Permian Resources Corporation Class A

I hope you appreciate your patience and ask that you please continue to stand by. Please stand by. Your program is about to begin. Should you require operator assistance, please press star zero. Good morning and welcome to Perian Resources' conference call to discuss its second quarter 2024 earnings. Today's call is being recorded. A replay of the call will be accessible until August 21st, 2024 by dialing 800-925-7000. and entering the replay access code 24995 or by visiting the company's website at www.permianres.com. At this time, I would like to turn the call over to Hayes Mabry, Permian Resources Vice President of Investor Relations, for some opening remarks. Please go ahead.

Thank you, Brittany. 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, and Guy Oliphant, financial officer. Yesterday, August 6th, we filed a form 8K with an earnings release reporting second quarter results for the company. We also posted an earnings presentation to our website that we will reference during today's call. 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 SEC, including our Form 10-Q, which is expected to be filed later on 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. Permian Resources continued to deliver strong results during the second quarter, highlighted by improvement in operational efficiencies that support us raising our full year production guidance for the second consecutive quarter, while maintaining other guidance ranges. Additionally, we announced the highly accretive Bria draw acquisition from Oxy last week, which had significant high return inventory in the core of the Texas Delaware that immediately competes for capital. The PR team continues to perform at a very high level operationally while executing on a creative M&A, and we look forward to sharing some more detail on Q2 today. Moving into quarterly results, I'm pleased to announce Q2 production exceeded expectations with oil production of 153,000 barrels of oil per day and total production of 339,000 barrels of oil equivalent per day. Our strong performance was attributable to multiple factors, including DNC efficiencies that accelerated cycle times strong runtimes in the field, and consistent well performance. For example, we averaged 1,500 drilled feet per day and over 21 pumping hours per day in Q2, which are both company records for a quarter. As a result, we're raising our full year oil guidance for the second consecutive quarter, amounting to a 4.5 thousand barrel of oil per day increase in total when compared to our initial guidance in February. Notably, 3.7 thousand barrels of oil per day of our guidance increase this year is a direct result of outperformance of our base business. Given the strong DNC efficiencies, which drove a 13% cost improvement in Q2 when compared to 2023, we are also increasing our 2024 till guidance by approximately 15 wells with no change to our CapEx guidance ranges. Additionally, we saw particularly strong gas and MGL performance this quarter, which was driven primarily by an increase in gas processors switching to ethane recovery due to the current Permian gas market. On the cash cost side, Q2 is one of the strongest quarters we've had to date. Workover costs were significantly reduced in Q2 due to low failure rates on downhole lift equipment and a reduction in cost per failure. We continue to optimize all of our recently acquired wells and we're able to quickly improve equipment and implement our best practices to drive efficiencies. Additionally, we've expanded our water recycling efforts to minimize freshwater use while also reducing costs. As a result, Q2 LOE of $5.18 exceeded our expectations. Our relentless focus on cost controls also supported low cash G&A of $0.85 per BOE in the quarter. Strong production results, reduced cash cost, and capex of $516 million in the quarter resulted in adjusted operating cash flow of $849 million, or $1.10 per share, and adjusted free cash flow of $332 million, or $0.43 per share. Turning to slide five, our all-in quarterly return of capital was $0.25 per share. This was comprised of our base dividend of $0.06 per share, a variable dividend of $0.15 per share, and a repurchase of 1.8 million shares in the quarter in connection with the May secondary offering. It is worth noting that we recently extended our Project Allies initiative with an alignment between our private equity shareholders and PR. This program helped facilitate a reduction in private equity ownership from a high of over 50% to 15% today, with PR delivering peer-leading total shareholder returns during that period. Going forward, we expect the remaining three shareholders to be much more long-term oriented with significantly fewer and less frequent secondary sales. With that, I'll now turn it over to James.