Permian Resources (PR) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered record operational performance, with production reaching 338.8 MBoe/d and oil at 152.9 MBbls/d, driven by efficiency gains and higher ethane recovery.

• Adjusted free cash flow was $332 million, with $193 million returned to shareholders via dividends and share repurchases.

• The Barilla Draw acquisition from Oxy for $817.5 million adds 29,500 net acres, over 200 locations, and 15,000 Boe/d, enhancing inventory and future free cash flow.

• Integration of recent acquisitions, including Earthstone and bolt-ons, is complete, aligning cost structures and operational performance.

• Balance sheet remains strong with ~1x net debt to EBITDAX and ~$2.5 billion in liquidity.

Financial highlights

• Q2 2024 oil production was 153,000 barrels per day; total production was 339,000 BOE per day.

• Oil and gas sales reached $1.25 billion, with adjusted EBITDAX of $928 million and adjusted net income of $297 million.

• Adjusted operating cash flow was $849 million; adjusted free cash flow was $332 million ($0.43/share).

• Lease operating expense was $5.18/Boe, with controllable cash costs down 8% sequentially.

• CapEx for the quarter was $516 million, with well costs at $830/ft, down 13% year-over-year.

Outlook and guidance

• Full-year oil production guidance raised to 151–153 MBbls/d and 320–330 MBoe/d, a ~1.5% increase from initial guidance.

• 2024 CapEx guidance maintained at $1.9–$2.1 billion.

• Barilla Draw acquisition expected to close late Q3, adding ~15,000 Boe/d in Q4 2024; not yet reflected in full-year guidance.

• Production profile expected to remain flat in the second half, with growth in Q4 from the acquisition.