedge Book Overview Permian Resources Hedge Position Detail FY 2022 FY 2023 FY 2024 Q3 Q4 Bal. 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 WTI Fixed Price Swaps Total Volume (Bbl) 2,622,000 2,530,000 5,152,000 1,575,000 1,592,500 1,472,000 1,472,000 6,111,500 637,000 637,000 644,000 644,000 2,562,000 Dai
Slide 20: Transaction Review and Ownership Structure
Transaction Review and Ownership Structure Ownership Structure (Basic Shares Outstanding) Transaction Review On May 19, CDEV and Colgate announced a merger of equals transaction NGP On August 29, transaction overwhelming approved by ~22% Centennial shareholders Total consideration consisted of
Slide 21: Board of Directors Overview
Board of Directors Overview Sean Smith Maire Baldwin Karan Eves Steven Gray Executive Chairman Audit & Compensation Committees Audit & NESG Committees Compensation & NESG Committees Former Centennial director & CEO Former Centennial director since Current Chief Operating Officer of Former Co
Slide 22: Management Overview
Management Overview Will Hickey & James Walter Co-CEOs Kathleen Phillips Matt Garrison Robert Shannon George Glyphis John Bell Brandon Gaynor SVP, People Strategy & EVP, COO EVP, Corporate Services EVP, CFO EVP, General Counsel EVP, BD & Strategy Integration Casey McCain Colleen Proctor Brent Jensen
Permian Resources — Barclays CEO Energy-Power Conference 2022 on 6ix