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F e b r u a r y 2 5 , 2 0 2 5 Q4’24 Earnings Presentation
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Important Information 1 Forward-Looking Statements The information in this presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the development, production, gathering and sale of oil and natural gas. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures and the other risks described in our filings with the Securities and Exchange Commission. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this presentation. This presentation includes non-GAAP financial measures, such as Adjusted EBITDAX, adjusted net income, adjusted operating cash flow, adjusted free cash flow, net debt and net debt-to-LQA EBITDAX (or “leverage”). Please refer to the Appendix for a reconciliation of Adjusted EBITDAX to net income, the most comparable GAAP measure. We believe Adjusted EBITDAX is useful as it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed on the Appendix from net income (loss) in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic cost of depreciable assets, none of which are components of Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies. Please refer to the Appendix for a reconciliation of adjusted operating cash flow and adjusted free cash flow to net cash provided by operating activities, the most comparable GAAP measure. We believe adjusted operating cash flow and adjusted free cash flow are useful indicators of the Company’s ability to internally fund its future exploration and development activities, to service its existing level of indebtedness or incur additional debt, without regard to the timing of settlement of either operating assets and liabilities, its merger and integration and other non-recurring costs or estimated tax distributions to noncontrolling interest owners after funding its capital expenditures paid for the period. The Company believes that these measures, as so adjusted, present meaningful indicators of the Company’s actual sources and uses of capital associated with its operations conducted during the applicable period. Our computation of adjusted operating cash flow and adjusted free cash flow may not be comparable to other similarly titled measures of other companies. Adjusted operating cash flow and adjusted free cash flow should not be considered as alternatives to, or more meaningful than, net cash provided by operating activities as determined in accordance with GAAP or as indicators of our operating performance or liquidity. Please refer to the Appendix for a reconciliation of adjusted net income to net income attributable to Class A Common Stock, the most comparable GAAP measure. We believe adjusted net income is useful as it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers by excluding certain non-cash items that can vary significantly . Adjusted net income should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Our presentation of adjusted net income should not be construed as an inference that our results will be unaffected by unusual or nonrecurring items. Our computations of adjusted net income may not be comparable to other similarly titled measures of other companies. The Company defines net debt as the aggregate principal amount of the Company’s long-term debt, minus cash and cash equivalents. The Company presents this metric to help evaluate its capital structure and financial leverage and believes that it is widely used by professional research analysts, including credit analysts, and others in the evaluation of total leverage. The Company presents this metric to show trends that investors may find useful in understanding the Company's ability to service its debt. This metric is widely used by professional research analysts, including credit analysts, in the valuation and comparison of companies in the oil and gas exploration and production industry. Use of Non-GAAP Financial Measures
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Permian Resources – Company Overview 2 Premier Delaware Basin Pure-Play E&P Company Top Tier Inventory Quality & Depth Commitment to Balance Sheet Strength Differentiated Shareholder Returns & Alignment Largest pure-play Delaware Basin E&P company with ~450,000 net acres, ~88,000 net royalty acres and ~370 MBoe/d of FY’25E production Scale and balance sheet strength provide flexibility to quickly respond to a range of market conditions Commitment to ESG and corporate sustainability Continuous Portfolio Optimization High quality asset base and operating expertise drive capital efficient development plan Inventory depth supports long-term free cash flow and sustainable shareholder returns Committed to financial discipline with strong balance sheet, hedge book and liquidity Low leverage profile maximizes flexibility Management team is highly aligned with shareholders, owning >6% of shares outstanding Leading & sustainable base dividend with 4.3% yield1 Focused on portfolio optimization to drive shareholder value Continued success in ground game increases high-return drilling inventory (1) Market data as of February 24, 2025 (2) Assumes current strip pricing and no incremental shareholder returns above current base dividend or acquisitions ~450,000 Net Acres ~$15 B Enterprise Value1 ~0.5x YE’25 Leverage2 PR Key Statistics ~370 MBoe/d FY’25E Production 15+ Years High-Quality Inventory Delaware Basin New Mexico Texas Eddy Lea Culberson Loving Winkler Ward Reeves PR Acreage
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3 (1) Non-GAAP financial measures; reconciliations are included in the Appendix (2) Grassroots transactions contributed no production volumes during the quarter Production Oil (MBbls/d) 171.3 159.2 Natural Gas (MMcf/d) 634.5 603.6 NGLs (MBbls/d) 91.4 83.7 Total (MBoe/d) 368.4 343.5 % Oil / % Liquids (% Total) 46% / 71% 46% / 71% Earnings & Cash Flow Adjusted EBITDAX1 ($MM) $977 $3,731 Adjusted Operating Cash Flow1 ($MM) $904 $3,419 Adjusted Free Cash Flow1 ($MM) $400 $1,358 Unit Costs Lease Operating Expense ($/Boe) $5.42 $5.45 GP&T ($/Boe) $1.49 $1.46 Cash G&A ($/Boe) $0.93 $0.93 Balance Sheet (As of 12/31/24) Cash and Cash Equivalents ($MM) $479 Total Debt ($MM) $4,209 Net Debt1 ($MM) $3,730 Net Debt-to-LQA EBITDAX1 (x) 0.95x Permian Resources Financial and Operational Highlights Q4’24 Highlights • Reported crude oil and total average production of 171.3 MBbls/d and 368.4 MBoe/d • Announced cash capital expenditures of $504 MM, cash provided by operating activities of $872 MM and adjusted free cash flow1 of $400 MM • Reduced D&C costs to ~$775 per lateral foot • Added ~2,100 net acres through >90 grassroots transactions for ~$3,900 per net acre, demonstrating continued ground game success 2 • Declared base dividend of $0.15 per share, representing a 4.3% dividend yield • Maintained strong balance sheet with leverage of 0.95x and total liquidity of ~$3.0 B ‒ Undrawn revolver and $479 MM of cash FY’24 Highlights • Reported crude oil and total average production of 159.2 MBbls/d and 343.5 MBoe/d • Generated cash provided by operating activities of $3.4 B and adjusted free cash flow 1 of $1.4 B • Realized significant operational efficiency gains, resulting in reduced cycle times and lower well costs ‒ Reduced D&C per foot costs by 14% year-over-year • Replaced >100% of drilled inventory through accretive M&A for second consecutive year • Increased quarterly base dividend from $0.05 to $0.15 per share Q1’25 To-Date Highlights • Closed the $180 MM Barilla Draw natural gas and oil gathering system divestiture • Redeemed $175 MM of Earthstone 9.875% Senior Notes due 2031 Key Metrics Q4’24 FY’24
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$0.05 $0.15 Q4'23 Q4'24 2024 Highlights – Execution Across the Board 4 D&C Cost ($ per Lateral Foot) Quarterly Base Dividend (Per Share)1 2024 Oil Production Guidance (MBbls/d) ~$950 ~$855 ~$830 ~$800 ~$775 FY'23 Q1'24 Q2'24 Q3'24 Q4'24 8.5 3.2 147.5 150.0 152.0 158.5 159.2 February May August November Actual Increased FY guidance three consecutive quarters, driven primarily by base business outperformance ~8% Higher versus Original Mid-Point ~18% Reduction versus FY’23 Higher operational efficiencies and reduced cycle times drove well costs per foot lower Accretive growth and enhanced balance sheet support significant increase to base dividend Liquidity ($B) $2.1 $3.0 Q4'23 Q4'24 (1) Represents quarterly base dividend paid during the fourth quarters of 2023 and 2024, respectively Significant FCF generation reduced net debt and increased cash position Base Outperformance Bolt-On AcquisitionsOriginal Guidance
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Overview Continued focus on low-cost leadership Higher operational efficiencies have resulted in faster D&C cycle times and lower well costs Demonstrated strong cost control in 2024, while integrating multiple bolt-on acquisitions Maintained optimized, lean organizational structure headquartered in Midland, Texas Relentless Focus on Cost Control Continues to Drive Peer Leading Cost Structure 5 $7.85 $8.20 $8.55 $10.15 $10.30 $12.90 $14.45 $15.15 MTDR FANG EOG DVN OVV APA OXY (1) Source for all companies: Morgan Stanley Equity Research, “Expanding E&P Coverage” published on January 10, 2025 (2) Total controllable cash costs include LOE, GP&T and cash G&A per Boe for the nine months ended September 30, 2024; APA and OXY include estimated cash G&A amounts, which are not disclosed; data rounded to nearest $0.05 per Boe Permian Pure-Plays $800 $860 $870 $900 $930 $970 $970 EOG CTRA DVN MTDR APA CIVI Total Controllable Cash Costs ($ / Boe) First Nine Months of 20242 D&C $ / Ft (Delaware Basin) January 2025 Report1
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6 Successful M&A Strategy Creates Long-Term Shareholder Value HIGHLIGHTS BARILLA DRAW • Purchase price of $817.5 million • Core position in Texas Delaware adjacent to PR assets • Monetized midstream assets in Q1’25 for $180 MM, enhancing underwritten returns OTHER BOLT-ONS • Closed 3 additional bolt-on transactions in Eddy County for ~$345 million • >150 high-return locations in core areas of Eddy County, NM • Recent TILs on bolt-on acreage outperforming expectations GRASSROOTS ACQUISITIONS • PR closed on >500 grassroots leasing / working interest transactions • Increases interest in near-term, high return developments • Continued execution on PR’s “blocking and tackling” strategy ~15,000 total net acres ~$10,000 per net acre1 ~$1 million per location1 ~4,000 net acres 500+ transactions ~$5,700 per net acre 1 2 3 >5% 10-year FCF / share accretion 3.4x 2025E EBITDA and 17% Free Cash Flow Yield In 2024, PR acquired approximately 50,000 net acres and 20 MBoe/d for $1.2 B, or $10,000 per net acre 1 YE'23 FY'24 TILs 2024 Acq. Locations Current Inventory Replacement (275) >400 PR replaced >100% of inventory developed with high-return locations for 2nd consecutive year (1) Total production represents at announcement date; per net acre value adjusted for production value 2024 M&A Review:
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7 Operational Synergies Drive Outsized Acquisition Returns PR 2024 Acquisition Map New Mexico Texas Eddy Lea Ward Reeves Acquisitions Legacy PR Loving Winkler Culberson In 2024, PR continued its proven track record of pursuing accretive M&A and utilizing its low-cost leadership to extract additional value Reduced well costs by ~$325 per ft. Conservative underwriting with high-confidence assumptions Lowered LOE by ~$3 per Boe Improved costs and continued technical analysis support additional locations Results in higher realized returns LOE Improvements ($/Boe) D&C Improvements ($/Ft) ~$11.50 ~$8.50 ~$1,075 ~$750 2024 Acquisition Performance – Before vs. After (4 Bolt-Ons with 3 Counterparties)
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8 Total Production (MBoe/d) Oil Production (MBbl/d) Total Controllable Cash Costs1 ($/Boe) Cash Capex (Includes non-D&C) TILs (~10,000’ lateral length | ~75% WI | ~79% 8/8ths NRI) 360 – 380 170 – 175 ~$7.75 ~$2.0 B ~285 (1) Total controllable cash costs consist of LOE, GP&T and Cash G&A; for more detail, see Appendix slides (2) Assumes current strip pricing Guidance Range • Delivering ~8% annual oil production growth • Significant reduction in well costs per lateral foot • Continued cost discipline driving lower total cash costs • Consistent well productivity • Capital allocation in line with 2024 by geographic area and target interval • Higher production base with no change to capital demonstrates improving capital efficiency • Generating >20% FCF per share growth2 Metric Commentary ~$2 B ~$2 B Capex 2025 Guidance Highlights 159.2 172.5 Oil Production (MBbls/d) ~8% Higher No Increase 2024 2025E ~9,300’ ~10,000’ Lateral Length Avg. 12-mo. Oil Cum. Per Ft ~700’ Increase Flat YoY $7.84 ~$7.75 Total Cash Costs ($/Boe) ~$0.10 Decrease Multiple Drivers of Improved 2025 Capital Efficiency and FCF Generation
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Strong Balance Sheet Supports Leading Returns Across Cycles 9 On path to Investment Grade ~$3 billion of liquidity ~0.5x Net Debt to EBITDAX at YE’251 Long-dated debt profile $ Financial Highlights Peer Average: 3.1% 4.4% 4.3% 4.3% 3.6% 3.2% 3.1% 2.9% 2.8% 2.6% 2.6% 1.9% 1.3% APA CVX XOM COP CTRA EOG OVV FANG DVN OXY S&P 500 Leading Base Dividend Yield2 • Repaid near term maturities and reduced high interest legacy ESTE notes • Prudent financing of ~$1.2 B of 2024 acquisitions • Remained at ~1.0x leverage throughout 2024 • $479 MM of cash, as of December 31st • Undrawn credit facility with $2.5 B elected commitment and $4 B borrowing base • ~$3 B of liquidity • Long-dated maturity profile • Current ratings of Ba2 (Moody’s) / BB (S&P) / BB+ (Fitch) • Leverage of 0.95x in line or below majority of IG peers • Maximizes capital structure flexibility and reduces cost of capital • Maximize liquidity through cycles • 0.5-1.0x leverage target • Retain free cash flow to deploy opportunistically and maximize shareholder return Consistent Conservative Strategy Demonstrated Execution Positioned for Value Creation On-Track for Investment Grade Base Dividend (as a % of FCF)3 42% 73% 40% 48% 50% 62% 37% 18% 29% 22% 15% 39% (1) Assumes current strip pricing and no incremental shareholder returns above current base dividend or acquisitions (2) Peers’ base dividend yield based on recently declared dividend and share price as of February 24, 2025; selected peers have a market cap of >$8 B (3) Based on Q3’24 company filings
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10 Track record of FCF per share growth through efficient development of high-return inventory, focus on low-cost structure and execution on accretive M&A Delivering production per share growth through balance of high-return organic growth and accretive M&A Accretive growth and operational efficiencies have led to increased FCF per share Continue to drive operational efficiencies, resulting in reduced well costs and stronger returns Improving Business Fundamentals Drive Higher Free Cash Flow per Share ~$950 ~$815 ~$750 FY'23 FY'24 FY'25E 97.4 159.2 172.5 111 149 ~165 FY'23 FY'24 FY'25E $1.13 $1.64 >$2.00 FY'23 FY'24 FY'25E Per Debt-Adjusted Diluted Share2 Oil Production1 (MBbls/d) D&C Costs ($ per Lateral Foot) FCF per Share3 (1) 2025 estimates represent the mid-point of Full Year Guidance (2) Calculated as daily oil production (Bbls/d) dividend by fully diluted, debt adjusted share count (in millions) (3) Utilizes fully diluted shares outstanding; 2025 estimate assumes current strip pricing
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11 26% 25% 24% 18% 17% 17% 16% 14% 11% 11% 8% 2% 2% (1)% (6)% (16)% 2022 Total Shareholder Return Since Colgate / Centennial Merger Announcement (5/18/22 - 12/31/22) 11% 11% 11% 4% 3% 1% 0% (1)% (5)% (6)% (12)% (16)% (24)%(25)%(26)% (33)% 2024 Total Shareholder Return FY 2024 49% 31% 30% 19% 9% 3% 3% 2% 0% (2)% (4)% (6)% (11)%(14)% (21)%(22)% 2023 Total Shareholder Return FY 2023 107% 44% 29% 21% 20% 18% 13% 5% 4% 2% (4)% (5)% (6)% (20)% (37)%(41)% 2022 – 2024 Total Shareholder Return Since Colgate / Centennial Merger Announcement (5/18/22 - 12/31/24) Focus on Per Share Value Creation Has Driven 3 Years of Industry-leading TSR Source: FactSet Note: Peers include E&Ps with market cap >$6B (Apache, Chevron, Chord, Civitas, ConocoPhillips, Coterra, Devon, Diamondback, EOG, Exxon, Hess, Matador, Ovintiv and Oxy)
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3.8x 3.9x 4.0x 4.9x 5.0x 5.1x 5.7x 5.8x 6.5x 6.9x 15.1x 12 (1) Source: Market data and FactSet consensus estimates as of February 24, 2025; utilizes latest available company filings and pro forma for recent acquisitions; peers include E&Ps with market cap >$10B (2) Source: Company filings and Enverus PR Is Well Positioned For Continued Outsized Value Creation Permian Resources provides significant upside to its valuation versus peers Permian Pure-Plays EV / 2025E EBITDAX1 ✓ Robust free cash flow per share generation ✓ Premier asset quality and inventory depth located in the best U.S. shale basin ✓ Proven track-record of operational execution and thoughtful M&A ✓ Lowest cost structure in the Delaware Basin ✓ Fortress balance sheet and maximum liquidity ✓ Industry leading base dividend yield, sustainable through downcycles ✓ Highly aligned management team with significant ownership PR offers a leading combination of quality Permian inventory, free cash flow per share generation, low cost structure and balance sheet strength ~30% 100% ~55% ~40% ~55% ~40% ~60% 100% ~30% ~30% % Permian production2
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Appendix
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Permian Resources Q4’24 Operational and Financial Overview 14 Market Statistics (Data in MM, except per share data) Diluted Shares Outstanding1 841.9 Share Price (2/24/25) $14.06 Market Capitalization $11,837 Long-Term Debt, excluding Convertible Sr. Notes $4,039 Cash & Cash Equivalents $479 Enterprise Value $15,397 Key Statistics ($’s in MM, except per share data) Total Per Share (Diluted) Total Oil and Gas Revenue $1,296.1 Adjusted EBITDAX2 $976.7 Less: Interest Expense (Cash) $75.0 Less: Exploration and Other (Cash) $5.8 Less: Current Taxes3 $(8.2) Adjusted Operating Cash Flow2 $904.1 Less: Cash Capital Expenditures $504.5 Adjusted Free Cash Flow2 $399.6 Adjusted Net Income – Diluted2 $306.8 $0.364 Net Income Attributable to Class A Common Stock $216.7 $0.29 Adjusted Diluted Weighted Average Shares2 847.1 Costs ($ / Boe) Lease Operating Expense $5.42 Gathering, Processing & Transportation $1.49 Severance & Ad Valorem Taxes $2.86 Cash G&A $0.93 Depreciation, Depletion & Amortization $14.35 Pre-Hedge Realizations Oil (per Bbl) $69.66 Natural Gas (per Mcf) $0.87 NGL (per Bbl) $24.05 (1) Represents Class A and Class C Common Stock outstanding as of February 21, 2025, unvested restricted stock and performance stock units as of December 31, 2024 and diluted effect of convertible senior notes as of December 31, 2024 (2) Non-GAAP financial measures; reconciliations are included in the Appendix (3) Includes estimated tax distribution to noncontrolling interest owner (4) Calculated using Q4’24 adjusted diluted weighted average shares outstanding of 847.1 MM
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Commentary 2025 Guidance Detail 15 FY’25 Guidance Production Net Average Daily Production (Boe/d) 360,000 - 380,000 Net Average Daily Oil Production (Bbls/d) 170,000 - 175,000 Production Costs ($ / Boe) Total Controllable Cash Costs $7.25 - $8.25 Lease Operating Expense ~$5.55 Gathering, Processing & Transportation ~$1.30 Cash General and Administrative2 ~$0.90 Severance and Ad Valorem Taxes (% of revenue) 6.5% - 8.5% Cash Capital Expenditure Program ($ B) Total Cash Capital Expenditures $1.9 - $2.1 Drilling & Completions ~80% Facilities, Infrastructure, Capital Workover & NonOp ~20% Operated Drilling Program TILs (Gross) ~285 Average Working Interest ~75% Average Lateral Length (Feet) ~10,000’ (1) Assumes current strip pricing and includes estimated tax distributions to noncontrolling interest owners (2) Excludes stock-based compensation FY’25 Overview Expect to deliver ~285 gross TILs Activity to be allocated ~65% NM, ~30% TX Delaware and ~5% Midland Capital program of ~$2.0 B similar to 2024, despite significantly higher production base Expect $10 - $40 MM in current income tax for FY’251 Average lateral length of ~10,000 ft and average working interest of ~75% (average 8/8ths NRI of ~79%) Average realized revenue (unhedged): ‒ Oil per Bbl: 98% – 100% of WTI ‒ Natural gas per Mcf: $0.30 – $0.50 less than Waha Hub pricing ‒ NGLs per Bbl: 27% – 30% of WTI • Delivers ~8% YoY oil growth • Consistent well productivity YoY • Capital allocation weighted to high-return Delaware Basin wells • Slightly higher TIL count YoY due to improved efficiencies and cycle times • Further optimizing acreage position with increased lateral lengths • Strong operating efficiencies and optimization decreasing cash costs YoY • Continued low-cost G&A by maintaining optimized, lean organizational structure headquartered in Midland, Texas • Decreased per well unit costs due to higher efficiencies • Similar YoY cash capex despite significantly higher production base • Lower non-D&C capital compared to 2024
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Hedge Book Overview 16 Hedging Philosophy • Protect the balance sheet, cash flow and shareholder returns • Ensure business is in a position to be opportunistic during downcycles • Balance downside protection with appropriate upside commodity price exposure Position Highlights • For 2025, crude oil hedges cover ~26% of anticipated production at a weighted average WTI price of ~$73.32 / Bbl1 • For 2025, natural gas hedges cover ~19% of expected production at a weighted average price of ~$2.29 / MMBtu net to Waha2 • Additional crude oil and natural gas basis swaps and crude oil roll differential swaps detailed in the Appendix (1) Utilizes the mid-point of FY’25 oil production guidance (2) Utilizes the mid-point of FY’25 total production guidance and assumes natural gas production as a % of total production is consistent with FY’24 Crude Oil Hedge Position (Bbls/d) Natural Gas Hedge Position (MMBtu/d) 45,000 45,000 17,500 17,500 WTI Swaps H1’25 H2’25 H1’26 H2’26 Total Oil Hedged (Excl Basis) Hedged Volume (Bbls/d) 45,000 45,000 17,500 17,500 Wtd. Avg. Price ($/Bbl) $74.54 $72.12 $71.05 $69.42 Mid-Cush Basis & WTI Roll Hedged Volume (Bbls/d) 44,348 45,000 17,500 17,500 Wtd. Avg. Basis Price ($/Bbl) $1.11 $1.10 $1.15 $1.15 Wtd. Avg. Roll Price ($/Bbl) $0.43 $0.44 $0.28 $0.28 123,000 123,000 91,000 91,000 140,000 140,000 HH Swaps H1’25 H2’25 H1’26 H2’26 H1’27 H2’27 Total Gas Hedged (Excl Basis) Hedged Volume (MMBtu/d) 123,000 123,000 91,000 91,000 140,000 140,000 Wtd. Avg. Price ($/MMBtu) $3.28 $3.64 $3.74 $3.83 $3.78 $3.76 Waha Differential Basis Swaps Hedged Volume (MMBtu/d) 123,000 123,000 91,000 91,000 140,000 140,000 Wtd. Avg. Price ($/MMBtu) ($1.09) ($1.24) ($1.68) ($1.14) ($0.79) ($0.75) Wtd. Avg. Net Price ($/MMBtu) $2.19 $2.40 $2.06 $2.69 $2.99 $3.01
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Year-End 2024 Reserves Summary 17 Reserves Category Total Proved Reserves (Net MMBoe)Reserves Overview Proved Reserves increased 11% YoY Proved Developed Reserves increased 6% YoY 582 925 1,027 YE'22 YE'23 YE'24 Commodity Category 45% 30% 25% Oil Gas NGLs 73% 27% Proved Developed Proved Undeveloped Total Proved Developed Reserves (Net MMBoe) 341 704 746 YE'22 YE'23 YE'24
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2.0% 1.0% 2023 2024 Flare Percentage (%) Committed to ESG and Sustainability 18 27% 44% 2022 2023 Water Recycle Rate (%) 0.08 0.07 2022 2023 Methane Emissions (Intensity)3 (1) Percentage change represents a FY 2023 vs. FY 2022 comparison, unless noted otherwise (2) Intensity measured as metric tons CO2e per MBoe (3) Intensity measured as metric tons CH4 per MBoe (4) Source: PR data and S&P Global; peers include: Apache, Coterra, Devon, Diamondback, EOG, Matador, Ovintiv and Oxy ESG Highlights 1 • Published 2nd Annual Permian Resources Corporate Sustainability Report in November 2024 • Reporting informed by Task Force on Climate-Related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB) and American Exploration & Production Council (AXPC) • Reduced methane intensity by 13% through improved facility designs, robust emissions monitoring program and collaboration with our midstream providers • Reduced our percentage of freshwater used to less than 1%, representing an 89% reduction YoY • Utilized recycled water in 44% of our water used for operations, representing a 65% improvement YoY • Increased our 2024 charitable giving budget to $3 million and provided volunteer or financial support to >60 unique charitable initiatives across the Permian Basin • Structured 100% of our Co-CEOs’ compensation as performance stock units with no cash salary or bonus • Management team is highly aligned with shareholders, owning >6% of shares outstanding ~0.5% ~4.5% Peer Avg. CEO Ownership (%)4
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Hedge Book Overview (as of February 21, 2025) 19 FY 2025 FY 2026 FY 2027 Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 Q4 2026 Q1 Q2 Q3 Q4 2027 WTI Fixed Price Swaps Total Volume (Bbl) 4,050,000 4,095,000 4,140,000 4,140,000 16,425,000 1,575,000 1,592,500 1,610,000 1,610,000 6,387,500 -- -- -- -- -- Daily Volume (Bbl/d) 45,000 45,000 45,000 45,000 45,000 17,500 17,500 17,500 17,500 17,500 -- -- -- -- -- Weighted Average Price ($ / Bbl) $75.21 $73.87 $72.64 $71.60 $73.32 $71.49 $70.61 $69.77 $69.08 $70.23 -- -- -- -- -- Mid-Cush Basis Swaps Total Volume (Bbl) 3,932,000 4,095,000 4,140,000 4,140,000 16,307,000 1,575,000 1,592,500 1,610,000 1,610,000 6,387,500 -- -- -- -- -- Daily Volume (Bbl/d) 43,689 45,000 45,000 45,000 44,677 17,500 17,500 17,500 17,500 17,500 -- -- -- -- -- Weighted Average Price ($ / Bbl) $1.11 $1.10 $1.10 $1.10 $1.10 $1.15 $1.15 $1.15 $1.15 $1.15 -- -- -- -- -- WTI Roll Fixed Price Swaps Total Volume (Bbl) 3,932,000 4,095,000 4,140,000 4,140,000 16,307,000 1,575,000 1,592,500 1,610,000 1,610,000 6,387,500 -- -- -- -- -- Daily Volume (Bbl/d) 43,689 45,000 45,000 45,000 44,677 17,500 17,500 17,500 17,500 17,500 -- -- -- -- -- Weighted Average Price ($ / Bbl) $0.43 $0.44 $0.44 $0.44 $0.43 $0.28 $0.28 $0.28 $0.28 $0.28 -- -- -- -- -- Henry Hub Fixed Price Swaps Total Volume (MMBtu) 11,070,000 11,193,000 11,316,000 11,316,000 44,895,000 8,190,000 8,281,000 8,372,000 8,372,000 33,215,000 12,600,000 12,740,000 12,880,000 12,880,000 51,100,000 Daily Volume (MMBtu/d) 123,000 123,000 123,000 123,000 123,000 91,000 91,000 91,000 91,000 91,000 140,000 140,000 140,000 140,000 140,000 Weighted Average Price ($ / MMBtu) $3.44 $3.12 $3.43 $3.85 $3.46 $4.08 $3.40 $3.65 $4.01 $3.79 $4.24 $3.32 $3.58 $3.94 $3.77 Waha Differential Basis Swaps Total Volume (MMBtu) 11,070,000 11,193,000 11,316,000 11,316,000 44,895,000 8,190,000 8,281,000 8,372,000 8,372,000 33,215,000 12,600,000 12,740,000 12,880,000 12,880,000 51,100,000 Daily Volume (MMBtu/d) 123,000 123,000 123,000 123,000 123,000 91,000 91,000 91,000 91,000 91,000 140,000 140,000 140,000 140,000 140,000 Weighted Average Price ($ / MMBtu) ($0.83) ($1.35) ($1.23) ($1.25) ($1.17) ($1.09) ($2.27) ($1.29) ($0.98) ($1.41) ($0.46) ($1.11) ($0.62) ($0.87) ($0.77)
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Reconciliation of Adjusted EBITDAX to Net Income 20 Adjusted EBITDAX Reconciliation1 (1) Adjusted EBITDAX is a non-GAAP financial measure (2) Includes stock-based compensation expense for equity awards related to general and administrative employees only. Stock-based compensation amounts for geographical and geophysical personnel are included within the Exploration and other expenses line ite m FY’23 FY’24 ($ in thousands, unless specified) Q1 Q2 Q3 Q4 FY’23 Q1 Q2 Q3 Q4 FY’24 Net income attributable to Class A Common Stock $102,120 $73,399 $45,433 $255,354 $476,306 $146,575 $235,100 $386,376 $216,650 $984,701 Net income attributable to noncontrolling interest 117,681 75,555 52,896 157,265 403,397 83,020 73,808 70,151 38,829 265,808 Interest expense 36,777 36,826 40,582 63,024 177,209 72,587 75,452 79,934 76,783 304,756 Income tax expense 34,254 26,548 16,254 78,889 155,945 48,957 82,272 106,468 62,645 300,342 Depreciation, depletion and amortization 188,219 215,726 236,204 367,427 1,007,576 410,179 426,428 453,603 486,463 1,776,673 Impairment and abandonment expense 245 244 245 5,947 6,681 20 6,384 1,380 2,128 9,912 Non-cash derivative (gain) loss (14,777) 18,678 161,672 (180,179) (14,606) 128,474 (6,734) (213,102) 73,579 (17,783) Stock-based compensation expense2 16,707 35,042 15,633 8,495 75,877 9,094 22,463 13,537 13,149 58,243 Exploration and other expenses 4,374 5,263 5,031 4,669 19,337 11,488 5,978 6,962 6,363 30,791 Merger and integration expense 13,299 4,350 10,422 97,260 125,331 11,123 6,941 --- --- 18,064 (Gain) loss on sale of long-lived assets (66) --- (63) (82) (211) (112) --- (329) 66 (375) Adjusted EBITDAX $498,833 $491,631 $584,309 $858,069 $2,432,842 $921,405 $928,092 $904,980 $976,655 $3,731,132
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Reconciliation of Adjusted Operating Cash Flow and Adjusted Free Cash Flow 21 (1) Adjusted operating cash flow and adjusted free cash flow are non-GAAP financial measures (2) Reflects estimated future distributions for noncontrolling interest owners based upon current federal and state income tax expense recognized during the period and expected to be paid by the partnership. Such estimates are based upon the noncontrolling interest ownership percentage as of the three months ended December 31, 2024 Adjusted Operating Cash Flow and Adjusted Free Cash Flow Reconciliation1 Based on Cash Capital Expenditures Three Months Ended December 31, Year Ended December 31, (in thousands) 2024 2023 2024 2023 Net cash provided by operating activities $871,578 $845,994 $3,411,968 $2,213,499 Changes in working capital: Accounts receivable 103,963 (94,123) 51,396 (36,336) Prepaid and other assets 1,663 (543) 8,491 27,267 Accounts payable and other liabilities (73,735) (58,365) (78,353) (83,160) Merger and integration expense & other --- 97,260 25,659 125,331 Estimated tax distribution to noncontrolling interest owners 2 582 --- --- --- Adjusted operating cash flow 904,051 790,223 3,419,161 2,246,601 Less: Total cash capital expenditures (504,459) (458,206) (2,060,667) (1,524,899) Adjusted free cash flow $399,592 $332,017 $1,358,494 $721,702 Adjusted diluted weighted average shares outstanding 847,094 744,958 829,058 637,607
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22 Reconciliation of Adjusted Net Income Adjusted Net Income Reconciliation1 Three Months Ended December 31, Year Ended December 31, ($ in thousands, except per share data) 2024 2023 2024 2023 Net income attributable to Class A Common Stock $216,650 $255,354 $984,701 $476,306 Net income attributable to noncontrolling interest 38,829 157,265 265,808 403,397 Non-cash derivative (gain) loss 73,579 (180,179) (17,783) (14,606) Merger and integration expense & other --- 97,260 25,659 125,331 Impairment and abandonment expense 2,128 5,947 9,912 6,681 (Gain) loss on sale of long-lived assets 66 (82) (375) (211) Adjusted net income excluding above items $331,252 $335,565 $1,267,922 $996,898 Income tax benefit (expense) attributable to the above items 2 (25,785) (18,047) (63,725) (117,133) Adjusted Net Income $305,467 $317,518 $1,204,197 $879,765 Interest on Convertible Senior Notes, net of tax 1,294 1,361 5,182 5,433 Adjusted Net Income – Diluted $306,761 $318,879 $1,209,379 $885,198 Adjusted diluted weighted average shares outstanding (Non-GAAP)3 847,094 744,958 829,058 637,607 Adjusted Net Income per Adjusted Diluted Share $0.36 $0.43 $1.46 $1.39 (1) Adjusted Net Income, Adjusted Net Income – Diluted and Adjusted Net Income per Adjusted Diluted Share are non-GAAP financial measures (2) Income tax (expense) benefit for adjustments made to adjusted net income is calculated using PR’s federal and state-apportioned statutory tax rate of 22.5% (3) Adjusted diluted weighed average shares outstanding is a Non-GAAP measure that has been computed and reconciled to the nearest GAAP metric in the table below
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Reconciliation of Net Debt-to-LQA EBITDAX 23 Net Debt-to-LQA EBITDAX Reconciliation1 (1) Net debt-to-LQA EBITDAX, also referred to as “leverage" in this presentation, is a non-GAAP financial measure (2) Represents adjusted EBITDAX (reconciled in the Appendix) for the three months ended December 31, 2024, on an annualized basis ($ in thousands) December 31, 2024 Long-term debt, net $4,184,233 Unamortized debt discount, debt issuance costs and debt premium on senior notes 25,215 Long-term debt 4,209,448 Less: cash and cash equivalents (479,343) Net debt (Non-GAAP) 3,730,105 LQA EBITDAX2 $3,906,620 Net debt-to-LQA EBITDAX 0.95x
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Reconciliation of Adjusted Basic and Diluted Shares 24 Adjusted Shares Reconciliation1 (1) Adjusted basic and diluted weighted average shares outstanding are non-GAAP financial measures Three Months Ended December 31, Year Ended December 31, (in thousands) 2024 2023 2024 2023 Basic weighted average shares of Class A Common Stock outstanding 702,968 459,593 640,662 349,213 Weighted average shares of Class C Common Stock 100,401 244,039 144,566 248,511 Adjusted basic weighted average shares outstanding 803,369 703,632 785,228 597,724 Basic weighted average shares of Class A Common Stock outstanding 702,968 459,593 640,662 349,213 Add: Dilutive effects of Convertible Senior Notes 29,408 28,090 29,408 27,710 Add: Dilutive effects of equity awards 14,317 13,236 14,422 12,173 Diluted weighted average shares of Class A Common Stock outstanding 746,693 500,919 684,492 389,096 Weighted average shares of Class C Common Stock 100,401 244,039 144,566 248,511 Adjusted diluted weighted average shares outstanding 847,094 744,958 829,058 637,607