01—Abstract
Summary
Summary of the 10-K filed February 26, 2025. Cited figures are marked; the original filing is the authoritative source.
Permian Resources Corporation is an independent oil and natural gas company focused on the acquisition, optimization and development of high-return crude oil and liquids-rich natural gas reserves in the Permian Basin of West Texas and New Mexico.
As of December 31, 2024, the company held approximately 450,000 net leasehold acres and total proved reserves of 1,026,957 MBoe, up from 925,098 MBoe a year earlier, with 27% classified as proved undeveloped. Pre-tax PV 10% of proved reserves was $10.83 billiona. Net production was 125,730 MBoe for 2024 versus 70,992 MBoe in 2023, and oil and gas sales were $5.00 billion versus $3.12 billion, reflecting the full-year contribution of the Earthstone Merger completed November 1, 2023 and the Bolt-On Acquisition completed September 17, 2024 for $743.5 million in cash.
Net income attributable to Class A Common Stock was $984.7 millionb, or $1.45 diluted EPS, compared with $476.3 million and $1.24 in 2023. Natural gas realized prices were sharply weaker, with the Waha Hub averaging $0.05 per MMBtu in 2024. Operating cash flow was $3.41 billion, and the company funded its $2.1 billion of 2024 development capital entirely from operations.
Total long-term debt was $4.2 billionc, with $2.5 billion of undrawn revolver capacity at year end. During the third quarter of 2024 the company raised its quarterly base dividend to $0.15 per share from $0.06 and eliminated its formulaic variable return policy, while the board authorized a $1 billion repurchase program. The company guided to a 2025 drilling, completion and facilities capital budget of $1.9 billion to $2.1 billion.
02—Key points
Key Highlights
- Net production of 125,730 MBoe in 2024, up from 70,992 MBoe in 2023, with oil and gas sales of $5.00 billion versus $3.12 billion.
- Total proved reserves of 1,026,957 MBoe at December 31, 2024, up from 925,098 MBoe, with pre-tax PV 10% of $10.83 billion.
- Net income attributable to Class A Common Stock of $984.7 million, or $1.45 diluted EPS, versus $476.3 million and $1.24 in 2023.
- Dividend policy reset: quarterly base dividend raised to $0.15 per share from $0.06, the formulaic variable return policy was eliminated, and a $1 billion repurchase program replaced the $500 million program.
- Bolt-On Acquisition from Occidental affiliates closed September 17, 2024 for $743.5 million cash, adding about 29,500 net leasehold acres in Reeves County, Texas and Eddy County, New Mexico.
- Operating cash flow of $3.41 billion funded $2.1 billion of drilling and development capital expenditures; long-term debt was $4.2 billion with $2.5 billion of available revolver capacity.
- Natural gas realized prices fell to $0.47 per Mcf excluding GP&T from $1.60, with Waha Hub prices averaging $0.05 per MMBtu for 2024, and the company expects 2025 capital of $1.9 billion to $2.1 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 26, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $5.00B$3.12B | +60.2% |
| Operating Expenses | $3.26B$2.02B | +60.9% |
| Operating Income | $1.74B$1.10B | +59.1% |
| Net Income | $1.25M$880K | +42.2% |
| EPS (Basic) | $1.54$1.36 | +13.2% |
| EPS (Diluted) | $1.45$1.24 | +16.9% |
| Shares Outstanding (Basic) | 640.66M349.21M | +83.5% |
| Shares Outstanding (Diluted) | 684.49M389.10M | +75.9% |
05—Questions
Frequently Asked Questions
How did Permian Resources' profitability change in 2024?
Net income attributable to Class A Common Stock rose to $984.7 million from $476.3 million, and diluted EPS rose to $1.45 from $1.24. Total net income was $1.25 billion, up from $879.7 million. Oil and gas sales increased to $5.00 billion from $3.12 billion, driven mainly by higher production following the Earthstone Merger, although realized oil and natural gas prices declined.
What is the company's capital return policy after the 2024 changes?
In the third quarter of 2024 the company increased its quarterly base dividend to $0.15 per share from $0.06 and eliminated its prior formulaic variable return policy, which had targeted at least 50% of free cash flow after the base dividend. The board also authorized a new $1 billion share repurchase program, replacing the $500 million program. The company declared a $0.15 per share base dividend on February 26, 2025, and repurchased no stock in the open market during the fourth quarter of 2024.
How large is the company's reserve base and how much of it is undeveloped?
Total proved reserves were 1,026,957 MBoe at December 31, 2024, of which 73% were proved developed and 27% proved undeveloped. Proved reserves are 459,181 MBbls of oil, 1,856,751 MMcf of natural gas and 258,318 MBbls of NGLs. The company added 217.4 MMBoe through extensions and discoveries and 72.0 MMBoe through purchases in 2024, against 125.7 MMBoe of production.
What are the main risks tied to the company's debt and financing?
Long-term debt was $4.2 billion at year end, consisting of senior notes with fixed rates, and the company had no borrowings under its $2.5 billion revolving Credit Agreement, which matures in February 2028 and has a $4.0 billion borrowing base. The borrowing base is redetermined semi-annually at lenders' discretion, and a reduction could require repayments. The Credit Agreement requires a current ratio of at least 1.0 to 1.0 and a leverage ratio of no greater than 3.5 to 1.0, and the company stated it was in compliance as of December 31, 2024.
How concentrated is the company's business and customer base?
All proved reserves are in the Permian Basin in West Texas and New Mexico, so the company is exposed to regional supply, takeaway capacity and pricing conditions. Shell Trading (US) Company accounted for 31% of 2024 net revenues, Enterprise Crude Oil, LLC for 19% and BP America for 11%. The company states that the loss of any major purchaser would not have a material adverse effect because crude oil and natural gas are fungible products with numerous purchasers.
06—Continue