PR - Earnings call 3 2023 | Permian Resources Corporation

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Operator

Good morning, and welcome to Permian Resources conference call to discuss its third quarter 2023 earnings. Today's call is being recorded. A replay of the call will be accessible until November 22, 2023, by dialing (877) 674-7070 and entering the replay access code 608519 or by visiting the company's website at www.permianres.com. At this time, I will turn the call over to Hays Mabry, Permian Resources Senior Director of Investor Relations, for some opening remarks. Please go ahead.

Hays Mabry

Lester. Thanks, all on you quarter company's joining call. earnings for thank the us third And

today Hickey; results Chief are our call release a the On Will an with company. Officers November we earnings Guy Form Yesterday, X-K Chief third and and Oliphint, the Officer. our quarter Financial reporting X, filed for Executive Walter, James

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

at News www.permianres.com. presentation on our homepage and You Events the section can the find or website under

the I note are comments statements our later the XX-Q actual Form which uncertainties XX, factors sections to control Many would Exchange this that during is are statements our affect be and beyond plans. Securities could expected and risk and September detail the filings like of with the discussed the including of the many our that are SEC more these risks report of earnings our Commission, forward-looking to call and XXXX, that this quarter risks afternoon. ended results in involve in and quarterly with for on forward-looking filed

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

a the website. earnings corresponding nearest our use, to GAAP be reconciliation available measure presentation, or release our we which found can For in any are non-GAAP on measure both

over With Hickey, Co-CEO. that, Will to call I turn the will

William Hickey

Hays. Thanks,

a a underlying which business easy deal a didn't detail best far bottom. is big to as ever great is our in on I groups, to to operational I strong their team expectations the and a distracted top will Having want delivering to to our in of great Before work have to company, focus we to expand from team off accounting as in the when take from thank slides, integration, have It's we IT that jump quarter expand team ball had the announced, we a moment. get moment into our eyes exceeded for the we XXXX. more take all a operational critical and so

I few the last we week minutes want a to acquisition, spend which about November Earthstone talking on closed X.

the maintain unique core stated and near-term the combination a believe and sheet. we accelerated a scale, As accretion, Basin allowing Earthstone capital, provided during while Delaware Northern pro Permian announcement, deal the of strong forma Basin to all the significant return us we assets long-term balance high-quality that in of of

Importantly, we and were combined able synergy transaction for laid to delivering provide on significant looking value our synergy preparing acquisition. forward integration base working at the We in August. few past and out capture a million phase spent price will the that months are the of target to to complete and the with $XXX the team purchase annual structure shareholder and Earthstone

from and ground leverage is the playbook core and Colgate, Permian something consider the we Resources at learned hit merger have our to integration M&A lessons running competency year. the last Centennial already we

and the that begun great already combination our provides. more excited about integrating team, improvement assets to ever As we have than Earthstone's business we the are

increase across the announce that a flow quarter, Shifting continued strong the Resources in combination proud outperformance from third back cash quarter, to resulting I'm deliver drove for results. free board Permian wins. to Operational to of our meaningful team a

continuing with well results growth to First, new the in wells oil our strong meaningful impress. to led quarter

in place season. put team and our predictable Texas every worked has and processes dedicated lowered to our is in despite mitigate execution but operational how single continued Weather Texas, in weather the controllable to real summer downtime. testament to hard Second, costs which is a team field in field is extreme equipment and prepared

Third and the quarter. times and team and continued well drive cycle relentlessly has down costs throughout finally, our drilling completions to

GP&T total XXX,XXX PR million oil noting million adjusted which EBITDAX As to G&A in adjusted quarter. X% of in to based increases, second with production reported per were were QX which The slightly we performance. represent per operational equivalent of barrels Overall, 'XX that delivered per XX% BOE, target due and barrels the X% quarter. of a $X.XX respectively, controllable our production strong of day cash of a CapEx quarter. the company expectations. cash and on oil line quarter-over-quarter. compared day, million result, our QX $XXX to for early of of generated It's of We 'XX the growth free and XX,XXX worth hit $XXX oil costs flow $XXX LOE, decreased Total cash cash quarter

Lastly, free income. net we CapEx cash flow share cash a per reported per share of on adjusted $X.XX and basis of adjusted $X.XX

a operations the little more. into Diving

Our drilled feet team The momentum continuing best practices. by by to quarter-over-quarter increased efficiencies across team previous drilling increased the day per our board, from quarter. continuing XX% positive refine the

the In pumping day, value performance over these With for meaningfully of per addition, unit incremental day the metrics the these well in forward. which delivered should a Delaware efficiencies quarter is going sustained date. This XX shareholders cycle in hours for feet and team combination, slightly believe the we their efficiencies quarter drive winning quarter, higher best but reduced per lower time best CapEx resulting cost. completed for completions Basin. the spend to some Overall, X,XXX are per

to turn capital. Guy I'll go on to Now to return over it

Guy Oliphint

Will. Thanks,

share of the quarter. strong see of can increased $X.XX to results cash us Slide per you total return As on during QX a shareholders allowed flow and X, to free capital deliver

$XX reduced per share amount with free We quarterly million. base dividend of $XXX cash flow by million. Our or that our calculation adjusted $X.XX begins

shareholders to committed cash dividends have free We of remainder XX% of pay buybacks. or the flow via to

represents achieved a with for target we sponsor shares during that the million million This $XX The both. back repurchase quarter, that offering bought we share X.X quarter. alongside secondary

share. of goal $X.XX share our sustainable share to $X.XX to plan of dividend base $X.XX we per to of dividend in bringing a Consistent the $X.XX with return variable delivering dividend quarterly pay growth, per long-term by will from QX. we our XX% all-in Additionally, per beginning increase base capital

of our hedge in overview balance can An and book the be appendix. found sheet

results, Our third opportunities company strong to maintain combined sheet supports as with Earthstone. demonstrate ability as such pursuing a continued a both strategic Earthstone balance stand-alone consolidation that and our quarter while accretive flexibility

We have and billion $X.X liquidity our of no near-term maturities approximately RBL. on

our months. to that, excess With of achieving credit rating by goal flow We an to to it over at were continue debt of the pay to furthering upgraded to turn cash expect Notably, all ratings our time. X utilize closing I'll investment-grade over agencies transaction, down credit Earthstone James. XX within XX free

James Walter

Thanks, Guy.

this future have our call Earthstone. about incredibly Earthstone ultimate business of morning's to earnings excited We do to the creation. maximize Resources shareholder the addition view takes with closed in you last get call, our begin with Permian the week heard As the as all goal to are value about employees to the and Earthstone team. the transaction we excited We're announcement consistent welcome deal whatever it of this to

to it's ways Our continue ever business today it better to forward. improve is to been, find and we going than expect

acquisition. few Slide XX, key of the Earthstone back look On our from a at we takeaways

acquired that can Earthstone are we highly return we thresholds. our attractive exceed where certain at First, valuation, a we very

PV-XX at no or inventory while at adding to price announcement high-quality time represented little purchase significant Our a of the Delaware cost. slight Proved-Developed discount

Permian cash free per through transaction flow in makes Permian synergies most metrics to continue key increased the value of noting near remaining accretive largest Second, long enhancing midterm. pure-play worth the and one this record But shareholder accretive with largest transaction all is highly and will share financial the to firmly Permian track we before of Basin. investors. the term our term, believe Resources second It's that synergies and and finally, importantly, this operators returns transaction

from Although very clear enhanced have do to strategic we scale expect bigger, never Permian second the deal and to we benefits would largest economies of do the of get we been being a pure-play. just benefit

and flow shareholders we like team development. free February, far. February, that that to budget. through very I'd maximize so back return This plan XXXX a well, strong second Before and against a XXXX to move quick high team at are to expectations year look our cash extremely received past well take we out set our Q&A, full Since has executed for cost-effective exceeding

QX Earthstone included from a an company. be team PR worth We back standalone full not February outperforming contribution credit that look and its on excellent first it's to our our public noting but as providing deliver this call track since of our financials, earnings fact year for in PR will in is X months year have giving standalone in the and we

on We but February. business expect addressing our regularly plan scheduled today, in on plan this will not release updated an to call guidance XXXX our next be and call

shareholders philosophy term. plan changed. our maximizes a that and the over that has long near for assured value can Investors be building rest our We'll development not

a free as out be a shareholders reinvestment by effectively that until results rolled that value As idea we believe plan of do decide we to in a with XX the February, and looks over for activity that we that environment what levels, we put together if plan have not cash market like that come today. We we'll to highest able XX could much waiting better plan months. next to a maximizes flow in will the way a

Q&A. for tuning turn now on to it our And always, Thank operator is for As back will creation. focus the you long-term value in we today.

Operator

question [Operator Parham Instructions] from comes Zach First JPMorgan. from

Zachary Parham

well first, that exit-to-exit well Congrats hit deliver that more on you you Was any online you guess, expectations? other you a XX% I bring drove in would or quarter. that us advance. just just productivity? outperformance quarter to it mentioned, you a Can to give it growth times allowed the operationally. wells on what some that target point the Was you detail earlier in Like to XQ? oil question factors above cycle allowed full

William Hickey

things. Yes. Thanks, was really X It Zach.

improved -- The year what quarter given of You hit efficiencies operational operational wells downtime into we oil saw them X the of to downtime of kind -- has then did. acceleration QX in We numbers the of kind team for and the just just the on record numbers. side. due

kind of those was it And the add big on X what and beat of pretty together oil leads so a to all side.

Zachary Parham

one then more the CapEx And just on side.

lower. XXXX, but higher about could where leading-edge than Maybe as quantify give and on also expected of You a costs XQ efficiency wells us D&C well getting maybe those costs could more where efficiency being CapEx foot and and in little cost well? completed, you those deflation some because are go in gains given were drilled and that thoughts per talked gains

William Hickey

Yes.

top as as primarily kind of by driven that Just discussed casing deflation about quarter, on for inflation, think services like we year-over-year or get to about sand, kind of next consumables then cetera. see were some and et year last think side, things a trending the via X% we to of the you I little on of bit hoping

So out on I Obviously, people feels changes will think deflation think that's and either it, putting moving kind in budget, next which lot like are lot commodity percent full But X-plus year a call still safe the a I consistent of year. direction. in kind prices a assumption drive that of today. of side around are the for

cycle the And operational faster efficiencies, we in reduce small et drilling, times, faster times, then sticky. frac the did that are things are the little things really on QX cetera, to

to kind So equipment percent even overall of that pace, more think on with kind be of well continue side, we'll operational able X-plus our I the less add that to wells deflation lower. of expectation via efficiencies cost to is down kind just better drive and drill

Zachary Parham

Got leading D&C edge color costs on are currently? And then it. where any

William Hickey

I in probably about it's XX%, year, relative earlier think something down to of kind we were think this of if that. kind you like where

Operator

Daoud Gabe TD from from comes question next Cowen. Your

Gabriel Daoud

growth to just maybe being basis? output as a But is that. could guys that forward. now at maybe growth on think thinking guys always the we color goal how just about know a maximize get free of high exit-to-exit cash an bit flow on I growth hoping how Was curious about you level a more you larger are entity, going with exit-to-exit an

William Hickey

do going a not Yes. think think with I we're the we're growth shareholders of that's the to we XXXX don't can market clear the I that certainly mix. a as been pretty or put point, our continue I the plan. out thing over to for part this At But right mean we've that long bigger, be think advantageous term.

of as I XX% think flexible think whatever investment like the we'd be or higher, I kind be the the environment, in kind environment to and ability a pride at better react X of be ourselves And could low we growth attractive environment, outlined could less looks high as and to return time. in our it that a previously.

an and despite front additional changed. philosophy scale, hasn't high-return that base on think incredible we've I got inventory our

Gabriel Daoud

quarter, grassroots mentioned you transactions. game Understood. ground And then XX in the the

guys Just M&A scale think curious point. you how at larger about this

large attractiveness the value pure-play. noted You Permian and the being a strategic of

that So thinking how just on curious your lends itself M&A? to

William Hickey

mean well and game we something ground I differentiator Yes. in, exceptionally can we a time. think do quarter the real do I over think out, is I quarter something be

mentioned at bit time are, often most the again, think, and look attractive really, we've we and really of I acquisition drill opportunities As those accretive. right ahead the

the larger closed on really first us the last continuing think to today for we I to on Earthstone and integration clear, week focus stuff, is execute. be the business, of which

on say at do to focused point Basin us, execute, remaining a we some think down asset can't a I we and make important again. think are larger could I'd it we stuff else. we can't if our highly road us. I have say saying the is Permian quality, pure-play on for anything I'd sense

think narrow going going I of for keep eyes larger does probably do in most whatever that open. to the always But potential shareholders. scope our continue makes we've to future. the the to So said, we're sense And deals as we're

Operator

from comes Truist question Neal Securities. Next Dingmann from

Neal Dingmann

I'm with wondering, broad you just on the speaking, point, My the giving operation? strokes, broadly for you of consider initial just not And Earthstone what you're the represent. but total know much to assets. you of assets able well, mid-XX, question wondering, consider how could this sort low-hanging know I'm definitely activity say, fruit in would I wondering, just are that it's sort first 'XX, is by early, these of I'm would I at also just

William Hickey

Neal. Thanks, Yes.

from that I capital and going as clear far activity Delaware. rigs that Midland pretty to to goes, As think been we've of we're reallocate kind move

is CapEx So less Delaware, XX-plus think will maybe assets, where the than think the our very Earthstone minus But little will at development I And kind I focused, out. convicted allocation plus times. the safe ones think kind within over achievable has year, probably we percent will out kind our of can as probably and Delaware the the X/X is that's even in been. plan still be rollout side, that the of course Basin I the that shake about And of where those capital range synergies as think around it on that we're low-hanging kind laid to was bet think everything operational of of be and then or to you right very go that, beat. we a very I fruit a synergies Delaware call -- are

So up the wins able on sand, we to of wins cetera, things just rigs. to are after pricing the wireline, going it fuel, day frac, that, closed. were that et we kind quickest like are followed by on pricing, Probably will be be get

of A are a of as up I kind go efficiencies with rear of will or the those of will things today, I I little week to confident we're LOE get we X time. the able kind then think economies the think applying lot disposal, that to be business. the feeling of But or cetera, changes. or kind either contractual-based -- water rigs type we'll scale moves, And be in more of this. and be to what ever take think best get kind able swapping go are bring to as deals by grow faster practices et out of

Neal Dingmann

second just a for certainly shareholder Yes, on And then, you upside. maybe James, of lot return. my one

is any in potentially free you -- step wondering, maybe down cash increases going decide production? boost as get you your there as further? to see you'd all flow optimal or Or remain that production the current case will larger, want to current reason even that do that Just goes if as up believe payout XX% even forward you to lowered

James Walter

think framework. our we like I really

balance strike to I really of opportunities X.X the or substantial. think to that's to way was ago what while advantage came right the shareholders we're capital we balance, operational out environment whatever right of years trying and the that with maintain and a meaningful sure also see and strategic we take making we're in, we the returning so in really flexibility but in

the So I plans no have and plan, think to we nailed change it we with it.

Neal Dingmann

It sense I lot steady. a think you very it's of makes all. Yes, for

Operator

question from RBC next Markets. Your from comes Capital Scott Hanold

Scott Hanold

some Earthstone has the speed in -- to big Earthstone? identified the the quickly all can to picture, for but opportunities high for I think operations only And obviously You which area a on you side, you had especially the for to week, And up on certainly OpEx especially that's your synergies, the cost been do like side. how know operating you've get Earthstone run about standards?

William Hickey

parts. Yes. into I X kind of break

I cost scale pricing of day of up corrections synergies overall just if perspective, economies we are a there's that think X. that kind showing already you from kind about getting of just of some think are kind

from Just we'll frac we're X company, benefits that get same that, running there's and doing X from some to immediately. the fleets

the rest efficiencies come side on kind the next. think I of the D&C of probably

post about If stand-alone are had Colgate able with And on we basis. in kind down merger of we post you we efficiencies here better were close. drop think it, company X either to months and a kind did year X than the closing CDEV, of a to rigs to last call

X And then slowest. be think to So D&C call the X kind I of of, plus the the will it, LOE kind months minus or on side.

$XXX work contracts able But year. that think confident of things that even -- than more about think seen, we'll to that, that time contractual lined it, that. quicker. just will we to renegotiating rate from we've very that think that have this be get get lot we the year maybe end we like get I things that, be out able and And a we through next are will you by combining likely could go both everything and if take is I and because it achieve that to run million the of on

how that's So of would -- they line but out time. kind over

Scott Hanold

Yes.

of you're operating clarify, operational And like plumbing and those change out wells and more that on just everything you so else field the don't to you side, see contractual is to on versus the go cost need that inheriting? in

William Hickey

of failure what -- we're today. it be There's of will time But piece kind disposal of of That practices. kind some I about way. I rate, time, the think we'll absolutely. of that's process work movers real think best of in along which disposal -- being needle to lift contracts finding is is water stuff the if lot recycling starting that just water disposal kind well. that through described, a other going in lead little a through the No, optimization to be as and as field SWD big you working big just artificial the optimal the is small longer and or more do

So of both, the a be answer. little guess, bit short I to

Scott Hanold

you is Like if to hedge the to say it regardless if, is a about that? I obviously, it you XXXX just XX% about of were early I outlook And Like like. price, the end fundamental go of But you year, a and -- macro? price? -- kind next about of think you get And a appreciate about at higher follow-up. for It's Okay. like hedging it we'll example, range, market. what the macro the of as growth better think high would as can dynamic very a into talk do think you enough some we know, when need. looks you able kind or factors? of growth you is get rate look the a how X whether Or

think So about on strategy? kind that color of you any how

William Hickey

pretty But more at say how our Yes. I to be we'd commodity will strategy it. I'd and about right. I clear think no, more we you're be biased hedge mean, prices. think hedging higher grow

X I'd going as on think commodity that commodity really is the that's said and think expect look and realize service side. the we've about like? I think really -- parts be would incremental next then opportunistic we look to plan. of I is answer side just a the does years, we range seen are and the sense. wide input and cost payout that's to we've return prices, crude basic rate drive probably prices a And kind development I what the the higher what then and our both to we're good costs of hedges, growth, But business ultimately layer environment I that in I following. always equal of impact the year say say mean over it's service reinvestment how the of combination gas as widget. and projects good costs And past of and the I'd the our think see

high of I'd opposite, reinvestment is So higher lower services end us the prices commodity pushes you And have range. push environment costs, it to say to a if lower. that better going us the

Operator

Derrick next Your from Stifel. from question comes Whitfield

Derrick Whitfield

with heightened a outlook longer-term on durability. asset Congrats a quarters, productivity Starting bigger question another recent solid asset base. there's picture been quarter. forma pro in investor And focus on your and on

transaction, is assume to very and of With out benefit looks Earthstone assessment the reinvestment assessments? X-year your year X X- out it reasonable similar the your to

William Hickey

I that's We'd a with assumption. that. Yes, agree think fair

Derrick Whitfield

Terrific. of staying lateral And development the over been last a growing has quarters. couple then Long operations. on theme maybe

are risk X-mile -- out into reward over integrating next years, the of couple with operations? your your what more really As the on you lateral thoughts look development associated metrics

William Hickey

the X closely. We've set this of up whole basins has watching done our across worked hard of accordingly. last seen position. the well position in we're its say over then and benefit what in up to X-mile kind to the years other of kind set others development extremely We some Look, XX for I'd very it have Delaware. the

to development, scan less just for well perspective, I up of opportunity X-mile less that which there's just set and it it's a and go both map see makes miles. kind and Earthstone think positions X you'll to ours from forma, pro extend think I So likely as ahead you really

of to risk-adjusted that optimal Delaware. as better technology get kind I most the X-mile do lateral or and is wells our efficient link also continues that return to belief it lateral to capital think get term. that, may X over is get shift -- the I drilling near still or better better X.X we in the continue today think at

be -- to watching it. So Look, stay going fast we're we're followers. keep to going We'll

could I longer if things the chose not business that we but some us. incorporate probably plan to where laterals do do we a think there's of for to small near-term part places so, that's big

James Walter

of into And well really margins for has Derrick, fortunate important of basin, we're seen I that's extremely X-mile a into push next laterals in think the drilling position the extra-long the and our been And long high you've lot in inventory. be core the kind and the core quality plus we're where of acreage, most to the the they're time. tier are the still place where pushing people will of of

set we're So up think don't today. we and of need for X have for in the of milers the really us, fortunate value proposition we to the position I that like do

Derrick Whitfield

Congrats fair guys. the again quarter That's point. a on

Operator

One. Your next question comes from Capital Phillips from Johnston

Phillips Johnston

won't I realize volumes higher what up QX should be the guidance we bit you Earthstone might year-end volumes sense led look detailed especially 'XX considering, and guys activity in that either to and frame us deal just exit improvement But closed, you guess, or is give a now I have the for kind of maybe QX. can a towards efficiencies in like rate that what steering until February. today

William Hickey

kind you you so in PR think, with it, as give the I of points, helpful. of will about think kind stand-alone, hit few just we be hit QX. a target QX Starting can -- I Yes. we

to of oil I I acquisition for the what standalone of it as production. into Earthstone accelerated kind I a be similar right use. We So of assets. still guide would PR of think out guide that safe as on beat And from about of months a assume were so the And wells trending for CapEx to Earthstone, CapEx, towards X last basis, well months Earthstone QX, productivity side will kind X there slight on we in probably QX you a some think, their the is a beat of alongside slight the story. trending think stand-alone. be QX think QX be will you're year kind towards Novo then the Earthstone had that so or

you is taking can for kind So to to get pieces, in a QX. kind we'll X/X of number those round be Earthstone decent where do what kind PR think of plus I of

Phillips Johnston

Okay.

might for granular like edge the be Do to day day are that but for you? range those sort estimates for granular, this too little too XXX to a reasonable? of equivalent it seem So looks oil. leading bit quarter the is Or oil XXX XXX XXX in and for

William Hickey

missing I think you Hays that's not with that but or up sure have something. too you granular make for follow can a you're me, I'm if sure somebody --

Phillips Johnston

Yes.

Okay.

And good. housekeeping just maybe Sounds then modeling a question.

a going in some quarter the in the were that Your Is one-off QX natural drove factors gas extrapolate should differential forward? that there that? of was prior X of we it kind quarters. trend stepped down in versus kind where sort of Or

Guy Oliphint

Yes.

really and productivity, just Just really strong oil just drilling. gas on combination generally, the where of cut in commodity mix, NGL are well is we're oil trends areas a

with content of of the see wells contracts the of persistent kind some I trend don't the of associated midstream and little off but popping kind of it's NGLs, I we're -- a X fluctuation constraints. midstream quarter. on gas, Specifically think there, a you'll bit not

Operator

from Huang question Your comes TPH. from next Oliver

Hsu-Lei Huang

solid a on quarter. Congrats

that in Just this be are do on of start just run the keep deal efficiencies level confidence What's would to kind with a process point the able rate of any sort XX efficiencies thought over to once lipped rigs the little you that of wanted -- of quarter. advantage with I of front going all or the out efficiencies get to we over being to dovetails there in did of kind to achieved course a into think the just program that about something to in time. gained And as the you forma take kind of the all similar inclination QX could being done. respect and entire drive activity And year kind growth? terms base also, of just an how a ops Colgate much kind bit on dropping at like of XXXX rig just -- the those more tight guess outlook of pro is

William Hickey

efficiencies, driving mean, buy-in it. lot drilling to I them both the just guess just the I'll flat you time color We're like give Yes. side. get small downtime on are from field, on around the continuing side frac of I These and a things. down some

QX was going they're to a where think I pretty sticky. be So right. went quarter everything

run find be that for exact I upon. think whole time, a at to bit small things can continue ambitious, that year we'll little same a but improve same rate to maintain So we the may

do they quarters. I did go-forward look the like than previous will So any more that of the efficiencies think QX

of kind it, for I the what that run for budget dictated that way amount budget. kind efficiencies kind of amount that think of mean Look, spend we're and how the we that the leverage equipment what's how on of does is efficient solve capital, think it. right our And widget these is to going rightsize kind about which James next out. laid be year? the And and capital to we're the to by will calendar ultimate year doing of of hit we'll that is capital return in What that to in then

may drill spend drill even the equipment the on more return cetera. of of because more efficient. is may the capital the We We to is we're et wells run trying and everything same being more wells answer So more table. because and because we're capital, the equipment on amount less run

efficiencies, equipment in can that rest we kind of working things is we you these to still So how use keep efficiencies the it much it and through we're these of real that's of use and how time. kind use going feel but generating we're assured

Hsu-Lei Huang

just plans next how a remind crew or basis you us rig pick color. if Earthstone on are of forma to And And a outperformance crews on helpful pull with full-time for any That's loss could kind a and many about that given with including to efficiency budget Okay. crew? spot pro QX, or exhaustion back a also there might when to up one concerns back the year? running you're more drive of respect any Are thinking having year-to-date there efficiencies.

William Hickey

make the going we on. going do drop quarter-to-quarter We're going fleets very stay QX. in -- efficient that ran of or We're were kind on not that we we're like standalone rig majority X for PR anything do are We to to a budget within planning doesn't have not frac that Yes. sense the dropping constraints. do to on not to operationally. always of and X planning benefit We anything QX to

expected a the side, bit down to Given we the we than efficiency QX. saw on X dropped frac earlier in fleets little

on kind for dedicated with also our expectations efficiencies and line X were achieve all keeping rigs full where this CapEx kind frac able think of consensus that PR of we're a of you year in while saw. able fleets CapEx I drop keeps both. going -- in we that kind to we of in to didn't is be were one We're QX where kind standalone, the So and these our to us have do to of going of

to answers kind of levels based seen we're that we're or question, to not that have quarter-to-quarter these rigs of going fleets crazy budget. efficiencies on going hopefully drop So your frac but --

Operator

comes Your is now from line next from Paul your Citi Paul Diamond Diamond question open. from Citi.

Hays Mabry

you're mute, on if there. you're think I Paul,

Operator

Your question from ROTH from Mariani next MKM. Leo comes

Leo Mariani

Obviously, pretty to now could Colgate acquisitive I a guys discuss your back going and in history, maybe M&A the throughout just was PR. hoping have landscape you bit. you been

some deals how you you be characterize deals color there out of there? would available? out any of So there of do see would appetite? things How now? your What's kind Or these are kind great. Just

William Hickey

really I opportunities continuing changed us the our most creation. and set very But that comes that ball a execution, to small say up kind is focus of I'd focused yes, think say I attractive that rate it's scale. long our largely saw months anything first and say, backlog that's inventory what do exhausted long-term seeing backlog We've said deals think been looked But you're the see I'd we're find of months. business be of that's say for of and the right that Earthstone for on right. is we're quality best private I'd a constantly we enhance game of and first but market large-scale Yes. value the it. first we're today emphasizing our And is accretive inventory think bar highest to quite that over and high priority us, kind now didn't I'd again, I'd base, a those I'd outside attractive the always. market it worth of come the the transactions very I in understanding to ground all integration say past earlier, And and that fit on X and deals, are the the year. at bit really and ultimately we return, the slowing. so say or of I most bar doing acquisition X of

So does active is down we they evaluate we'll pipeline and us. see for to be front, think anything that on coming packages come, kind the we'll continue of that I fit as think larger but

Leo Mariani

you bit QX Okay. talked for a That's earlier. guys dropping PR helpful. And then a crew standalone on of little just kind about

comments, XQ earlier Obviously, sort went And per standalone. quarter? be QX. efficiencies of of year down count confident just full You sort in like clarify, kind wells? midpoint kind in with this in one bit lot the fair coming you for fairly a that PR going to of oil help kind of faster. Is for of you're of seems out number of a standalone given above of your us you're to that kind strength of in terms TIL expected of that XQ Can

William Hickey

it to months a a but relative at TIL PR QX, include QX we guidance. a also, headed we of never out as -- year our yes, down as of PR highest early will was QX standalone PR count target plus the -- X put there were thing And day a standalone QX the beat and on Yes. you'll will quarter expected. Earthstone, because basis, we per won't that come for were be in from business XX,XXX oil barrels

by than acceleration obviously numbers increase of for. downtime of just yes, QX, well then originally in into TILs and productivity driven budgeted that all So some better into QX and

Operator

Paul from comes question from next Diamond Citi. Our

Paul Diamond

wanted on opportunities, Apologies the of game last I acres, for quick bit technical a XXX deals that, to quarter. base difficulties. real ground had touch XX just

of the kind want just kind idea stuff? in-house, Earthstone or how all opportunity get shift your -- new to idea an or guys of attention with is legacy anywhere type I event? of be And on on the of all-inclusive get the Now or is operations guess what you will your kind

William Hickey

set think Earthstone. the opportunity ground mean I'd I game effort our Yes. brighter I for with is say

of more footprint for trades, acquisitions for a creates opportunities I think kind just larger bolt-on cetera. et

probably the think obvious I it's Delaware today. exclusively to that's going be that in focused

are. acquisition we're where think I think the But excited. that's full operational efforts I our force of and

of I more a do assets, equals think these lot to X X. kind there's we're than X with plus

and set excited only So we're think opportunity here. from grows the

Paul Diamond

Understood.

one of with kind follow-up, recent is deviation Are market in of of the M&A of kind kind of you still -- Or there it negotiations? the market. of the quick on those in Just given fluctuations guys kind seeing any in? mechanics rising any or general moving

William Hickey

as or prices prices as don't markets into They up of haven't companies, been oil been commodity the prices when of don't much. the quickly last kind broader over -- we has the people. bull cetera. falls And they as don't are X sellers fall years. et It's interesting a seen private kind rise or think when largely family-owned more and steady, I legacy kind those market of quickly change really market right. independent small It's lot

opportunities pretty I a think proposition steady. been today. unique I us those And for So value think represent have

Operator

There further James for time, the this questions it over are handing Walter closing no to remarks. at

James Walter

returns a to to peers, and our gas execution. on of current outperformance outperformed value Perfect. value and proposition value represent and proposition Permian. a future last Thank driven focused compelling sector new we enterprise was Since today's conclude of XXX. investors. by our for our formation sits noting you. and in oil large year, Resources Permian And Permian against $XX that result, meaningfully on Resources worth capital large-cap other billion class business the This I'd almost S&P conference as largely successful It's call continues a XXX% of XX, our for like to helps business which now reemphasize Slide the companies. the of with best-in-class delivered

Thank the as competitive peers sectors It continues efficient opportunistic to execution the outsized create a our but for for believe continue in out as a with attributes your growth, continuing quality businesses sector. to as to in can such we ours position multiples, position to solidify market. to rerate enhance and Earthstone, By you and direct and cultivate these assets, be transactions our strong our to only in, quarter quarter leader we also again financial have with core room today. organic with and not broader shareholders energy that belief such that value operations more other time

Operator

today's conference Thank you joining. gentlemen, for and Ladies concludes this call.

now may You disconnect.

Permian Resources (PR) 8 Nov 232023 Q3 Earnings call transcript