Permian Resources (PR) Q4 Results - Feb 23

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Permian Resources (PR) Q4 Results - Feb 23

Post by dan_s »

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."
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Permian Resources (PR) Q4 Results - Feb 23

Post by dan_s »

Average daily crude oil production for the fourth quarter was 81,378 barrels of oil per day ("Bbls/d"), and total production during the quarter averaged 158,208 barrels of oil equivalent per day ("Boe/d"). < Compares to my forecast of 145,000 Boepd for Q4.

Permian Resources maintains a strong financial position and low leverage profile. At December 31, 2022, the Company had approximately $60 million in cash on hand and $385 million of borrowings outstanding under its revolving credit facility. Net debt-to-LQA EBITDAX1 at December 31, 2022 was approximately 0.9x, and the Company has no debt maturities until 2026.

Operational Results

Permian Resources continues to optimize its Delaware Basin acreage position through large-scale, co-development well packages. The Company significantly exceeded its fourth quarter production targets, while maintaining cost discipline. Permian Resources’ robust production results during the quarter were primarily attributable to better than expected well performance, in addition to higher production runtime and reduced cycle times. Total capital expenditures incurred for the quarter were $325 million.
Dan Steffens
Energy Prospectus Group
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