Permian Resources Corporation Class A

Good morning and welcome to Permian Resources Conference call to discuss its first quarter 2023 earnings. Today's call is being recorded. A replay of the call will be accessible until May 23, 2023 by dialing 877-674-7070 and entering the replay access code 425142 or by visiting the company's website at PermianRes.com. At this time, I will turn the call over to Hayes Mabry, Permian Resources Senior Director of Investor Relations, for some opening remarks. Please go ahead, sir.

Thanks, Anis. And thank you all for joining us on the company's first quarter earnings call. On the call today are Will Hickey and James Walter, our Chief Executive Officers. Guy Oliphant, our Chief Financial Officer. and Matt Garrison, our Chief Operating Officer. Yesterday, May 8th, we filed a Form 8K with an earnings release reporting first quarter 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 www.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 the forward-looking statement sections of our filings with the Securities and Exchange Commission. including our quarterly report on Form 10-Q for the quarter ended March 31, 2023, which is expected to be filed with the SEC later this afternoon. Although we believe the expectations expressed are based on reasonable assumptions, they are not guarantees of future performance, and actual results or 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 thanks for joining our Q1 call. During the quarter, we continue to successfully execute our business plan. which is focused on generating free cash flow, delivering shareholder returns, maintaining our commitment to valid sheet strength, and optimizing our high-quality Delaware Basin asset base. Following a very strong Q4, our first quarter results delivered on the 2023 plan with total company production of 154,000 barrels of oil equivalent per day, oil production of 78,000 barrels of oil per day, and accrued capital expenditures of $360 million. all of which were in line with or ahead of expectations. We remain on track to achieve the full year guidance we outlined in February. The company had generated adjusted EBITDAX of $499 million for the quarter. Total cash costs also came in as expected and within 2023 guidance ranges and are expected to trend lower in future quarters as we see production increase over the course of the year. LOE was $5.38 per BOE, GP&T was $1.12 per BOE and cash G&A was $1.36 per BOE. You will notice a new line item in our disclosure relating to capex. We have added in our quarterly earnings presentation a cash capex figure that tracks our cash flow statement. For Q1, cash capex was lower than accrued capex driven by normal course changes in working capital that we expect will normalize over time. We've also provided adjusted free cash flow on both bases. with $101 million on an accrued CapEx basis and $146 million on a cash CapEx basis. We've utilized the cash CapEx figure to calculate our variable dividend as we believe it better aligns with our focus on cash returns. Our team did an amazing job executing during a challenging integration process over the past 12 months. The success we have seen to date is a testament to their hard work, professionalism, and dedication to driving shareholder value. We are excited that the integration of Colgate and Centennial is behind us, and we can direct our sole focus on creating value for Permian Resources shareholders going forward. We have achieved the synergies and targets that we outlined at closing, with significant improvement in drilling and completion costs, cycle times, as well as an overall reduction in cash operating costs that makes our business more efficient. Our talented team will continue to look for additional opportunities to reduce costs and improve capital efficiency, so that we can return that incremental free cash flow to our shareholders. With that, I will turn the call over to Guy to cover our capital return strategy and financial results for the quarter.