Permian Resources Announces Strong Second Quarter 2024 Results and Increased Full Year Guidance

Permian Resources Corporation (“Permian Resources” or the “Company”) (NYSE: PR) today announced its second quarter 2024 financial and operational results and revised 2024 guidance.

Recent Financial and Operational Highlights

• Reported crude oil and total average production of 152.9 MBbls/d and 338.8 MBoe/d during the quarter
• Decreased controllable cash costs by 8% quarter-over-quarter to $7.45 per Boe, driven primarily by lower LOE
• Reduced second quarter D&C costs per foot by ~13% compared to 2023, driven by operational efficiencies
• Announced cash capital expenditures of $516 million and adjusted free cash flow1 of $332 million ($0.43 per adjusted basic share)
• Reported total return of capital of $193 million, or $0.25 per share, including $0.06 per share base dividend, $0.15 per share variable dividend and $30 million in share repurchases
• Continued to drive shareholder value through accretive acquisitions:
  • Closed previously announced Eddy County bolt-on
  • Announced $817.5 million acquisition from Occidental, adding ~29,500 net acres and ~15,000 Boe/d directly offset existing operations
• Increased mid-point of full year standalone oil and total production guidance by ~1.5% to 152 MBbls/d and 325 MBoe/d, driven primarily by continued strong operational performance

Management Commentary

“Our team and asset base continue to perform extremely well, and our continued focus on further improving our position as the low-cost leader in the Delaware Basin has paid-off across the board, from controllable cash costs to drilling, completions and other capex,” said Will Hickey, Co-CEO of Permian Resources. “This has allowed us to increase our full year oil guidance for the second consecutive quarter, while maintaining our original capital outlook.”

“We are proud to continue building upon our track record of consistent operational execution and cost reduction. This allowed us to generate $0.43 per share of adjusted free cash flow, or $332 million,” said James Walter, Co-CEO of Permian Resources. “Our history of strong operational performance and accretive acquisitions has allowed us to grow adjusted free cash flow per share over 60% since the first quarter 2023, and we’ve continued that track record with our second quarter results and the recent Barilla Draw acquisition.”

Operational and Financial Results

During the second quarter, average daily crude oil production was 152,883 barrels of oil per day (“Bbls/d”), a 1% increase compared to the prior quarter. Total production was 338,761 barrels of oil equivalent per day (“Boe/d”), a 6% increase compared to the prior quarter. Oil outperformance was driven by continued strong execution, with the outperformance in total production further enhanced by higher ethane recovery during the quarter.

The Company continues to increase operational efficiencies, driving down drilling and completions costs per foot. For the second quarter, drilling and completion costs per lateral foot were approximately $830, a 13% reduction from 2023. Total cash capital expenditures (“capex”) for the second quarter were $516 million. “We have built on our momentum from the prior quarter. The second quarter represents our best D&C performance to-date, including averaging approximately 1,500 feet drilled per day per rig,” said Will Hickey, Co-CEO.

The Company demonstrated strong cost control in the second quarter, with total controllable cash costs (LOE, GP&T and cash G&A) decreasing 8% quarter-over-quarter to $7.45 per Boe. Second quarter LOE was $5.18 per Boe, GP&T was $1.42 per Boe and Cash G&A was $0.85 per Boe.

“Our team has done a tremendous job demonstrating cost control and synergy realization,” said Will Hickey, Co-CEO. “Less than nine months after closing the Earthstone acquisition, we’ve driven field costs back down to legacy PR levels. This is a testament to our operations team and clear demonstration of our track-record of capturing synergies.”

Realized prices for the quarter were $80.10 per barrel of oil, $0.01 per Mcf of natural gas and $22.51 per barrel of natural gas liquids (“NGLs”), excluding the effects of hedges and GP&T costs. During the quarter, regional natural gas prices in the Permian Basin were negatively impacted as a result of pipeline capacity constraints, which are expected to be alleviated as additional pipeline capacity comes online later this year.

For the second quarter, Permian Resources generated net cash provided by operating activities of $938 million, adjusted operating cash flow1 of $849 million ($1.10 per adjusted basic share) and adjusted free cash flow1 of $332 million ($0.43 per adjusted basic share).

Recent Acquisition

On July 29, 2024, Permian Resources announced that it had entered into a definitive agreement with Occidental (NYSE: OXY) to purchase ~29,500 net acres, ~9,900 net royalty acres and ~15,000 Boe/d in the core of the Delaware Basin for $817.5 million. The acquired assets are concentrated directly offset Permian Resources’ existing position in Reeves County, Texas and Eddy County, New Mexico. Permian Resources has identified over 200 gross operated, high-NRI two-mile locations which immediately compete for capital. The Company expects to begin development on the acquired properties during the fourth quarter 2024. The acquired assets in Reeves County also include a fully integrated midstream system which consists of over 100 miles of operated oil and gas gathering pipeline and over 10,000 surface acres, in addition to complementary water infrastructure including saltwater disposal wells, a recycling facility, frac ponds and water wells. The transaction is expected to close by the end of the third quarter 2024.

2024 Operational Plan and Target Update

Based on recent operational results, Permian Resources increased its 2024 standalone oil and total production targets by approximately 1.5% to 151-153 MBbls/d and 320-330 MBoe/d, respectively, based on the mid-point of guidance. The Company is also adjusting the expected number of turn-in-lines (“TILs”) for 2024 to approximately 265 gross wells, as a result of higher operational efficiencies and reduced cycle times. There are no other changes to the Company’s standalone guidance ranges.

The recent Occidental acquisition noted above is expected to add approximately 15,000 Boe/d (~55% oil) of total production during the fourth quarter 2024. Notably, the potential impact of the recently announced acquisition is not included in the revised standalone guidance.

(For a detailed table summarizing Permian Resources’ revised 2024 standalone operational and financial guidance, please see the Appendix of this press release.)

Financial Update

Permian Resources continues to execute on the conservative financial strategy it has pursued since formation. The Company funded the previously announced Barilla Draw bolt-on acquisition through a combination of equity and debt, issuing 26.5 million shares of Class A Common Stock to raise approximately $403 million in proceeds and $1 billion of 6.25% senior notes due 2033 at par. In addition to funding the pending Barilla Draw acquisition, the proceeds from the notes will be used to redeem the 7.75% senior notes due 2026 and fully repay the credit facility.

The Company’s maturity profile was further strengthened by a cash tender offer to purchase any and all of its outstanding 7.75% Senior Notes due 2026. Subject to the completion of the tender offer, the Company intends to redeem all 7.75% Senior Notes due 2026 not purchased in the tender offer. After giving effect to recent transactions, Permian Resources’ pro forma total liquidity is approximately $2.5 billion. Additionally, the Company placed additional crude oil hedges in 2025 and 2026. Giving effect to those new hedges, Permian Resources has approximately 45, 43 and 18 MBbls/d of oil hedged for the second half of 2024, 2025 and 2026, respectively.

The Company remains focused on establishing investment grade credit ratings. Since the first quarter 2024, Moody’s Ratings upgraded Permian Resources to Ba2 with positive outlook and S&P Global Ratings upgraded Permian Resources to BB with stable outlook. Giving effect to these upgrades, Permian Resources is rated BB (S&P), Ba2 (Moody’s) and BB (Fitch). Permian Resources continues to prioritize preserving a strong balance sheet and maintaining financial flexibility to support leading total shareholder returns. "We are proud of our financial strength and have comparable attributes to our investment grade peers. As a result, we are targeting investment grade credit ratings in 2025," said Guy Oliphint, Chief Financial Officer.

Shareholder Returns

Permian Resources announced today that its Board of Directors (the “Board”) declared a quarterly base cash dividend of $0.06 per share of the Company’s Class A common stock, or $0.24 per share on an annualized basis. Additionally, based upon second quarter financial results, the Board has declared a quarterly variable cash dividend of $0.15 per share of Class A common stock. Combined, the base and variable dividends represent a total cash return of $0.21 per share. The base and variable dividends are payable on August 27, 2024 to shareholders of record as of August 19, 2024. Permian Resources returned additional capital to shareholders in the second quarter by repurchasing 1.8 million shares of common stock for $30 million. The Company’s second quarter total return of capital, inclusive of the base dividend, variable dividend and share repurchases, was $0.25 per share.

Quarterly Report on Form 10-Q

Permian Resources’ financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which is expected to be filed with the Securities and Exchange Commission (“SEC”) on August 7, 2024.

Conference Call and Webcast

Permian Resources will host an investor conference call on Wednesday, August 7, 2024 at 9:00 a.m. Central (10:00 a.m. Eastern) to discuss second quarter 2024 operating and financial results. Interested parties may join the call by visiting Permian Resources’ website at www.permianres.com and clicking on the webcast link or by dialing [phone] (Conference ID: PRCQ224) at least 15 minutes prior to the start of the call. A replay of the call will be available on the Company’s website or by phone at [phone] (Passcode: 24995) for a 14-day period following the call.

About Permian Resources

Headquartered in Midland, Texas, Permian Resources is an independent oil and natural gas company focused on the responsible acquisition, optimization and development of high-return oil and natural gas properties. The Company’s assets and operations are concentrated in the core of the Delaware Basin, making it the second largest Permian Basin pure-play E&P. For more information, please visit www.permianres.com.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.

Forward-looking statements may include statements about:

• volatility of oil, natural gas and NGL prices or a prolonged period of low oil, natural gas or NGL prices and the effects of actions by, or disputes among or between, members of the Organization of Petroleum Exporting Countries (“OPEC”), such as Saudi Arabia, and other oil and natural gas producing countries, such as Russia, with respect to production levels or other matters related to the price of oil, natural gas and NGLs;
• political and economic conditions and events in or affecting other producing regions or countries, including the Middle East, Russia, Eastern Europe, Africa and South America;
• our business strategy and future drilling plans;
• our reserves and our ability to replace the reserves we produce through drilling and property acquisitions;
• our drilling prospects, inventories, projects and programs;
• our financial strategy, return of capital program, leverage, liquidity and capital required for our development program;
• the timing and amount of our future production of oil, natural gas and NGLs;
• our ability to identify, complete and effectively integrate acquisitions of properties, assets or businesses;
• our hedging strategy and results;
• our competition;
• our ability to obtain permits and governmental approvals;
• our compliance with government regulations, including those related to climate change as well as environmental, health and safety regulations and liabilities thereunder;
• our pending legal matters;
• the marketing and transportation of our oil, natural gas and NGLs;
• our leasehold or business acquisitions;
• cost of developing or operating our properties;
• our anticipated rate of return;
• general economic conditions;
• weather conditions in the areas where we operate;
• credit markets;
• our ability to make dividends, distributions and share repurchases;
• uncertainty regarding our future operating results;
• our plans, objectives, expectations and intentions contained in this press release that are not historical; and
• the other factors described in our most recent Annual Report on Form 10-K, and any updates to those factors set forth in our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the exploration for and development, production, gathering and sale of oil, natural gas and NGLs. Factors which could cause our actual results to differ materially from the results contemplated by forward-looking statements include, but are not limited to:

• commodity price volatility (including regional basis differentials);
• uncertainty inherent in estimating oil, natural gas and NGL reserves, including the impact of commodity price declines on the economic producibility of such reserves, and in projecting future rates of production;
• geographic concentration of our operations;
• lack of availability of drilling and production equipment and services;
• lack of transportation and storage capacity as a result of oversupply, government regulations or other factors;
• risks relating to the merger (the “Earthstone Merger”) of the Company with Earthstone Energy, Inc., a Delaware corporation (“Earthstone”), and its subsidiaries;
• risks related to our recent bolt-on transactions, including the risk that we may fail to complete and integrate such acquisitions on the terms and timing currently contemplated, or at all, and/or to realize the expected benefits of such acquisitions;
• competition in the oil and natural gas industry for assets, materials, qualified personnel and capital;
• drilling and other operating risks;
• environmental and climate related risks, including seasonal weather conditions;
• regulatory changes, including those that may result from the U.S. Supreme Court’s recent decision overturning the Chevron deference doctrine and that may impact environmental, energy, and natural resources regulation;
• restrictions on the use of water, including limits on the use of produced water and potential restrictions on the availability to water disposal facilities;
• availability to cash flow and access to capital;
• inflation;
• changes in our credit ratings or adverse changes in interest rates;
• changes in the financial strength of counterparties to our credit agreement and hedging contracts;
• the timing of development expenditures;
• political and economic conditions and events in foreign oil and natural gas producing countries, including embargoes, continued hostilities in the Middle East and other sustained military campaigns, including the conflict in Israel and its surrounding areas, the war in Ukraine and associated economic sanctions on Russia, conditions in South America, Central America, China and Russia, and acts of terrorism or sabotage;
• changes in local, regional, national, and international economic conditions;
• security threats, including evolving cybersecurity risks such as those involving unauthorized access, denial-of-service attacks, third-party service provider failures, malicious software, data privacy breaches by employees, insiders or other with authorized access, cyber or phishing-attacks, ransomware, social engineering, physical breaches or other actions; and
• other risks described in our filings with the SEC.

Reserve engineering is a process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data, and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

Should one or more of the risks or uncertainties described in this press release occur, or should any underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.

1) Adjusted Operating Cash Flow, Adjusted Free Cash Flow and Net Debt-to-LQA EBITDAX are non-GAAP financial measures. See “Non-GAAP Financial Measures” included within the Appendix of this press release for related disclosures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Details of our revised 2024 operational and financial guidance are presented below:

 

2024 FY Guidance (Updated)

Net average daily production (Boe/d)

320,000

—

330,000

Net average daily oil production (Bbls/d)

151,000

—

153,000

 

 

 

 

Production costs

 

 

 

Lease operating expenses ($/Boe)

$5.50

—

$6.00

Gathering, processing and transportation expenses ($/Boe)

$1.00

—

$1.50

Cash general and administrative ($/Boe)(1)

$0.90

—

$1.10

Severance and ad valorem taxes (% of revenue)

6.5%

—

8.5%

 

 

 

 

Total cash capital expenditure program ($MM)

$1,900

—

$2,100

 

 

 

 

Operated drilling program

 

 

 

TILs (gross)

~265

Average working interest

~75%

Average lateral length (feet)

~9,300

(1)

Excludes stock-based compensation.

 

Permian Resources Corporation

Operating Highlights

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net revenues (in thousands):

 

 

 

 

 

 

 

Oil sales

$

1,114,343

 

 

$

549,226

 

 

$

2,165,985

 

 

$

1,073,612

 

Natural gas sales(1)

 

(23,031

)

 

 

23,647

 

 

 

15,736

 

 

 

55,769

 

NGL sales(2)

 

154,771

 

 

 

50,525

 

 

 

307,361

 

 

 

110,285

 

Oil and gas sales

$

1,246,083

 

 

$

623,398

 

 

$

2,489,082

 

 

$

1,239,666

 

 

 

 

 

 

 

 

 

Average sales prices:

 

 

 

 

 

 

 

Oil (per Bbl)

$

80.10

 

 

$

71.52

 

 

$

78.12

 

 

$

72.89

 

Effect of derivative settlements on average price (per Bbl)

 

(1.11

)

 

 

3.42

 

 

 

(0.61

)

 

 

3.53

 

Oil including the effects of hedging (per Bbl)

$

78.99

 

 

$

74.94

 

 

$

77.51

 

 

$

76.42

 

 

 

 

 

 

 

 

 

Average NYMEX WTI price for oil (per Bbl)

$

80.55

 

 

$

73.78

 

 

$

78.76

 

 

$

74.95

 

Oil differential from NYMEX

 

(0.45

)

 

 

(2.26

)

 

 

(0.64

)

 

 

(2.06

)

 

 

 

 

 

 

 

 

Natural gas price excluding the effects of GP&T (per Mcf)(1)

$

0.01

 

 

$

1.24

 

 

$

0.60

 

 

$

1.52

 

Effect of derivative settlements on average price (per Mcf)

 

0.42

 

 

 

0.52

 

 

 

0.30

 

 

 

0.55

 

Natural gas including the effects of hedging (per Mcf)

$

0.43

 

 

$

1.76

 

 

$

0.90

 

 

$

2.07

 

 

 

 

 

 

 

 

 

Average NYMEX Henry Hub price for natural gas (per MMBtu)

$

2.04

 

 

$

2.12

 

 

$

2.23

 

 

$

2.39

 

Natural gas differential from NYMEX

 

(2.03

)

 

 

(0.88

)

 

 

(1.63

)

 

 

(0.87

)

 

 

 

 

 

 

 

 

NGL price excluding the effects of GP&T (per Bbl)(2)

$

22.51

 

 

$

20.73

 

 

$

24.34

 

 

$

23.69

 

 

 

 

 

 

 

 

 

Net production:

 

 

 

 

 

 

 

Oil (MBbls)

 

13,912

 

 

 

7,680

 

 

 

27,725

 

 

 

14,730

 

Natural gas (MMcf)

 

55,224

 

 

 

25,092

 

 

 

107,026

 

 

 

49,066

 

NGL (MBbls)

 

7,711

 

 

 

3,231

 

 

 

14,340

 

 

 

6,029

 

Total (MBoe)(3)

 

30,827

 

 

 

15,093

 

 

 

59,903

 

 

 

28,937

 

 

 

 

 

 

 

 

 

Average daily net production:

 

 

 

 

 

 

 

Oil (Bbls/d)

 

152,883

 

 

 

84,393

 

 

 

152,338

 

 

 

81,379

 

Natural gas (Mcf/d)

 

606,856

 

 

 

275,734

 

 

 

588,053

 

 

 

271,080

 

NGL (Bbls/d)

 

84,736

 

 

 

35,502

 

 

 

78,791

 

 

 

33,310

 

Total (Boe/d)(3)

 

338,761

 

 

 

165,850

 

 

 

329,138

 

 

 

159,869

 

_______________________

(1)

Natural gas sales for the three and six months ended June 30, 2024 include $23.6 million and $48.9 million, respectively, of gathering, processing and transportation costs (“GP&T”) that are reflected as a reduction to natural gas sales and $7.4 million and $18.7 million for the three and six months ended June 30, 2023, respectively. Natural gas average sales prices, however, exclude $0.43 and $0.45 per Mcf of such GP&T charges for the three and six months ended June 30, 2024, respectively, and $0.30 and $0.38 per Mcf for the three and six months ended June 30, 2023, respectively.

(2)

NGL sales for the three and six months ended June 30, 2024 include $18.8 million and $41.7 million, respectively, of GP&T that are reflected as a reduction to NGL sales and $16.5 million and $32.6 million for the three and six months ended June 30, 2023, respectively. NGL average sales prices, however, exclude $2.44 and $2.91 per Bbl of such GP&T charges for the three and six months ended June 30, 2024, respectively, and $5.09 and $5.40 per Bbl for the three and six months ended June 30, 2023, respectively.

(3)

Calculated by converting natural gas to oil equivalent barrels at a ratio of six Mcf of natural gas to one Boe.

 

Permian Resources Corporation

Operating Expenses

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Operating costs (in thousands):

 

 

 

 

 

 

 

Lease operating expenses

$

159,671

 

 

$

82,991

 

 

$

328,342

 

 

$

157,523

 

Severance and ad valorem taxes

 

93,070

 

 

 

48,927

 

 

 

189,236

 

 

 

97,436

 

Gathering, processing and transportation expenses

 

43,745

 

 

 

21,753

 

 

 

82,800

 

 

 

37,235

 

Operating cost metrics:

 

 

 

 

 

 

 

Lease operating expenses (per Boe)

$

5.18

 

 

$

5.50

 

 

$

5.48

 

 

$

5.44

 

Severance and ad valorem taxes (% of revenue)

 

7.5

%

 

 

7.8

%

 

 

7.6

%

 

 

7.9

%

Gathering, processing and transportation expenses (per Boe)

$

1.42

 

 

$

1.44

 

 

$

1.38

 

 

$

1.29

 

 

Permian Resources Corporation

Consolidated Statements of Operations (unaudited)

(in thousands, except per share data)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Operating revenues

 

 

 

 

 

 

 

Oil and gas sales

$

1,246,083

 

 

$

623,398

 

 

$

2,489,082

 

 

$

1,239,666

 

Operating expenses

 

 

 

 

 

 

 

Lease operating expenses

 

159,671

 

 

 

82,991

 

 

 

328,342

 

 

 

157,523

 

Severance and ad valorem taxes

 

93,070

 

 

 

48,927

 

 

 

189,236

 

 

 

97,436

 

Gathering, processing and transportation expenses

 

43,745

 

 

 

21,753

 

 

 

82,800

 

 

 

37,235

 

Depreciation, depletion and amortization

 

426,428

 

 

 

215,726

 

 

 

836,607

 

 

 

403,945

 

General and administrative expenses

 

48,729

 

 

 

52,736

 

 

 

86,102

 

 

 

88,210

 

Merger and integration expense

 

6,941

 

 

 

4,350

 

 

 

18,064

 

 

 

17,649

 

Impairment and abandonment expense

 

6,384

 

 

 

244

 

 

 

6,404

 

 

 

489

 

Exploration and other expenses

 

5,978

 

 

 

5,263

 

 

 

17,466

 

 

 

9,637

 

Total operating expenses

 

790,946

 

 

 

431,990

 

 

 

1,565,021

 

 

 

812,124

 

Net gain (loss) on sale of long-lived assets

 

—

 

 

 

—

 

 

 

112

 

 

 

66

 

Income from operations

 

455,137

 

 

 

191,408

 

 

 

924,173

 

 

 

427,608

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

Interest expense

 

(75,452

)

 

 

(36,826

)

 

 

(148,039

)

 

 

(73,603

)

Net gain (loss) on derivative instruments

 

14,298

 

 

 

20,601

 

 

 

(106,831

)

 

 

75,113

 

Other income (expense)

 

(2,803

)

 

 

319

 

 

 

429

 

 

 

439

 

Total other income (expense)

 

(63,957

)

 

 

(15,906

)

 

 

(254,441

)

 

 

1,949

 

 

 

 

 

 

 

 

 

Income before income taxes

 

391,180

 

 

 

175,502

 

 

 

669,732

 

 

 

429,557

 

Income tax expense

 

(82,272

)

 

 

(26,548

)

 

 

(131,229

)

 

 

(60,802

)

Net income

 

308,908

 

 

 

148,954

 

 

 

538,503

 

 

 

368,755

 

Less: Net income attributable to noncontrolling interest

 

(73,808

)

 

 

(75,555

)

 

 

(156,828

)

 

 

(193,236

)

Net income attributable to Class A Common Stock

$

235,100

 

 

$

73,399

 

 

 

381,675

 

 

$

175,519

 

 

 

 

 

 

 

 

 

Income per share of Class A Common Stock:

 

 

 

 

 

 

 

Basic

$

0.38

 

 

$

0.23

 

 

$

0.66

 

 

$

0.57

 

Diluted

$

0.36

 

 

$

0.21

 

 

$

0.61

 

 

$

0.52

 

 

 

 

 

 

 

 

 

Weighted average Class A Common Stock outstanding:

 

 

 

 

 

 

 

Basic

 

612,248

 

 

 

315,168

 

 

 

582,360

 

 

 

305,593

 

Diluted

 

656,372

 

 

 

351,915

 

 

 

626,037

 

 

 

343,935

 

 

Permian Resources Corporation

Consolidated Balance Sheets (unaudited)

(in thousands, except share and per share amounts)

 

 

June 30, 2024

 

December 31, 2023

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

47,849

 

 

$

73,290

 

Accounts receivable, net

 

498,142

 

 

 

481,060

 

Derivative instruments

 

526

 

 

 

70,591

 

Prepaid and other current assets

 

31,600

 

 

 

25,451

 

Total current assets

 

578,117

 

 

 

650,392

 

Property and Equipment

 

 

 

Oil and natural gas properties, successful efforts method

 

 

 

Unproved properties

 

2,340,796

 

 

 

2,401,317

 

Proved properties

 

16,403,440

 

 

 

15,036,687

 

Accumulated depreciation, depletion and amortization

 

(4,231,283

)

 

 

(3,401,895

)

Total oil and natural gas properties, net

 

14,512,953

 

 

 

14,036,109

 

Other property and equipment, net

 

44,773

 

 

 

43,647

 

Total property and equipment, net

 

14,557,726

 

 

 

14,079,756

 

Noncurrent assets

 

 

 

Operating lease right-of-use assets

 

118,311

 

 

 

59,359

 

Other noncurrent assets

 

154,548

 

 

 

176,071

 

TOTAL ASSETS

$

15,408,702

 

 

$

14,965,578

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities

 

 

 

Accounts payable and accrued expenses

$

1,052,155

 

 

$

1,167,525

 

Operating lease liabilities

 

51,933

 

 

 

33,006

 

Derivative instruments

 

22,603

 

 

 

2,725

 

Other current liabilities

 

40,943

 

 

 

38,297

 

Total current liabilities

 

1,167,634

 

 

 

1,241,553

 

Noncurrent liabilities

 

 

 

Long-term debt, net

 

3,872,077

 

 

 

3,848,781

 

Asset retirement obligations

 

130,476

 

 

 

121,417

 

Deferred income taxes

 

438,186

 

 

 

422,627

 

Operating lease liabilities

 

68,269

 

 

 

28,302

 

Other noncurrent liabilities

 

72,138

 

 

 

73,150

 

Total liabilities

 

5,748,780

 

 

 

5,735,830

 

Shareholders’ equity

 

 

 

Common stock, $0.0001 par value, 1,500,000,000 shares authorized:

 

 

 

Class A: 679,497,591 shares issued and 675,001,119 shares outstanding at June 30, 2024 and 544,610,984 shares issued and 540,789,758 shares outstanding at December 31, 2023

 

68

 

 

 

54

 

Class C: 100,703,440 shares issued and outstanding at June 30, 2024 and 230,962,833 shares issued and outstanding at December 31, 2023

 

10

 

 

 

23

 

Additional paid-in capital

 

7,611,052

 

 

 

5,766,881

 

Retained earnings (accumulated deficit)

 

735,034

 

 

 

569,139

 

Total shareholders' equity

 

8,346,164

 

 

 

6,336,097

 

Noncontrolling interest

 

1,313,758

 

 

 

2,893,651

 

Total equity

 

9,659,922

 

 

 

9,229,748

 

TOTAL LIABILITIES AND EQUITY

$

15,408,702

 

 

$

14,965,578

 

 

Permian Resources Corporation

Consolidated Statements of Cash Flows (unaudited)

(in thousands)

 

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

Net income

$

538,503

 

 

$

368,755

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation, depletion and amortization

 

836,607

 

 

 

403,945

 

Stock-based compensation expense

 

32,607

 

 

 

53,565

 

Impairment and abandonment expense

 

6,404

 

 

 

489

 

Deferred tax expense

 

125,870

 

 

 

57,199

 

Net (gain) loss on sale of long-lived assets

 

(112

)

 

 

(66

)

Non-cash portion of derivative (gain) loss

 

121,740

 

 

 

3,901

 

Amortization of debt issuance costs, discount and premium

 

3,000

 

 

 

6,278

 

Loss on extinguishment of debt

 

3,475

 

 

 

—

 

Changes in operating assets and liabilities:

 

 

 

(Increase) decrease in accounts receivable

 

(25,846

)

 

 

(11,888

)

(Increase) decrease in prepaid and other assets

 

(4,397

)

 

 

(3,969

)

Increase (decrease) in accounts payable and other liabilities

 

(51,819

)

 

 

8,495

 

Net cash provided by operating activities

 

1,586,032

 

 

 

886,704

 

Cash flows from investing activities:

 

 

 

Acquisition of oil and natural gas properties, net

 

(262,312

)

 

 

(107,766

)

Drilling and development capital expenditures

 

(1,036,035

)

 

 

(686,556

)

Purchases of other property and equipment

 

(4,004

)

 

 

(29,050

)

Contingent considerations received related to divestiture

 

—

 

 

 

60,000

 

Proceeds from sales of oil and natural gas properties

 

7,401

 

 

 

63,986

 

Net cash used in investing activities

 

(1,294,950

)

 

 

(699,386

)

Cash flows from financing activities:

 

 

 

Proceeds from borrowings under revolving credit facility

 

1,790,000

 

 

 

630,000

 

Repayment of borrowings under revolving credit facility

 

(1,415,000

)

 

 

(715,000

)

Debt issuance costs

 

(4,220

)

 

 

(603

)

Redemption of senior notes

 

(356,351

)

 

 

—

 

Proceeds from exercise of stock options

 

257

 

 

 

230

 

Share repurchases

 

(61,048

)

 

 

(67,526

)

Dividends paid

 

(213,018

)

 

 

(47,619

)

Distributions paid to noncontrolling interest owners

 

(57,117

)

 

 

(37,883

)

Net cash used in financing activities

 

(316,497

)

 

 

(238,401

)

Net decrease in cash, cash equivalents and restricted cash

 

(25,415

)

 

 

(51,083

)

Cash, cash equivalents and restricted cash, beginning of period

 

73,864

 

 

 

69,932

 

Cash, cash equivalents and restricted cash, end of period

$

48,449

 

 

$

18,849

 

Reconciliation of cash, cash equivalents and restricted cash presented on the Consolidated Statements of Cash Flows for the periods presented:

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

Cash and cash equivalents

$

47,849

 

$

18,280

Restricted cash

 

600

 

 

 

569

 

Total cash, cash equivalents and restricted cash

$

48,449

 

 

$

18,849

 

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), our earnings release contains non-GAAP financial measures as described below.

Adjusted EBITDAX

Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income attributable to Class A Common Stock before net income attributable to noncontrolling interest, interest expense, income taxes, depreciation, depletion and amortization, impairment and abandonment expense, non-cash gains or losses on derivatives, stock-based compensation (not cash-settled), exploration and other expenses, merger and integration expense, gain/loss from the sale of long-lived assets and other non-recurring items. Adjusted EBITDAX is not a measure of net income as determined by GAAP.

Our management believes Adjusted EBITDAX is useful as it allows them to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or nonrecurring items. Our computations of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.

The following table presents a reconciliation of Adjusted EBITDAX to net income, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:

 

Three Months Ended

(in thousands)

6/30/2024

 

3/31/2024

 

12/31/2023

 

9/30/2023

 

6/30/2023

Adjusted EBITDAX reconciliation to net income:

 

 

 

 

 

 

 

 

 

Net income attributable to Class A Common Stock

$

235,100

 

 

$

146,575

 

 

$

255,354

 

 

$

45,433

 

 

$

73,399

Net income attributable to noncontrolling interest

 

73,808

 

 

 

83,020

 

 

 

157,265

 

 

 

52,896

 

 

 

75,555

 

Interest expense

 

75,452

 

 

 

72,587

 

 

 

63,024

 

 

 

40,582

 

 

 

36,826

 

Income tax expense

 

82,272

 

 

 

48,957

 

 

 

78,889

 

 

 

16,254

 

 

 

26,548

 

Depreciation, depletion and amortization

 

426,428

 

 

 

410,179

 

 

 

367,427

 

 

 

236,204

 

 

 

215,726

 

Impairment and abandonment expense

 

6,384

 

 

 

20

 

 

 

5,947

 

 

 

245

 

 

 

244

 

Non-cash derivative (gain) loss

 

(6,734

)

 

 

128,474

 

 

 

(180,179

)

 

 

161,672

 

 

 

18,678

 

Stock-based compensation expense(1)

 

22,463

 

 

 

9,094

 

 

 

8,495

 

 

 

15,633

 

 

 

35,042

 

Exploration and other expenses

 

5,978

 

 

 

11,488

 

 

 

4,669

 

 

 

5,031

 

 

 

5,263

 

Merger and integration expense

 

6,941

 

 

 

11,123

 

 

 

97,260

 

 

 

10,422

 

 

 

4,350

 

(Gain) loss on sale of long-lived assets

 

—

 

 

 

(112

)

 

 

(82

)

 

 

(63

)

 

 

—

 

Adjusted EBITDAX

$

928,092

 

 

$

921,405

 

 

$

858,069

 

 

$

584,309

 

 

$

491,631

 

_______________________

(1)

Includes stock-based compensation expense for equity awards related to general and administrative employees only. Stock-based compensation amounts for geographical and geophysical personnel are included within the Exploration and other expenses line item.

Net Debt-to-LQA EBITDAX

Net debt-to-LQA EBITDAX is a non-GAAP financial measure. We define net debt as long-term debt, net, plus unamortized debt discount, premium and debt issuance costs on our senior notes minus cash and cash equivalents.

We define net debt-to-LQA EBITDAX as net debt (defined above) divided by Adjusted EBITDAX (defined and reconciled in the section above) for the three months ended June 30, 2024, on an annualized basis. We refer to this metric to show trends that investors may find useful in understanding our ability to service our debt. This metric is widely used by professional research analysts, including credit analysts, in the valuation and comparison of companies in the oil and gas exploration and production industry. The following table presents a reconciliation of net debt to long-term debt, net and the calculation of net debt-to-LQA EBITDAX for the period presented:

(in thousands)

June 30, 2024

Long-term debt, net

$

3,872,077

 

Unamortized debt discount, premium and issuance costs on senior notes

 

12,371

 

Long-term debt

 

3,884,448

 

Less: cash and cash equivalents

 

(47,849

)

Net debt (Non-GAAP)

 

3,836,599

 

LQA EBITDAX(1)

 

3,712,368

 

Net debt-to-LQA EBITDAX

 

1

 

(1)

Represents adjusted EBITDAX (defined and reconciled in the section above) for the three months ended June 30, 2024, on an annualized basis.

Adjusted Shares

Adjusted basic and diluted weighted average shares outstanding ("Adjusted Basic and Diluted Shares") are non-GAAP financial measures defined as basic and diluted weighted average shares outstanding adjusted to reflect the weighted average shares of our Class C Common Stock outstanding during the period.

Our Adjusted Basic and Diluted Shares provide a comparable per share measurement when presenting results such as adjusted free cash flow and adjusted net income that include the interests of both net income attributable to Class A Common Stock and the net income attributable to our noncontrolling interest. Adjusted Basic and Diluted Shares are used in calculating several metrics that we use as supplemental financial measurements in the evaluation of our business.

The following table presents a reconciliation of Adjusted Basic and Diluted Shares to basic and diluted weighted average shares outstanding, which are the most directly comparable financial measure calculated and presented in accordance with GAAP:

 

Three Months Ended June 30,

(in thousands)

2024

 

2023

Basic weighted average shares of Class A Common Stock outstanding

612,248

 

315,168

Weighted average shares of Class C Common Stock

159,352

 

 

245,586

 

Adjusted basic weighted average shares outstanding

771,600

 

 

560,754

 

 

 

 

 

Basic weighted average shares of Class A Common Stock outstanding

612,248

 

 

315,168

 

Add: Dilutive effects of Convertible Senior Notes

28,706

 

 

27,605

 

Add: Dilutive effects of equity awards

15,418

 

 

9,142

 

Diluted weighted average shares of Class A Common Stock outstanding

656,372

 

 

351,915

 

Weighted average shares of Class C Common Stock

159,352

 

 

245,586

 

Adjusted diluted weighted average shares outstanding

815,724

 

 

597,501

 

Adjusted Operating Cash Flow and Adjusted Free Cash Flow

Adjusted operating cash flow and adjusted free cash flow are supplemental non-GAAP financial measures used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define adjusted operating cash flow as net cash provided by operating activities adjusted to remove changes in working capital, merger and integration and other non-recurring charges, and estimated tax distributions to our non-controlling interest owners. Adjusted operating cash flows is reduced by total cash capital expenditures to arrive at adjusted free cash flows.

Our management believes adjusted operating cash flow and adjusted free cash flow are useful indicators of the Company’s ability to internally fund its future exploration and development activities, to service its existing level of indebtedness or incur additional debt, without regard to the timing of settlement of either operating assets and liabilities, its merger and integration and other non-recurring costs or estimated tax distributions to noncontrolling interest owners after funding its capital expenditures paid for the period. The Company believes that these measures, as so adjusted, present meaningful indicators of the Company’s actual sources and uses of capital associated with its operations conducted during the applicable period. Our computation of adjusted operating cash flow and adjusted free cash flow may not be comparable to other similarly titled measures of other companies. Adjusted operating cash flow and adjusted free cash flow should not be considered as alternatives to, or more meaningful than, net cash provided by operating activities as determined in accordance with GAAP or as indicators of our operating performance or liquidity.

Adjusted operating cash flow and adjusted free cash flow are not financial measures that are determined in accordance with GAAP. Accordingly, the following table presents a reconciliation of adjusted operating cash flow and adjusted free cash flow to net cash provided by operating activities, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:

 

Three Months Ended June 30,

(in thousands, except per share data)

 

2024

 

 

 

2023

 

Net cash provided by operating activities

$

938,434

 

 

$

448,491

 

Changes in working capital:

 

 

 

Accounts receivable

 

(59,292

)

 

 

10,385

 

Prepaid and other assets

 

9,747

 

 

 

2,953

 

Accounts payable and other liabilities

 

(47,092

)

 

 

(15,306

)

Merger and integration expense & other

 

6,941

 

 

 

4,350

 

Estimated tax distribution to noncontrolling interest owners(1)

 

(66

)

 

 

—

 

Adjusted operating cash flow

 

848,672

 

 

 

450,873

 

Less: total cash capital expenditures

 

(516,412

)

 

 

(371,271

)

Adjusted free cash flow

$

332,260

 

 

$

79,602

 

 

 

 

 

Adjusted basic weighted average shares outstanding

 

771,600

 

 

 

560,754

 

Adjusted operating cash flow per adjusted basic share

$

1.10

 

 

$

0.80

 

Adjusted free cash flow per adjusted basic share

$

0.43

 

 

$

0.14

 

_______________________

(1)

Reflects estimated future distributions to noncontrolling interest owners based upon current federal and state income tax expense recognized during the period and expected to be paid by the partnership. Such estimates are based upon the noncontrolling interest ownership percentage as of three months ended June 30, 2024.

Adjusted Net Income

Adjusted net income is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define adjusted net income as net income attributable to Class A Common Stock plus net income attributable to noncontrolling interest adjusted for non-cash gains or losses on derivatives, merger and integration expense, other nonrecurring charges, impairment and abandonment expense, gain/loss from the sale of long-lived assets and the related income tax adjustments for these items. Adjusted net income is not a measure of net income as determined by GAAP.

Our management believes adjusted net income is useful as it allows them to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers by excluding certain non-cash items that can vary significantly. Adjusted net income should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Our presentation of adjusted net income should not be construed as an inference that our results will be unaffected by unusual or nonrecurring items. Our computations of adjusted net income may not be comparable to other similarly titled measures of other companies.

Adjusted net income is not a financial measure that is determined in accordance with GAAP. Accordingly, the following table presents a reconciliation of adjusted net income to net income, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:

 

Three Months Ended June 30,

(in thousands, except per share data)

 

2024

 

 

 

2023

 

Net income attributable to Class A Common Stock

$

235,100

 

 

$

73,399

 

Net income attributable to noncontrolling interest

 

73,808

 

 

 

75,555

 

Non-cash derivative (gain) loss

 

(6,734

)

 

 

18,678

 

Merger and integration expense & other

 

6,941

 

 

 

4,350

 

Impairment and abandonment expense

 

6,384

 

 

 

244

 

Adjusted net income excluding above items

 

315,499

 

 

 

172,226

 

Income tax expense attributable to the above items(1)

 

(18,090

)

 

 

(22,236

)

Adjusted Net Income

$

297,409

 

 

$

149,990

 

 

 

 

 

Adjusted basic weighted average shares outstanding (Non-GAAP)(2)

 

771,600

 

 

 

560,754

 

Adjusted net income per adjusted basic share

$

0.39

 

 

$

0.27

 

_______________________

(1)

Income tax (expense) benefit for adjustments made to adjusted net income is calculated using PR's federal and state-apportioned statutory tax rate of 22.5%.

(2)

Adjusted basic weighted average shares outstanding is a Non-GAAP measure that has been computed and reconciled to the nearest GAAP metric in the preceding table above.

The following table summarizes the approximate volumes and average contract prices of the hedge contracts the Company had in place as of July 31, 2024. There were no additional contracts entered into through the date of this filing:

 

Period

 

Volume (Bbls)

 

Volume (Bbls/d)

 

Wtd. Avg. Crude Price

($/Bbl)(1)

Crude oil swaps

July 2024 - September 2024

 

3,725,500

 

40,495

 

$76.18

 

October 2024 - December 2024

 

3,772,000

 

41,000

 

75.08

 

January 2025 - March 2025

 

3,870,000

 

43,000

 

75.15

 

April 2025 - June 2025

 

3,913,000

 

43,000

 

73.85

 

July 2025 - September 2025

 

3,956,000

 

43,000

 

72.65

 

October 2025 - December 2025

 

3,956,000

 

43,000

 

71.62

 

January 2026 - March 2026

 

1,575,000

 

17,500

 

71.49

 

April 2026 - June 2026

 

1,592,500

 

17,500

 

70.61

 

July 2026 - September 2026

 

1,610,000

 

17,500

 

69.77

 

October 2026 - December 2026

 

1,610,000

 

17,500

 

69.08

 

Period

 

Volume (Bbls)

 

Volume (Bbls/d)

 

Wtd. Avg. Collar Price Ranges

($/Bbl)(2)

Crude oil collars

July 2024 - September 2024

 

184,000

 

2,000

 

$60.00

-

$76.01

 

October 2024 - December 2024

 

184,000

 

2,000

 

60.00

-

76.01

 

Period

 

Volume (Bbls)

 

Volume (Bbls/d)

 

Wtd. Avg. Put Price

($/Bbl)(3)

 

Deferred Premium

($/Bbl)(3)

Deferred premium puts

July 2024 - September 2024

 

230,000

 

2,500

 

$65.00

 

$4.96

 

October 2024 - December 2024

 

230,000

 

2,500

 

65.00

 

4.96

 

Period

 

Volume (Bbls)

 

Volume (Bbls/d)

 

Wtd. Avg. Differential

($/Bbl)(4)

Crude oil basis differential swaps

July 2024 - September 2024

 

4,048,000

 

44,000

 

$0.98

 

October 2024 - December 2024

 

4,048,000

 

44,000

 

0.98

 

January 2025 - March 2025

 

2,250,000

 

25,000

 

1.10

 

April 2025 - June 2025

 

2,275,000

 

25,000

 

1.10

 

July 2025 - September 2025

 

2,300,000

 

25,000

 

1.10

 

October 2025 - December 2025

 

2,300,000

 

25,000

 

1.10

 

January 2026 - March 2026

 

405,000

 

4,500

 

1.12

 

April 2026 - June 2026

 

409,500

 

4,500

 

1.12

 

July 2026 - September 2026

 

414,000

 

4,500

 

1.12

 

October 2026 - December 2026

 

414,000

 

4,500

 

1.12

 

Period

 

Volume (Bbls)

 

Volume (Bbls/d)

 

Wtd. Avg. Differential

($/Bbl)(5)

Crude oil roll differential swaps

July 2024 - September 2024

 

4,093,000

 

44,489

 

$0.54

 

October 2024 - December 2024

 

4,186,000

 

45,500

 

0.55

 

January 2025 - March 2025

 

3,870,000

 

43,000

 

0.42

 

April 2025 - June 2025

 

3,913,000

 

43,000

 

0.42

 

July 2025 - September 2025

 

3,956,000

 

43,000

 

0.42

 

October 2025 - December 2025

 

3,956,000

 

43,000

 

0.42

 

January 2026 - March 2026

 

1,575,000

 

17,500

 

0.28

 

April 2026 - June 2026

 

1,592,500

 

17,500

 

0.28

 

July 2026 - September 2026

 

1,610,000

 

17,500

 

0.28

 

October 2026 - December 2026

 

1,610,000

 

17,500

 

0.28

_______________________

(1)

These crude oil swap transactions are settled based on the NYMEX WTI index price on each trading day within the specified monthly settlement period versus the contractual swap price for the volumes stipulated.

(2)

These crude oil collars are settled based on the NYMEX WTI index price on each trading day within the specified monthly settlement period versus the contractual floor and ceiling prices for the volumes stipulated.

(3)

These crude oil deferred premium puts are settled based on the NYMEX WTI index price on each trading day within the specified monthly settlement period versus the contractual put prices for the volumes stipulated.

(4)

These crude oil basis swap transactions are settled based on the difference between the arithmetic average of ARGUS MIDLAND WTI and ARGUS WTI CUSHING indices, during each applicable monthly settlement period.

(5)

These crude oil roll swap transactions are settled based on the difference between the arithmetic average of NYMEX WTI calendar month prices and the physical crude oil delivery month price.

 

Period

 

Volume (MMBtu)

 

Volume (MMBtu/d)

 

Wtd. Avg. Gas Price

($/MMBtu)(1)

Natural gas swaps

July 2024 - September 2024

 

5,949,388

 

64,667

 

$3.43

 

October 2024 - December 2024

 

5,933,899

 

64,499

 

3.86

 

January 2025 - March 2025

 

3,600,000

 

40,000

 

4.32

 

April 2025 - June 2025

 

3,640,000

 

40,000

 

3.65

 

July 2025 - September 2025

 

3,680,000

 

40,000

 

3.83

 

October 2025 - December 2025

 

3,680,000

 

40,000

 

4.20

 

January 2026 - March 2026

 

990,000

 

11,000

 

4.18

 

April 2026 - June 2026

 

1,001,000

 

11,000

 

3.48

 

July 2026 - September 2026

 

1,012,000

 

11,000

 

3.80

 

October 2026 - December 2026

 

1,012,000

 

11,000

 

4.21

 

Period

 

Volume (MMBtu)

 

Volume (MMBtu/d)

 

Wtd. Avg. Differential

($/MMBtu)(2)

Natural gas basis differential swaps

July 2024 - September 2024

 

11,040,000

 

120,000

 

$(0.99)

 

October 2024 - December 2024

 

11,040,000

 

120,000

 

(0.98)

 

January 2025 - March 2025

 

3,600,000

 

40,000

 

(0.74)

 

April 2025 - June 2025

 

3,640,000

 

40,000

 

(0.74)

 

July 2025 - September 2025

 

3,680,000

 

40,000

 

(0.74)

 

October 2025 - December 2025

 

3,680,000

 

40,000

 

(0.74)

 

January 2026 - March 2026

 

990,000

 

11,000

 

(0.61)

 

April 2026 - June 2026

 

1,001,000

 

11,000

 

(1.67)

 

July 2026 - September 2026

 

1,012,000

 

11,000

 

(1.17)

 

October 2026 - December 2026

 

1,012,000

 

11,000

 

(1.02)

 

Period

 

Volume (MMBtu)

 

Volume (MMBtu/d)

 

Wtd. Avg. Collar Price Ranges

($/MMBtu)(3)

Natural gas collars

July 2024 - September 2024

 

5,090,612

 

55,333

 

$2.68

-

$5.06

 

October 2024 - December 2024

 

5,106,101

 

55,501

 

2.75

-

5.29

_______________________

(1)

These natural gas swap contracts are settled based on the NYMEX Henry Hub price on each trading day within the specified monthly settlement period versus the contractual swap price for the volumes stipulated.

(2)

These natural gas basis swap contracts are settled based on the difference between the Inside FERC’s West Texas WAHA price and the NYMEX price of natural gas, during each applicable monthly settlement period.

(3)

These natural gas collars are settled based on the NYMEX Henry Hub price on each trading day within the specified monthly settlement period versus the contractual floor and ceiling prices for the volumes stipulated.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806745082/en/

Hays Mabry – Vice President, Investor Relations [phone] [e-mail]