0001658566false00016585662024-02-272024-02-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
FORM 8-K
___________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 27, 2024
___________________
PERMIAN RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
___________________

Delaware001-3769747-5381253
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer Identification No.)

300 N. Marienfeld St., Suite 1000
Midland, Texas 79701
(Address of principal executive offices, including zip code)
(432) 695-4222
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
___________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per sharePRThe New York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02 Results of Operations and Financial Condition.
On February 27, 2024, the Company issued a press release announcing its financial and operational results for the year ended December 31, 2023, as well as full-year guidance for 2024. A copy of the press release is furnished as Exhibit 99.1 hereto.
The information furnished pursuant to this Item 2.02 and Item 7.01 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 7.01. Regulation FD Disclosure.
The disclosure set forth in Item 2.02 above is incorporated by reference into this Item 7.01.
Item 9.01. Financial Statements and Exhibits.
(d)    Exhibits
Exhibit No.Description
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PERMIAN RESOURCES CORPORATION
By:/s/ GUY M. OLIPHINT
Guy M. Oliphint
Executive Vice President and Chief Financial Officer
Date:February 27, 2024






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Permian Resources Announces Strong Fourth Quarter 2023 Results and Provides Highly Capital Efficient Full Year 2024 Plan
MIDLAND, Texas – February 27, 2024 (BUSINESS WIRE) -- Permian Resources Corporation (“Permian Resources” or the “Company”) (NYSE: PR) today announced its fourth quarter and full year 2023 financial and operational results and 2024 operational plans.
Permian Resources’ full year and fourth quarter 2023 information discussed within this release includes results from Earthstone Energy, Inc. (“Earthstone”) for the months of November and December, unless otherwise specified.
Fourth Quarter 2023 Financial and Operational Highlights
•Closed $4.5 billion Earthstone acquisition on November 1, enhancing Permian Resources’ position as the second largest Permian pure-play E&P with a >$15 billion enterprise value
◦Earthstone synergy capture ahead of schedule
•Continued strong well performance combined with closing of the Earthstone acquisition drove crude oil and total average production to 137 MBbls/d and 285 MBoe/d
•Decreased controllable cash costs by 8% quarter-over-quarter to $7.33 per Boe, driven primarily by lower LOE and continued focus on cost control
•Announced accrued capital expenditures of $423 million and cash capital expenditures of $458 million
•Reported net cash provided by operating activities of $846 million and adjusted free cash flow of $332 million (cash capital expenditures), or $0.47 per adjusted basic share
•Delivered total return of capital of $183 million, or $0.24 per share:
◦Quarterly base dividend of $0.05 per share
◦Variable dividend of $0.10 per share
◦Repurchased 5.0 million shares for $67 million at an average weighted price of $13.32 per share
•Since November 1, added ~14,000 net acres and ~5,300 net royalty acres located in the core of the Delaware Basin
Full Year 2023 Financial and Operational Highlights
•Met or outperformed all of PR standalone’s guidance, significantly exceeding production targets while remaining within original budget on capex and controllable cash costs
•Generated peer-leading total production growth per debt-adjusted share of ~35%
•Delivered ~$324 million, or $0.47 per share, in dividends to shareholders
•Repurchased 10.0 million shares for ~$125 million at an average weighted price of $12.46 per share
•Replaced >100% of PR standalone’s developed locations in 2023 through successful portfolio optimization transactions, effectively increasing inventory life
2024 Financial and Operating Plan
•Announced highly capital efficient operating plan underpinned by consistent well performance, lower well costs and continued cost discipline
◦Crude oil and total average production guidance of 145 to 150 MBbls/d and 300 to 325 MBoe/d
◦Total cash capital expenditure budget of $1.9 to $2.1 billion



◦Total controllable cash costs of $7.40 to $8.60 per Boe
•Increasing quarterly base dividend by 20% to $0.06 per share, as previously announced
Management Commentary
“In our first full year, Permian Resources had an outstanding 2023, accomplishing all our goals laid out last February. On a standalone basis, the Company delivered oil production at the high-end of our 2023 guidance range, while staying within our capex budget,” said Will Hickey, Co-CEO of Permian Resources. “During the fourth quarter, Permian Resources reported another strong quarter of production outperformance and operational improvements in the midst of closing the Earthstone acquisition. The combined team is exceeding expectations associated with the Earthstone integration and is on-track to reach key operational synergy run rates well ahead of the originally scheduled targets.”
“We are excited to announce our 2024 operational and financial plan, which combines consistent year-over-year well productivity with lower costs and other optimized key inputs to deliver even better capital efficiency than we realized in 2023,” said James Walter, Co-CEO of Permian Resources. “Most importantly, our 2024 plan allows us to maximize shareholder value by delivering industry leading per share annual growth across production, cash flow and free cash flow.”
Financial and Operational Results
Permian Resources continued the efficient development of its core Delaware Basin acreage position in the fourth quarter, delivering robust well results while successfully integrating the Earthstone acquisition. During the quarter, average daily crude oil production was 136,590 barrels of oil per day (“Bbls/d”), a 52% increase compared to the prior quarter. Fourth quarter total production averaged 285,161 barrels of oil equivalent per day (“Boe/d”).
“In addition to the contribution from incoming Earthstone production, our strong fourth quarter production results were driven by better than expected well performance and minimal production downtime despite winter weather,” said Will Hickey, Co-CEO. “For the full year 2023, our operations team delivered consistent well productivity year-over-year, demonstrating the quality of our high-return, long-dated inventory.”
In the fourth quarter, the Company continued to realize drilling and completions efficiencies while incorporating legacy Earthstone rigs and fleets into its program. Total cash and accrued capital expenditures (“capex”) for the fourth quarter were $458 million and $423 million, respectively.
Realized prices for the fourth quarter were $76.61 per barrel of oil, $1.50 per Mcf of natural gas and $21.57 per barrel of natural gas liquids (“NGLs”), excluding the effects of hedges and GP&T costs.
The Company demonstrated strong cost control in the fourth quarter, with total controllable cash costs (LOE, GP&T and cash G&A) decreasing 8% quarter-over-quarter to $7.33 per Boe. Fourth quarter LOE was $4.97 per Boe, GP&T was $1.19 per Boe and cash G&A was $1.17 per Boe, representing 8%, 9% and 2% decreases compared to the prior quarter, respectively.
For the fourth quarter, Permian Resources generated net cash provided by operating activities of $846 million and adjusted free cash flow1 of $332 million (or $367 million, utilizing accrued capex), or $0.47 per adjusted basic share.
Permian Resources continues to maintain a strong financial position and low leverage profile upon closing the Earthstone acquisition. At December 31, 2023, the Company had $73 million in cash on hand and no amounts drawn under its revolving credit facility. Net debt-to-LQA EBITDAX1 at December 31, 2023 was approximately 1x.



Earthstone Integration Update
On November 1, 2023, Permian Resources closed the $4.5 billion Earthstone acquisition that was announced on August 21, 2023. The acquisition enhances Permian Resources’ position as a leading Delaware Basin independent and creates value for the combined shareholder base through significant accretion to all relevant metrics and accelerated return of capital.
Integration of Earthstone has been underway since closing, and both integration and synergy capture are ahead of schedule. Operationally, Permian Resources’ team has been making extensive progress in the field, achieving a 50% reduction in downtime on legacy Earthstone’s Midland Basin asset since close. Permian Resources was able to improve drilling and completion efficiencies during the fourth quarter by approximately 35% and 20%, respectively, compared to legacy Earthstone’s first half 2023 results. As a result of higher efficiencies and the benefits of increased scale, Permian Resources has already achieved a 12% reduction in drilling and completions (“D&C”) as compared to Earthstone’s historical well costs. Additionally, G&A synergies are on-track, with key contributors from both companies fully integrated into the organization. Permian Resources remains confident in its ability to deliver the originally announced $175 million in annual synergies and is now expecting to realize announced synergies ahead of schedule.
2024 Operational Plans and Targets
With a focus on capital returns, Permian Resources’ 2024 operational budget delivers a highly capital efficient plan that maximizes free cash flow and value for its investors. Assuming planned activity levels and current commodity prices, the Company expects its full year oil and total production to average approximately 145 to 150 MBbls/d and 300 to 325 MBoe/d, respectively. During 2024, Permian Resources expects its well productivity to remain strong year-over-year as a result of its deep inventory of primary Delaware Basin zones and methodical development philosophy.
The estimated fiscal year 2024 cash capex budget is approximately $1.9 billion to $2.1 billion, with approximately 75% allocated to drilling and completions with the remaining 25% allocated to facilities, infrastructure, capital workover and non-operated capex. Permian Resources expects to turn-in-line (“TIL”) approximately 250 gross wells, with an average working interest of approximately 75% and 8/8ths net revenue interest of approximately 79%. The Company also expects its average completed lateral length during 2024 to be approximately 9,300 feet. Importantly, the Company’s capital budget is underpinned by an approximately 10% reduction in D&C costs per foot expected when compared to 2023.
Given the recent Earthstone acquisition, the Company expects an increasing portion of its capital budget to be allocated to high returning inventory in New Mexico. During 2024, Permian Resources anticipates that approximately 70% of its operating activity will be directed towards the Northern Delaware Basin and approximately 25% towards the Southern Delaware Basin, with the remaining portion to be allocated to its Midland Basin position.
Through its continued focus on being a low-cost leader, Permian Resources anticipates total controllable cash costs of approximately $7.40 to $8.60 per Boe, consisting of $5.50 to $6.00 per Boe for LOE, $1.00 to $1.50 per Boe for GP&T and $0.90 to $1.10 per Boe for cash G&A. Notably, the mid-point represents an 11% reduction in total controllable cash costs compared to Permian Resources and Earthstone’s combined third quarter 2023 costs, demonstrating the Company’s ability to execute on its synergy targets.
(For a detailed table summarizing Permian Resources’ 2024 operational and financial guidance, please see the Appendix of this press release.)



Shareholder Returns
Permian Resources announced today that its Board of Directors (the “Board”) declared a quarterly base cash dividend of $0.05 per share of Class A common stock, or $0.20 per share on an annualized basis. Additionally, based upon fourth quarter financial results, the Board has declared a quarterly variable cash dividend of $0.10 per share of Class A common stock. Combined, the base and variable dividends represent a total cash return of $0.15 per share. The base and variable dividends are payable on March 21, 2024 to shareholders of record as of March 13, 2024. Permian Resources returned additional capital to shareholders in the fourth quarter by repurchasing 5.0 million shares of common stock for $67.0 million at an average weighted price of $13.32 per share.
The Company’s fourth quarter total return of capital, inclusive of the base dividend, variable dividend and share repurchases, was $0.24 per share, a 41% increase from the prior quarter.
“Consistent with our game plan, we continue to return 50% of our quarterly free cash flow after the base dividend to shareholders through dividends and share repurchases,” said James Walter, Co-CEO. “During 2023, Permian Resources delivered approximately $324 million, or $0.47 per share, in dividends to shareholders. Additionally, we repurchased 10.0 million shares for approximately $125 million during the year at an average weighted price of $12.46 per share, driving incremental value for our shareholders.”
Year-End 2023 Proved Reserves
Permian Resources reported year-end 2023 total proved reserves of 925 MMBoe compared to 582 MMBoe at prior year-end. Proved developed reserves were 704 MMBoe (76% of total proved reserves) at December 31, 2023. Proved and proved developed reserves growth per share2 increased 15% and 49%, respectively, at year-end 2023 compared to the previous year-end.
Netherland Sewell & Associates, Inc., an independent reserve engineering firm, prepared Permian Resources’ year-end reserves estimates for the year ended December 31, 2023. (For additional information relating to our reserves, please see the Appendix of this press release.)
Annual Report on Form 10-K
Permian Resources’ financial statements and related footnotes will be available in its Annual Report on Form 10-K for the year ended December 31, 2023, which is expected to be filed with the Securities and Exchange Commission (“SEC”) on February 29, 2024.
Conference Call and Webcast
Permian Resources will host an investor conference call on Wednesday, February 28, 2024 at 8:00 a.m. Central (9:00 a.m. Eastern) to discuss fourth quarter and full year 2023 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 (888) 259-6580 (Conference ID: 41855841) 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 (877) 674-7070 (Passcode: 855841) 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;
•political and economic conditions 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 ability to realize the anticipated benefits and synergies from the Earthstone merger and effectively integrate Earthstone’s assets;
•our drilling prospects, inventories, projects and programs;
•our financial strategy, return of capital program, liquidity and capital required for our development program;
•our realized oil, natural gas and NGL prices;
•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 or businesses;
•our hedging strategy and results;
•our competition and government regulations;
•our ability to obtain permits and governmental approvals;
•our pending legal or environmental matters;
•the marketing and transportation of our oil, natural gas and NGLs;
•our leasehold or business acquisitions;
•costs 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 development, production, gathering and sale of oil and natural gas. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, risks relating to the Earthstone



merger, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures and the 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 oil and gas 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 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 Net Income, Adjusted Free Cash Flow, Adjusted Free Cash Flow per Adjusted Basic Share 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.
2) Reserves per share calculated utilizing Basic shares outstanding of Class A Common Stock and Class C Common Stock at period year-end.
Contacts:
Hays Mabry – Sr. Director, Investor Relations
Mae Herrington – Engineering Advisor, Investor Relations
(832) 240-3265
ir@permianres.com

SOURCE Permian Resources Corporation



Details of our 2024 operational and financial guidance are presented below:
2024 FY Guidance
Net average daily production (Boe/d)300,000—325,000
Net average daily oil production (Bbls/d)145,000—150,000
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)~250
Average working interest~75%
Average lateral length (feet)~9,300
(1)    Excludes stock-based compensation.




Permian Resources Corporation
Operating Highlights

Three Months Ended December 31,Year Ended December 31,
2023202220232022
Net revenues (in thousands):
Oil sales$962,720 $612,490 $2,696,777 $1,622,035 
Natural gas sales(1)
47,954 76,454 142,077 276,957 
NGL sales(2)
112,012 72,612 282,039 232,273 
Oil and gas sales
$1,122,686 $761,556 $3,120,893 $2,131,265 
Average sales prices:
Oil (per Bbl)$76.61 $81.81 $75.84 $88.95 
Effect of derivative settlements on average price (per Bbl)0.53 2.41 1.81 (4.85)
Oil including the effects of hedging (per Bbl)$77.14 $84.22 $77.65 $84.10 

Average NYMEX WTI price for oil (per Bbl)$78.32 $82.64 $77.62 $94.24 
Oil differential from NYMEX(1.71)(0.84)(1.78)(5.29)

Natural gas price excluding the effects of GP&T (per Mcf)(1)
$1.50 $3.64 $1.60 $4.86 
Effect of derivative settlements on average price (per Mcf)0.09 0.43 0.29 (0.53)
Natural gas including the effects of hedging (per Mcf)$1.59 $4.07 $1.89 $4.33 

Average NYMEX Henry Hub price for natural gas (per MMBtu)$2.74 $5.55 $2.53 $6.38 
Natural gas differential from NYMEX(1.24)(1.91)(0.93)(1.52)
NGL price excluding the effects of GP&T (per Bbl)(2)
$21.57 $28.03 $22.83 $35.97 

Net production:
Oil (MBbls)12,566 7,487 35,560 18,235 
Natural gas (MMcf)44,048 24,610 119,182 59,692 
NGL (MBbls)6,328 2,966 15,569 6,750 
Total (MBoe)(3)
26,234 14,556 70,992 34,934 

Average daily net production:
Oil (Bbls/d)136,590 81,378 97,424 49,958 
Natural gas (Mcf/d)478,781 267,503 326,525 163,539 
NGL (Bbls/d)68,774 32,246 42,654 18,494 
Total (Boe/d)(3)
285,161 158,208 194,499 95,708 
(1)    Natural gas sales for the three months and year ended December 31, 2023 include $18.2 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 $13.1 million for the three months and year ended December 31, 2022. Natural gas average sales price, however, excludes $0.41 per Mcf of such GP&T charges for the three months and year ended December 31, 2023 and $0.53 and $0.22 per Mcf for the three months and year ended December 31, 2022.
(2)    NGL sales for the three months and year ended December 31, 2023 include $24.4 million and $73.3 million, respectively of GP&T that are reflected as a reduction to NGL sales and $10.6 million for the three months and year ended December 31, 2022. NGL average sales price, however, excludes $3.87 and $4.71 per Bbl of such GP&T charges for the three months and year ended December 31, 2023 and $3.56 and $1.56 per Bbl for the three months and year ended December 31, 2022.
(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 December 31,Year Ended December 31,
2023202220232022
Operating costs (in thousands):
Lease operating expenses$130,439 $73,289 $373,772 $171,867 
Severance and ad valorem taxes84,384 54,233 240,762 155,724 
Gathering, processing, and transportation expense31,316 20,246 89,282 97,915 
Operating cost metrics:
Lease operating expenses (per Boe)$4.97 $5.04 $5.26 $4.92 
Severance and ad valorem taxes (% of revenue)7.5 %7.1 %7.7 %7.3 %
Gathering, processing, and transportation expense (per Boe)1.19 1.39 1.26 2.80 





Permian Resources Corporation
Consolidated Statements of Operations
(in thousands, except per share data)


Three Months Ended December 31,Year Ended December 31,

2023202220232022
Operating revenues
Oil and gas sales$1,122,686 $761,556 $3,120,893 $2,131,265 
Operating expenses
Lease operating expenses130,439 73,289 373,772 171,867 
Severance and ad valorem taxes84,384 54,233 240,762 155,724 
Gathering, processing and transportation expenses31,316 20,246 89,282 97,915 
Depreciation, depletion and amortization367,427 182,052 1,007,576 444,678 
General and administrative expenses39,126 75,617 161,855 159,554 
Merger and integration expense97,260 12,469 125,331 77,424 
Impairment and abandonment expense5,947 244 6,681 3,875 
Exploration and other expenses4,669 4,765 19,337 11,378 
Total operating expenses760,568 422,915 2,024,596 1,122,415 
Net gain (loss) on sale of long-lived assets82 13 211 (1,314)
Income from operations362,200 338,654 1,096,508 1,007,536 

Other income (expense)
Interest expense(63,024)(39,358)(177,209)(95,645)
Net gain (loss) on derivative instruments190,684 (60,019)114,016 (42,368)
Other income (expense)1,648 291 2,333 609 
Total other income (expense)129,308 (99,086)(60,860)(137,404)

Income before income taxes491,508 239,568 1,035,648 870,132 
Income tax expense(78,889)(40,860)(155,945)(120,292)
Net income412,619 198,708 879,703 749,840 
Less: Net income attributable to noncontrolling interest(157,265)(115,658)(403,397)(234,803)
Net income attributable to Class A Common Stock
$255,354 $83,050 $476,306 $515,037 

Income per share of Class A Common Stock:
Basic$0.56 $0.29 $1.36 $1.80 
Diluted$0.51 $0.26 $1.24 $1.61 
Weighted average Class A Common Stock outstanding:
Basic459,593 288,512 349,213 286,160 
Diluted500,919 329,454 389,096 322,816 





Permian Resources Corporation
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
December 31, 2023December 31, 2022
ASSETS
Current assets
Cash and cash equivalents$73,290 $59,545 
Accounts receivable, net481,060 282,846
Derivative instruments70,591 100,797 
Prepaid and other current assets25,451 20,602 
Total current assets650,392 463,790
Property and equipment
Oil and natural gas properties, successful efforts method
Unproved properties2,401,317 1,424,744
Proved properties15,036,687 8,869,174
Accumulated depreciation, depletion and amortization(3,401,895)(2,419,692)
Total oil and natural gas properties, net14,036,109 7,874,226 
Other property and equipment, net 43,647 15,173
Total property and equipment, net14,079,756 7,889,399 
Noncurrent assets
Operating lease right-of-use assets59,359 64,792 
Other noncurrent assets176,071 74,611
TOTAL ASSETS$14,965,578 $8,492,592 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses$1,167,525 $562,156 
Operating lease liabilities33,006 29,759 
Other current liabilities41,022 13,654 
Total current liabilities1,241,553 605,569 
Noncurrent liabilities
Long-term debt, net3,848,781 2,140,798 
Asset retirement obligations121,417 40,947
Deferred income taxes422,627 4,430 
Operating lease liabilities28,302 41,341 
Other noncurrent liabilities73,150 3,211 
Total liabilities5,735,830 2,836,296
Shareholders’ equity
Common stock, $0.0001 par value, 1,500,000,000 shares authorized:
Class A: 544,610,984 shares issued and 540,789,758 shares outstanding at December 31, 2023 and 298,640,260 shares issued and 288,532,257 shares outstanding at December 31, 202254 30 
Class C: 230,962,833 shares issued and outstanding at December 31, 2023 and 269,300,000 shares issued and outstanding at December 31, 202223 27 
Additional paid-in capital5,766,881 2,698,465 
Retained earnings (accumulated deficit)569,139 237,226 
Total shareholders’ equity6,336,097 2,935,748
Noncontrolling interest2,893,651 2,720,548 
Total equity9,229,748 5,656,296 
TOTAL LIABILITIES AND EQUITY$14,965,578 $8,492,592 




Permian Resources Corporation
Consolidated Statements of Cash Flows
(in thousands)

Year Ended December 31,
20232022
Cash flows from operating activities:
Net income$879,703 $749,840 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization1,007,576 444,678 
Stock-based compensation expense - equity awards78,418 116,480 
Stock-based compensation expense - liability awards— (24,174)
Impairment and abandonment expense6,681 3,875 
Deferred tax expense (benefit)152,383 119,679 
Net (gain) loss on sale of long-lived assets(211)1,314 
Non-cash portion of derivative (gain) loss(14,606)(77,737)
Amortization of debt issuance costs, debt discount and debt premium11,326 15,362 
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable36,336 (66,824)
(Increase) decrease in prepaid and other assets(27,267)(1,751)
Increase (decrease) in accounts payable and other liabilities83,160 90,929 
Net cash provided by operating activities2,213,499 1,371,671 
Cash flows from investing activities:
Acquisition of oil and natural gas properties, net(234,288)(8,858)
Drilling and development capital expenditures(1,524,899)(771,577)
Cash (paid) received for businesses acquired in mergers, net of cash received39,832 (496,671)
Purchases of other property and equipment(34,483)(3,563)
Contingent considerations received related to divestiture60,000 — 
Proceeds from sales of oil and natural gas properties115,459 75,620 
Net cash used in investing activities(1,578,379)(1,205,049)
Cash flows from financing activities:
Proceeds from borrowings under revolving credit facility1,950,000 1,115,000 
Repayment of borrowings under revolving credit facility(2,335,000)(755,000)
Repayment of credit facility acquired in mergers(830,000)(400,000)
Proceeds from issuance of senior notes997,500 — 
Debt issuance costs(15,169)(19,833)
Proceeds from exercise of stock options534 109 
Share repurchases(162,420)(19,010)
Dividends paid(141,947)(14,426)
Distributions paid to noncontrolling interest owners(94,686)(13,465)
Net cash (used in) provided by financing activities(631,188)(106,625)
Net increase (decrease) in cash, cash equivalents and restricted cash3,932 59,997 
Cash, cash equivalents and restricted cash, beginning of period69,932 9,935 
Cash, cash equivalents and restricted cash, end of period$73,864 $69,932 

Reconciliation of cash, cash equivalents and restricted cash presented on the consolidated statements of cash flows for the periods presented:
Year Ended December 31,
20232022
Cash and cash equivalents$73,290 $59,545 
Restricted cash$574 $10,387 
Total cash, cash equivalents and restricted cash$73,864 $69,932 




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 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)12/31/20239/30/20236/30/20233/31/202312/31/2022
Adjusted EBITDAX reconciliation to net income:
Net income attributable to Class A Common Stock
$255,354 $45,433 $73,399 $102,120 $83,050 
Net income attributable to noncontrolling interest
157,265 52,896 75,555 117,681 115,658 
Interest expense
63,024 40,582 36,826 36,777 39,358 
Income tax expense
78,889 16,254 26,548 34,254 40,860 
Depreciation, depletion and amortization
367,427 236,204 215,726 188,219 182,052 
Impairment and abandonment expense
5,947 245 244 245 244 
Non-cash derivative (gain) loss
(180,179)161,672 18,678 (14,777)88,635 
Stock-based compensation expense(1)
8,495 15,633 35,042 16,707 54,342 
Exploration and other expenses
4,669 5,031 5,263 4,374 4,765 
Merger and integration expense
97,260 10,422 4,350 13,299 12,469 
(Gain) loss on sale of long-lived assets
(82)(63)— (66)(13)
Adjusted EBITDAX
$858,069 $584,309 $491,631 $498,833 $621,420 
(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 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 December 31, 2023, 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)
December 31, 2023
Long-term debt, net
3,848,781 
Unamortized debt discount, debt issuance costs and debt premium on senior notes
17,018 
Long-term debt
3,865,799 
Less: cash and cash equivalents
(73,290)
Net debt (Non-GAAP)
3,792,509 
LQA EBITDAX(1)
3,432,276 
Net debt-to-LQA EBITDAX
1.1
(1) Represents adjusted EBITDAX (defined and reconciled in the section above) for the three months ended December 31, 2023, 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 December 31,
(in thousands)20232022
Basic weighted average shares of Class A Common Stock outstanding459,593 288,512 
Weighted average shares of Class C Common Stock244,039 269,300 
Adjusted basic weighted average shares outstanding703,632 557,812 
Basic weighted average shares of Class A Common Stock outstanding459,593 288,512 
Add: Dilutive effects of Convertible Senior Notes28,090 27,074 
Add: Dilutive effects of equity awards and ESPP shares13,236 13,868 
Diluted weighted average shares of Class A Common Stock outstanding500,919 329,454 
Weighted average shares of Class C Common Stock244,039 269,300 
Adjusted diluted weighted average shares outstanding744,958 598,754 




Free Cash Flow and Adjusted Free Cash Flow
Free cash flow and adjusted free cash flow are supplemental non-GAAP financial measures that are used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define free cash flow as net cash provided by operating activities before changes in working capital, less incurred capital expenditures and adjusted free cash flow as free cash flow before non-recurring merger and integration expense.
Our management believes free cash flow and adjusted free cash flow are useful indicators of the Company’s ability to internally fund its exploration and development activities and to service or incur additional debt, without regard to the timing of settlement of either operating assets and liabilities or accounts payable related to capital expenditures. 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 computations of free cash flow and adjusted free cash flow may not be comparable to other similarly titled measures of other companies. Free 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.
Free 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 free 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:

Accrued Capital Expenditures(1)
Cash Capital Expenditures(2)
Three Months Ended December 31,Three Months Ended December 31,
(in thousands, except per share data)2023202220232022
Net cash provided by operating activities$845,994 $528,295 $845,994 $528,295 
Changes in working capital:
Accounts receivable(94,123)60,071 (94,123)60,071 
Prepaid and other assets(543)1,713 (543)1,713 
Accounts payable and other liabilities(58,365)(21,290)(58,365)(21,290)
Operating cash flow before working capital changes692,963 568,789 692,963 568,789 
Less: total capital expenditures incurred/paid(422,917)(325,200)(458,206)(373,685)
Free cash flow270,046 243,589 234,757 195,104 
Merger and integration expense97,260 12,469 97,260 12,469 
Adjusted free cash flow$367,306 $256,058 $332,017 $207,573 
Adjusted basic weighted average shares outstanding703,632 557,812 703,632 557,812 
Adjusted free cash flow per adjusted basic share $0.52 $0.46 $0.47 $0.37 
(1) Utilizes activity-based capital expenditures incurred during the period.
(2) Utilizes cash capital expenditures paid during the period.







Adjusted Net Income
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 December 31,
(in thousands, except per share data)20232022
Net income attributable to Class A Common Stock$255,354 $83,050 
Net income attributable to noncontrolling interest157,265 115,658 
Non-cash derivative (gain) loss(180,179)88,635 
Merger and integration expense97,260 12,469 
Impairment and abandonment expense5,947 244 
(Gain) loss on sale of long-lived assets(82)(13)
Adjusted net income excluding above items335,565 300,043 
Income tax (expense) benefit attributable to the above items(1)
(18,047)(48,823)
Adjusted Net Income$317,518 $251,220 
Adjusted basic weighted average shares outstanding (Non-GAAP)(2)
703,632 557,812 
Adjusted net income per adjusted basic share$0.45 $0.45 
(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 December 31, 2023 and additional contracts entered into through February 23, 2024:
PeriodVolume (Bbls)Volume (Bbls/d)
Wtd. Avg. Crude Price
($/Bbl)(1)
Crude oil swaps
January 2024 - March 20242,919,100 32,078 $77.10
April 2024 - June 20242,975,500 32,698 76.24
July 2024 - September 20242,990,000 32,500 75.40
October 2024 - December 20242,990,000 32,500 74.61
January 2025 - March 20251,575,000 17,500 73.33
April 2025 - June 20251,592,500 17,500 72.27
July 2025 - September 20251,610,000 17,500 71.25
October 2025 - December 20251,610,000 17,500 70.34

PeriodVolume (Bbls)Volume (Bbls/d)
Wtd. Avg. Collar Price Ranges
($/Bbl)(2)
Crude oil collars
January 2024 - March 2024182,000 2,000 $60.00-$76.01
April 2024 - June 2024182,000 2,000 60.00-76.01
July 2024 - September 2024184,000 2,000 60.00-76.01
October 2024 - December 2024184,000 2,000 60.00-76.01

PeriodVolume (Bbls)Volume (Bbls/d)
Wtd. Avg. Put Price
($/Bbl)(3)
Deferred Premium
($/Bbl)(3)
Deferred premium puts
January 2024 - March 2024227,500 2,500 $65.00$4.96
April 2024 - June 2024227,500 2,500 65.004.96
July 2024 - September 2024230,000 2,500 65.004.96
October 2024 - December 2024230,000 2,500 65.004.96

PeriodVolume (Bbls)Volume (Bbls/d)
Wtd. Avg. Differential
($/Bbl)(4)
Crude oil basis differential swaps
January 2024 - March 20243,148,600 34,600 $0.94
April 2024 - June 20243,385,018 37,198 0.95
July 2024 - September 20243,404,000 37,000 0.95
October 2024 - December 20243,404,000 37,000 0.95
January 2025 - March 20251,575,000 17,500 1.09
April 2025 - June 20251,592,500 17,500 1.09
July 2025 - September 20251,610,000 17,500 1.09
October 2025 - December 20251,610,000 17,500 1.09

PeriodVolume (Bbls)Volume (Bbls/d)
Wtd. Avg. Differential
($/Bbl)(5)
Crude oil roll differential swaps
January 2024 - March 20243,148,600 34,600 $0.45
April 2024 - June 20243,385,018 37,198 0.45
July 2024 - September 20243,404,000 37,000 0.45
October 2024 - December 20243,404,000 37,000 0.45
January 2025 - March 20251,575,000 17,500 0.37
April 2025 - June 20251,592,500 17,500 0.37
July 2025 - September 20251,610,000 17,500 0.37
October 2025 - December 20251,610,000 17,500 0.37



(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.

PeriodVolume (MMBtu)Volume (MMBtu/d)
Wtd. Avg. Gas Price
($/MMBtu)(1)
Natural gas swaps
January 2024 - March 20244,104,919 45,109 $3.77
April 2024 - June 20245,906,321 64,905 3.29
July 2024 - September 20245,949,388 64,667 3.43
October 2024 - December 20245,933,899 64,499 3.86
January 2025 - March 20253,600,000 40,000 4.32
April 2025 - June 20253,640,000 40,000 3.65
July 2025 - September 20253,680,000 40,000 3.83
October 2025 - December 20253,680,000 40,000 4.20
PeriodVolume (MMBtu)Volume (MMBtu/d)
Wtd. Avg. Differential
($/MMBtu)(2)
Natural gas basis differential swaps
January 2024 - March 202412,740,000 140,000 $(0.90)
April 2024 - June 202410,920,000 120,000 (0.99)
July 2024 - September 202411,040,000 120,000 (0.99)
October 2024 - December 202411,040,000 120,000 (0.98)
January 2025 - March 20253,600,000 40,000 (0.74)
April 2025 - June 20253,640,000 40,000 (0.74)
July 2025 - September 20253,680,000 40,000 (0.74)
October 2025 - December 20253,680,000 40,000 (0.74)

PeriodVolume (MMBtu)Volume (MMBtu/d)
Wtd. Avg. Differential
($/MMBtu)(3)
Natural gas basis differential swapsJanuary 2024 - March 20243,640,000 40,000 $0.00

PeriodVolume (MMBtu)Volume (MMBtu/d)
Wtd. Avg. Collar Price Ranges
($/MMBtu)(4)
Natural gas collars
January 2024 - March 20246,815,08174,891 $2.93-$6.81
April 2024 - June 20245,013,67955,095 2.68-5.04
July 2024 - September 20245,090,61255,333 2.68-5.06
October 2024 - December 20245,106,10155,501 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 basis swap contracts are settled based on the difference between the Houston Ship Channel (“HSC”) price and the NYMEX price of natural gas during each applicable monthly settlement period.
(4)    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.

v3.24.0.1
Cover Page Cover Page
Feb. 27, 2024
Cover Page [Abstract]  
Entity Central Index Key 0001658566
Document Type 8-K
Document Period End Date Feb. 27, 2024
Entity Registrant Name PERMIAN RESOURCES CORPORATION
Entity Incorporation, State or Country Code DE
Entity File Number 001-37697
Entity Tax Identification Number 47-5381253
Entity Address, Address Line One 300 N. Marienfeld St.,
Entity Address, Address Line Two Suite 1000
Entity Address, City or Town Midland
Entity Address, State or Province TX
Entity Address, Postal Zip Code 79701
City Area Code 432
Local Phone Number 695-4222
Title of 12(b) Security Class A Common Stock, par value $0.0001 per share
Trading Symbol PR
Security Exchange Name NYSE
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
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