Permian Resources Corporation Class A

Good morning and welcome to Permian Resources conference call to discuss its third quarter 2025 earnings. Today's call is being recorded. A replay of the call will be accessible until November 20, 2025 by dialing 888-660-6264 and entering the replay access code 91750. or by visiting the company's website at www.permianres.com. At this time, I will now turn the call over to Hayes Mabry, Permian Resources Vice President of Investor Relations, for some opening remarks. Please go ahead.

Thank you, Jenny, and thank you all for joining us. On the call today are Will Hickey and James Walter, our Chief Executive Officers, and Guy Alvin, our Chief Financial Officer. Many of the comments during this call are forward-looking statements that involve risk and uncertainties that could affect our actual results and are discussed in more detail in our filings with the SEC. We may also refer to non-GAAP financial measures. For any non-GAAP measure we use, a reconciliation to the nearest corresponding gap measure can be found in our earnings release or presentation. With that, I will turn the call over to Will Hickey, co-CEO.

Thanks, Hayes. We're excited to discuss our third quarter results this morning. This marks the 12th consecutive quarter of strong operational performance by the PR team, culminating in our highest quarterly free cash flow per share since inception, despite a suppressed commodity environment. Our business is firing on all cylinders as we are able to deliver strong execution in the field progress our accretive acquisition strategy, improve our balance sheet, and continue delivering strong returns to our shareholders. We think this performance is a testament to both the quality of our people and the quality of our assets and should continue to set PR up for strong and growing free cash flow going forward. In Q3, production exceeded expectations with oil production of 187,000 barrels of oil per day, up 6% from Q2, and total production of 410,000 barrels of oil equivalent per day. Our production outperformance was driven by continued strong execution, particularly from a large-scale Texas development that was brought online in the quarter. On the cost side, our operations team continues to set the standard in the Delaware Basin. We reduced controllable cash costs by 6% quarter-over-quarter, primarily driven by reducing LOE approximately $0.30 to $5.07 per BOE, and DNC costs by 3%, averaging $7.25 per foot in the quarter. Both metrics were below full year guidance, and we see additional room for improvement on the DNC side as we head into next year. The combination of strong production and lower cost drove adjusted operating cash flow of $949 million and record adjusted pre-cash flow of $469 million, with $480 million of cash capex. Our outstanding operating performance and conservative financial strategy further enhance our fortress balance sheet. During the third quarter, we called our 2026 senior notes and redeemed the legacy centennial convert reducing outstanding debt by over $450 million and further simplifying our capital structure. In July, we received our first investment grade credit rating from Fitch. And earlier this week, Moody's upgraded us to a positive outlook, bringing us one step closer to investment grade. Our credit metrics have long matched our investment grade peers, and we appreciate the recognition. Slide five highlights our strong Haley production outperformance that underpinned Q3 production results. We frequently talk about our Delaware basin leading cost structure, but this development is a great example of how our technical team approaches every project to maximize recoveries and value across our position. Our proprietary subsurface characterization dictated how we space, stack, sequence, and customize completions for each of these 17 wells. The combination of these technical refinements drove a 45% oil outperformance versus offset wells in the first 90 days. The recipe here is the same one we've used to consistently improve results across our portfolio. Data-driven spacing and targeting, interval-specific completions, and precise well-bore placement, all supported by PR's cutting-edge technology and long history of technical expertise in the Delaware Basin. Having our entire team based in Midland close to our assets allows us to seamlessly translate technical insights to the field, driving lower costs and superior execution. On the back of our strong well results and stellar operational execution this quarter, we're raising the midpoint of our full year production guidance to 181.5 thousand barrels of oil per day and 394 thousand barrels of oil equivalent per day, while keeping our CAPEX guidance unchanged. This plan reflects an increase to the original full year production guide of 5%, while lowering the capital budget by 2%, demonstrating continued improvements in capital efficiency. With that, I will turn it over to James.