01—Abstract
Summary
Summary of the 10-Q filed November 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Permian Resources Corporation's Form 10-Q for the quarter ended September 30, 2024 reports third-quarter oil and gas sales of $1,215.6 milliona, up from $758.5 million a year earlier, with net income attributable to Class A Common Stock of $386.4 million ($0.53 diluted per share) versus $45.4 million in the prior-year quarter.
Nine-month oil and gas sales were $3.70 billionb and net cash provided by operating activities was $2.54 billion, compared with $1.37 billion a year earlier. Third-quarter results were boosted by a $238.5 million net gain on derivative instruments, while natural gas sales were negative for the quarter because Waha gas prices averaged negative $1.00 per MMBtu. The company's growth was driven by the Earthstone Merger completed November 1, 2023 and by 2024 acquisitions, including the $743.5 million Bolt-On Acquisition from affiliates of Occidental Petroleum completed September 17, 2024.
Third-quarter net production averaged 347,091 Boe/d, up 102% year over year. To fund the Bolt-On Acquisition, the company issued $1.0 billionc of 6.25% senior notes due 2033 and completed a public offering of 26.5 million Class A shares with net proceeds of $402.2 million. Long-term debt, net, was $4.18 billion at September 30, 2024, and the revolving credit facility had no borrowings outstanding against $2.5 billion of available capacity.
Capital returns increased: the quarterly base dividend was raised to $0.15d per share, the variable dividend paid in the quarter was $0.15 per share, and the Board authorized a new $1 billion share repurchase program replacing the $500 million program. Subsequent to quarter end, the company declared a $0.15 base dividend payable November 22, 2024 and amended its Credit Agreement to extend maturity to February 2028.
02—Key points
Key Highlights
- Third-quarter oil and gas sales of $1,215.6 million, up from $758.5 million in Q3 2023; nine-month oil and gas sales of $3.70 billion versus $2.00 billion.
- Third-quarter net income attributable to Class A Common Stock of $386.4 million ($0.53 diluted EPS), compared with $45.4 million ($0.13 diluted EPS) a year earlier, aided by a $238.5 million net gain on derivative instruments.
- Net production of 347,091 Boe/d in Q3 2024, up 102% from 171,966 Boe/d, reflecting the Earthstone Merger and new wells.
- Acquired oil and gas properties in the Bolt-On Acquisition for $743.5 million cash on September 17, 2024, adding about 29,500 net leasehold acres in Reeves County, Texas and Eddy County, New Mexico.
- Issued $1.0 billion of 6.25% senior notes due 2033 and completed a 26.5 million share Class A offering with $402.2 million net proceeds; redeemed the 7.75% 2026 notes and 6.875% 2027 notes.
- Raised the quarterly base dividend to $0.15 per share and authorized a new $1 billion share repurchase program, replacing the $500 million program.
- Waha natural gas prices averaged negative $1.00 per MMBtu in Q3 2024, producing negative natural gas sales of $(37.1) million for the quarter.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 7, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $1.22B$758.54M | +60.3% |
| Operating Expenses | $820.75M$451.90M | +81.6% |
| Operating Income | $395.15M$306.70M | +28.8% |
| Net Income | $386.38M$45.43M | +750.4% |
| EPS (Basic) | $0.56$0.14 | +300.0% |
| EPS (Diluted) | $0.53$0.13 | +307.7% |
| Shares Outstanding (Basic) | 693.69M324.65M | +113.7% |
| Shares Outstanding (Diluted) | 736.24M366.17M | +101.1% |
05—Questions
Frequently Asked Questions
How did Permian Resources' revenue and earnings change in the third quarter of 2024?
Oil and gas sales rose to $1,215.6 million from $758.5 million, and net income attributable to Class A Common Stock was $386.4 million, or $0.53 diluted per share, compared with $45.4 million, or $0.13 per share, in the third quarter of 2023. Income from operations was $395.1 million versus $306.7 million.
What drove the increase in production?
The filing attributes the increase mainly to wells acquired in the Earthstone Merger completed November 1, 2023, and to additional wells placed on production since September 30, 2023. Net production rose 102% to 347,091 Boe/d in the third quarter.
How is the company funding its acquisitions and debt activity?
Operating cash flow of $2.54 billion for the nine months ended September 30, 2024 funded drilling and development capital expenditures, and the company also used the $1.0 billion 2033 senior notes and $402.2 million of equity offering proceeds to fund the Bolt-On Acquisition and redeem notes. The revolving credit facility had no borrowings outstanding at September 30, 2024, with $2.5 billion of available capacity.
What changed in shareholder returns?
The base quarterly dividend increased to $0.15 per share, and the Board approved a new $1 billion share repurchase program replacing the $500 million program. Nine-month dividends and distributions to common unitholders totaled $440.3 million, and $61.0 million was spent repurchasing Common Units.
What should investors note about the company's natural gas exposure?
Natural gas prices realized by the company were weak because Waha prices averaged negative $1.00 per MMBtu in the third quarter of 2024, leading to negative natural gas sales of $(37.1) million for the quarter. The filing attributes this to pipeline capacity constraints and maintenance in the Permian Basin.
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