CDEV - Earnings call transcript Q1 2022 | Permian Resources Corporation

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Operator

Good morning and welcome to Centennial Resource Development conference call to discuss its First Quarter 2022 earnings. Today's call is being recorded. A replay of the call will be accessible until May 12, 2022 by dialing 8558592056 and entering the conference ID number 3033538 or by visiting Centennial 's website at www.cdevinc.com. At this time, I will turn the call over to Hays Mabry, Centennial 's Senior Director of Investor Relations, for some opening remarks. Please, go ahead.

Hays Mabry

Willy. you, Thank all quarter you us the on And call. for first earnings company's thank joining Presenting today Officer, the George our on call Operating Glyphis, Executive our Chief our Officer, Chief Chief Financial Officer. and Garrison, are Matt Sean Smith, X-K we first release as as Form results, the for an operational earnings Yesterday, May results a company. with Xth, well thought reporting quarter

We during today's reference that we also will posted an earnings presentation to our website call.

in to www.CDEVinc.com.com. our note on our the many statements quarter which our website for later or the I filed risk You would beyond ended with during and find filings these at quarterly afternoon. XX-K with like XXst, the involve our Exchange control risks comments are the factors presentation the could sections and report can call forward-looking detail uncertainties and are results Commission, risks of Many the forward-looking that Securities some actual March more that discussed and under the of Form of homepage, including earnings are that this be presentations this on our in plans. affect statements will SEC in

the based assumptions, are and non-GAAP and our financial on guarantees facilitate across expressed we help they comparisons materially. performance expectations peers. developments periods actual with of also reasonable future may or refer to Although not results differ believe may are We measures that

the measure call that, Smith, nearest For With available any be to GAAP turn our both to presentation, in we CEO. will the corresponding release on reconciliation measure I or our are our Sean which non-GAAP a use, found can over earnings website.

Sean R. Smith

Centennial build credit was all have strong and us operational Good we to repay very generated quarter a Overall, delivered Northern the earnings and perspective, fully expectations. to execution. zones. cash net times off Hays. with variety our positions call. we a first-quarter under that record results morning financial a Southern 's debt borrowings reduction is end Thank facility pleased cash. and a to financial we flow Operationally, of ahead across robust a From from previous of our and deliver quarter, that X.X This well free of allowed strong the leverage year and perspective are technical from welcome the Delaware level significant a continued with started amount to at of you, QX of

of completing continued efficiencies, Additionally, quarterly than were despite underscores deliver drilling XXXX comments that I capital laid in which as our the completion we three was originally This on expenditures our ahead to drilling wells completing as six and year-end my out XXXX under call, of and game line In well the on Slide continuing from highlighted principles. wells on predicated and focused core able differentiated is team, plan X, with anticipated. dynamic our schedule a more expectations operation success budget.

generation First, reducing cash free one term. below delivering meaningful, leverage flow and

our production executing targeting year leverage announcing once we target. XX%. two growth of share third, $XXX achieved repurchase to oil XX% top-tier on and have And Second, million program our

we a of and to not are As these deliver $XXX our today's and in on million million, than I greater continued we our million, free the cash performance for ahead strong From on now efficiencies first and made well-positioned significant from but strip. cash our only free at expectations. flow are the perspective, to by operational From greater progress well based perspective, look track, back growth QX that objectives we are year, targets our a and quarter, in at are target $XXX our raising we have our $XXX deleveraging on flow execution to-date. than believe to expectations relative remainder of the ahead to initial believe look schedule

program fully Third, levels, target commencing near-term. flow we Share meaningful with forward look cash Repurchase QX our the to the repaid, sheet, our leverage balance revolver our nearing in in free All-in-all, of was said, a our it very to strong I'll quarter, plan. execution and our operational our continued George turn results. that With game XXXX excited I'm and over financial for to financial review and

George S. Glyphis

you, Thank Sean.

Turning on financial QX Slide and to our were presentation, results XX earnings operating in of our results the overall expectations. with line

call carryover from to had our previewed we QX larger QX. the addition due shift development during production the levels February, packages As earnings to of QX DUCs back quarter-over-quarter declined in in to

which day. XXX oil in as almost result percentage of QX XX% totaled from part QX, and result, to quarter-over-quarter per QX ranges barrels total revenues production net approximately of associated production contracts. workover due prices, day, QX, our XX% the increased wells elevated and proceeds expense, for of to Reeves higher to slightly with percent for came XX,XXX as NGL net million GOR relative guidance quarter still with but oil GP&T the compared guidance. a was anticipated during of were was in six our full-year return slightly to in NGL of Despite XX,XXX area per of than levels an expectations range the approximately total the production higher the several LOE higher a costs acreage, unit gas highest Overall, was than in lower due expense quarter. expected to the of first was XX% above prices. high wells in County within As rate a production mainly increased completion which average QX barrel of equivalent Oil barrels per year. to the while declined our because by natural

lowest million, the earnings subsequent cash XXX which cash We quarter to totaled to the approximately revolving free was in to base borrowings we build fully hand. our during up Adjusted production facility from to million call, credit and quarter mentioned our year. our that And flow as repay on expect under XX% decline generated of used flow our I overall EBITDAX production unit and $XX cash is QX QX. costs be last this quarters approximately expected As increases. on

Lastly, approximately $XXX million. net QX income for me. totaled Excuse

expenditures total completed XX capital prior the the XX in X Turning incurred XXX spud QX during and respectively to of and we for to a CapEx compared wells quarter. wells million quarter Centennial XX approximately

touch notch XXst, summarize net providing significant our to debt the $XXX debt that sheet a Matt it resulted brought we with QX cash While in On one declined us QX. strong on X% from 's year-end. times under LTM online EBITDAX from decreased note up capital flow to into access S&P. This elected were year-end over our our of nearly to for strong wells and free of full structure, more well the growth result XXst, leverage significant completions efficiencies, quarter, our Moody during in this the QX will set as $XXX and being facility. the and anticipated, production in The improvement the outlook of liquidity. completed approximately million and still of to balance at posted compared March of X.X month last in six quarter-over-quarter half we with at commitments to Total coupled line March Slide upgrades X, At borrowings both zero acceleration Centennial to but revolver than million important further, X.X is original expectations. during quarter net wells credit CapEx times and by

will had over build Additionally, approximately we which $XX cash-on-hand of we expect time. million

has XXXX, for note Finally, with flexibility going our scheduled first financial early maturities Centennial forward. significant

the our like share few to on reiterate call. repurchase, I'd we points to a Turning earnings covered last

our capital return First, to significant sheet balance free shareholders. cash to flow we amount a have the of profile and

fact, In approximately program of our capitalization. $XXX market million our represents XX%

accretive to time. can differentiated it Second, production as growth we share expect delivers production be an already flow our to basis. our the the over long-term profile, executed program as is ownership per Share and plan With per a Repurchases metrics share already on Share higher strong Repurchase enhance cash shareholders of

to flexibility In addition, the time. over share drive value repurchase provides

for strategy buybacks, as well timed periods of both will as allow repurchases during market opportunistic Our dislocation. regularly

As time record. we build track and progresses and execution

the options. have X.X intent in additional to evaluating We strong forward our that, fell one execution, times. With near over previously we turn shares Matt of to the in program times begin addition call QX, current cash respect of below to term. we in duration I'll size the when at to revisit March to repurchase the leverage shares flow XXst are With communicated capital to and repurchasing potential With return to to look review leverage free beginning and anticipated likely operations.

Matthew R. Garrison

year quarter build efficiencies Thank continue you, outstanding QX improvements times. significant gained an incremental we to operational with as with George. completion the was last upon operations group, the to cycle

Staying capital the of last Slide We We shift we see additional which usage team our the shared in larger of have development fluid, to key well drivers times as mentioned efficiency call via of our units utilization and year, utilizes of the projects going shorten design X-X first resulting as also facilities during larger completions forward. savings. this and topic, testing scale. pump on economies began on capture made packages operations efficiencies of cost less to QX development additional a new X,

been expectations. pumping XX% XXXX. as driven step day began change new XX% in well at As our you above initial utilizing last essentially completed importantly, day design respectively, production can a strong increasing we've completion times, year, every cycle per the feet and on per compared both see seen original slide, results, has by QX we lateral design this since we've and Most our when to late this or stages

Sean R. Smith

the As six and footing on were for during George alluded of primary the to, year. start a the us driver additional completing places completions of Centennial wells efficiencies the quarter, strong these

carry developments our driven to front, On reduced over which times. mobilization by drilling from team the has pad larger the gains year, continues been efficiency and last

which lateral, the drilled recently XX X.X of in approximately days company the we our depth total or reached lateral AC for debt. longest total a mile Challenger in XXH, under XX,XXX just history, feet Additionally,

in batteries in centralized program batteries are efficiencies our at percentage the X, to of facilities. costs Shifting cut of in X.X group. data in in and a from that the has previous not our reference, XXH, additional drilled approximately and accommodate implementing bottom wells process point than our to perspective, during development our built, for continue development facility centralized at AU new which change reach significantly a to XXXX, this in Once drilling material began the note to or tank costs. expandable build Dot depth into performance so nearby of team back can It do utilizing important is was tank thousand feet the and increase For drilling demonstrates opinion, program the my stopped right-hand county new to to XX Gardner lateral step side design. program XXXX. Slide easily the these and lower completions total we into puts days really drive XX mile This our

For that expect XXXX, new previous into A significant expandable existing will of our compared roughly flow facilities. we uplift XX% to wells years.

constantly with Finally, those we time retire be over flow efficiencies. to on legacy further nearby to continued facilities efficiency from technology The This will particularly capabilities. impact continue Overall, of evaluating wells drive department innovation our of innovating critical will on into inflationary a potential as some help have to LOE. XXXX. and some operations our look standpoint team's newer offset the be expandable positive we is see will our to in facilities a the and focus pressures, we

Texas IP GOR on our which well, four the higher delivered average BOE of the Texas, almost consisted online Miramar as doughnut lateral Spring Now, our This over portion Wolfcamp in you in XXXX of A X. per block, Slide County, lengths laterals feet. with many powder results well Reeves of well, average came XX,XXX turning and is our with to wells C, and development oil the of pad a recent Wolfcamp day. gas the asset. for day a this know, an third per IPXX The Bone day payout sand, of In approximately we advanced per well three outstanding highest over and XX results These was per rate our four wells to represent of maximum for expect quarter. And testament Notably, on roughly flexibility. XX-hour to the the months. average their million cubic development pad feet projects and operational team planning oil barrels XX% from These X,XXX or return per natural well. of of are rate cut, our

south the gas this we Texas the represent doughnut the development accelerated and bolstering acreage our Further portion with Spring Mexico, central confidence the in lateral and the results, robust X,XXX XXXX developments our Lee foot were a separate we two Caso generated across infill position, natural New six-well New drilled recent Mexico solid given inventory of sand another powder from wells remaining These the per Furthermore, Kong and development. IPXX the during second boe quarter, As Spring interval. lengths. results day, wells Wolfcamp the In averaging our of both of a approximately position. the development approximately Bone In completed Blanca targeting well County represent wells average of barrels strength wells of X,XXX the Further as over C. Bone day position, another in prices. third oil. Donkey pad, the or Pac-Man acreage six-well six Chimichanga

Matthew R. Garrison

first specifically, quarter the of Overall, The online This IPXX all online wells during continued time in demonstrate in day, or payout that per this both strong, achieve lateral of Bone well approximately will Spring the oil. of pattern quarter Chimichanga CAISO lower XXXX brought of estimate results and assuming and team our prices. job over the XXXX utilizing posting a months current during with portions assets. lengths. numbers wells. the a were did our high of upper we second barrels Like day outstanding package, and staggered the our quarter BOE average the approximately XXXX approximately production sand foot four quality the numbers More a the strip some brought tremendous to

Depending that finish to could until growth, gas like built. Centennial natural future plans pipeline potential to for of is the out new the tight our I'd takeaway on gas Lastly, house we up periods basin headwinds. become outlook reviewing believe navigate a do production Permian in aggress future natural in

are are been our contracts. during all flow assurance multiple provide which our Permian have maintain all objectives expected to streams of a for would at the cost long-term gross Basin term into evaluating in out executing gas revenue these transportation and for periods entering Overall, without expected close essentially tightness. of low to we product residue contracts, term such, sales As near transportation the

execute discussions, next are Given we these in and on where over to we forward in to very agreements future on about good detail the feel months discussing these look more our ability few calls.

operations is service all see, team cylinders firing the you excellent can our environment. an oilfield navigating doing on As job current and

are any While focus light advance has well we in chain challenges, or partially oilfield anticipated offset schedule. very on effort our of inflation, we driving also efficiencies, to to sourcing the supply avoid operations. mindful delays In of an to lost team focused been continue material very in current our the further equipment time to the on necessary

time. both continue We not performance so to service and team's the this hand also strong our we building from the forward to on efforts diligently due procurement worked Overall, efficiently good keep look primarily develop that, start to lines communication With or of acreage fronts. experienced team to forward. year with this our providers execution and we upon a is our have that on going to operations delays back call to planning the I'll Centennial Sean. our Year-to-date, issues can

Sean R. Smith

in pleased game are Centennial. we closing, excited and very go-forward In plan the with quarter for Matt. Thanks, about first the our execution

continue to the to put sustainable sheet with free in and provides have company price and volatility generate that to We commodity flow flexibility. and is financial significant balance a cash resilient position

allow to returns, listening XXXX to a for to embark well-positioned will to we and of beyond. continue supported Thanks to execute remainder with continue and in we'll oil now the by go company commence proven to high-quality focus that chapter has expect assets plan. us succeed on have on allow a differentiated the and Q&A. will inventory profile the game and for have next near-term team premier Centennial of the record We and a growth factors our with depth track operations shareholder which us U.S. These a our in basin our to

Operator

The you. Thank will question-and-answer session be electronically. conducted

first to [Operator you'd Instructions] our a moment ask If question, One like for please question.

first line the Dingmann question from of Truist Your Securities. comes from Neal

is open. line Your

Jordan Levy

Morning all, on Dingmann. it's Levy Jordan Neal for

versus expectations, seemed results, I'm comparative Both in on just those that strong staggered one curious wanted think lead of you First, same their both really of six-well and relative kind zip kind code. and two of the this brought developments developments performance compare you how your to the given economics developments, each about quarter. pattern. like

Matthew R. Garrison

I'll pleased. take Sure. that. very been We've

New Bone butter both with for us stack for has Bone target Spring in pleased end, Mexico bread kind very we've upper the And while. in of and second sand been been Spring The we that a sand. stagger second programs a working been have lower

in-zone the Bone As second lower as Spring of tests some well sand. of the

been percentage the depletion package one costs the from brought we've increase of Relative in the offset expectations and where we wells to more pleased seen as were with past In we par maybe we some any development parent What years this move our wells to child and units year the or to wells online wells internal one prior far in in time. shift wells at new is producers. the incremental things subject what of were by the development wells saw so of the parent-like of that offset the on we percentage expectations, our relative One these expected a dropped in virtue relative with enjoyed very of groupings, in child smaller higher that effects performing where in is or of come execute the from we to we've to of in doing well. wells, larger percentage production to wells we larger needed significantly these right right two coming them and are unit

Jordan Levy

hear. mentioned then that. for -- any great which hadn't cost or experienced second, you know had delays I experienced to you you And is Thanks overruns,

or what from -- your with whether perspective you cost of perspective? neighbors, internally seeing, or a in a the you sense a service get talks are whether to environment, want in workforce Just current

Sean R. Smith

ticket are on given seeing, highest items steel and pricing primarily, What the well, any related Sure. we're pricing. to fuel really

do And the that we we the so at been of the steel, contractors, pressure. the in order dominant we X and we procure we committed program. advance of well drivers have see inflationary rigs. what has tubulars -- a really those casing the to as we minimum, But is, our as And order quarters

changes or had rigs time. rig we terms number at given of any not of have contract cadence any We material that in

have times manage to like heard vendors, that. So with advance things and completions a in with on we've there, and field put lead able like we've our waiting delivery -- very the not that we that What to and schedule planning. of out try we sand had folks proud long-term that. any been and our and those to relationship with But the relative pretty delays operations, people to not of that we've relative working -- of negotiate just lot able our vendors pricing time in in we're far things our to been our kind with

Jordan Levy

much. so Thanks hear. to great That's

Sean R. Smith

Jordan. Thanks,

Operator

comes of next The line Petros Capital from question from the Davis Markets. RBC

open. Your line is

Davis Petros

my for even all. third the piggybacking kind And add on there on updated thoughts if long Good any guess to point, morning those this when securing you can a Thanks on lead taking I rig supplies? of you that that's time Is look or maybe consideration just last questions. guys given point. procurement at firstly, just a

Sean R. Smith

Davis. that question, that I'll appreciate I one. Yeah, take

described I think program, that, our at well. Matt look it we very will As I say

our does would say haven't significant X peers. to a I rig year-over-year We the growth planning most of with basis, current it delays our advanced or any on provide tune to differentiated of procurement seen XX% from of our XX%. program, and issues because

don't growth. third about a operations our So to have add we're do to so need a growing to additional business, think and as provide going own necessary and rig within current we the

others future down that we So fair want already prices make rig third with in that amount have we need I'll lead to-date add road, would think the going I But doing rig to two-rig a existing remain the forward. may because do strong our decision. is the could pleased need that time of you there program a Should we to we're a add program. again, growth in our what to plan to put with provides that in so accomplish, that place. our reemphasize

Davis Petros

thoughts sense. a makes little date? that Got it. early maybe maybe guess is maybe to Definitely a later Yeah, nuance, good kind the program. And this that on a I third think quick just time consideration rig -- XXXX follow-up a a of be or at is getting and a is determined that you at

Matthew R. Garrison

Yes.

date. is I later at think that to-be-determined a a

As in that OPEC, factors relative prices of on we prices flexibility are there, a into the commodity think going about of or situation believer play. lot in to out commodity China a it's am today. the I where whether Russia, come what's macro or there's

focus I now. to sustainable yet right focused going around XX% coming our we tend if system going What so provide it's growing at quarters, XXXX production, our guidance. That giving being stands look execute looking we're business, that's XXXX think That's we're as are it to to we forward where in and not are where right said, is additional into now on. you to further year-over-year we're to guidance on will.

Davis Petros

on how of Got All updated there just gates. out thoughts it. any question, one pace could buyback be last that And the quick is right.

think your truck this reach should I you at quarter. leveraged

cash can time? there wondering provide that or the exhaust given for on that at year, color at this year. Just more could early outlook that you this any you'll next you or Realistically, is increase year-end flow free

Sean R. Smith

It's at cash our a -- question, we think good I look flow. as particularly

increasing million. my we an As estimated you up $XXX than this heard to remarks, flow our million free probably year cash prepared in $XXX from are greater

about So is -- I but that, we to will that execution valid that point yet buyback think program. the we share say begin are as of your we've

I do look as we to So executing term share that. to repurchase incremental the down that opportunity road. there's against to the and think we additional be beginning exhausting point near the And that forward get are that towards program, where in

Davis Petros

Thanks for it. Got questions. taking the

Sean R. Smith

Davis. Thanks,

Operator

comes The Parham [Operator J.P. from Zach Instructions] the Morgan. Thank question line from you. of next

line Your is open.

Zach Parham

guess for question. I first, thanks operational my guys, Hey just taking an one.

complete You'll faster. continue drill to and wells

Would would you to budget little capital of in program? the half take about more drive bit or if half? think you consider a back that efficiencies growth continued, managing back maybe about the you are kind the holiday you 'XX of and into bit how a in thinking [Indiscernible] turn-in-lines get a do we -- more year, the raise As the these potentially in

Sean R. Smith

Thanks, Jack.

that, to is likely completions year, our six that have our of and significantly ahead and do that been completing to prices. of prices originally compliment ahead I that's all, schedule. next we think right then efficiency will in schedule translate I operations continue the wells should the of flexibility anticipated, being towards now. first think throughout that really of it's improvement. for on an year, rest course to more our whether this estimated depend wells an pushing commodity have bringing the at end a say quarter there moving I our on team we're of of commodity for the said, point, these a would the And fan will I operational the capital towards at of our side completed of wells the of high-end some year, high it there's that capital guidance than be think which I'm of the ranges, a to budget. opportunity That that not this year,

DUC lot of a And building so year. can inventory. happen said, the now between and That being that of end a there's the not things significant

we wells going of process of we're that the with some indication you that's real complete. for down year. But field, to we've thought how us. flexibility helpful. where many efficiencies and hope the can got I of go out options driven again is some road as the we've But by end the key gives to So

Zach Parham

good the Yeah, that's color. guess a problem have. to buyback. just great follow-up Certainly on I one

XQ? on you'll getting so You've would you near-term? be returns so, about you expect would potentially to repurchasing in flow you about aggressive free if should that cash cash shares talk be in much we started can how dedicate near-term, how talked the that And or

Matthew R. Garrison

Yeah. very we whatnot in targets provided We quarter -- executing. specific, what last a we're before and guess, on leverage I

been we -- reaching buyback X.X buybacks kind target than the is at times opportunistic regularly probably had repurchases. two leverage And our saw As that and ways our program. that; quarter initiating you and ended as times executing share of time program of different very one heard of specific release, of from well as before a less

So to that make the market. the sense will be we point. executing to that, we're for at us information specific this doesn't near I do as in and release that be position in more the term can't be to will It in but when

Zach Parham

the All guys. Appreciate Thanks, color. right.

George S. Glyphis

Zach. Thanks,

Operator

the And from from the comes next of line question Stifel. John Annis

Your line is open.

John Annis

all. Good morning, you

have With the for building commodity line driving the the inflationary price remaining wanted on first pressures spend broadly just question, program? of to previous My first industry. supply CapEx. you environment on to I you off current you of complement the to XXXX holding questions could just inflation, in speak entire locked where the pricing on percent needed execute your

Matthew R. Garrison

of I in have would fixed way about locked around price Without lock much the we or is the in. of sand -- try specifics generally, of terms we've in what revealing sought bit. that portions say to what in talk try a costs. I do can to little Yeah, to haven't our

got work to able spot below currently. a in sand deal our that been competitive about contract We've up comfortable XX% termed one we of we've is of pricing. So and kind feel

The costs the I in we well. lock-in And see, there's can of terms based at in that, the you increases timing the our time, on of steel And other are almost steel our we to rest been seeing like rigs We in incremental of inflation in rigs what these termed and the what two of far these thing production contractual relative virtue an pricing we to in that up terms service as in and our is, two delays of the with advance can the for to said now to finished the try they're already that, portions far. don't these additional And things be this that we've had able do you for anticipate Q&A when We've lastly, anticipate through year. years. we've for rates. then steel costs. don't as to do, through we so two through and try year work of can just we remainder tubulars for in earlier by accommodate going there rigs enough order question that been

feel like And good the well rigs and I those vendor, we we are as where and very as so said, steel. the sand about with that

John Annis

That's appreciate great. the color. I

understanding industry see to today? wanted the this For have strong and you I I was my market consolidation ask in Centennial follow up by with some quality of you views playing how on your wells the XX years inventory, highlighted role that a quarter.

Sean R. Smith

continue we're for perspective, of to to team. inventory least have there inventory I number a that inventory, said accretive that the that active I that very review don't not to looking for a a perspective, capital out but an they we of an been We had of XX compete in year from near fronts. accretive across opportunities are the be from also that fill are void high for been I from look financially, very a term. Delaware Has on say because we anything standards have point-of-view. we basin part haven't we would opportunities. gone at has that's doubt deal

add don't on both basis specific from had would cash company inventory as forward. qualifiers, inorganically. at opportunities, the not quality to focused look company, well want existing very on if grow flow other do remain we've is we opportunities you I in those going so there to to got they base. will, certainly a very to or And But -- our to as and do adding I that. to they shareholders any be anything like as the our specific trying relative organically what share needs, per dilute

needs that any us our specific set add to companies assets it to existing a position. and would need So very of qualify to or for it's

John Annis

That's great. Thanks for the time.

Sean R. Smith

Appreciated. you. Thank

Operator

a from Markets. RBC have We Petros, follow-up Davis questions from Capital

is Your line open.

Davis Petros

Thank you. Appreciate back you had the into queue. me

providing horizon? one last should this I you well the going rest was then rate quarter, Just that into [Indiscernible] keep XX%. for as you-all either about think the and GAAP color it think 'XX cash of question, said an anymore year tax updated how we tax on as forward, Can around

George S. Glyphis

which occurred. to bit a it respect that with related George. What Davis. Sure. why state quarter, the I'll gets say that to a true-up saw one-time a rate on It's leave XX% rate, apportionment Good this that you just complicated. morning, at I'd little was

You're in least lower, not going see that much to likely should be rate at QX. It forward.

XXX the a a broadly to year-end million say, through remarkable specifically, first that's that And if discussing CDEV NOL you'll from cash to But so have you approximately we're dig thing standpoint that our tax fairly position. XXXX. respect taxes significant fortunate XX-K, very industry, federal think at with it's note I'd overall, the first it's observation. I we're my within

yield. we -- the with in meaningful So year came very a tax into

we current utilizing levels, look a at fully we're NOL's As the business a those environment, and years away from activity believe taxpayer. being commodity couple of federal plan, we cash

material well-positioned, -- to in in So we're not near the relatively a term. summarize, cash relatively have to liabilities any tax

Davis Petros

Got it.

to XX% closer So peers to XX%. just going correctly, I'm where it on thinking to clarify, to be about it's you rate to around book took make that tax probably sure

that probably Something like is maybe right summarize then that, taxes correct? though And XX that? to way beyond, the cash

George S. Glyphis

directionally I specify want thinking It book percentage. way be will it. the think a to tax. I of below XX% that's don't specific about on okay

Davis Petros

Appreciate it. Got the time.

Operator

you. closing like would Q&A reached now of I Sean to conference Thank session. CEO, end the over our to Mr. Smith for our have we remarks. the hand And the

Sean R. Smith

very how is positioned. you that is I'm with the [Indiscernible] Thank company say pleased I can

balance production going of call. I you these look been the the will quarters. a have And growth, our We meaningful that return significant to forward Thank approved. flow for I that's trades that upcoming end all and today. I And to shareholder with free listening substantial board bulletproof shareholders. cash sustainable are and for program value believe a drive sheet, robust

Operator

This ladies you call. gentlemen. Thank and you, participating. for conference today's concludes Thank

may You disconnect. now

Permian Resources (PR) 5 May 222022 Q1 Earnings call transcript