01—Abstract
Summary
Summary of the 10-Q filed May 8, 2024. Cited figures are marked; the original filing is the authoritative source.
Permian Resources Corporation reported first-quarter 2024 oil and gas sales of $1.24 billiona, up from $616.3 million in the prior-year quarter, and the filing states that total net revenues rose 102%.
Net income was $229.6 millionb, compared with $219.8 million, and net income attributable to Class A Common Stock was $146.6 million, compared with $102.1 million. Diluted earnings per share were $0.25, versus $0.31 a year earlier. Average net production was 319,514 Boe/d, up 108% from 153,822 Boe/d, reflecting wells placed online since the first quarter of 2023 and the November 1, 2023 Earthstone Merger.
Results were pressured by a $121.1 millionc net loss on derivative instruments, $168.7 million in lease operating expenses, and interest expense of $72.6 million. Cash flow from operations was $647.6 million, up from $438.2 million, and funded $519.6 million of drilling and development capital expenditures, $97.0 million of property acquisitions, and $115.5 million in dividends and distributions. The company repurchased 2.0 million Class C shares for $31.4 million.
Cash and cash equivalents were $12.7 milliond at March 31, 2024, and long-term debt, net, was $3.91 billion. The filing reports a 2024 drilling, completion and facilities capital budget of $1.9 billion to $2.1 billion, which management expects to fund from operating cash flow.
Subsequent to quarter-end, the company redeemed its $356.4 million 6.875% Senior Notes due 2027 on April 5, 2024, and amended its Credit Agreement to increase elected commitments to $2.5 billion from $2.0 billion, with the borrowing base reaffirmed at $4.0 billion. On May 7, 2024, the board declared a total return of $0.20 per share, comprising a $0.06 base dividend and a $0.14 variable dividend.
02—Key points
Key Highlights
- Oil and gas sales of $1,242,999 thousand ($1.24 billion) versus $616,268 thousand in Q1 2023, with total net revenues up 102%
- Net income of $229.6 million; net income attributable to Class A Common Stock of $146.6 million versus $102.1 million; diluted EPS of $0.25 versus $0.31
- Average net production of 319,514 Boe/d, up 108% year over year; oil production up 96%
- Net loss on derivative instruments of $121.1 million, including a $128.5 million non-cash mark-to-market loss
- Operating cash flow of $647.6 million versus $438.2 million; drilling and development capital expenditures of $519.6 million
- Q1 2024 dividends and distributions of $0.15 per share ($0.05 base, $0.10 variable), totaling $115.5 million; $31.4 million spent repurchasing 2.0 million shares
- Credit Agreement elected commitments increased to $2.5 billion from $2.0 billion in April 2024; $356.4 million 2027 6.875% Senior Notes redeemed April 5, 2024
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 8, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $1.24B$616.27M | +101.7% |
| Operating Expenses | $774.08M$380.13M | +103.6% |
| Operating Income | $469.04M$236.20M | +98.6% |
| Interest Expense | $72.59M$36.78M | +97.4% |
| Net Income | $146.57M$102.12M | +43.5% |
| EPS (Basic) | $0.27$0.35 | −22.9% |
| EPS (Diluted) | $0.25$0.31 | −19.4% |
| Shares Outstanding (Basic) | 552.47M295.91M | +86.7% |
| Shares Outstanding (Diluted) | 595.35M335.85M | +77.3% |
05—Questions
Frequently Asked Questions
How did revenue and profitability change compared with the first quarter of 2023?
Oil and gas sales rose to $1.24 billion from $616.3 million, and the filing states total net revenues were 102% higher. Net income increased to $229.6 million from $219.8 million, and net income attributable to Class A Common Stock rose to $146.6 million from $102.1 million. Diluted EPS declined to $0.25 from $0.31, reflecting a larger share count after the Earthstone Merger.
What drove the growth in production and what affected realized prices?
Oil production increased 96%, natural gas 116% and NGLs 137%, driven by 212 wells placed online since the first quarter of 2023 and wells acquired in the Earthstone Merger. Average realized oil price rose 2% to $76.13 per Bbl, while the natural gas price excluding GP&T fell 31% to $1.24 per Mcf, mainly due to wider gas differentials.
How is the company funding its capital program and returning cash to shareholders?
The company funded its Q1 2024 capital expenditures entirely from operating cash flow and expects to fund the rest of its 2024 budget of $1.9 billion to $2.1 billion the same way. It paid $115.5 million in dividends and distributions and repurchased $31.4 million of shares. Management plans to return capital through base dividends plus a variable return program, including variable dividends and share repurchases.
What changed in the debt and credit facility after quarter-end?
On April 5, 2024, the company redeemed all outstanding 2027 6.875% Senior Notes at par, totaling $356.4 million plus accrued interest. On April 25, 2024, the Seventh Amendment to the Credit Agreement increased elected commitments to $2.5 billion from $2.0 billion and reaffirmed the $4.0 billion borrowing base. At March 31, 2024, $60.0 million was outstanding under the facility.
What dividend did the board declare after the quarter ended?
On May 7, 2024, the board declared a base quarterly dividend of $0.06 per Class A share and a variable dividend of $0.14 per share, for a total return of $0.20 per share. The dividend is payable May 29, 2024 to shareholders of record as of May 21, 2024.
06—Continue