Skip to content
AnalystLens

Permian Resources 8-K Report, Financial Results (Feb 27, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed February 27, 2024
Period End
February 27, 2024
Security
PR
In the record · 2016–202610-K1010-Q328-K167

PR filed 10 annual reports (10-K), 32 quarterly reports (10-Q) and 167 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’18May ’18
  2. Material agreement8-K · May ’20May ’20
  3. Deal closed8-K · Sep ’22Sep ’22
  4. Leadership change8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed February 27, 2024. Cited figures are marked; the original filing is the authoritative source.

Permian Resources Corporation reported fourth quarter and full year 2023 results on February 27, 2024, following the November 1, 2023 closing of the $4.5 billiona Earthstone acquisition.

Fourth quarter crude oil production averaged 136,590 Bbls/d and total production averaged 285,161 Boe/d. Net cash provided by operating activities was $846 millionb and adjusted free cash flow was $332 million (using cash capex), or $0.47 per adjusted basic share. The company ended 2023 with $73 million in cash, no amounts drawn under its revolving credit facility, and net debt-to-LQA EBITDAX of 1.1x.

Year-end 2023 total proved reserves were 925 MMBoe, up from 582 MMBoe a year earlier. For 2024, the company guided to crude oil production of 145 to 150 MBbls/d and total production of 300 to 325 MBoe/d, with a total cash capital expenditure budget of $1.9 to $2.1 billionc and total controllable cash costs of $7.40 to $8.60 per Boe. Management said it expects approximately 250 gross wells to be turned in line in 2024 and a roughly 10% reduction in drilling and completions costs per foot compared with 2023.

The board declared a quarterly base dividend of $0.05d per share, which the company said reflects the 20% increase to $0.06 per share, and a variable dividend of $0.10 per share, both payable March 21, 2024. Fourth quarter total return of capital was $0.24 per share, including share repurchases. The filing states that Earthstone synergy capture is ahead of schedule, and management remains confident in delivering the originally announced $175 million in annual synergies.

Fourth quarter merger and integration expense was $97.3 million. The company also said its Form 10-K is expected to be filed on February 29, 2024, and that a conference call will be held February 28, 2024.

02—Key points

Key Highlights

  1. Closed the $4.5 billion Earthstone acquisition on November 1, 2023; the company describes its position as the second largest Permian pure-play E&P with a >$15 billion enterprise value.
  2. Fourth quarter 2023 total production averaged 285,161 Boe/d, with crude oil at 136,590 Bbls/d, a 52% increase in crude oil production from the prior quarter.
  3. 2024 guidance calls for 300 to 325 MBoe/d total production and a $1.9 to $2.1 billion cash capital budget, with total controllable cash costs of $7.40 to $8.60 per Boe.
  4. Fourth quarter adjusted free cash flow was $332 million (cash capex basis), or $0.47 per adjusted basic share; net cash from operations was $846 million.
  5. Year-end 2023 total proved reserves were 925 MMBoe, compared with 582 MMBoe at prior year-end, with 76% proved developed.
  6. Declared a quarterly base dividend of $0.05 per share and a variable dividend of $0.10 per share, with the base dividend to be increased 20% to $0.06 per share.
  7. Balance sheet at December 31, 2023 showed $73 million cash, no revolver borrowings, and net debt-to-LQA EBITDAX of approximately 1x.

03—Questions

Frequently Asked Questions

  1. How much did Permian Resources return to shareholders in the fourth quarter of 2023?

    The company reported a total return of capital of $0.24 per share in the fourth quarter, including the $0.05 base dividend, the $0.10 variable dividend, and the repurchase of 5.0 million shares for $67.0 million at an average weighted price of $13.32 per share.

  2. What production and capital spending does the company expect for 2024?

    The company expects full-year oil production of approximately 145 to 150 MBbls/d and total production of approximately 300 to 325 MBoe/d, with a total cash capital expenditure budget of $1.9 to $2.1 billion.

  3. What are the expected 2024 operating costs?

    Total controllable cash costs are expected to be $7.40 to $8.60 per Boe, consisting of lease operating expenses of $5.50 to $6.00 per Boe, gathering, processing and transportation expenses of $1.00 to $1.50 per Boe, and cash G&A of $0.90 to $1.10 per Boe.

  4. How is the Earthstone integration progressing?

    The company says integration and synergy capture are ahead of schedule, with G&A synergies on track and drilling and completions costs reduced 12% compared with Earthstone's historical well costs. It remains confident in delivering the originally announced $175 million in annual synergies.

  5. What is the company's balance sheet position at year-end 2023?

    The company had $73 million in cash and cash equivalents and no amounts drawn under its revolving credit facility. Net debt-to-LQA EBITDAX was approximately 1x, and the company reported long-term debt, net, of $3.85 billion.

04—Continue

← View all 8-K filings