Permian Resources (PR) Q1 Results - May 7

[dan_s]

Recent Financial and Operational Highlights

Delivered Permian Resources’ best quarter to-date:
> Production outperformance due to accelerated Earthstone efficiencies and continued strong well results
> Robust free cash flow driven by operational execution and realization of cost synergies
> Earthstone integration completed ahead of schedule
> Earthstone annual synergy target increased by $50 million to $225 million
> Executed ~$270 million of additional bolt-on acquisitions in core operating areas

Reported crude oil and total average production of 151.8 MBbls/d and 319.5 MBoe/d (~48% oil) during the quarter < Beat my forecast of 303,000 Boepd with 142,410 bopd.

Announced cash capital expenditures of $520 million, net cash provided by operating activities of $648 million and adjusted free cash flow of $324 million ($0.42 per adjusted basic share) < Adjusted Operating Cash Flow of $744 million compares to my forecast of $745.8 million. PR should generate close to $3.5 billion of operating cash flow and $1.4 million of free cash flow this year.

Reported total return of capital of $185 million, or $0.24 per share, implying a total annualized return yield of ~5.7%:
> Quarterly base dividend of $0.06 per share
> Variable dividend of $0.14 per share
> Repurchased 2.0 million shares for $31 million
PR is an "Aggressive Growth" Company. Production increased by 56.6% YOY in 2022, 103.5% YOY in 2023 and guidance is for more than 60% YOY production growth, not including acquisitions.

Added ~11,200 net acres and ~110 locations in the Delaware Basin through recent transactions

Increased mid-point of full year oil and total production guidance by 2% to 150 MBbls/d and 320 MBoe/d

Management Commentary

"In our first full quarter post closing Earthstone, Permian Resources delivered strong operational and financial results, building upon our operational momentum from last year," said Will Hickey, Co-CEO of Permian Resources. "Outstanding well results and higher operational efficiencies across both legacy Permian Resources and Earthstone assets drove robust production during the quarter. This outperformance provided us with the confidence to increase standalone production guidance and represents a solid start to the year."

"This quarter’s strong results allowed us to generate $324 million of adjusted free cash flow, or $0.42 per share," said James Walter, Co-CEO of Permian Resources. "Additionally, we continue to enhance our position through strategic leasehold and bolt-on acquisitions, adding high-quality inventory directly offset our most capital efficient asset that immediately competes for capital. We believe Permian Resources’ leading cost structure, basin knowledge and balance sheet strength will continue to drive attractive opportunities to grow our already deep inventory position in an accretive manner."

I will update my stock valuation on Wednesday morning.

[Lbark]

i read the results and thought they were good. what did we miss for the stock is selling off?

[aja57]

Stock selling off because ‘Big Boys’ are trying to shake out the little serfs like us so they can buy it at a cheaper price. Give it a week and PR will be humming. 90% of E&P stocks seem to do this at earnings. CIVI was just an enigma.