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Permian Resources 8-K Report, Financial Results (Aug 6, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed August 6, 2024
Period End
August 6, 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 August 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Permian Resources Corporation reported second quarter 2024 results on August 6, 2024, via a press release furnished as Exhibit 99.1, and raised its 2024 standalone oil and total production guidance.

The company produced 152,883 barrels of oil per day and 338,761 Boe/d in the quarter, with total cash capital expenditures of $516 milliona. Net cash provided by operating activities was $938 million, adjusted operating cash flow was $849 million ($1.10 per adjusted basic share), and adjusted free cash flow was $332 million ($0.43 per adjusted basic share). Net income attributable to Class A Common Stock was $235.1 million, or $0.38 per basic share.

The company announced an $817.5 millionb acquisition from Occidental adding about 29,500 net acres and about 15,000 Boe/d, expected to close by the end of the third quarter 2024, and it also closed the previously announced Eddy County bolt-on. Standalone 2024 oil production guidance was raised to 151-153 MBbls/d and total production to 320-330 MBoe/d, with the acquisition excluded from standalone guidance. Other guidance items were unchanged, including a total cash capital expenditure program of $1,900 to $2,100 million.

On the balance sheet, the company reported pro forma total liquidity of approximately $2.5 billionc after recent financing transactions, including $1 billion of 6.25% senior notes due 2033 and a cash tender offer for its 7.75% senior notes due 2026. The company declared a base dividend of $0.06 per share and a variable dividend of $0.15 per share, payable August 27, 2024, and it targets investment grade credit ratings in 2025.

02—Key points

Key Highlights

  1. Q2 2024 total production of 338,761 Boe/d, with crude oil production of 152,883 Bbls/d, and total cash capital expenditures of $516 million.
  2. Adjusted free cash flow of $332 million ($0.43 per adjusted basic share) on net cash provided by operating activities of $938 million.
  3. Announced an $817.5 million acquisition from Occidental adding about 29,500 net acres and about 15,000 Boe/d, expected to close by the end of Q3 2024.
  4. Raised 2024 standalone oil production guidance to 151-153 MBbls/d and total production guidance to 320-330 MBoe/d; the Occidental acquisition is excluded from standalone guidance.
  5. Declared a base dividend of $0.06 per share and a variable dividend of $0.15 per share, a total of $0.21 per share, payable August 27, 2024.
  6. Pro forma total liquidity of approximately $2.5 billion, following $1 billion of 6.25% senior notes due 2033 and a tender offer for 7.75% senior notes due 2026.
  7. Q2 2024 net income attributable to Class A Common Stock of $235.1 million ($0.38 basic per share), and adjusted net income of $297.4 million ($0.39 per adjusted basic share).

03—Questions

Frequently Asked Questions

  1. What did Permian Resources report for second quarter 2024 results?

    The company reported net income attributable to Class A Common Stock of $235.1 million, or $0.38 per basic share, and net cash provided by operating activities of $938 million. Average total production was 338,761 Boe/d and average crude oil production was 152,883 Bbls/d.

  2. How much did the company change its 2024 production guidance?

    Standalone 2024 oil production guidance was increased to 151-153 MBbls/d, and total production guidance was increased to 320-330 MBoe/d, based on the midpoint of guidance. The filing states the increase was approximately 1.5%.

  3. What is the Occidental acquisition?

    Permian Resources agreed to purchase about 29,500 net acres, about 9,900 net royalty acres and about 15,000 Boe/d in the core of the Delaware Basin from Occidental for $817.5 million. The assets directly offset its existing positions in Reeves County, Texas and Eddy County, New Mexico, and the transaction is expected to close by the end of the third quarter 2024.

  4. What shareholder returns did the company announce?

    The Board declared a quarterly base cash dividend of $0.06 per share and a variable cash dividend of $0.15 per share, payable August 27, 2024 to holders of record as of August 19, 2024. In the second quarter the company also repurchased 1.8 million shares for $30 million, for a total second quarter return of capital of $0.25 per share.

  5. How is the company managing its balance sheet and credit ratings?

    The company funded the Barilla Draw acquisition with about $403 million from issuing 26.5 million Class A shares and $1 billion of 6.25% senior notes due 2033. Proceeds will also be used to redeem the 7.75% senior notes due 2026 and repay the credit facility. Pro forma total liquidity is approximately $2.5 billion, and the company is targeting investment grade credit ratings in 2025.

04—Continue

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