Permian Resources Corporation · NYSE:PR
Permian Resources — Q2 2024 Earnings Presentation
22 slides from Permian Resources's earnings presentation, Aug 6, 2024
Slide 1: Q2'24 Earnings Presentation
August 6, 2024 Q2’24 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 ~450,000 net acres, ~85,000 net royalty acres and Premier Delaware PR Key Statistics ~325 MBoe/d of FY’24E production Basin Pure-Play Scale and balance sheet strength provide flexibility to E&P Company create
Slide 4: Permian Resources Financial and Operational Highlights
Permian Resources Financial and Operational Highlights Q2’24 Highlights Production Overview Q2’24 • Reported crude oil and total average production of 152.9 MBbls/d and 338.8 MBoe/d during Total Production (MBoe/d) 338.8 the quarter Oil Production (MBbls/d) 152.9 • Announced cash capital expenditure
Slide 5: Operational Momentum Continues
Operational Momentum Continues Permian Resources has continued to drive operational efficiencies and reduce per unit costs, while fully integrating the Earthstone assets D&C Cost Controllable Cash Costs Other Initiatives $ per Lateral Foot $ per Boe Continue to Optimize All Processes LOE GP&T Cash G
Slide 6: Continued Execution on Capital Return Strategy
Continued Execution on Capital Return Strategy Q2’24 Return of Capital PR Total Return of Capital Q2’24 BASE DIVIDEND ($’s in millions, except per share data) • Quarterly base dividend of $0.06 per share Adj. Free Cash Flow1 $332 VARIABLE DIVIDEND Base Dividend ($ / Share) $0.06 • Variable divid
Slide 7: Barilla Draw Acquisition Adds to Core Delaware Position, Drives Long Term Value
Barilla Draw Acquisition Adds to Core Delaware Position, Drives Long Term Value On July 29th, Permian Resources announced the acquisition of high-quality acreage and >200 Acquired Acreage Locator Map locations, directly offset its core positions in both Texas and New Mexico • Purchase price of $817.
Slide 8: Strong Balance Sheet Supports Business Plan
Strong Balance Sheet Supports Business Plan Overview Debt Maturity Profile ($ MM) 1,2 PR is committed to maintaining a strong balance sheet Note Maturities Commited RBL Borrowing Base – In July 2024, issued $1.0 B of 6.250% senior notes due 2033 to fund a portion of $4,500 Barilla Draw acquisition
Slide 9: Consistent Financial Strategy Has PR on Path to Investment Grade
Consistent Financial Strategy Has PR on Path to Investment Grade Financial Strength Financial Highlights PR has maintained a consistent leverage profile since formation, while executing over ~$6 billion of accretive acquisitions and On path to ~1x Net Debt increasing FCF per share by ~65% since Q1
Slide 10: Revised 2024 Guidance Summary
Revised 2024 Guidance Summary Full Year Standalone Guidance Summary 2024 Revised Oil Guidance (MBbls/d)1 • Increasing standalone production guidance ranges to PR has increased its original FY’24 oil guidance by ~3% 151 – 153 MBbls/d and 320 – 330 MBoe/d – ~1.3% increase to oil production 152.0 152.0
Slide 11: 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 >$10 B market cap since its formation… versus peers Total Shareholder Return Since MOE 13.3x EV / 2025E E
Slide 12: Appendix
Appendix
Slide 13: Permian Resources Q2'24 Operational and Financial Overview
Permian Resources Q2’24 Operational and Financial Overview Pro Forma Market Statistics (Data in MM, except per share data)1 Per Share Q2’24 Key Statistics ($’s in MM, except per share data) Total (Basic) Common Shares Outstanding 802.5 Share Price (8/2/24) $13.82 Total Oil and Gas Revenue $1,246.1 -
Slide 14: Revised Standalone 2024 Guidance Detail
Revised Standalone 2024 Guidance Detail Revised Standalone Commentary Impact of Acquisition FY’24 Guidance Production Recently announced Barilla Draw acquisition is expected to add ~15 MBoe/d (~55% oil) during • Oil and total production increased by Net Average Daily Production (Boe/d) 320,000 - 3
Slide 15: Barilla Draw Exhibits Strong Industrial Logic in PR's Portfolio
Barilla Draw Exhibits Strong Industrial Logic in PR’s Portfolio 1 Blocky Bolt-On Directly Offset Existing Assets Barilla Draw Acreage Map (Texas) • Acreage well-situated for highly economic, long-lateral development • Proximity to PR acreage enables seamless integration, driving meaningful operation
Slide 16: Hedge Book Overview
Hedge Book Overview Crude Oil Hedge Position (Bbls/d)2 Hedging Philosophy 45,247 43,000 43,000 • Protect the balance sheet, cash flow, continuity of WTI Puts operations and shareholder returns WTI Collars 17,500 17,500 WTI Swaps • Ensure business is in a position to be opportunistic H2’24 H1’25 H2’2
Slide 17: Focus on ESG Excellence
Focus on ESG Excellence ENVIRONMENTAL SOCIAL GOVERNANCE REDUCING EMISSIONS DIVERSITY SHAREHOLDER ALIGNMENT Continued focus on further reduction in GHG emissions We are committed to a diverse workforce because we Our performance-focused compensation intensity through the elimination of routine flarin
Slide 18: Hedge Book Overview (as of July 31, 2024)
Hedge Book Overview (as of July 31, 2024) Bal. 2024 FY 2025 FY 2026 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 Q4 2026 WTI Fixed Price Swaps Total Volume (Bbl) 3,725,500 3,772,000 7,497,500 3,870,000 3,913,000 3,956,000 3,956,000 15,695,000 1,575,000 1,592,500 1,610,000 1,610,000 6,387,500 Daily Volume (B
Slide 19: Reconciliation of Adjusted EBITDAX to Net Income
Reconciliation of Adjusted EBITDAX to Net Income Adjusted EBITDAX Reconciliation1 FY’23 FY’24 ($ in thousands, unless specified) Q1 Q2 Q3 Q4 FY’23 Q1 Q2 Net income attributable to Class A Common Stock $102,120 $73,399 $45,433 $255,354 $476,306 $146,575 $235,100 Net income attributable to noncontroll
Slide 20: Reconciliation of Adjusted Operating Cash Flow and Adjusted Free Cash Flow
Reconciliation of Adjusted Operating Cash Flow and Adjusted Free Cash Flow Adjusted Operating Cash Flow and Adjusted Free Cash Flow Reconciliation1 Based on Cash Capital Expenditures Three Months Ended June 30, (in thousands, except per share data) 2024 2023 Net cash provided by operating activities
Slide 21: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Adjusted Net Income Reconciliation1 Three Months Ended June 30, ($ in thousands) 2024 2023 Net income attributable to Class A Common Stock $235,100 $73,399 Net income attributable to noncontrolling interest 73,808 75,555 Non-cash derivative (gain) loss (6,734) 1
Slide 22: Reconciliation of Net Debt-to-LQA EBITDAX
Reconciliation of Net Debt-to-LQA EBITDAX Net Debt-to-LQA EBITDAX Reconciliation1 ($ in thousands) June 30, 2024 Long-term debt, net $3,872,077 Unamortized debt discount, premium and issuance costs on senior notes 12,371 Long-term debt 3,884,448 Less: cash and cash equivalents (47,849) Net debt (Non