01—Abstract
Summary
Summary of the 10-Q filed August 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Permian Resources Corporation's Form 10-Q for the quarter ended June 30, 2024 shows net income attributable to Class A Common Stock of $235.1 milliona for the three months ended June 30, 2024, up from $73.4 million a year earlier, on oil and gas sales of $1,246.1 million versus $623.4 million.
For the six months, oil and gas sales were $2,489.1 millionb, net income attributable to Class A Common Stock was $381.7 million, and cash provided by operating activities was $1,586.0 million. Results reflect the Earthstone Merger completed November 1, 2023, which drove sharply higher production: total net production rose 104% to 30,827 MBoe for the quarter. Realized natural gas prices fell 99% in the quarter, reflecting negative Waha prices averaging negative $0.59 per MMBtu.
The balance sheet shows total assets of $15.41 billionc and total long-term debt, net, of $3.87 billion at June 30, 2024. Cash and cash equivalents were $47.8 million, and the Credit Agreement had a $4.0 billion borrowing base, $2.5 billion in elected commitments, and $375.0 million outstanding. During the six months, the company paid $213.0 million in dividends, distributed $57.1 million to noncontrolling interest owners, repurchased $61.0 million of Class C stock, redeemed $356.4 million of 6.875% senior notes due 2027, and spent $1.04 billion on drilling and development capital expenditures.
The 2024 capital budget is stated as $1.9 billion to $2.1 billiond. Subsequent events include an agreement announced July 27, 2024 to acquire oil and gas properties from Occidental Petroleum affiliates for $817.5 million, a July 30, 2024 equity offering of 26.5 million Class A shares with net proceeds of $402.8 million, and an August 5, 2024 issuance of $1.0 billion of 6.25% senior notes due 2033. The company also declared a base dividend of $0.06 and a variable dividend of $0.15 per share, totaling $0.21 per share.
02—Key points
Key Highlights
- Oil and gas sales were $1,246.1 million for Q2 2024, up from $623.4 million in Q2 2023, and net income attributable to Class A Common Stock was $235.1 million versus $73.4 million.
- Net production rose to 30,827 MBoe in Q2 2024 from 15,093 MBoe, an increase of 104%, driven largely by wells acquired in the Earthstone Merger.
- Average realized natural gas prices excluding GP&T effects fell to $0.01 per Mcf in Q2 2024 from $1.24, as Waha prices averaged negative $0.59 per MMBtu.
- Cash provided by operating activities was $1.59 billion for the six months ended June 30, 2024, up from $886.7 million, while drilling and development capital expenditures were $1.04 billion.
- Total long-term debt, net, was $3.87 billion at June 30, 2024, including $375.0 million drawn on the $2.5 billion elected-commitment Credit Agreement and $3.5 billion of senior notes.
- Subsequent to quarter-end, the company agreed to acquire assets from Occidental affiliates for $817.5 million, completed a $402.8 million net equity offering, and issued $1.0 billion of 6.25% senior notes due 2033.
- Dividends paid totaled $213.0 million for the six months, and the company declared a total return of $0.21 per share on August 6, 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed August 7, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $1.25B$623.40M | +99.9% |
| Operating Expenses | $790.95M$431.99M | +83.1% |
| Operating Income | $455.14M$191.41M | +137.8% |
| Interest Expense | $75.45M$36.83M | +104.9% |
| Net Income | $235.10M$73.40M | +220.3% |
| EPS (Basic) | $0.38$0.23 | +65.2% |
| EPS (Diluted) | $0.36$0.21 | +71.4% |
| Shares Outstanding (Basic) | 612.25M315.17M | +94.3% |
| Shares Outstanding (Diluted) | 656.37M351.92M | +86.5% |
05—Questions
Frequently Asked Questions
How did Permian Resources' profitability change in the second quarter of 2024?
Net income attributable to Class A Common Stock was $235.1 million for Q2 2024, compared with $73.4 million for Q2 2023. Oil and gas sales rose to $1,246.1 million from $623.4 million, while total operating expenses increased to $790.9 million from $432.0 million.
What drove the increase in production and revenue?
The filing attributes the increase mainly to wells acquired in the Earthstone Merger, completed November 1, 2023, and to additional wells placed online since the second quarter of 2023. Oil production rose 81% and total production rose 104%. Average realized oil prices increased 12% to $80.10 per Bbl.
What is the company's debt position and how is it changing?
Total long-term debt, net, was $3.87 billion at June 30, 2024. During the first half, the company redeemed $356.4 million of 6.875% senior notes due 2027 and drew $375.0 million on its Credit Agreement, which had $2.1 billion of available borrowing capacity. The filing notes that the company was in compliance with its covenants.
How is the company returning capital to shareholders?
During the six months ended June 30, 2024, the company paid $213.0 million in dividends and repurchased $61.0 million of stock. It also paid $57.1 million in distributions to noncontrolling interest owners. The company uses a base dividend plus a variable return program, and its $500 million repurchase program runs through December 31, 2024.
What major transactions did the company announce after the quarter ended?
On July 27, 2024, the company agreed to acquire oil and gas properties from Occidental Petroleum affiliates for $817.5 million, expected to close in the third quarter of 2024. It completed a public offering of 26.5 million Class A shares on July 30, 2024, with net proceeds of $402.8 million, and issued $1.0 billion of 6.25% senior notes due 2033 on August 5, 2024.
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