Permian Resources (PR) Q4 Results - Feb 23
Posted: Thu Feb 23, 2023 10:14 am
Permian Resources Q4 results beat my expectations. PR was created by the merger of Colgate Energy Partners III (a private company) into Centennial Resources Development (CDEV). The company's name was changed after the merger closed on 9-1-2022.
Q4 2022 is the first full quarter since the merger closed. The results below should draw a lot of attention from the Wall Street Gang. This one has a lot more upside for us.
Permian Resources Corporation ("Permian Resources" or the "Company") (NYSE: PR) announced its fourth quarter and full year 2022 financial and operational results and 2023 operational plans.
Recent Financial and Operational Highlights
Delivered fourth quarter oil production of 81.4 MBbls/d, exceeding the mid-point of prior outlook by 9%
Reported net cash provided by operating activities of $528 million and adjusted free cash flow of $256 million < Beat my operating cash flow forecast of $497 million.
Executed a series of portfolio optimization transactions, adding high-return inventory and generating ~$100 million of net cash proceeds
Enhanced capital efficiency driven by strong well performance and cost control
Delivered controllable cash costs of $7.89 per Boe < One reason this company will generate a lot of free cash flow.
Announced quarterly base dividend of $0.05 per share
2023 Financial and Operational Plan
Increased 2023 oil and total production guidance by 4% and 3%, respectively, compared to previous outlook
Continue to target oil production growth of ~10% in the fourth quarter 2023 compared to the prior year period, despite exceeding fourth quarter 2022 production outlook
Currently operating seven rigs, with plans to reduce to six rigs during second quarter 2023 as a result of operational synergies
Reduced controllable cash costs by ~5% to $7.60 per Boe compared to previous outlook
Announced 2023 total capital budget of $1.25 to $1.45 billion
Increase to prior outlook driven primarily by higher working interest (85% from 80% previously) and longer lateral lengths (9,300’ from 9,000’ previously)
Variable return to be initiated based upon first quarter 2023 results < PR will be another mid-cap that pays nice "Fixed + Variable Dividends" each quarter. Eventually, it will move into our High Yield Income Portfolio.
Management Commentary
"Permian Resources’ outstanding fourth quarter results reflect a continuation of our strong operational track record," said Will Hickey, Co-CEO of Permian Resources. "In our first full quarter post-merger, our team delivered strong financial and operational results driven by well outperformance and continued cost discipline."
"Our team has worked diligently to build an optimized 2023 plan that maximizes capital efficiency and leads to higher oil production and lower cash costs, accomplishing our ultimate goal of driving more free cash flow and higher returns for our investors," said James Walter, Co-CEO of the Company. "We believe Permian Resources represents a unique value proposition for investors, with the benefits of scaled operations in the Delaware Basin combined with a nimble and creative approach to value creation, as exemplified by our recent portfolio optimization efforts."
Q4 2022 is the first full quarter since the merger closed. The results below should draw a lot of attention from the Wall Street Gang. This one has a lot more upside for us.
Permian Resources Corporation ("Permian Resources" or the "Company") (NYSE: PR) announced its fourth quarter and full year 2022 financial and operational results and 2023 operational plans.
Recent Financial and Operational Highlights
Delivered fourth quarter oil production of 81.4 MBbls/d, exceeding the mid-point of prior outlook by 9%
Reported net cash provided by operating activities of $528 million and adjusted free cash flow of $256 million < Beat my operating cash flow forecast of $497 million.
Executed a series of portfolio optimization transactions, adding high-return inventory and generating ~$100 million of net cash proceeds
Enhanced capital efficiency driven by strong well performance and cost control
Delivered controllable cash costs of $7.89 per Boe < One reason this company will generate a lot of free cash flow.
Announced quarterly base dividend of $0.05 per share
2023 Financial and Operational Plan
Increased 2023 oil and total production guidance by 4% and 3%, respectively, compared to previous outlook
Continue to target oil production growth of ~10% in the fourth quarter 2023 compared to the prior year period, despite exceeding fourth quarter 2022 production outlook
Currently operating seven rigs, with plans to reduce to six rigs during second quarter 2023 as a result of operational synergies
Reduced controllable cash costs by ~5% to $7.60 per Boe compared to previous outlook
Announced 2023 total capital budget of $1.25 to $1.45 billion
Increase to prior outlook driven primarily by higher working interest (85% from 80% previously) and longer lateral lengths (9,300’ from 9,000’ previously)
Variable return to be initiated based upon first quarter 2023 results < PR will be another mid-cap that pays nice "Fixed + Variable Dividends" each quarter. Eventually, it will move into our High Yield Income Portfolio.
Management Commentary
"Permian Resources’ outstanding fourth quarter results reflect a continuation of our strong operational track record," said Will Hickey, Co-CEO of Permian Resources. "In our first full quarter post-merger, our team delivered strong financial and operational results driven by well outperformance and continued cost discipline."
"Our team has worked diligently to build an optimized 2023 plan that maximizes capital efficiency and leads to higher oil production and lower cash costs, accomplishing our ultimate goal of driving more free cash flow and higher returns for our investors," said James Walter, Co-CEO of the Company. "We believe Permian Resources represents a unique value proposition for investors, with the benefits of scaled operations in the Delaware Basin combined with a nimble and creative approach to value creation, as exemplified by our recent portfolio optimization efforts."