Permian Resources Corporation Class A

Good morning and welcome to the Premierian Resource Conference call to discuss its fourth quarter and full year 2022 earnings. Today's call is being recorded. A replay of this call will be accessed until March 9th, 2023 by dialing 877-674-7070 and entering the replay access code 862 or by visiting the company's website at www.primerianres.com. At this time, I'll turn the call over to Hayes Mabry, Primerian Resource Senior Director of Investor Relations, for some opening remarks. Please go ahead.

Thanks, Marcella. And thank you all for joining us on the company's fourth quarter earnings call. On the call today are Will Hickey, and James Walter, our Chief Executive Officers, George Glyphos, our Chief Financial Officer, Guy Oliphant, our incoming CFO, and Matt Garrison, our Chief Operating Officer. Yesterday, February 22nd, we filed a Form 8K with an earnings release reporting fourth quarter as well as operational results for the company. We also posted an earnings presentation to our website that we will reference during today's call. You can find the presentation on our website homepage or under the news and events section at permianres.com. I would like to note that many of the comments during this earnings call are forward-looking statements that involve risk and uncertainties that could affect our actual results and plans. Many of these risks are beyond our control and are discussed in more detail in the risk factors and forward-looking statement sections of our filings with the SEC, including our annual report on Form 10-K, which is expected to be filed with the SEC later this month. Although we believe the expectations expressed are based on reasonable assumptions, they are not guarantees of future performance. and actual results and developments may differ materially. We may also refer to non-GAAP financial measures that help facilitate comparisons across periods and with our peers. For any non-GAAP measure we use, a reconciliation to the nearest corresponding GAAP measure can be found in our earnings release or presentation, which are both available on our website. With that, I will turn the call over to Will Hickey, co-CEO.

Thanks, Hayes. Good morning and welcome to our fourth quarter earnings call, which represents the first full quarter of Permian Resources. I am extremely proud of everything our team has accomplished this quarter. As you can see on slide four, our team continued to deliver across all fronts, executing in the field, producing strong well results, and demonstrating cost control, which ultimately led to a 9% production beat versus the midpoint of our outlook, all while keeping costs within our range. Fourth quarter oil production was over 81,000 barrels of oil per day, which exceeded the high end of our production range. Higher production volumes were primarily attributable to better than expected well performance. Recent post-merger activity continues to affirm our perspective on the quality and duration of the inventory across our New Mexico and Texas positions and gives us confidence in our ability to generate best-in-class capital efficiency in 2023. In addition to well outperformance, part of our production beat was due to our operations team making meaningful improvements to our infield compression across our entire asset base, which led to record setting runtime in the fourth quarter, which we will benefit from in 2023 and beyond. I'm extremely proud of our field and production engineers who not only were able to make these significant improvements during the integration, but were also able to do this in the face of winter storm Elliott. Because of their hard work and careful planning, we experienced minimal production loss due to the winter weather during the quarter. The PRD&C team also made tangible progress, increasing operational efficiencies in Q4. As highlighted on the top right side of the slide, we saw a reduction in spud to rig release during the quarter, driven in large part by approximately 11% increase in footage drilled per day across the program. These improvements are primarily the result of the implementation of offline cementing and batch drilling across most of our asset base. Similarly, on the completion side, fleet efficiencies drove a 17% increase in lateral footage completed per day. We're pleased with the progress and synergy capture thus far, but we are still hungry to capture further upside throughout 2023 and confident we can do so. These efficiencies allow us to reduce our operating rate count and offset incremental inflation in 2023, which James will cover in the 2023 guidance rollout. In addition to our relentless focus on execution, we believe that our portfolio optimization program will continue to drive meaningful value for our shareholders. As shown on slide six, Permian Resources recently announced a series of transactions that added $100 million to our balance sheet and approximately 45 high returning locations to our near-term drilling schedule. The additional locations are located in Lee County, directly offset where we have two rigs running today. Importantly, this acquisition was funded by cash generated through the sale of a non-operated position in Reeves County and a non-core water infrastructure system, both at attractive valuations. The collective transactions exemplify the PR team's dedication to creating returns for shareholders by accelerating value from non-strategic assets to reinvest in higher returning projects in our core business. Our team is focused on enhancing the value of our portfolio. We believe that excellent execution on difficult transactions and smaller deals is a great path towards material improvements in our inventory position, NAV, and overall value proposition to our stakeholders. Our presence in Midland is one of the key drivers for our success as we seek out to execute on these types of deals. It's much easier to foster and generate relationships with the relevant parties by being headquartered in the heart of the Permian Basin where all the action is. During Q4 alone, outside of the transactions we announced in January, our team executed over 50 grassroots transactions, trades, and leases. The Permian Resources team is committed to continuing to look for highly accretive deals to improve our portfolio and increase shareholder value. And with that, I'd like to turn the call over to George to review fourth quarter financials.