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Permian Resources Announces Strong Fourth Quarter 2023 Results and Provides Highly Capital Efficient Full Year 2024 Plan

Permian Resources Corporation (“Permian Resources” or the “Company”) (NYSE: PR) today announced its fourth quarter and full year 2023 financial and operational results and 2024 operational plans.

Permian Resources’ full year and fourth quarter 2023 information discussed within this release includes results from Earthstone Energy, Inc. (“Earthstone”) for the months of November and December, unless otherwise specified.

Fourth Quarter 2023 Financial and Operational Highlights

  • Closed $4.5 billion Earthstone acquisition on November 1, enhancing Permian Resources’ position as the second largest Permian pure-play E&P with a >$15 billion enterprise value
    • Earthstone synergy capture ahead of schedule
  • Continued strong well performance combined with closing of the Earthstone acquisition drove crude oil and total average production to 137 MBbls/d and 285 MBoe/d
  • Decreased controllable cash costs by 8% quarter-over-quarter to $7.33 per Boe, driven primarily by lower LOE and continued focus on cost control
  • Announced accrued capital expenditures of $423 million and cash capital expenditures of $458 million
  • Reported net cash provided by operating activities of $846 million and adjusted free cash flow of $332 million (cash capital expenditures), or $0.47 per adjusted basic share
  • Delivered total return of capital of $183 million, or $0.24 per share:
    • Quarterly base dividend of $0.05 per share
    • Variable dividend of $0.10 per share
    • Repurchased 5.0 million shares for $67 million at an average weighted price of $13.32 per share
  • Since November 1, added ~14,000 net acres and ~5,300 net royalty acres located in the core of the Delaware Basin

Full Year 2023 Financial and Operational Highlights

  • Met or outperformed all of PR standalone’s guidance, significantly exceeding production targets while remaining within original budget on capex and controllable cash costs
  • Generated peer-leading total production growth per debt-adjusted share of ~35%
  • Delivered ~$324 million, or $0.47 per share, in dividends to shareholders
  • Repurchased 10.0 million shares for ~$125 million at an average weighted price of $12.46 per share
  • Replaced >100% of PR standalone’s developed locations in 2023 through successful portfolio optimization transactions, effectively increasing inventory life 

2024 Financial and Operating Plan

  • Announced highly capital efficient operating plan underpinned by consistent well performance, lower well costs and continued cost discipline
    • Crude oil and total average production guidance of 145 to 150 MBbls/d and 300 to 325 MBoe/d
    • Total cash capital expenditure budget of $1.9 to $2.1 billion
    • Total controllable cash costs of $7.40 to $8.60 per Boe
  • Increasing quarterly base dividend by 20% to $0.06 per share, as previously announced

Management Commentary

“In our first full year, Permian Resources had an outstanding 2023, accomplishing all our goals laid out last February. On a standalone basis, the Company delivered oil production at the high-end of our 2023 guidance range, while staying within our capex budget,” said Will Hickey, Co-CEO of Permian Resources. “During the fourth quarter, Permian Resources reported another strong quarter of production outperformance and operational improvements in the midst of closing the Earthstone acquisition. The combined team is exceeding expectations associated with the Earthstone integration and is on-track to reach key operational synergy run rates well ahead of the originally scheduled targets.”

“We are excited to announce our 2024 operational and financial plan, which combines consistent year-over-year well productivity with lower costs and other optimized key inputs to deliver even better capital efficiency than we realized in 2023,” said James Walter, Co-CEO of Permian Resources. “Most importantly, our 2024 plan allows us to maximize shareholder value by delivering industry leading per share annual growth across production, cash flow and free cash flow.”

Financial and Operational Results

Permian Resources continued the efficient development of its core Delaware Basin acreage position in the fourth quarter, delivering robust well results while successfully integrating the Earthstone acquisition. During the quarter, average daily crude oil production was 136,590 barrels of oil per day (“Bbls/d”), a 52% increase compared to the prior quarter. Fourth quarter total production averaged 285,161 barrels of oil equivalent per day (“Boe/d”).

“In addition to the contribution from incoming Earthstone production, our strong fourth quarter production results were driven by better than expected well performance and minimal production downtime despite winter weather,” said Will Hickey, Co-CEO. “For the full year 2023, our operations team delivered consistent well productivity year-over-year, demonstrating the quality of our high-return, long-dated inventory.”

In the fourth quarter, the Company continued to realize drilling and completions efficiencies while incorporating legacy Earthstone rigs and fleets into its program. Total cash and accrued capital expenditures (“capex”) for the fourth quarter were $458 million and $423 million, respectively.

Realized prices for the fourth quarter were $76.61 per barrel of oil, $1.50 per Mcf of natural gas and $21.57 per barrel of natural gas liquids (“NGLs”), excluding the effects of hedges and GP&T costs.

The Company demonstrated strong cost control in the fourth quarter, with total controllable cash costs (LOE, GP&T and cash G&A) decreasing 8% quarter-over-quarter to $7.33 per Boe. Fourth quarter LOE was $4.97 per Boe, GP&T was $1.19 per Boe and cash G&A was $1.17 per Boe, representing 8%, 9% and 2% decreases compared to the prior quarter, respectively.

For the fourth quarter, Permian Resources generated net cash provided by operating activities of $846 million and adjusted free cash flow1 of $332 million (or $367 million, utilizing accrued capex), or $0.47 per adjusted basic share.

Permian Resources continues to maintain a strong financial position and low leverage profile upon closing the Earthstone acquisition. At December 31, 2023, the Company had $73 million in cash on hand and no amounts drawn under its revolving credit facility. Net debt-to-LQA EBITDAX1 at December 31, 2023 was approximately 1x.

Earthstone Integration Update

On November 1, 2023, Permian Resources closed the $4.5 billion Earthstone acquisition that was announced on August 21, 2023. The acquisition enhances Permian Resources’ position as a leading Delaware Basin independent and creates value for the combined shareholder base through significant accretion to all relevant metrics and accelerated return of capital.

Integration of Earthstone has been underway since closing, and both integration and synergy capture are ahead of schedule. Operationally, Permian Resources’ team has been making extensive progress in the field, achieving a 50% reduction in downtime on legacy Earthstone’s Midland Basin asset since close. Permian Resources was able to improve drilling and completion efficiencies during the fourth quarter by approximately 35% and 20%, respectively, compared to legacy Earthstone’s first half 2023 results. As a result of higher efficiencies and the benefits of increased scale, Permian Resources has already achieved a 12% reduction in drilling and completions (“D&C”) as compared to Earthstone’s historical well costs. Additionally, G&A synergies are on-track, with key contributors from both companies fully integrated into the organization. Permian Resources remains confident in its ability to deliver the originally announced $175 million in annual synergies and is now expecting to realize announced synergies ahead of schedule.

2024 Operational Plans and Targets

With a focus on capital returns, Permian Resources’ 2024 operational budget delivers a highly capital efficient plan that maximizes free cash flow and value for its investors. Assuming planned activity levels and current commodity prices, the Company expects its full year oil and total production to average approximately 145 to 150 MBbls/d and 300 to 325 MBoe/d, respectively. During 2024, Permian Resources expects its well productivity to remain strong year-over-year as a result of its deep inventory of primary Delaware Basin zones and methodical development philosophy.

The estimated fiscal year 2024 cash capex budget is approximately $1.9 billion to $2.1 billion, with approximately 75% allocated to drilling and completions with the remaining 25% allocated to facilities, infrastructure, capital workover and non-operated capex. Permian Resources expects to turn-in-line (“TIL”) approximately 250 gross wells, with an average working interest of approximately 75% and 8/8ths net revenue interest of approximately 79%. The Company also expects its average completed lateral length during 2024 to be approximately 9,300 feet. Importantly, the Company’s capital budget is underpinned by an approximately 10% reduction in D&C costs per foot expected when compared to 2023.

Given the recent Earthstone acquisition, the Company expects an increasing portion of its capital budget to be allocated to high returning inventory in New Mexico. During 2024, Permian Resources anticipates that approximately 70% of its operating activity will be directed towards the Northern Delaware Basin and approximately 25% towards the Southern Delaware Basin, with the remaining portion to be allocated to its Midland Basin position.

Through its continued focus on being a low-cost leader, Permian Resources anticipates total controllable cash costs of approximately $7.40 to $8.60 per Boe, consisting of $5.50 to $6.00 per Boe for LOE, $1.00 to $1.50 per Boe for GP&T and $0.90 to $1.10 per Boe for cash G&A. Notably, the mid-point represents an 11% reduction in total controllable cash costs compared to Permian Resources and Earthstone’s combined third quarter 2023 costs, demonstrating the Company’s ability to execute on its synergy targets.

(For a detailed table summarizing Permian Resources’ 2024 operational and financial guidance, please see the Appendix of this press release.)

Shareholder Returns

Permian Resources announced today that its Board of Directors (the “Board”) declared a quarterly base cash dividend of $0.05 per share of Class A common stock, or $0.20 per share on an annualized basis. Additionally, based upon fourth quarter financial results, the Board has declared a quarterly variable cash dividend of $0.10 per share of Class A common stock. Combined, the base and variable dividends represent a total cash return of $0.15 per share. The base and variable dividends are payable on March 21, 2024 to shareholders of record as of March 13, 2024. Permian Resources returned additional capital to shareholders in the fourth quarter by repurchasing 5.0 million shares of common stock for $67.0 million at an average weighted price of $13.32 per share.

The Company’s fourth quarter total return of capital, inclusive of the base dividend, variable dividend and share repurchases, was $0.24 per share, a 41% increase from the prior quarter.

“Consistent with our game plan, we continue to return 50% of our quarterly free cash flow after the base dividend to shareholders through dividends and share repurchases,” said James Walter, Co-CEO. “During 2023, Permian Resources delivered approximately $324 million, or $0.47 per share, in dividends to shareholders. Additionally, we repurchased 10.0 million shares for approximately $125 million during the year at an average weighted price of $12.46 per share, driving incremental value for our shareholders.”

Year-End 2023 Proved Reserves

Permian Resources reported year-end 2023 total proved reserves of 925 MMBoe compared to 582 MMBoe at prior year-end. Proved developed reserves were 704 MMBoe (76% of total proved reserves) at December 31, 2023. Proved and proved developed reserves growth per share2 increased 15% and 49%, respectively, at year-end 2023 compared to the previous year-end.

Netherland Sewell & Associates, Inc., an independent reserve engineering firm, prepared Permian Resources’ year-end reserves estimates for the year ended December 31, 2023. (For additional information relating to our reserves, please see the Appendix of this press release.)

Annual Report on Form 10-K

Permian Resources’ financial statements and related footnotes will be available in its Annual Report on Form 10-K for the year ended December 31, 2023, which is expected to be filed with the Securities and Exchange Commission (“SEC”) on February 29, 2024.

Conference Call and Webcast

Permian Resources will host an investor conference call on Wednesday, February 28, 2024 at 8:00 a.m. Central (9:00 a.m. Eastern) to discuss fourth quarter and full year 2023 operating and financial results. Interested parties may join the call by visiting Permian Resources’ website at www.permianres.com and clicking on the webcast link or by dialing (888) 259-6580 (Conference ID: 41855841) at least 15 minutes prior to the start of the call. A replay of the call will be available on the Company’s website or by phone at (877) 674-7070 (Passcode: 855841) for a 14-day period following the call.

About Permian Resources

Headquartered in Midland, Texas, Permian Resources is an independent oil and natural gas company focused on the responsible acquisition, optimization and development of high-return oil and natural gas properties. The Company’s assets and operations are concentrated in the core of the Delaware Basin, making it the second largest Permian Basin pure-play E&P. For more information, please visit www.permianres.com.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release 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 statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.

Forward-looking statements may include statements about:

  • volatility of oil, natural gas and NGL prices or a prolonged period of low oil, natural gas or NGL prices and the effects of actions by, or disputes among or between, members of the Organization of Petroleum Exporting Countries (“OPEC”), such as Saudi Arabia, and other oil and natural gas producing countries, such as Russia, with respect to production levels or other matters related to the price of oil;
  • political and economic conditions in or affecting other producing regions or countries, including the Middle East, Russia, Eastern Europe, Africa and South America;
  • our business strategy and future drilling plans;
  • our reserves and our ability to replace the reserves we produce through drilling and property acquisitions;
  • our ability to realize the anticipated benefits and synergies from the Earthstone merger and effectively integrate Earthstone’s assets;
  • our drilling prospects, inventories, projects and programs;
  • our financial strategy, return of capital program, liquidity and capital required for our development program;
  • our realized oil, natural gas and NGL prices;
  • the timing and amount of our future production of oil, natural gas and NGLs;
  • our ability to identify, complete and effectively integrate acquisitions of properties or businesses;
  • our hedging strategy and results;
  • our competition and government regulations;
  • our ability to obtain permits and governmental approvals;
  • our pending legal or environmental matters;
  • the marketing and transportation of our oil, natural gas and NGLs;
  • our leasehold or business acquisitions;
  • costs of developing or operating our properties;
  • our anticipated rate of return;
  • general economic conditions;
  • weather conditions in the areas where we operate;
  • credit markets;
  • our ability to make dividends, distributions and share repurchases;
  • uncertainty regarding our future operating results;
  • our plans, objectives, expectations and intentions contained in this press release that are not historical; and
  • the other factors described in our most recent Annual Report on Form 10-K, and any updates to those factors set forth in our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the development, production, gathering and sale of oil and natural gas. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, risks relating to the Earthstone merger, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures and the other risks described in our filings with the SEC.

Reserve engineering is a process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way. The accuracy of any oil and gas reserve estimate depends on the quality of available data, the interpretation of such data, and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.

1) Adjusted Net Income, Adjusted Free Cash Flow, Adjusted Free Cash Flow per Adjusted Basic Share and Net Debt-to-LQA EBITDAX are non-GAAP financial measures. See “Non-GAAP Financial Measures” included within the Appendix of this press release for related disclosures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP.

2) Reserves per share calculated utilizing Basic shares outstanding of Class A Common Stock and Class C Common Stock at period year-end.

 
 
 

Details of our 2024 operational and financial guidance are presented below: 

 

 

2024 FY Guidance

Net average daily production (Boe/d)

300,000

325,000

Net average daily oil production (Bbls/d)

145,000

150,000

 

 

 

 

Production costs

 

 

 

Lease operating expenses ($/Boe)

$5.50

$6.00

Gathering, processing and transportation expenses ($/Boe)

$1.00

$1.50

Cash general and administrative ($/Boe)(1)

$0.90

$1.10

Severance and ad valorem taxes (% of revenue)

6.5%

8.5%

 

 

 

 

Total cash capital expenditure program ($MM)

$1,900

$2,100

 

 

 

 

Operated drilling program

 

 

 

TILs (gross)

~250

Average working interest

~75%

Average lateral length (feet)

~9,300

(1)

Excludes stock-based compensation. 

 
 
 
 

Permian Resources Corporation

Operating Highlights
 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net revenues (in thousands):

 

 

 

 

 

 

 

Oil sales

$

962,720

 

 

$

612,490

 

 

$

2,696,777

 

 

$

1,622,035

 

Natural gas sales(1)

 

47,954

 

 

 

76,454

 

 

 

142,077

 

 

 

276,957

 

NGL sales(2)

 

112,012

 

 

 

72,612

 

 

 

282,039

 

 

 

232,273

 

Oil and gas sales

$

1,122,686

 

 

$

761,556

 

 

$

3,120,893

 

 

$

2,131,265

 

 

 

 

 

 

 

 

 

Average sales prices:

 

 

 

 

 

 

 

Oil (per Bbl)

$

76.61

 

 

$

81.81

 

 

$

75.84

 

 

$

88.95

 

Effect of derivative settlements on average price (per Bbl)

 

0.53

 

 

 

2.41

 

 

 

1.81

 

 

 

(4.85

)

Oil including the effects of hedging (per Bbl)

$

77.14

 

 

$

84.22

 

 

$

77.65

 

 

$

84.10

 

 

 

 

 

 

 

 

 

Average NYMEX WTI price for oil (per Bbl)

$

78.32

 

 

$

82.64

 

 

$

77.62

 

 

$

94.24

 

Oil differential from NYMEX

 

(1.71

)

 

 

(0.84

)

 

 

(1.78

)

 

 

(5.29

)

 

 

 

 

 

 

 

 

Natural gas price excluding the effects of GP&T (per Mcf)(1)

$

1.50

 

 

$

3.64

 

 

$

1.60

 

 

$

4.86

 

Effect of derivative settlements on average price (per Mcf)

 

0.09

 

 

 

0.43

 

 

 

0.29

 

 

 

(0.53

)

Natural gas including the effects of hedging (per Mcf)

$

1.59

 

 

$

4.07

 

 

$

1.89

 

 

$

4.33

 

 

 

 

 

 

 

 

 

Average NYMEX Henry Hub price for natural gas (per MMBtu)

$

2.74

 

 

$

5.55

 

 

$

2.53

 

 

$

6.38

 

Natural gas differential from NYMEX

 

(1.24

)

 

 

(1.91

)

 

 

(0.93

)

 

 

(1.52

)

 

 

 

 

 

 

 

 

NGL price excluding the effects of GP&T (per Bbl)(2)

$

21.57

 

 

$

28.03

 

 

$

22.83

 

 

$

35.97

 

 

 

 

 

 

 

 

 

Net production:

 

 

 

 

 

 

 

Oil (MBbls)

 

12,566

 

 

 

7,487

 

 

 

35,560

 

 

 

18,235

 

Natural gas (MMcf)

 

44,048

 

 

 

24,610

 

 

 

119,182

 

 

 

59,692

 

NGL (MBbls)

 

6,328

 

 

 

2,966

 

 

 

15,569

 

 

 

6,750

 

Total (MBoe)(3)

 

26,234

 

 

 

14,556

 

 

 

70,992

 

 

 

34,934

 

 

 

 

 

 

 

 

 

Average daily net production:

 

 

 

 

 

 

 

Oil (Bbls/d)

 

136,590

 

 

 

81,378

 

 

 

97,424

 

 

 

49,958

 

Natural gas (Mcf/d)

 

478,781

 

 

 

267,503

 

 

 

326,525

 

 

 

163,539

 

NGL (Bbls/d)

 

68,774

 

 

 

32,246

 

 

 

42,654

 

 

 

18,494

 

Total (Boe/d)(3)

 

285,161

 

 

 

158,208

 

 

 

194,499

 

 

 

95,708

 

____________________________________

(1)

Natural gas sales for the three months and year ended December 31, 2023 include $18.2 million and $48.9 million, respectively, of gathering, processing and transportation costs (“GP&T”) that are reflected as a reduction to natural gas sales and $13.1 million for the three months and year ended December 31, 2022. Natural gas average sales price, however, excludes $0.41 per Mcf of such GP&T charges for the three months and year ended December 31, 2023 and $0.53 and $0.22 per Mcf for the three months and year ended December 31, 2022.

(2)

NGL sales for the three months and year ended December 31, 2023 include $24.4 million and $73.3 million, respectively of GP&T that are reflected as a reduction to NGL sales and $10.6 million for the three months and year ended December 31, 2022. NGL average sales price, however, excludes $3.87 and $4.71 per Bbl of such GP&T charges for the three months and year ended December 31, 2023 and $3.56 and $1.56 per Bbl for the three months and year ended December 31, 2022.

(3)

Calculated by converting natural gas to oil equivalent barrels at a ratio of six Mcf of natural gas to one Boe.

 
 
 
 

Permian Resources Corporation

Operating Expenses
 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Operating costs (in thousands):

 

 

 

 

 

 

 

Lease operating expenses

$

130,439

 

 

$

73,289

 

 

$

373,772

 

 

$

171,867

 

Severance and ad valorem taxes

 

84,384

 

 

 

54,233

 

 

 

240,762

 

 

 

155,724

 

Gathering, processing, and transportation expense

 

31,316

 

 

 

20,246

 

 

 

89,282

 

 

 

97,915

 

Operating cost metrics:

 

 

 

 

 

 

 

Lease operating expenses (per Boe)

$

4.97

 

 

$

5.04

 

 

$

5.26

 

 

$

4.92

 

Severance and ad valorem taxes (% of revenue)

 

7.5

%

 

 

7.1

%

 

 

7.7

%

 

 

7.3

%

Gathering, processing, and transportation expense (per Boe)

 

1.19

 

 

 

1.39

 

 

 

1.26

 

 

 

2.80

 

 
 
 
 

Permian Resources Corporation

Consolidated Statements of Operations

(in thousands, except per share data)
 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Operating revenues

 

 

 

 

 

 

 

Oil and gas sales

$

1,122,686

 

 

$

761,556

 

 

$

3,120,893

 

 

$

2,131,265

 

Operating expenses

 

 

 

 

 

 

 

Lease operating expenses

 

130,439

 

 

 

73,289

 

 

 

373,772

 

 

 

171,867

 

Severance and ad valorem taxes

 

84,384

 

 

 

54,233

 

 

 

240,762

 

 

 

155,724

 

Gathering, processing and transportation expenses

 

31,316

 

 

 

20,246

 

 

 

89,282

 

 

 

97,915

 

Depreciation, depletion and amortization

 

367,427

 

 

 

182,052

 

 

 

1,007,576

 

 

 

444,678

 

General and administrative expenses

 

39,126

 

 

 

75,617

 

 

 

161,855

 

 

 

159,554

 

Merger and integration expense

 

97,260

 

 

 

12,469

 

 

 

125,331

 

 

 

77,424

 

Impairment and abandonment expense

 

5,947

 

 

 

244

 

 

 

6,681

 

 

 

3,875

 

Exploration and other expenses

 

4,669

 

 

 

4,765

 

 

 

19,337

 

 

 

11,378

 

Total operating expenses

 

760,568

 

 

 

422,915

 

 

 

2,024,596

 

 

 

1,122,415

 

Net gain (loss) on sale of long-lived assets

 

82

 

 

 

13

 

 

 

211

 

 

 

(1,314

)

Income from operations

 

362,200

 

 

 

338,654

 

 

 

1,096,508

 

 

 

1,007,536

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

Interest expense

 

(63,024

)

 

 

(39,358

)

 

 

(177,209

)

 

 

(95,645

)

Net gain (loss) on derivative instruments

 

190,684

 

 

 

(60,019

)

 

 

114,016

 

 

 

(42,368

)

Other income (expense)

 

1,648

 

 

 

291

 

 

 

2,333

 

 

 

609

 

Total other income (expense)

 

129,308

 

 

 

(99,086

)

 

 

(60,860

)

 

 

(137,404

)

 

 

 

 

 

 

 

 

Income before income taxes

 

491,508

 

 

 

239,568

 

 

 

1,035,648

 

 

 

870,132

 

Income tax expense

 

(78,889

)

 

 

(40,860

)

 

 

(155,945

)

 

 

(120,292

)

Net income

 

412,619

 

 

 

198,708

 

 

 

879,703

 

 

 

749,840

 

Less: Net income attributable to noncontrolling interest

 

(157,265

)

 

 

(115,658

)

 

 

(403,397

)

 

 

(234,803

)

Net income attributable to Class A Common Stock

$

255,354

 

 

$

83,050

 

 

$

476,306

 

 

$

515,037

 

 

 

 

 

 

 

 

 

Income per share of Class A Common Stock:

 

 

 

 

 

 

 

Basic

$

0.56

 

 

$

0.29

 

 

$

1.36

 

 

$

1.80

 

Diluted

$

0.51

 

 

$

0.26

 

 

$

1.24

 

 

$

1.61

 

 

 

 

 

 

 

 

 

Weighted average Class A Common Stock outstanding:

 

 

 

 

 

 

 

Basic

 

459,593

 

 

 

288,512

 

 

 

349,213

 

 

 

286,160

 

Diluted

 

500,919

 

 

 

329,454

 

 

 

389,096

 

 

 

322,816

 

 
 
 
 

Permian Resources Corporation

Consolidated Balance Sheets

(in thousands, except share and per share amounts)
 

 

 

December 31, 2023

 

December 31, 2022

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

73,290

 

 

$

59,545

 

Accounts receivable, net

 

481,060

 

 

 

282,846

 

Derivative instruments

 

70,591

 

 

 

100,797

 

Prepaid and other current assets

 

25,451

 

 

 

20,602

 

Total current assets

 

650,392

 

 

 

463,790

 

Property and equipment

 

 

 

Oil and natural gas properties, successful efforts method

 

 

 

Unproved properties

 

2,401,317

 

 

 

1,424,744

 

Proved properties

 

15,036,687

 

 

 

8,869,174

 

Accumulated depreciation, depletion and amortization

 

(3,401,895

)

 

 

(2,419,692

)

Total oil and natural gas properties, net

 

14,036,109

 

 

 

7,874,226

 

Other property and equipment, net

 

43,647

 

 

 

15,173

 

Total property and equipment, net

 

14,079,756

 

 

 

7,889,399

 

Noncurrent assets

 

 

 

Operating lease right-of-use assets

 

59,359

 

 

 

64,792

 

Other noncurrent assets

 

176,071

 

 

 

74,611

 

TOTAL ASSETS

$

14,965,578

 

 

$

8,492,592

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities

 

 

 

Accounts payable and accrued expenses

$

1,167,525

 

 

$

562,156

 

Operating lease liabilities

 

33,006

 

 

 

29,759

 

Other current liabilities

 

41,022

 

 

 

13,654

 

Total current liabilities

 

1,241,553

 

 

 

605,569

 

Noncurrent liabilities

 

 

 

Long-term debt, net

 

3,848,781

 

 

 

2,140,798

 

Asset retirement obligations

 

121,417

 

 

 

40,947

 

Deferred income taxes

 

422,627

 

 

 

4,430

 

Operating lease liabilities

 

28,302

 

 

 

41,341

 

Other noncurrent liabilities

 

73,150

 

 

 

3,211

 

Total liabilities

 

5,735,830

 

 

 

2,836,296

 

 

 

 

 

Shareholders’ equity

 

 

 

Common stock, $0.0001 par value, 1,500,000,000 shares authorized:

 

 

 

Class A: 544,610,984 shares issued and 540,789,758 shares outstanding at December 31, 2023 and 298,640,260 shares issued and 288,532,257 shares outstanding at December 31, 2022

 

54

 

 

 

30

 

Class C: 230,962,833 shares issued and outstanding at December 31, 2023 and 269,300,000 shares issued and outstanding at December 31, 2022

 

23

 

 

 

27

 

Additional paid-in capital

 

5,766,881

 

 

 

2,698,465

 

Retained earnings (accumulated deficit)

 

569,139

 

 

 

237,226

 

Total shareholders’ equity

 

6,336,097

 

 

 

2,935,748

 

Noncontrolling interest

 

2,893,651

 

 

 

2,720,548

 

Total equity

 

9,229,748

 

 

 

5,656,296

 

TOTAL LIABILITIES AND EQUITY

$

14,965,578

 

 

$

8,492,592

 

 
 
 
 

Permian Resources Corporation

Consolidated Statements of Cash Flows

(in thousands)
 

 

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

Net income

$

879,703

 

 

$

749,840

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation, depletion and amortization

 

1,007,576

 

 

 

444,678

 

Stock-based compensation expense - equity awards

 

78,418

 

 

 

116,480

 

Stock-based compensation expense - liability awards

 

 

 

 

(24,174

)

Impairment and abandonment expense

 

6,681

 

 

 

3,875

 

Deferred tax expense (benefit)

 

152,383

 

 

 

119,679

 

Net (gain) loss on sale of long-lived assets

 

(211

)

 

 

1,314

 

Non-cash portion of derivative (gain) loss

 

(14,606

)

 

 

(77,737

)

Amortization of debt issuance costs, debt discount and debt premium

 

11,326

 

 

 

15,362

 

Changes in operating assets and liabilities:

 

 

 

(Increase) decrease in accounts receivable

 

36,336

 

 

 

(66,824

)

(Increase) decrease in prepaid and other assets

 

(27,267

)

 

 

(1,751

)

Increase (decrease) in accounts payable and other liabilities

 

83,160

 

 

 

90,929

 

Net cash provided by operating activities

 

2,213,499

 

 

 

1,371,671

 

Cash flows from investing activities:

 

 

 

Acquisition of oil and natural gas properties, net

 

(234,288

)

 

 

(8,858

)

Drilling and development capital expenditures

 

(1,524,899

)

 

 

(771,577

)

Cash (paid) received for businesses acquired in mergers, net of cash received

 

39,832

 

 

 

(496,671

)

Purchases of other property and equipment

 

(34,483

)

 

 

(3,563

)

Contingent considerations received related to divestiture

 

60,000

 

 

 

 

Proceeds from sales of oil and natural gas properties

 

115,459

 

 

 

75,620

 

Net cash used in investing activities

 

(1,578,379

)

 

 

(1,205,049

)

Cash flows from financing activities:

 

 

 

Proceeds from borrowings under revolving credit facility

 

1,950,000

 

 

 

1,115,000

 

Repayment of borrowings under revolving credit facility

 

(2,335,000

)

 

 

(755,000

)

Repayment of credit facility acquired in mergers

 

(830,000

)

 

 

(400,000

)

Proceeds from issuance of senior notes

 

997,500

 

 

 

 

Debt issuance costs

 

(15,169

)

 

 

(19,833

)

Proceeds from exercise of stock options

 

534

 

 

 

109

 

Share repurchases

 

(162,420

)

 

 

(19,010

)

Dividends paid

 

(141,947

)

 

 

(14,426

)

Distributions paid to noncontrolling interest owners

 

(94,686

)

 

 

(13,465

)

Net cash (used in) provided by financing activities

 

(631,188

)

 

 

(106,625

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

3,932

 

 

 

59,997

 

Cash, cash equivalents and restricted cash, beginning of period

 

69,932

 

 

 

9,935

 

Cash, cash equivalents and restricted cash, end of period

$

73,864

 

 

$

69,932

 

 

Reconciliation of cash, cash equivalents and restricted cash presented on the consolidated statements of cash flows for the periods presented:  

 

 

Year Ended December 31,

 

2023

 

2022

Cash and cash equivalents

$

73,290

 

 

$

59,545

 

Restricted cash

$

574

 

 

$

10,387

 

Total cash, cash equivalents and restricted cash

$

73,864

 

 

$

69,932

 
 
 
 

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), our earnings release contains non-GAAP financial measures as described below.

Adjusted EBITDAX

Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income attributable to Class A Common Stock before net income attributable to noncontrolling interest, interest expense, income taxes, depreciation, depletion and amortization, impairment and abandonment expense, non-cash gains or losses on derivatives, stock-based compensation (not cash-settled), exploration and other expenses, merger and integration expense, gain/loss from the sale of long-lived assets and non-recurring items. Adjusted EBITDAX is not a measure of net income as determined by GAAP.

Our management believes Adjusted EBITDAX is useful as it allows them to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or nonrecurring items. Our computations of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.

The following table presents a reconciliation of Adjusted EBITDAX to net income, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:

 

Three Months Ended

(in thousands)

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

 

12/31/2022

Adjusted EBITDAX reconciliation to net income:

 

 

 

 

 

 

 

 

 

Net income attributable to Class A Common Stock

$

255,354

 

 

$

45,433

 

 

$

73,399

 

$

102,120

 

 

$

83,050

 

Net income attributable to noncontrolling interest

 

157,265

 

 

 

52,896

 

 

 

75,555

 

 

117,681

 

 

 

115,658

 

Interest expense

 

63,024

 

 

 

40,582

 

 

 

36,826

 

 

36,777

 

 

 

39,358

 

Income tax expense

 

78,889

 

 

 

16,254

 

 

 

26,548

 

 

34,254

 

 

 

40,860

 

Depreciation, depletion and amortization

 

367,427

 

 

 

236,204

 

 

 

215,726

 

 

188,219

 

 

 

182,052

 

Impairment and abandonment expense

 

5,947

 

 

 

245

 

 

 

244

 

 

245

 

 

 

244

 

Non-cash derivative (gain) loss

 

(180,179

)

 

 

161,672

 

 

 

18,678

 

 

(14,777

)

 

 

88,635

 

Stock-based compensation expense(1)

 

8,495

 

 

 

15,633

 

 

 

35,042

 

 

16,707

 

 

 

54,342

 

Exploration and other expenses

 

4,669

 

 

 

5,031

 

 

 

5,263

 

 

4,374

 

 

 

4,765

 

Merger and integration expense

 

97,260

 

 

 

10,422

 

 

 

4,350

 

 

13,299

 

 

 

12,469

 

(Gain) loss on sale of long-lived assets

 

(82

)

 

 

(63

)

 

 

 

 

(66

)

 

 

(13

)

Adjusted EBITDAX

$

858,069

 

 

$

584,309

 

 

$

491,631

 

$

498,833

 

 

$

621,420

 

(1)

Includes stock-based compensation expense for equity awards related to general and administrative employees only. Stock-based compensation amounts for geographical and geophysical personnel are included within the Exploration and other expenses line item.

 
 
 

Net Debt-to-LQA EBITDAX

Net debt-to-LQA EBITDAX is a non-GAAP financial measure. We define net debt as long-term debt, net, plus unamortized debt discount and debt issuance costs on our senior notes minus cash and cash equivalents.

We define net debt-to-LQA EBITDAX as net debt (defined above) divided by Adjusted EBITDAX (defined and reconciled in the section above) for the three months ended December 31, 2023, on an annualized basis. We refer to this metric to show trends that investors may find useful in understanding our ability to service our debt. This metric is widely used by professional research analysts, including credit analysts, in the valuation and comparison of companies in the oil and gas exploration and production industry. The following table presents a reconciliation of net debt to long-term debt, net and the calculation of net debt-to-LQA EBITDAX for the period presented:

(in thousands)

December 31, 2023

Long-term debt, net

3,848,781

 

Unamortized debt discount, debt issuance costs and debt premium on senior notes

17,018

 

Long-term debt

3,865,799

 

Less: cash and cash equivalents

(73,290

)

Net debt (Non-GAAP)

3,792,509

 

LQA EBITDAX(1)

3,432,276

 

Net debt-to-LQA EBITDAX

1.1

 

____________________________________

(1)

Represents adjusted EBITDAX (defined and reconciled in the section above) for the three months ended December 31, 2023, on an annualized basis.

 
 
 

Adjusted Shares

Adjusted basic and diluted weighted average shares outstanding (“Adjusted Basic and Diluted Shares”) are non-GAAP financial measures defined as basic and diluted weighted average shares outstanding adjusted to reflect the weighted average shares of our Class C Common Stock outstanding during the period.

Our Adjusted Basic and Diluted Shares provide a comparable per share measurement when presenting results such as adjusted free cash flow and adjusted net income that include the interests of both net income attributable to Class A Common Stock and the net income attributable to our noncontrolling interest. Adjusted Basic and Diluted Shares are used in calculating several metrics that we use as supplemental financial measurements in the evaluation of our business.

The following table presents a reconciliation of Adjusted Basic and Diluted Shares to basic and diluted weighted average shares outstanding, which are the most directly comparable financial measure calculated and presented in accordance with GAAP:

 

Three Months Ended December 31,

(in thousands)

2023

 

2022

Basic weighted average shares of Class A Common Stock outstanding

459,593

 

288,512

Weighted average shares of Class C Common Stock

244,039

 

269,300

Adjusted basic weighted average shares outstanding

703,632

 

557,812

 

 

 

 

Basic weighted average shares of Class A Common Stock outstanding

459,593

 

288,512

Add: Dilutive effects of Convertible Senior Notes

28,090

 

27,074

Add: Dilutive effects of equity awards and ESPP shares

13,236

 

13,868

Diluted weighted average shares of Class A Common Stock outstanding

500,919

329,454

Weighted average shares of Class C Common Stock

244,039

 

269,300

Adjusted diluted weighted average shares outstanding

744,958

 

598,754

 
 
 

Free Cash Flow and Adjusted Free Cash Flow

Free cash flow and adjusted free cash flow are supplemental non-GAAP financial measures that are used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define free cash flow as net cash provided by operating activities before changes in working capital, less incurred capital expenditures and adjusted free cash flow as free cash flow before non-recurring merger and integration expense.

Our management believes free cash flow and adjusted free cash flow are useful indicators of the Company’s ability to internally fund its exploration and development activities and to service or incur additional debt, without regard to the timing of settlement of either operating assets and liabilities or accounts payable related to capital expenditures. The Company believes that these measures, as so adjusted, present meaningful indicators of the Company’s actual sources and uses of capital associated with its operations conducted during the applicable period. Our computations of free cash flow and adjusted free cash flow may not be comparable to other similarly titled measures of other companies. Free cash flow and adjusted free cash flow should not be considered as alternatives to, or more meaningful than, net cash provided by operating activities as determined in accordance with GAAP or as indicators of our operating performance or liquidity.

Free cash flow and adjusted free cash flow are not financial measures that are determined in accordance with GAAP. Accordingly, the following table presents a reconciliation of free cash flow and adjusted free cash flow to net cash provided by operating activities, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:

 

Accrued Capital Expenditures(1)

 

Cash Capital Expenditures(2)

 

Three Months Ended December 31,

 

Three Months Ended December 31,

(in thousands, except per share data)

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net cash provided by operating activities

$

845,994

 

 

$

528,295

 

 

$

845,994

 

 

$

528,295

 

Changes in working capital:

 

 

 

 

 

 

 

Accounts receivable

 

(94,123

)

 

 

60,071

 

 

 

(94,123

)

 

 

60,071

 

Prepaid and other assets

 

(543

)

 

 

1,713

 

 

 

(543

)

 

 

1,713

 

Accounts payable and other liabilities

 

(58,365

)

 

 

(21,290

)

 

 

(58,365

)

 

 

(21,290

)

Operating cash flow before working capital changes

 

692,963

 

 

 

568,789

 

 

 

692,963

 

 

 

568,789

 

Less: total capital expenditures incurred/paid

 

(422,917

)

 

 

(325,200

)

 

 

(458,206

)

 

 

(373,685

)

Free cash flow

 

270,046

 

 

 

243,589

 

 

 

234,757

 

 

 

195,104

 

Merger and integration expense

 

97,260

 

 

 

12,469

 

 

 

97,260

 

 

 

12,469

 

Adjusted free cash flow

$

367,306

 

 

$

256,058

 

 

$

332,017

 

 

$

207,573

 

 

 

 

 

 

 

 

 

Adjusted basic weighted average shares outstanding

 

703,632

 

 

 

557,812

 

 

 

703,632

 

 

 

557,812

 

Adjusted free cash flow per adjusted basic share

$

0.52

 

 

$

0.46

 

 

$

0.47

 

 

$

0.37

 

____________________________________

(1)

Utilizes activity-based capital expenditures incurred during the period.

(2)

Utilizes cash capital expenditures paid during the period.

 
 
 
 

Adjusted Net Income

Adjusted net income is not a financial measure that is determined in accordance with GAAP. Accordingly, the following table presents a reconciliation of adjusted net income to net income, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:

 

Three Months Ended December 31,

(in thousands, except per share data)

 

2023

 

 

 

2022

 

Net income attributable to Class A Common Stock

$

255,354

 

 

$

83,050

 

Net income attributable to noncontrolling interest

 

157,265

 

 

 

115,658

 

Non-cash derivative (gain) loss

 

(180,179

)

 

 

88,635

 

Merger and integration expense

 

97,260

 

 

 

12,469

 

Impairment and abandonment expense

 

5,947

 

 

 

244

 

(Gain) loss on sale of long-lived assets

 

(82

)

 

 

(13

)

Adjusted net income excluding above items

 

335,565

 

 

 

300,043

 

Income tax (expense) benefit attributable to the above items(1)

 

(18,047

)

 

 

(48,823

)

Adjusted Net Income

$

317,518

 

 

$

251,220

 

 

 

 

 

Adjusted basic weighted average shares outstanding (Non-GAAP)(2)

 

703,632

 

 

 

557,812

 

Adjusted net income per adjusted basic share

$

0.45

 

 

$

0.45

 

____________________________________

(1)

Income tax (expense) benefit for adjustments made to adjusted net income is calculated using PR's federal and state-apportioned statutory tax rate of 22.5%.

(2)

Adjusted basic weighted average shares outstanding is a Non-GAAP measure that has been computed and reconciled to the nearest GAAP metric in the preceding table above.

 
 
 
 

The following table summarizes the approximate volumes and average contract prices of the hedge contracts the Company had in place as of December 31, 2023 and additional contracts entered into through February 23, 2024:

 

Period

 

Volume (Bbls)

 

Volume (Bbls/d)

 

Wtd. Avg. Crude

Price

($/Bbl)(1)

Crude oil swaps

January 2024 - March 2024

 

2,919,100

 

32,078

 

$77.10

 

April 2024 - June 2024

 

2,975,500

 

32,698

 

76.24

 

July 2024 - September 2024

 

2,990,000

 

32,500

 

75.40

 

October 2024 - December 2024

 

2,990,000

 

32,500

 

74.61

 

January 2025 - March 2025

 

1,575,000

 

17,500

 

73.33

 

April 2025 - June 2025

 

1,592,500

 

17,500

 

72.27

 

July 2025 - September 2025

 

1,610,000

 

17,500

 

71.25

 

October 2025 - December 2025

 

1,610,000

 

17,500

 

70.34

 

 

Period

 

Volume (Bbls)

 

Volume (Bbls/d)

 

Wtd. Avg. Collar

Price Ranges

($/Bbl)(2)

Crude oil collars

January 2024 - March 2024

 

182,000

 

2,000

 

$60.00

-

$76.01

 

April 2024 - June 2024

 

182,000

 

2,000

 

60.00

-

76.01

 

July 2024 - September 2024

 

184,000

 

2,000

 

60.00

-

76.01

 

October 2024 - December 2024

 

184,000

 

2,000

 

60.00

-

76.01

 

 

Period

 

Volume (Bbls)

 

Volume (Bbls/d)

 

Wtd.

Avg. Put

Price

($/Bbl)(3)

 

Deferred

Premium

($/Bbl)(3)

Deferred premium puts

January 2024 - March 2024

 

227,500

 

2,500

 

65.00

 

4.96

 

April 2024 - June 2024

 

227,500

 

2,500

 

65.00

 

4.96

 

July 2024 - September 2024

 

230,000

 

2,500

 

65.00

 

4.96

 

October 2024 - December 2024

 

230,000

 

2,500

 

65.00

 

4.96

 

 

Period

 

Volume (Bbls)

 

Volume (Bbls/d)

 

Wtd. Avg.

Differential

($/Bbl)(4)

Crude oil basis differential swaps

January 2024 - March 2024

 

3,148,600

 

34,600

 

$0.94

 

April 2024 - June 2024

 

3,385,018

 

37,198

 

0.95

 

July 2024 - September 2024

 

3,404,000

 

37,000

 

0.95

 

October 2024 - December 2024

 

3,404,000

 

37,000

 

0.95

 

January 2025 - March 2025

 

1,575,000

 

17,500

 

1.09

 

April 2025 - June 2025

 

1,592,500

 

17,500

 

1.09

 

July 2025 - September 2025

 

1,610,000

 

17,500

 

1.09

 

October 2025 - December 2025

 

1,610,000

 

17,500

 

1.09

 

 

Period

 

Volume (Bbls)

 

Volume (Bbls/d)

 

Wtd. Avg.

Differential

($/Bbl)(5)

Crude oil roll differential swaps

January 2024 - March 2024

 

3,148,600

 

34,600

 

$0.45

 

April 2024 - June 2024

 

3,385,018

 

37,198

 

0.45

 

July 2024 - September 2024

 

3,404,000

 

37,000

 

0.45

 

October 2024 - December 2024

 

3,404,000

 

37,000

 

0.45

 

January 2025 - March 2025

 

1,575,000

 

17,500

 

0.37

 

April 2025 - June 2025

 

1,592,500

 

17,500

 

0.37

 

July 2025 - September 2025

 

1,610,000

 

17,500

 

0.37

 

October 2025 - December 2025

 

1,610,000

 

17,500

 

0.37

____________________________________

(1)

These crude oil swap transactions are settled based on the NYMEX WTI index price on each trading day within the specified monthly settlement period versus the contractual swap price for the volumes stipulated.

(2)

These crude oil collars are settled based on the NYMEX WTI index price on each trading day within the specified monthly settlement period versus the contractual floor and ceiling prices for the volumes stipulated.

(3)

These crude oil deferred premium puts are settled based on the NYMEX WTI index price on each trading day within the specified monthly settlement period versus the contractual put prices for the volumes stipulated.

(4)

These crude oil basis swap transactions are settled based on the difference between the arithmetic average of ARGUS MIDLAND WTI and ARGUS WTI CUSHING indices, during each applicable monthly settlement period. 

(5)

These crude oil roll swap transactions are settled based on the difference between the arithmetic average of NYMEX WTI calendar month prices and the physical crude oil delivery month price. 

 

 

Period

 

Volume

(MMBtu)

 

Volume

(MMBtu/d)

 

Wtd. Avg. Gas Price

($/MMBtu)(1)

Natural gas swaps

January 2024 - March 2024

 

4,104,919

 

45,109

 

$3.77

 

April 2024 - June 2024

 

5,906,321

 

64,905

 

3.29

 

July 2024 - September 2024

 

5,949,388

 

64,667

 

3.43

 

October 2024 - December 2024

 

5,933,899

 

64,499

 

3.86

 

January 2025 - March 2025

 

3,600,000

 

40,000

 

4.32

 

April 2025 - June 2025

 

3,640,000

 

40,000

 

3.65

 

July 2025 - September 2025

 

3,680,000

 

40,000

 

3.83

 

October 2025 - December 2025

 

3,680,000

 

40,000

 

4.20

 

 

Period

 

Volume

(MMBtu)

 

Volume

(MMBtu/d)

 

Wtd. Avg.

Differential

($/MMBtu)(2)

Natural gas basis differential swaps

January 2024 - March 2024

 

12,740,000

 

140,000

 

$(0.90)

 

April 2024 - June 2024

 

10,920,000

 

120,000

 

(0.99)

 

July 2024 - September 2024

 

11,040,000

 

120,000

 

(0.99)

 

October 2024 - December 2024

 

11,040,000

 

120,000

 

(0.98)

 

January 2025 - March 2025

 

3,600,000

 

40,000

 

(0.74)

 

April 2025 - June 2025

 

3,640,000

 

40,000

 

(0.74)

 

July 2025 - September 2025

 

3,680,000

 

40,000

 

(0.74)

 

October 2025 - December 2025

 

3,680,000

 

40,000

 

(0.74)

 

 

Period

 

Volume

(MMBtu)

 

Volume

(MMBtu/d)

 

Wtd. Avg.

Differential

($/MMBtu)(3)

Natural gas basis differential swaps

January 2024 - March 2024

 

3,640,000

 

40,000

 

$0.00

 

 

Period

 

Volume

(MMBtu)

 

Volume

(MMBtu/d)

 

Wtd. Avg. Collar

Price Ranges

($/MMBtu)(4)

Natural gas collars

January 2024 - March 2024

 

6,815,081

 

74,891

 

$2.93

-

$6.81

 

April 2024 - June 2024

 

5,013,679

 

55,095

 

2.68

-

5.04

 

July 2024 - September 2024

 

5,090,612

 

55,333

 

2.68

-

5.06

 

October 2024 - December 2024

 

5,106,101

 

55,501

 

2.75

-

5.29

____________________________________

(1)

These natural gas swap contracts are settled based on the NYMEX Henry Hub price on each trading day within the specified monthly settlement period versus the contractual swap price for the volumes stipulated.

(2)

These natural gas basis swap contracts are settled based on the difference between the Inside FERC’s West Texas WAHA price and the NYMEX price of natural gas during each applicable monthly settlement period.

(3)

These natural gas basis swap contracts are settled based on the difference between the Houston Ship Channel (“HSC”) price and the NYMEX price of natural gas during each applicable monthly settlement period.

(4)

These natural gas collars are settled based on the NYMEX Henry Hub price on each trading day within the specified monthly settlement period versus the contractual floor and ceiling prices for the volumes stipulated. 

 
 

 

Contacts

Hays Mabry – Sr. Director, Investor Relations

Mae Herrington – Engineering Advisor, Investor Relations

(832) 240-3265

ir@permianres.com

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