Permian Resources Corporation Class A

Good morning and welcome to Permian Resources conference call to discuss its second quarter 2023 earnings. Today's call is being recorded. A replay of the call will be accessible until August 16, 2023 by dialing 877-674-7070 and entering the replay access code 908236 or by visiting the company's website at www.permian.com. at PermianRest.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.

Thanks, Ina. And thank you all for joining us on the company's second 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, August 2nd, 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 June 30th, 2023, which is also 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. This quarter represents our fourth consecutive quarter of strong execution since announcing the merger and forming Permian Resources, and we are still getting better every day. During Q2, we grew production by 8% from Q1, driven by robust second quarter well results. We dropped from seven to six rigs due to the continued improvement in D&C efficiencies, and we continue to deliver on our return of capital framework. Our team continues to get better in executing the field and we remain on track to achieve our full year and fourth quarter targets. Our assets continue to perform as you can see on slide five and from our Q2 production numbers. Wells placed on line during the first half of the year are performing in line with 2022 results and we expect consistent performance over the remainder of the year. This is no surprise as our large scale multi bench development philosophy has not changed. and we are developing the same targets in the same areas as last year. Said differently, our 2023 development plan is essentially the exact same plan we prosecuted in 2022 and what you should expect to see from us going forward. On the operations side, our team continues to get better quarter over quarter by increasing efficiencies, resulting in reduced cycle times and lower costs. Our drilling department has further reduced flat times by optimizing our bottom hole assemblies and high grading our rig fleet. During the quarter, we drilled an average of 1,165 feet per day and set a company record by drilling a two-mile third-bone spring sand well in Eddy County in just under 11 days. Similarly, on the completion side, we were able to complete an average of 1,800 feet per day driven by increasing in pumping hours per day on our two dedicated frac fleets. Lastly, we've significantly expanded our water recycling efforts across both Texas and New Mexico. During the quarter, our completions team utilized 60% recycled water during its completion operations. To put our year-to-date water recycling efforts into perspective, through the first six months of the year, Permian Resources has already pumped more recycled water than both predecessor companies combined during all of last year. This not only advances our sustainability initiatives, but also provides both CAPEX and LOE savings. We'll continue to use recycled water whenever possible in our operations. This level of execution is a testimony to the quality of our operations team and will continue to push for more, and I feel confident that we have the team in place to be able to execute on this goal. Now looking forward, we're continuing to work across the entire supply chain to further drive down costs as we head into next year. With what we know today, we expect greater than 10% cost deflation on a per lateral flip basis when comparing from the start of this year to the start of 2024. This paired with our asset quality and consistent development philosophy bodes well for 2024 capital efficiency. With that, I'll turn it over to Guy to cover financial results and capital returns for the quarter.