Permian Resources Corporation Class A

Good morning and welcome to Permian Resources conference call to discuss its fourth quarter and full year 2025 earnings. Today's call is being recorded. A replay of the call will be accessible until March 13th, 2026 by dialing 888-660-6264 and entering the replay access code 23999 or by visiting the company's website at www.permeanreds.com. At this time, I will turn the call over to Hayes Naby, Permian Resources Vice President of Investor Relations, for opening remarks. Please go ahead.

Thanks, Natasha. And thank you all for joining us. On the call today are Will Hickey and James Walter, our Chief Executive Officers, and Guy Oliphant, 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 GAAP 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 fourth quarter results as well as our 2026 plan this morning. We set records across every key operational metric in Q4, including our highest oil production, lowest DNC cost per foot, and lowest controllable cash cost in PR's history. Our strong Q4 performance tapped off an excellent 2025 with free cash flow per share increasing 18% year over year to $1.94 per share. This performance was achieved alongside meaningful debt reduction, demonstrating the strength and consistency of our core operations. We believe 2025 represents a highly repeatable year and a clear demonstration of the strength of our business. As we look to 2026, our focus remains the same. maximize shareholder value through discipline execution of our highly capital efficient Delaware Basin program. And we're proud to lay out a 26 plan that we expect will continue to drive free cash flow per share growth going forward. Moving into quarterly results, Q4 production exceeded expectations with oil production of 188.6 thousand barrels of oil per day and total production of 401.5 thousand barrels of oil equivalent per day. Our DNC team continued to execute at a high level reducing DNC cost per foot to $700, resulting in $481 million of cash capex for the quarter and $1.97 billion for the year. In addition, we delivered leading cash costs supporting strong margins with Q4 LOE of $5.26 per BOE, cash G&A of $0.80 per BOE, and GP&T of $1.18 per BOE. Strong production results paired with low cash costs and capex resulted in adjusted operating cash flow of $884 million and adjusted free cash flow of $403 million. Lastly, I want to highlight we're increasing our 2026 quarterly base dividend to $0.16 per share, a 7% increase. Since inception in 22, Permian Resources has grown its quarterly base dividend at a 40% CAGR, reflecting the company's commitment to delivering a sustainable and growing base dividend. On slides four and five, I just want to highlight how strong 2025 was for Permian Resources. This marked our third consecutive year of strong operational execution as a public company, building on our previous track record as a private company dating back to 2015. The depth and experience continues to translate directly into results in the field. Including the bolt-on acquisitions we closed during the year, we delivered 5% higher oil production than our original 25 guidance, with more than half that outperformance coming from improvements in the base business. That speaks to the quality and durability of our underlying asset base. At the same time, the team continued to structurally lower costs. On the drilling side, we increased drilling fee per day by 6% year-over-year by continuing to optimize BHAs and targeting in the lateral. In completions, completed lateral fee per day increased 20% year-over-year due to increased simulfrac efficiencies and other improvements. And on the operating side, initiatives like our microgrid projects and runtime improvements led to a 3% reduction in LOE per BOE. We also strengthened the corporate cost structure by reducing debt by over $600 million, enhancing netbacks through marketing optimization, and holding nominal G&A flat despite a larger production base. All of this directly benefits our 26 plan, which James will outline shortly. Given the marginal nature of free cash flow in our business, operating as a low-cost leader is a critical part of our plan to increase free cash flow per share over time. Slide 6 highlights the details of the meaningful progress we've made improving our gas realizations by reducing Waha exposure. We laid the groundwork in 24 with key hires across midstream and marketing department, and we continued building that capability through 2025. As a result of the agreements we've executed, we expect to sell approximately 400 million cubic feet per day out of the basin in 2026, increasing to roughly 700 million cubic feet per day in 2027 and beyond. Combine that with our existing hedge position reduces Waha exposure to approximately 10% of total gas volumes in 2026 and improves unhedged gas realizations. Specifically, in 2025, we expect our gas realizations to be a roughly $0.40 discount versus Waha. Through these recent efforts, we now expect to realize a $0.50 premium to Waha this year. With that, I'll turn it over to James to walk through our BD efforts in our 2026 guidance.