https://www.hartenergy.com/exclusives/oxy-near-1b-deal-sell-barilla-draw-permian-resources-sources-209921
Article says that if deal is reached, Permian would pay about $1 bn for 27,500 net acres in Permian and add ~ 24,000 Boepd of production.
OXY reportedly near deal with Permian Resources to sell Barilla Draw asset
Re: OXY reportedly near deal with Permian Resources to sell Barilla Draw asset
If Permian Resources does make a deal with OXY, it will be a good deal for PR shareholders. PR+ESTE has an outstanding team that will not overpay for acquisitions.
Permian Resources (PR) is expected to announce Q2 financial results on August 6. I expect them to announce Adjusted Net Income that exceeds the current First Call estimate of $0.37/share. My Q2 EPS estimate is $0.44/share.
Reported Net Income will likely include a negative mark-to-market on their oil hedges, but MTM adjustments (up or down) are non-cash items that do not impact Adjusted Net Income, which is comparable to First Call's or my forecasts. MTM adjustments do not impact Operating Cash Flow, which is what my valuation are based on.
PR as a history of "under-promising and over-delivering" on guidance.
Read this: https://finance.yahoo.com/news/why-permian-resources-pr-could-161012811.html
I will be reviewing all of the Sweet 16 company forecast models this weekend. Since Permian Resources revenues are heavily weighted to oil & NGL sales I expect them to meet or exceed my Q2 EPS estimate. Q2 revenues should be close to $1.3 billion.
Primarily due to the merger with Earthstone Energy, PR's production increased from 171,966 Boepd in Q3 2023 to 319,514 Boepd in Q1 2024 with a mix of 47.5% crude oil, 22.8% NGLs and 29.7% natural gas. < Natural gas sales were only 5.84% of Q1 revenues.
Permian Resources (PR) is expected to announce Q2 financial results on August 6. I expect them to announce Adjusted Net Income that exceeds the current First Call estimate of $0.37/share. My Q2 EPS estimate is $0.44/share.
Reported Net Income will likely include a negative mark-to-market on their oil hedges, but MTM adjustments (up or down) are non-cash items that do not impact Adjusted Net Income, which is comparable to First Call's or my forecasts. MTM adjustments do not impact Operating Cash Flow, which is what my valuation are based on.
PR as a history of "under-promising and over-delivering" on guidance.
Read this: https://finance.yahoo.com/news/why-permian-resources-pr-could-161012811.html
I will be reviewing all of the Sweet 16 company forecast models this weekend. Since Permian Resources revenues are heavily weighted to oil & NGL sales I expect them to meet or exceed my Q2 EPS estimate. Q2 revenues should be close to $1.3 billion.
Primarily due to the merger with Earthstone Energy, PR's production increased from 171,966 Boepd in Q3 2023 to 319,514 Boepd in Q1 2024 with a mix of 47.5% crude oil, 22.8% NGLs and 29.7% natural gas. < Natural gas sales were only 5.84% of Q1 revenues.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group