Permian Resources (PR) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 production of 152.9 MBbls/d oil and 338.8 MBoe/d total, up 1% and 6% sequentially, driven by operational execution, higher ethane recovery, and the Earthstone Merger.

• Announced the $817.5M Barilla Draw acquisition from Oxy, adding 29,500 net acres, over 200 locations, and 15,000 Boe/d, expected to close in Q3 2024.

• Maintained operational excellence with record drilling efficiencies, cost reductions, and increased well count without raising CapEx guidance.

• Returned $193M to shareholders in Q2 via dividends and share repurchases, with a total return of $0.25/share.

• Balance sheet remains strong with ~1x net debt to EBITDAX and ~$2.5B in liquidity.

Financial highlights

• Q2 2024 oil and gas sales reached $1.25B, with adjusted EBITDAX of $928M and adjusted net income of $297M.

• Adjusted operating cash flow was $849M; adjusted free cash flow was $332M ($0.43/share).

• Lease operating expense was $5.18/Boe, with controllable cash costs down 8% sequentially.

• Q2 CapEx was $516M; net income attributable to Class A stock was $235.1M.

• Total assets as of June 30, 2024 were $15.4B, with total equity of $9.7B.

Outlook and guidance

• Raised full-year standalone oil production guidance to 151–153 MBbls/d and total production to 320–330 MBoe/d, a ~1.5% increase.

• Increased 2024 well count guidance by ~15 wells, with no change to CapEx guidance of $1.9–$2.1B.

• Barilla Draw acquisition expected to add ~15,000 Boe/d in Q4 2024; not yet reflected in full-year guidance.

• Production profile expected to remain flat in H2 2024, with growth in Q4 from the acquisition.

• 2024 capital expenditures are expected to be funded entirely from operating cash flows.