Permian Resources Corp Announces Strong Q4 and Full Year 2023 Results; Sets Ambitious 2024 Plan

• Revenue: Q4 oil and gas sales reached $1.12 billion, contributing to $3.12 billion for the full year.

• Net Income: Q4 net income attributable to Class A Common Stock was $255.35 million, with a full year total of $476.31 million.

• Production: Q4 average daily production surged to 285,161 Boe/d, with full year average at 194,499 Boe/d.

• Dividends: Announced a quarterly base dividend of $0.05 per share and a variable dividend of $0.10 per share.

• Capital Expenditure: Q4 cash capital expenditures were $458 million, with a full year budget of $1.9 to $2.1 billion for 2024.

• Acquisitions: Closed the $4.5 billion Earthstone acquisition, adding approximately 14,000 net acres in the Delaware Basin.

• Stock Repurchase: Repurchased 5.0 million shares in Q4 for $67 million, totaling 10 million shares for ~$125 million in 2023.

On February 27, 2024, Permian Resources Corp (NYSE:PR) released its 8-K filing, detailing a strong finish to 2023 and a strategic plan for 2024. The independent oil and natural gas company, which focuses on the acquisition, optimization, and development of oil and liquids-rich natural gas assets, particularly in the Delaware Basin, has positioned itself as a significant player in the industry with a >$15 billion enterprise value post the Earthstone acquisition.

Financial and Operational Performance

Permian Resources Corp (NYSE:PR) reported a robust fourth quarter, with oil and gas sales reaching $1.12 billion, contributing to a full-year total of $3.12 billion. The company's net income attributable to Class A Common Stock stood at $255.35 million for the quarter and $476.31 million for the year. This financial strength was underpinned by a 52% increase in average daily crude oil production compared to the previous quarter, with Q4 production averaging 285,161 barrels of oil equivalent per day (Boe/d).

The company's focus on operational efficiency and cost control resulted in an 8% quarter-over-quarter decrease in controllable cash costs to $7.33 per Boe. This was primarily driven by lower lease operating expenses (LOE) and a continued emphasis on cost management.

Strategic Acquisitions and Shareholder Returns

Permian Resources Corp (NYSE:PR) successfully closed the $4.5 billion Earthstone acquisition, enhancing its position in the Delaware Basin. The integration of Earthstone is ahead of schedule, with significant operational progress and synergy capture. The acquisition has already contributed to a 12% reduction in drilling and completions costs compared to Earthstone's historical well costs.

Shareholders benefited from the company's strong performance, with a total return of capital of $183 million, or $0.24 per share, for the quarter. This included a quarterly base dividend of $0.05 per share, a variable dividend of $0.10 per share, and the repurchase of 5.0 million shares at an average weighted price of $13.32 per share.

Looking Ahead: 2024 Operational and Financial Plan

Looking forward to 2024, Permian Resources Corp (NYSE:PR) has announced a capital-efficient operating plan, expecting to deliver industry-leading annual growth across production, cash flow, and free cash flow. The company forecasts crude oil and total average production guidance of 145 to 150 MBbls/d and 300 to 325 MBoe/d, respectively, with a total cash capital expenditure budget of $1.9 to $2.1 billion.

Permian Resources Corp (NYSE:PR) remains committed to maximizing shareholder value, with plans to increase the quarterly base dividend by 20% to $0.06 per share. The company's strong financial position, low leverage profile, and strategic focus on capital returns position it well for continued success in the competitive oil and gas industry.

"In our first full year, Permian Resources had an outstanding 2023, accomplishing all our goals laid out last February," said Will Hickey, Co-CEO of Permian Resources. "We are excited to announce our 2024 operational and financial plan, which combines consistent year-over-year well productivity with lower costs and other optimized key inputs to deliver even better capital efficiency than we realized in 2023," added James Walter, Co-CEO of Permian Resources.

Permian Resources Corp (NYSE:PR) is set to file its Annual Report on Form 10-K for the year ended December 31, 2023, with the SEC on February 29, 2024, and will host an investor conference call on February 28, 2024, to discuss the results in further detail.

Explore the complete 8-K earnings release (here) from Permian Resources Corp for further details.

This article first appeared on GuruFocus.