01—Abstract
Summary
Summary of the 8-K filed November 6, 2024. Cited figures are marked; the original filing is the authoritative source.
Permian Resources Corporation reported third-quarter 2024 results on November 6, 2024, and raised its full-year production guidance for the third consecutive quarter while keeping its capital budget unchanged.
Net income attributable to Class A Common Stock was $386.4 milliona for the quarter, with oil and gas sales of $1.22 billion and cash provided by operating activities of $954 million. Adjusted free cash flow was $303 million, and cash capital expenditures were $520 million. The company closed the Barilla Draw acquisition on September 17, 2024, adding approximately 29,500 net acres and 9,900 net royalty acres in the Delaware Basin.
The company declared its first quarterly base dividend under its new return of capital policy, $0.15b per share, a 150% increase over the prior base dividend. Management also reported that drilling and completion costs fell to approximately $800 per lateral foot, a $150 reduction from 2023. The 2024 oil production midpoint rose to 158.5 MBbls/d and total production to 341.0 MBoe/d, with the total cash capital expenditure program unchanged at $1,900 to $2,100 million.
Separately, OpCo entered into the Eighth Amendment to its Third Amended and Restated Credit Agreement on October 31, 2024. The amendment extended the revolving maturity date from February 18, 2027 to February 18, 2028, and reaffirmed the $4.0 billionc borrowing base and $2.5 billion aggregate elected commitments. At quarter-end the company had $272 million of cash, no revolver borrowings, approximately $2.8 billion of total liquidity, and net debt-to-LQA EBITDAX of approximately 1x.
02—Key points
Key Highlights
- Net income attributable to Class A Common Stock of $386.4 million for Q3 2024, versus $45.4 million in Q3 2023
- Average daily production of 347,091 Boe/d in Q3 2024, a 5% increase in crude oil output versus the prior quarter, and full-year 2024 production guidance raised to a midpoint of 341.0 MBoe/d for the third consecutive quarter
- Net cash provided by operating activities of $954 million and adjusted free cash flow of $303 million for Q3 2024, against cash capital expenditures of $520 million
- First quarterly base dividend of $0.15 per share under the new return of capital policy, a 150% increase over the prior base dividend
- Drilling and completion costs reduced to approximately $800 per lateral foot, a $150 reduction from 2023, with drilling cycle times down 16% year over year
- Barilla Draw acquisition closed September 17, 2024, adding approximately 29,500 net acres and 9,900 net royalty acres in the Delaware Basin
- Credit agreement revolver maturity extended to February 18, 2028, with the $4.0 billion borrowing base and $2.5 billion elected commitments reaffirmed
03—Questions
Frequently Asked Questions
How did Permian Resources perform financially in the third quarter of 2024?
The company reported Q3 2024 oil and gas sales of $1.22 billion, income from operations of $395.1 million, and net income attributable to Class A Common Stock of $386.4 million, or $0.53 per diluted share. Net cash provided by operating activities was $954 million, and adjusted free cash flow was $303 million.
What changed in the company's shareholder return policy?
The Board declared a quarterly base dividend of $0.15 per share of Class A common stock, or $0.60 annualized, payable November 22, 2024 to holders of record as of November 14, 2024. The company said this is the first base dividend under its new return of capital policy and represents a 150% increase over the prior base dividend, with an annualized yield of 4.4% as of November 4, 2024.
Did the company change its production or capital guidance for 2024?
Yes, for production. The midpoint of full-year oil production guidance increased by 6.5 MBbls/d to 158.5 MBbls/d, and total production guidance increased by 16.0 MBoe/d to 341.0 MBoe/d. The total cash capital expenditure program remained at $1,900 to $2,100 million. The company also adjusted expected 2024 turn-in-lines to approximately 270 gross wells due to faster cycle times.
What is the status of the company's debt and liquidity?
At September 30, 2024, the company had $272 million in cash, no amounts drawn under its revolving credit facility, and total liquidity of approximately $2.8 billion. Net debt-to-LQA EBITDAX was approximately 1x. The Eighth Amendment, dated October 31, 2024, extended the revolver maturity to February 18, 2028 and reaffirmed the $4.0 billion borrowing base and $2.5 billion aggregate elected commitments.
04—Continue