Permian Resources Corporation · NYSE:PR
Permian Resources — Q2 2023 Earnings Presentation
21 slides from Permian Resources's earnings presentation, Aug 2, 2023
Slide 1: Q2'23 Earnings Presentation
AUGUST 2, 2023 Q2’23 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 PR Key Statistics Premier Delaware ~162 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 Q2'23 Highlights
Permian Resources Q2’23 Highlights Q2’23 Activity and Financial Summary Production Overview Actual Total Production (MBoe/d) 165.9 Oil Production (MBbls/d) 84.4 • Increased both crude oil and total average production by 8% quarter-over- % Oil 51% quarter to 84.4 MBbls/d and 165.9 MBoe/d % Liquids 72
Slide 5: Continued Execution on Capital Return Strategy
Continued Execution on Capital Return Strategy Q2’23 Return of Capital: P BASE DIVIDEND Total Return of Capital Q2’23 • Base dividend paid quarterly at $0.05 per share ($’s in millions, except per share data) • Commitment to sustainable base dividend growth Adj. Free Cash Flow1,2 $80 P VARIABLE DIVI
Slide 6: High Quality, Long Dated Inventory Drives Advantaged Productivity
High Quality, Long Dated Inventory Drives Advantaged Productivity 1 2 Permian Resources – Average Cumulative Oil Production1 (MBo) Consistent Focused on (Includes all PR Wells Placed on Production in FY’22 and H1’23) Development Primary Delaware Philosophy Basin Zones 90 YTD well results generating
Slide 7: Driving Operational Efficiencies To Maximize Value Creation
Driving Operational Efficiencies To Maximize Value Creation Overview Operated Rig Count (Avg.) Since closing the merger in Q3’22, Permian Resources has successfully combined best practices to realize cost savings and drive operational 8 synergies, while demonstrating strong execution in the field
Slide 8: Optimizing G&A to Drive Efficiency
Optimizing G&A to Drive Efficiency Overview Cash G&A1 ($ / Boe) Delivered significant reductions in G&A per Boe $2.89 post-merger $1.92 $2.03 Continued focus on low-cost leadership as seen $1.84 in latest cash G&A costs $1.17 $1.38 $1.40 Maintain optimized, lean organizational structure $0.51
Slide 9: Strong Balance Sheet Supports Business Plan and Shareholder Returns
Strong Balance Sheet Supports Business Plan and Shareholder Returns Overview PR Capital Structure Overview Actual Committed to maintaining a strong balance sheet with significant financial flexibility ($ mm) 6/30/23 – In April, credit facility borrowing base was reaffirmed at $2.5 billion and main
Slide 10: Delivering on Key Objectives
Delivering on Key Objectives 1 Executing on production growth plan 2 Delivering robust shareholder returns framework Oil Production (MBo/d) Cumulative Total Return of Capital2 On track to achieve: ($ / share) P $0.05 per share 84.4 $0.35 base dividend +8% $0.05 78.3 P Q4’22 to Q4’23 oil $0.25 ≥50% o
Slide 11: Compelling Value Proposition Continues with Premier Assets
Compelling Value Proposition Continues with Premier Assets PR equity has outperformed Permian peers and key …And still provides significant upside to its valuation indices since closing the merger… versus peers Total Shareholder Return Since Merger EV / 2023E EBITDAX 14.3x 44% (8/31/2022 – 8/1/2023)
Slide 12: Appendix
Appendix
Slide 13: Q2'23 Financial Summary
Q2’23 Financial Summary Market Statistics ($’s in mm, except per share data) Per Share Key Statistics ($’s in mm, except per share data) Total (Basic) Common Shares Outstanding (7/31/23) 566.0 Share Price (8/1/23) $11.66 Total Oil and Gas Revenue $623.4 - Market Capitalization $6,599 Adjusted EBITDA
Slide 14: 2023 Guidance
2023 Guidance FY’23 Overview FY’23 Guidance Currently operating a 6-rig program, representing a Production reduction from ~7 rigs in H1’23 as a result of realized operational synergies Net Average Daily Production (Boe/d) 155,000 - 168,000 Maintaining ~150 TILs Net Average Daily Oil Production (
Slide 15: Focus on ESG Excellence
Focus on ESG Excellence ENIVRONMENTAL SOCIAL GOVERNANCE REDUCING EMISSIONS BENEFITING COMMUNITIES SHAREHOLDER ALIGNMENT Continued focus on further reduction in GHG emissions We are dedicated to making positive impacts in the Our performance-focused compensation intensity through the elimination of r
Slide 16: Hedge Book Overview
Hedge Book Overview Hedging Philosophy Crude Oil Hedge Position2 26,000 (Bbls/d) 7,000 • Protect the balance sheet, cash flow, 17,000 17,000 continuity of operations and shareholder WTI Collars returns WTI Swaps 19,000 5,000 5,000 • Ensure business is in a position to be opportunistic during downcyc
Slide 17: Hedge Book Overview
Hedge Book Overview1 Hedge Position Detail Bal. 2023 FY 2024 FY 2025 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 WTI Fixed Price Swaps Total Volume (Bbl) 1,748,000 1,748,000 3,496,000 1,547,000 1,547,000 1,564,000 1,564,000 6,222,000 450,000 455,000 460,000 460,000 1,825,000 Daily Volume (Bbl/d) 19
Slide 18: Reconciliation of Adjusted EBITDAX to Net Income (Loss)
Reconciliation of Adjusted EBITDAX to Net Income (Loss) Adjusted EBITDAX Reconciliation1 FY’22 FY’23 ($ in thousands, unless specified) Q1 Q2 Q3 Q4 FY’22 Q1 Q2 Net income (loss) attributable to Class A Common Stock $15,802 $191,826 $224,359 $83,050 $515,037 $102,120 $73,399 Net income (loss) attribu
Slide 19: Reconciliation of Free Cash Flow and Adjusted Free Cash Flow
Reconciliation of Free Cash Flow and Adjusted Free Cash Flow Free Cash Flow Reconciliation1 Free Cash Flow Reconciliation1 Based on Accrued Capital Expenditures Based on Cash Capital Expenditures Three Months Ended June 30, Three Months Ended June 30, ($ in thousands) 2023 2022 ($ in thousands) 2023
Slide 20: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Adjusted Net Income Reconciliation1 Three Months Ended June 30, ($ in thousands) 2023 2022 Net income (loss) attributable to Class A Common Stock $73,399 $191,826 Net income (loss) attributable to noncontrolling interest 75,555 — Non-cash derivative (gain) loss
Slide 21: Reconciliation of Net Debt-to-LQA EBITDAX
Reconciliation of Net Debt-to-LQA EBITDAX Net Debt-to-LQA EBITDAX Reconciliation1 ($ in thousands) June 30, 2023 Long-term debt, net $2,060,070 Unamortized debt discount and debt issuance costs on senior notes 55,729 Long-term debt 2,115,799 Less: cash and cash equivalents (18,280) Net debt (Non-GAA