Permian Resources Corporation Class A

Good morning and welcome to the Permian Resources first quarter 2026 earnings conference call. Today's call is being recorded and a replay of the call will be accessible until May 20th, 2026 by dialing 800-770-2030 and entering the replay access code 1 4 4 2 2 9 8. or by visiting the company's website at www.permiumres.com. It is now my pleasure to turn the call over to Hayes Mabry, Permium Resources Vice President of Investor Relations, for opening remarks. Please go ahead.

Hayes Mabry Thank you, Amy, 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 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. Q1 represented another quarter of strong operational execution, delivering free cash flow per share of 60 cents, the highest in PR history. In addition, we set records on both drilling and completion cost per foot, continue to deliver peer-leading controllable cash costs and accelerated oil production volumes in response to higher oil prices in March. I'd note that the current market volatility reinforces what has always been core to the Permian Resources Strategy. Maintain a peer-leading cost structure, stay singularly focused on the Delaware Basin, the best onshore shale basin in the U.S., and preserve the flexibility as market conditions change. Periods like this give us an opportunity to demonstrate our team's ability to react quickly to create long-term shareholder value. We don't know where the market's headed, but we are excited about our position and the flexibility we have to continue to capitalize on opportunities as they emerge. Turning to the quarter, Q1 production exceeded expectations with oil production of 192,000 barrels a day and total production of 413,000 barrels of oil equivalent per day. Production outperformance was driven by better-than-expected results from recent wells, and significantly reduced downtime in March due to picking up additional work over rigs as a result of higher prices. In addition to wins on the production side, our DNC team continued to drive down cost. We reduced DNC cost to approximately $685 per lateral foot with both drilling cost per foot and completion cost per foot setting new company records. On the drilling side, we delivered the fastest well in company history averaging over 2,500 feet per day and delivered our longest quarterly average ladder length in company history, with roughly a quarter of our wells coming in over two and a half miles. On the completion side, we achieved record recycled water utilization rates of approximately 70%. This not only lowers completion costs, but also saves on LOE and something you'll continue to see us focused on going forward. On the production side, the team installed four microgrids in the quarter. eliminating over 25 generators and reducing electricity costs on the associated well sites by roughly 30%. I also want to recognize the field team's response to January's winter storm burn. We navigated the storm with minimal impact and recovered to production quickly. That kind of execution is a credit to our team in the field, who runs our operations every day. Controllable cash costs came in well within our 26 guidance, with LOE of $5.19 per BOE GP&T of $1.36 per BOE and cash G&A of 77 cents per BOE. To wrap it all up, strong production performance combined with further extending our Delaware basin cost leadership resulted in record free cash flow of over $500 million for the quarter. Turning to natural gas, we continue to benefit from our approved natural gas portfolio with the largest impact still ahead of us in 27 and beyond. During Q1, we saw material weakness in Waha gas pricing. Despite this market backdrop, in Q1, our realized natural gas price, including hedges, was $1.33 per MCF, a $2.44 premium to Waha during the quarter. Notably, roughly half this uplift is from firm transportation agreements that we entered into over the last few years with the balance from existing natural gas hedges. Today, we have approximately 400 million cubic feet a day of firm transportation to Gulf Coast and DFW markets. growing to over 700 million cubic feet a day in 27 and beyond, as the full impact of our long-haul agreements comes online. Longer term, with one BCF a day of gross production and an attractive in-market portfolio, PR is well-positioned to participate in the growth in U.S. natural gas demand. And with that, I'll turn the call over to James.