01—Abstract
Summary
Summary of the 8-K filed May 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Permian Resources Corporation reported first quarter 2024 financial and operational results on May 7, 2024, and increased its full-year 2024 guidance.
Net production averaged 319,514 Boe/d, including 151,794 Bbls/d of oil, an 11% increase over the prior quarter. Oil and gas sales were $1.24 billiona, net cash provided by operating activities was $647.6 million, and adjusted free cash flow was $324 million, or $0.42 per adjusted basic share. Net income attributable to Class A Common Stock was $146.6 million, or $0.27 per basic share.
Cash capital expenditures were $520 millionb. The company said the Earthstone integration is complete and that synergy capture is ahead of schedule. The annual synergy target was raised by $50 million to $225 million.
Standalone 2024 oil production guidance was raised about 2% at the midpoint, to 148,000-152,000 Bbls/d, and total production guidance to 310,000-330,000 Boe/d. Recent bolt-on and grassroots acquisitions, for about $270 millionc, added approximately 11,200 net leasehold acres and 4,500 net royalty acres, and are not included in the revised standalone guidance. Shareholder returns for the quarter totaled $185 million, or $0.24 per share, including a base dividend of $0.06 per share, a variable dividend of $0.14 per share, and repurchases of 2.0 million shares for $31 million.
At March 31, 2024, the company had $13 milliond of cash, $60 million drawn on its revolver, and net debt-to-LQA EBITDAX of approximately 1x. Elected commitments under the revolver rose to $2.5 billion from $2.0 billion, and the company redeemed $356 million of 6.875% Senior Notes due 2027 after quarter-end.
02—Key points
Key Highlights
- Q1 2024 oil production of 151,794 Bbls/d, up 11% from the prior quarter; total production of 319,514 Boe/d
- Net cash provided by operating activities of $648 million; adjusted free cash flow of $324 million ($0.42 per adjusted basic share)
- Earthstone integration completed ahead of schedule; annual synergy target raised by $50 million to $225 million
- Standalone 2024 oil production guidance raised about 2% at the midpoint to 148,000-152,000 Bbls/d; total production guidance 310,000-330,000 Boe/d
- Total return of capital of $185 million ($0.24 per share), including base dividend of $0.06, variable dividend of $0.14, and $31 million of share repurchases
- About $270 million of bolt-on and grassroots acquisitions added approximately 11,200 net leasehold acres and 4,500 net royalty acres in the Delaware Basin
- Revolver elected commitments increased to $2.5 billion from $2.0 billion; $356 million of 6.875% Senior Notes due 2027 redeemed after quarter-end
03—Questions
Frequently Asked Questions
How did Permian Resources perform financially in Q1 2024?
The company reported oil and gas sales of $1.24 billion, net income of $229.6 million ($146.6 million attributable to Class A Common Stock, or $0.27 per basic share), and net cash provided by operating activities of $648 million. Adjusted free cash flow was $324 million, or $0.42 per adjusted basic share.
Did the company change its 2024 guidance?
Yes. Standalone oil and total production targets were increased by approximately 2% at the midpoint, to 148,000-152,000 Bbls/d and 310,000-330,000 Boe/d. Other standalone guidance ranges were unchanged. The recent acquisitions are not included in the revised guidance; they are expected to add about 3,500 Boe/d in the second half of 2024.
How much did the company return to shareholders?
Total return of capital in the quarter was $185 million, or $0.24 per share. This included a base dividend of $0.06 per share, a variable dividend of $0.14 per share, and repurchases of 2.0 million shares for $31 million. The dividends are payable May 29, 2024 to holders of record as of May 21, 2024.
What is the company's financial leverage position?
At March 31, 2024, the company had $13 million of cash on hand and $60 million drawn under its revolving credit facility. Net debt-to-LQA EBITDAX was approximately 1x. Elected revolver commitments rose to $2.5 billion from $2.0 billion, with the borrowing base unchanged at $4.0 billion. After quarter-end, the company redeemed $356 million of 6.875% Senior Notes due 2027.
What is the status of the Earthstone integration and synergies?
The company said the Earthstone integration is complete and synergy capture is ahead of schedule. The annual synergy target was increased by $50 million to $225 million. Average spud-to-rig release days fell 18% per well, and completion days fell 50% per well, on legacy Earthstone acreage compared with Earthstone's first-half 2023 results.
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