Permian Resources (PR) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 production of 160.8 MBbls/d oil and 347.1 MBoe/d total, driven by operational efficiencies, well performance, and the Earthstone Merger.

• Increased full-year oil production guidance for the third consecutive quarter, now at 158.5 MBbls/d, with most of the increase from base business outperformance and Barilla Draw acquisition.

• Closed Barilla Draw acquisition, adding 29,500 net acres and 9,900 net royalty acres, further enhancing the asset base and operational scale.

• Announced a 150% increase in base dividend to $0.15/share and authorized a new $1B share repurchase program, replacing the prior $500M program.

• Maintained a strong balance sheet with ~$2.8B liquidity, undrawn revolver, and $272M cash, targeting investment grade credit ratings in 2025.

Financial highlights

• Q3 2024 oil and gas sales reached $1.22B, with adjusted EBITDAX of $905M, adjusted operating cash flow of $823M, and adjusted free cash flow of $303M.

• Net income attributable to Class A Common Stock was $386.4M, with total net income of $456.5M and diluted EPS of $0.53.

• Lease operating expense was $5.43/Boe, cash G&A $0.95/Boe, and GP&T $1.57/Boe, reflecting an industry-leading cost structure.

• Total debt was $4.21B, net debt $3.94B, and net debt-to-LQA EBITDAX was ~1.1x.

• Total assets as of September 30, 2024 were $16.6B, with total equity of $10.4B.

Outlook and guidance

• Raised 2024 oil production guidance to 158.5 MBbls/d and total production to 341.0 MBoe/d, reflecting 10% YoY oil growth.

• 2024 capex guidance remains $1.9–$2.1B, with ~270 gross wells planned and spending funded entirely from operating cash flows.

• Lease operating expense guidance: $5.50–$6.00/Boe; cash G&A: $0.90–$1.10/Boe.

• Lowered current income tax estimate to $10–$15M for FY'24.

• 2025 growth targeted in the 0%-10% range, with final guidance to be provided in February.