Permian Resources Corporation Class A

Good morning and welcome to Permian Resources conference call to discuss its third quarter 2023 earnings. Today's call is being recorded. A replay of the call will be accessible until November 22nd, 2023 by dialing 877-674-7070 and entering the replay access code 608-519 or by visiting the company's website at www.permian.com. 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, Lester. And thank you all for joining us on the company's third quarter variance call. On the call today are Will Hickey and James Walter, our Chief Executive Officers. and Guy Oliphant, our Chief Financial Officer. Yesterday, November 7th, we filed a Form 8K with an earnings release reporting third 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 September 30, 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'll turn the call over to Will Hickey, co-CEO.

Thanks Hayes. Before we jump into the slides, I want to take a moment to thank our team for delivering the best operational quarter we have ever had as a company, which I will expand on in more detail in a moment. It's easy to get distracted when a big deal is announced and our team didn't take their eyes off the ball. From accounting to IT to all of the operational groups, great work from top to bottom. Having a strong underlying business is critical as we expand our focus to integration and we have a great team that exceeded expectations so far in 2023. I want to spend a few minutes talking about the Earthstone acquisition, which we closed last week on November 1st. As we stated during the announcement, we believe that the Earthstone deal provided a unique combination of significant near-term and long-term accretion, Permian Basin scale, high quality assets in the core of the Northern Delaware Basin, and accelerated return of capital, all while allowing us to maintain a strong pro forma balance sheet. Importantly, We were able to complete the transaction at a purchase price and structure that will provide significant value to our combined shareholder base and are looking forward to delivering on the $175 million annual synergy target laid out in August. We spent the past few months working with the Earthstone team and preparing for integration and synergy capture phase of the acquisition. M&A integration is something we consider a core competency at Permian Resources, and we have already hit the ground running to leverage the playbook and lessons learned from the Colgate Centennial merger last year. As we have begun integrating Earthstone's assets and team, we are more excited than ever about the improvement to our already great business that the combination provides. Shifting back to Permian Resources' third quarter, I'm proud to announce that our team continued to deliver strong results. Operational outperformance across the board drove a meaningful increase in free cash flow for the quarter, resulting from a combination of wins. First, strong well results led to meaningful oil growth in the quarter, with our new wells continuing to impress. Second, continued operational execution in the field lowered controllable costs despite summer weather in Texas, which is a real testament to how prepared and dedicated our field team is every single season. Weather in Texas is extreme but predictable, and our team has worked hard to put equipment and processes in place to mitigate downtime. Third and finally, our drilling and completions team has relentlessly continued to drive down cycle times and well costs throughout the quarter. As a result, PR delivered total production of 172,000 barrels of oil equivalent per day and oil production of 90,000 barrels of oil per day, which represent 4 and 6% increases respectively compared to the second quarter. It's worth noting that we hit our Q4 24 to Q4 23 growth target of 10% a quarter early due to strong operational performance. The company generated adjusted EBITDAX of $584 million for the quarter. Total controllable cash costs were $792 per BOE which decreased slightly quarter over quarter. Overall, LOE, GP&T, and cash G&A were in line with our expectations. We reported adjusted free cash flow of $165 million based on cash capex of $380 million in the quarter. Lastly, we reported 29 cents of adjusted free cash flow per share on a cash capex basis and 39 cents per share of adjusted net income. diving into the operations a little more our team increased efficiencies across the board continuing our positive momentum from the previous quarter the drilling team increased drilled feet per day by 14 quarter over quarter by continuing to refine best practices in addition the completions team delivered their best quarter to date with 1880 completed feet per day and over 19 pumping hours per day which we believe are some of the best performance metrics in the delaware basin overall these efficiencies meaningfully reduce cycle times for the quarter resulting in slightly higher capex spend for the quarter but lower per unit well costs. This is a winning combination and these sustained efficiencies should drive incremental value for shareholders going forward. Now I'll turn it over to Guy to go over return of capital.