Q2 2024 Permian Resources Corp Earnings Call Transcript
Key Points
- Permian Resources Corp (PR) reported strong Q2 production, exceeding expectations with 153,000 barrels of oil per day and 339,000 barrels of oil equivalent per day.
- The company announced the highly accretive Barilla Draw acquisition from OXY, adding significant high-return inventory in the Texas-Delaware region.
- Operational efficiencies led to a 13% cost improvement in drilling and completion (D&C) compared to 2023.
- Q2 saw particularly strong gas and NGL performance, driven by an increase in gas processors switching to ethane recovery.
- Permian Resources Corp (PR) maintained a strong balance sheet with low leverage and high liquidity, supported by recent equity and bond issuances.
- Despite strong performance, the company acknowledged that many risks and uncertainties could affect future results and plans.
- The Q2 LOE of $5.18 per BOE, while exceeding expectations, may not be sustainable in the long term due to potential increases in workover costs and chemical usage.
- The company’s reliance on acquisitions for growth could pose integration challenges and potential overextension.
- Volatility in commodity prices, particularly gas prices, could impact future financial performance and hedging strategies.
- The Midland Basin position remains under evaluation, with potential divestiture not imminent, indicating uncertainty in asset optimization.
Good morning, and welcome to Perion Resources conference call to discuss its second quarter 2024 earnings. Today's call is being recorded. (Operator Instructions)
At this time, I would like to turn the call over to Hays Mabry, Permian Resources, Vice President of Investor Relations for some opening remarks. Please go ahead.
Thank you, Britney, and thank you all for joining us on the company's second-quarter earnings call. On the call today are Will Hickey and James Walter, our Chief Executive Officers; and Guy Oliphint, Chief Financial Officer.
Yesterday, August 6, we filed a Form 8-K with an earnings release reporting second-quarter results for the company. 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 risks and uncertainties that could affect our actual results and plans.
Many of these risks are
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