Permian Resources Corporation (NYSE:PR) Q1 2024 Earnings Call Transcript May 8, 2024
Permian Resources Corporation isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good morning and welcome everyone to Permian Resources Conference Call to Discuss its First Quarter 2024 Earnings Conference Call. Today’s call is being recorded. A replay of the call will be accessible until May 22, 2024 by dialing 1800-9382-488, and entering the replay access code 24995 or by visiting the company’s website at www.permianres.com. At this time, I’ll turn the call over to Mr. Hays Mabry, Permian Resources, Vice President of Investor Relations for some opening remarks. Please go ahead, Mr. Mabry.
Hays Mabry : Thanks, Bo, and thank you all for joining us on the company’s first quarter 2024. On the call today are Will Hickey and James Walter, our Chief Executive Officers; and Guy Oliphint, our Chief Financial Officer. Yesterday, May 7, we filed a Form 8-K with an earnings release reporting first quarter results. 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 statements sections of our filings with the SEC, including our Form 10-K, which is expected to be filed 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 that can be found in our earnings release or presentation, which are both available on our website. With that, I will turn the call over to Will Hickey, co-CEO.
William Hickey : Thanks, Hays. I truly believe that the first quarter was the most compelling quarter Permian Resources has delivered so far. We were able to deliver production and free cash flow above our expectations. Close out the integration of Earthstone ahead of schedule while increasing our annual synergy target by 50 million and continue to execute on accretive A&D with approximately 270 million of acquisitions announced this year. It takes an incredible team to deliver such strong execution quarter after quarter, and I look forward to sharing some more detail on Q1 today. Moving into quarterly results, I’m pleased to announce Q1 production exceeded expectations. The total production of 320,000 barrels of oil equivalent per day and oil production of 152,000 barrels of oil per day.
Our strong production was attributable to multiple factors, including accelerated Earthstone D&C efficiencies and higher operational runtimes. Strong production results in CapEx of 520 million in the quarter resulted in adjusted operating cash flow of 844 million or $1.09 per share, an adjusted free cash flow of 324 million or $0.42 per share. We remain highly focused on sustaining a strong balance sheet with leverage of approximately one times an increased liquidity to over 2 billion. As part of our regularly scheduled spring bank redetermination process, we increased aggregate lender commitments under the credit facility from 2 billion to 2.5 billion while maintaining a borrowing base of 4 billion. Turning to return of capital. Our strategy remains consistent.
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