Permian Resources Corporation · NYSE:PR
Permian Resources — Q3 2024 Earnings Presentation
22 slides from Permian Resources's earnings presentation, Nov 6, 2024
Slide 1: Q3'24 Earnings Presentation
November 6, 2024 Q3’24 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 ~340 MBoe/d of FY’24E production Basin Pure-Play Scale and balance sheet strength provide flexibility to E&P Company quickly
Slide 4: Permian Resources Financial and Operational Highlights
Permian Resources Financial and Operational Highlights Q3’24 Highlights Q3’24 Key Metrics • Reported crude oil and total average production of 160.8 MBbls/d and 347.1 Oil (MBbls/d) 160.8 MBoe/d during the quarter Natural Gas (MMcf/d) 603.2 • Announced cash capital expenditures of $520 MM, cash provi
Slide 5: PR's Strategy is Driven by Focus on Long Term Value Creation
PR’s Strategy is Driven by Focus on Long Term Value Creation PR Then vs Now PR’s Strategic Value Drivers Have Remained Consistent Oil Production (MBbls/d) 161 ~105% • Delivered production per share 78 growth of ~1.5x through balance of high-return organic growth and accretive M&A Q1'23 Q3'24 Delawar
Slide 6: D&C Efficiencies Driving Reduced Cycle Times and Lower Well Costs
D&C Efficiencies Driving Reduced Cycle Times and Lower Well Costs Overview Drilling Efficiencies Completions Efficiencies1 Drilling and Completions teams delivered record performance during Spud to Rig Release Days (Avg.) Pumping Hours per Day (Avg.) Q3’24, building on track record of efficiency i
Slide 7: PR Midstream and Marketing – Solid Foundation with Meaningful Upside
PR Midstream and Marketing – Solid Foundation with Meaningful Upside PR’s current netbacks are in-line with Optimizing netbacks is a key focus for PR Multiple levers for continued optimization peers but with room for improvement • Initial midstream strategy was focused on low fees • PR has ability t
Slide 8: Updated Return of Capital Policy Provides Leading Base Dividend Yield
Updated Return of Capital Policy Provides Leading Base Dividend Yield Overview Base Dividend Yield (%)1 • On September 3rd, PR announced an increase to its quarterly base dividend to $0.15 / share ($0.60 / share annually) from $0.06 / share previously, while removing its formulaic 4.4% 4.2% 4.2% var
Slide 9: Strong Balance Sheet Supports Value Creation Through Cycles
Strong Balance Sheet Supports Value Creation Through Cycles PR is committed to maintaining a strong balance sheet Liquidity Profile ($ B) – Undrawn revolver and $272 MM of cash as of September 30th Note Maturities Cash Committed RBL Borrowing Base – In July 2024, issued $1.0 B of 6.25% senior note
Slide 10: Revised 2024 Guidance Summary
Revised 2024 Guidance Summary Full Year Guidance Summary 2024 Revised Oil Guidance (MBbls/d) • Increasing production guidance ranges to 158 – 159 MBbls/d and 340 – 342 MBoe/d 158.5 – ~4 MBbls/d of the increase driven by base business 2.4 outperformance with balance being Barilla Draw • Third consecu
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 peers with >$8 B market cap since its formation… valuation versus peers Total Shareholder Return Since Inception 17.8x EV / 20
Slide 12: Appendix
Appendix
Slide 13: Permian Resources Q3'24 Operational and Financial Overview
Permian Resources Q3’24 Operational and Financial Overview Market Statistics (Data in MM, except per share data) Per Share Key Statistics ($’s in MM, except per share data) Total (Basic) Common Shares Outstanding 803.4 Share Price (11/4/24) $13.73 Total Oil and Gas Revenue $1,215.6 Market Capitaliza
Slide 14: Revised 2024 Guidance Detail
Revised 2024 Guidance Detail Revised Commentary Additional Commentary FY’24 Guidance Production Expect $10 - $15 MM in current income tax for FY’241 Net Average Daily Production (Boe/d) 340,000 - 342,000 • Oil and total production increased by 4-5% due to strong operational performance, in additio
Slide 15: Hedge Book Overview
Hedge Book Overview Hedging Philosophy Crude Oil Hedge Position (Bbls/d) 45,500 43,000 43,000 • Protect the balance sheet, cash flow, continuity of WTI Puts operations and shareholder returns WTI Collars 17,500 17,500 WTI Swaps • Ensure business is in a position to be opportunistic during downcycles
Slide 16: Focus on ESG Excellence
Focus on ESG Excellence ENVIRONMENTAL SOCIAL GOVERNANCE REDUCING EMISSIONS DIVERSITY SHAREHOLDER ALIGNMENT Continued focus on further reduction in GHG emissions We are committed to a diverse workforce because we Our performance-focused compensation intensity through the elimination of routine flarin
Slide 17: Hedge Book Overview (as of October 31, 2024)
Hedge Book Overview (as of October 31, 2024) Bal. 2024 FY 2025 FY 2026 Q4 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 Q4 2026 WTI Fixed Price Swaps Total Volume (Bbl) 3,772,000 3,772,000 3,870,000 3,913,000 3,956,000 3,956,000 15,695,000 1,575,000 1,592,500 1,610,000 1,610,000 6,387,500 Daily Volume (Bbl/d) 41,0
Slide 18: Reconciliation of Adjusted EBITDAX to Net Income
Reconciliation of Adjusted EBITDAX to Net Income Adjusted EBITDAX Reconciliation1 FY’23 FY’24 ($ in thousands, unless specified) Q1 Q2 Q3 Q4 FY’23 Q1 Q2 Q3 Net income attributable to Class A Common Stock $102,120 $73,399 $45,433 $255,354 $476,306 $146,575 $235,100 $386,376 Net income attributable to
Slide 19: Reconciliation of Adjusted Operating Cash Flow and Adjusted Free Cash Flow
Reconciliation of Adjusted Operating Cash Flow and Adjusted Free Cash Flow Adjusted Operating Cash Flow and Adjusted Free Cash Flow Reconciliation1 Based on Cash Capital Expenditures Three Months Ended September 30, (in thousands, except per share data) 2024 2023 Net cash provided by operating activ
Slide 20: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income Adjusted Net Income Reconciliation1 Three Months Ended September 30, ($ in thousands) 2024 2023 Net income attributable to Class A Common Stock $386,376 $45,433 Net income attributable to noncontrolling interest 70,151 52,896 Non-cash derivative (gain) loss (213
Slide 21: Reconciliation of Net Debt-to-LQA EBITDAX
Reconciliation of Net Debt-to-LQA EBITDAX Net Debt-to-LQA EBITDAX Reconciliation1 ($ in thousands) September 30, 2024 Long-term debt, net $4,184,259 Unamortized debt discount, premium and issuance costs on senior notes 25,189 Long-term debt 4,209,448 Less: cash and cash equivalents (272,026) Net deb
Slide 22: Reconciliation of Adjusted Basic and Diluted Shares
Reconciliation of Adjusted Basic and Diluted Shares Adjusted Shares Reconciliation1 Three Months Ended September 30, (in thousands) 2024 2023 Basic weighted average shares of Class A Common Stock outstanding 693,692 324,650 Weighted average shares of Class C Common Stock 100,670 241,340 Adjusted bas