PR - Earnings call transcript Q3 2024 | Permian Resources Corporation

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Operator

Good morning and welcome to Permian Resources conference call to discuss its third quarter 2024 earnings. Today's call is being recorded. A replay of the call will be accessible until November 21, 2024 by dialing (800) 839-5495 and entering the replay access code 26601 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' Vice President of Investor Relations, for some opening remarks. ahead. go Please

Hays Mabry

thank and for us. joining Thanks, you Todd all

note Will James Guy during Walter, On like our the involve Chief this and are today to and would forward-looking I and call are Many earnings our call the the statements SEC. Hickey Executive Financial the are Officer. beyond risks many uncertainties are that of Chief could that comments Oliphint, our risks affect these of in sections that statements detail actual control forward-looking of discussed and our and risk the more factors results or plans. with in Officers; our filings

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

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

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

William Hickey

Thanks, Hays.

discuss excited morning. this are quarter results our We third to

production are Barilla which our into the this of CapEx guidance. details driving efficiency to our translates team morning. well improved bolt-on free across which successfully we we reductions. flow closed PR perform continues generation, capital Draw at quarter, Overall, for forward level and guidance further consecutive efficiencies the third look organization, a quarter our very to the high cash we strong sharing to while Notably, that acquisition operational and year have During full the led cost continued raising maintaining

and oil production of with day. oil equivalent oil of beat XXX,XXX into Moving per of production expectations of production XXX,XXX QX per barrels quarterly barrels total day results,

quarter, is initial to per these barrel we this continued guidance attributable multiple oil Our to on increase raising consistent and efficiency D&C compared an our well day strong February. guidance of are our again results, oil performance. amounting year XX,XXX Based including full gains factors, in performance to

a nearly of highly our per outperformance the our of is of accretive day result direct on X,XXX year from with this M&A. barrels the of executing resulting business, Notably, oil balance guidance increase base

doing year more budgeted. Importantly, originally without original bringing this wells are so CapEx changing online than despite guide, we our

We our accomplish cost optimization. and this due to were cycle times able reduced to further

We BOE, continue quarter to low cash in free leading support results $X.XX $X.XX of costs strong QX of $X.XX per resulted production $XXX and per BOE. flow CapEx million of cash million deliver BOE per [ cash cash of with paired adjusted and of operating GP&T in that G&A $XXX costs Strong and $X.XX with LOE (sic) ] about of adjusted million. the $XXX flow cash margins

this our NGL hit despite streams improving had the realizations. This it's see where and we the strong demonstrates underlying later, upside we weak another these on particularly While contributions gas worth of we natural we'll achieved business model from results from potential the for PR gas modest and noting quarter production gas. performance WAHA

investor an updated business. of transform Turning growth a not the a to conference slide months been but we've just company at Slide our the we X. This emphasizes of shared ago, how to able version couple of

the and really the consistent creates I are as which drivers we Colgate page. XXXX. with in value, is of James company, on been we've predecessor what founded First, the value the believe shown side These same right-hand when

outsized a in relentless focus the basis. on the only not improve At XX. The Delaware, our core and but creating we focus a in single-basin returns strategy long-term the share measure value Delaware Our on along which shale established also business remains the on Midland structure Basin, the is headquarters oil our provide has drives acquisitions turn cost our with near-term, focus most in accretion. midterm is Lower top which long-term efficient us on per we the play the These acquisitions. shareholders, of of for quality which our believe

long-term total grow to shareholder flow cash is to goal share follow. expected with free returns per primary Our

how our basin and illustrates continued efficiencies have year. leadership driving this X Slide expertise cost throughout

with days On front, expecting wells rig's the worth drilling this effectively perspective, quarter of of rig we adding to on are a record with an the that set track TIL To now in we and to count, began XXX XXX rigs put gains. rig release. TIL XX XX year efficiency spud this wells entire wells same to through

again fuel per price frac in gas per environment. XX side, run we've which fleets, and day this to quarter increased hours represent now completion the current day pumping the a savings On dual hours all material

As a $X XX% to per on foot were than a translating year QX savings. cheaper last basis, million in result, TILs per our well over

they Given expect we these stay. mostly reductions are be to will efficiencies, due here to

that, call over with will the And I to James. turn

James Walter

Thanks, Will.

of some marketing the hydrocarbons. time Permian our spend to want Resources we X, Slide discussing to our Turning approaching

As of one it's be. you continue significant Permian the producers Basin gas flow generation expected. natural as economics Permian are forward gas largest out of oil This upside natural prices to the But gas. feet PR in per business going creates approximately the of that and potential producing they know, primarily driven, all day pointing will cubic if have Resources free guys the million worth XXX widely to residue always is is improve for also cash

efforts our residue cash our ago, example, focus annual and to million realization Resources, the At optimizing a our gas by the would our we X $XXX flow XX free But is the also to pride rapid almost as Permian almost $X increase it business increase to at But And we effective natural particularly months free to prices cash flow the can in shifted growth, performance of past focused oil our we all leader increases all a and increase $X marketing approximately netbacks. of the X XX%. on ourselves given enhance grew flow by historically interruptions on and get been proud market we've our today, have For receive midstream more our assurance for with years. incredibly on and metrics. across ensuring our hydrocarbons basin scale being a closed and we operationally we've gas. extremely with Earthstone natural acquisition are over

And we've been successful working to netbacks optimize our far XXXX. in so

to flow years. example, extra the netting we a as we Unfortunately, Gulf them incremental area of marketing the But do amount those satisfied almost XX%. have molecules that. just levers lot with to today. we dollar For WAHA the an is we we pull and increased at free And had like improve natural to sell in of Coast where we compared coming have gas at an cash we by and performance selling historically. Midstream aren't expect drive are to meaningful on

We gas. flexibility improve sales for have significant to crude and downstream contracts natural both

within power that step long-haul leverage for in The change in power ultimately on reserve [indiscernible] will demand the and see to Permian for increasing Gulf Basin. opportunities years the gas U.S. over Coast in take access existing pipes, our scale pipeline We potential a basin XX future expectation around projects the and and the has dialogue markets. oil projects space generation the next to expect created equity increase our to

opportunities our efficiently exploring using to gas. also in-basin power operations more are We

we return next the Although demand potential capital excited our several primary gas dividend most are early the as policy the September, In implications in innings, over emphasize for further years. capital of updated to discussions early we return. about the of Permian our base are form

share increased the $X.XX to per We base annually. XXX% dividend by

represents us well which dividend puts base X%, value is today. relative the highlights above Resources over stock yield current Permian Our and peers our that

base dividend percentage cycles. Our free of a the our cash reinforcing sustainability across peer flow remains as below average, dividend

same had of inception use We clear formulaic the to buyback we and will in or than a where continue market consistent philosophy to opportunistically with approach approach buybacks buybacks. periods rather dislocations monthly since targeting we've the

we choose so do $X to to from do buyback and as the the increased on million we execute $XXX buyback program, meaningful billion. to way authorization a such in have When expect

we team meaningful the owners X% today strong with of Resources of alignment owns comes business. being Our decisions over with management a that Permian and approach

positions goal every to creation. returns and value is this day outsized think Our our well continued updated total us for shareholders policy drive we for

is proud our Slide building year. to while to X Xx. deployed bonds and billion increased We've really over approximately the of maturity from outstanding and of our and we've are on meaningfully where $X average balance our we the all year this start the cash. increased We've years acquisitions today liquidity accomplished are we've sheet position Turning today X, at maintaining of right leverage actively

almost Between cycles. undrawn be our and our RBL, $X.X through billion liquidity balance cash we down up should and that available have of

XXXX. at QX also protected hedged similarly our hedged as through XX% into have head over hedging. we into We We're $XX and downside heading

investment-grade all achieving on agencies upgraded focused X and past highly this in we're forward, were Going quarter. ratings by XXXX

as fortress same the it the on liquidity, been last a X with so cycles. leverage and balance is sheet maximum multiple strategy opportunities low has years, capitalize we in can across financial to Our maintain

Slide Turning to X.

continue be and track We record proud to performance. of of financial execution our

of original wells within accelerated maintaining side on completion seen strong acquisitions. in year cycle our than allowing per accelerate comes of we've with while third oil by the outperformance for the outperformance guidance combination drilling recent efficiencies production full us our day, range. The the legacy are a quarter rather increasing to and times our The and coming from business barrels this We consecutive performance. majority are well CapEx guidance X,XXX from

We than for had realizing continue the XXXX, cash we cost previously merger to tax better from optimize our expected. Earthstone synergies

guidance million million are $XX our reducing such, As we current [ $XX from to to previously. XXXX $XX million ] for tax

year, with we business. this outperformance barrels our strength or quality from per and of Looking XX% production have outperformance our coming of this our business. guidance by back oil from guidance, increased original full the think X% We at continued day base up the over demonstrates XX,XXX

proposition be high-return cost where value underpinned Slide share investors. investors. our flow is remarks I'll by leading for industry-leading per cash The an today's low our of breakevens prepared inventory, long-dated driven business which growth and free we for our concluding structure, on reemphasize have XX, together strength

of to strong returns think returns rather these of XXXX, business performance operational about leading improving XX%, have increased multiple oil and the Since increased than driven more outsized quality importantly, talked our balance having highlight flow by generated We accretive free and expansion. been shareholder strength it's we by cash while the size have and all beginning meaningfully but inception. sheet. have that per share acquisitions since We the of important production the

to Permian owners shareholders of the shareholder Resources years to business, come. outsized highly aligned with are As we the continue to drive large for returns

Thank we it And will back tuning the operator today. for now turn Q&A. you in for to

Operator

Dingmann question come Our Instructions] Truist with Securities. Neal [Operator first from will

Neal Dingmann

Texas, I'm will my when plans. I'm future regional changes wondering, Guys, might first just will Mexico loosening I'm administration, any maybe you not stay operational question just but and wondering the wondering that XXXX New like quarter. wondering here probably look at any Outstanding on D&C is or if just particularly your have essentially operationally Mexico by just And same? sort maybe wherever, of in the just restrictions New potential you for all? of in focus,

William Hickey

to of sub-XX%. the will the Mexico, what with last balance is in similar and spend think of I look being couple New Delaware Majority capital Texas, have. Midland of probably 'XX years kind keeping the

I ahead year see Draw all a Texas Midland the well and the as you been little a of for Barilla last couple that we New this we Mexico majority that of had acquisition to less kind like we've years. move development on think the permitting and needs. -- in Basin of just the than the in we bit side. probably even We're there's But chance the

is So have us balance, anything doesn't more kind on change want our it think, last-minute regulatory looser flexibility I side. to from -- some give a make if to a of pads, or need around environment, but a have. which different of kind having like little not to of bit really probably changes probably easier If we nice

Neal Dingmann

to points, Will. help Great question, ask then your second a And around X. for can't just but Slide

does upside what those plans acres take could in XX,XXX optionality the gas? could do type of you with surface discuss, and you know, I that kind Specifically, provide? don't What XX%

James Walter

Yes.

I side, business. I got one a to an with big that's that's, constantly really We've be for just service. think think But service the fully work I of time ultimately midstream parties nonupstream to how provide related I more through business. option. could some from an base a there's several just surface, can ways a maximize think we're got think the to interesting that value value little more infrastructure think something specific than developments potentially working sale under We've I really, that I But our really our we modest think optimize us for but outright the On we royalties business. shareholders could that's -- take radar think, the assets for

I think beneficiary we I that's positioned changes, data think, a natural consumption look going we I to in in forward. And as really demand, of embedded be United of landscape think States the mean, question, I think gas think in be is forward. especially AI, changes to power I your the kind going administration with going real well at center

in, think we been Permian tailwind a with We've Permian And has of abundant a We've you I about be cheap. very think Permian, should got and time. that rural that prices and natural natural very we've got gas on should the well gas the tremendous, regulatory if based supportive particularly historically pretty a that to inventory environment. help landscape a gas. benefit lot long-dated Basin positioned Resources from and over mean got

the So I can we're on years. to the the optimistic coming specifically that, of the goal of much your second side as those that really that XX% volumes answer Coast. And question favorable second to markets, business gas would ultimate to be tailwind or part a the of time Gulf provide think your of more move downstream in gas of the third over question,

referenced. important think slide out that you it's I to And on point

of we Gulf are committed, think currently half I Coast selling at that have today. that's of about volumes those XX% the

our time time, gas I the between kind So could there. the that of some took take of and but get if does think and in XX% of XX% to you markets XX% kind pricing have ultimately XX% over non-WAHA there,

Operator

Scott question Our Hanold from come will next RBC. with

Scott Hanold

probably our strong it's hit very the early now. mean right too I emphasis give you want you point I a it's of a how on to on little side firm certainly, know guys bit for to XXXX. numbers. view some I obviously table, of But

quarter. help conceptually, peaking on just production us So fourth can are through, really like, look, in think you you guys

As you into the XXXX, next production CapEx? look in that at at peak about strip And think how levels strip commodity roughly mean prices? what that or of for average does prices should we level year from progression current

James Walter

think not at year. long-standing going providing until Yes, look of on to of I Scott, I to mean, of guidance continue next policy much we now XXXX February we're get a

years. really well I our the policy think that has last and couple of served us shareholders

of plan. just I environment. kind our to a to couple assess of and importantly, macroeconomic think the months that background gives refine us think further But of kind -- backdrop as the I cost the the service

what our think and changed. really, approach hasn't growth like I next to looks the what year

we're I think average. range based year's X% of a the on prior targeting growth XX% to

like. think early year us, it's I next And tell too to for really looks what

it think think questions a referenced returns storm I the from potential do oil Will like attractive I But or our prepared price macro today. the some in clouds remarks, are some there's horizon standpoint. on really his on

like. it us, for early really look to So what tell it's too could

that until out the year looks exit kind we'll for of next is wait of and the year see have pointing right a balance you're what year the in think to QX like. strong to I really

Scott Hanold

it. Got Got it.

get So level, trying again, I of what view, rate just maintenance kind quarter of that it your like correct? is flat? plus it point from sort keep -- was that Is obviously, to take that kind the that's was a to fourth would of to run

James Walter

CapEx. the of the million we've a is ] we've that maintenance which We be few dollars got midpoint. billion I full about at about this talked average, about prior which we spent $X below And maintenance as the deck. back talked in year past what cap think hundred would we've year, historically, think I the XXX.X mean, the I Yes. talked at about [

question, So good this ready looks formally preliminary probably, that answer we're spent about we and your really I like number all something year would what with be today. market to to that's a to think round that come but not

Scott Hanold

can that down actually you maybe at And intentions some seen on know, are clear. what That's at? to upside the see to Okay. thoughts $XXX progressions pretty don't you point? opportunity pushing to, $XXX, some you're good well you've call cost D&C the reducing is way obviously, like, other it, on I give where Or us some

William Hickey

side, X on side, off I lot costs a see going to you'll on a the cut what think side still go But I Yes. think rig spending cut completion is, costs, Midland quarter. cutting to cutting well what majority of of the the room to this year, we the if release. we're your to we doing on day I mean and Basin of trying come couple on trying spud the we progress drilling days to side on the are if biggest drilling learn it's the nature. per and in keep days side. made We've keep and going have lot of keep relative of basin the in that to that are drilling variable days from to and can every people a And

cut or side, $XXX,XXX of push we then hours plus limit minus. completion day. can starting if well, another think that's And per day, the pumping a to the upward So I we're

kind we So water more on side. or fuel it's continue to and more to gas. require strides of going ways gas using think the to could We've field some costs if natural recycling, of compressed natural optimize But on using I to kind creative take made completion creative. something that outside-of-the-box there's gas some cut

quarter count And the given that's some But is, made fall. we're than where I'd just rig continues year, to where others. say We've this focused. every single so progress more market overall

very here and this upside we're probably it's to stay number here. is confident think $XXX I from that

Operator

Raymond with James. Freeman will Our come John next question from

John Freeman

on all any the on the that metrics you that of one color sort first savings saw the that show on maybe The cost Slide X. relative all quarter, simul-fracs the you just to all on those, during you did X

William Hickey

it think a like $XX was $XX I to foot.

John Freeman

recycling, the Got up guess are completions. to topic, XX% recycled then last which I you it. the you on water all And on the touched on water

all of were any to be of it. out would sort sort on recycled and you kind need what goals sort that of of over what made to be percent would of next couple like If looking -- investments just of years, the the water achieve

William Hickey

that to there. XX%, very, get happy think we're I very

on that has the -- CapEx environmentally saves do. to not think it's both tool side, right for an but that, unbelievably the I the useful LOE to money, thing us on it's mention also just become side

of is real kind win-win-win situation. this a So

I to If think get always our there's X/X, think would probably recycle. at to or water going continue where caps room X/X out of I about X/X could X/X it. even water your it of you can't increase we some your or there's to that to be of maybe -- that be fracs

So next X good that's X/X. that can we up over it goal to to the maybe years a X/X push

do we And majority kind the recycling then third-party contracted of of midstream. the is water through

So we give I for X/X that's the it's benefit -- capital little somewhere from They both recycling. I'd or We them and say if not bit know in X/X us. a expenditure the margin. spend big CapEx don't a of there.

CapEx And so in what that that that that we that is quarter And budget our the of last part us. what's the balance is -- makes up of that's of obviously budget. infrastructure --

that we more time. or continue if as at And recycling increase to would not there slightly water so I to year, pursue part that least to over stay in -- every expect

Operator

will Neil Goldman question Sachs. Mehta next come Our from with

Neil Mehta

quarter. strong execution Very this

should a of there probably you than investor reports a time was this. seemed media of -- headlines business. we assess risks lot New Mexico lot things some the of Mexico, New lot with feedback headlines? would there's are that setbacks. through thinking those around is, a question the impact like But of around think more How that things and I guys first spend potential And The

James Walter

that's a to is, commissioned committee. is especially. into out we raised of New it actions about I committee of weeks, state costly No, that think confirms to legislative ago good on we Yes. was that there's answer past what concerns a was of to detrimental right few over finance article substance the weeks real sorts And And an any There the couple a that honestly, Mexico. conclusion, be -- report of these would the that don't which by question. think the setbacks and the believe came and the report people the some

think been Mexico. a people get state the would we we ever as don't in through supportive any something has Resources And for New gas the that and such, long operators dependent there's upon of Permian like that that mutually of legislature in believe Mexico chance beneficial Mexico. oil The of responsible both firmly and and development New is way like

the setbacks we say, to in I'd the is, think something highly our ability that short not New be adopt time. to business there So Mexico answer state-wide operate as impact like long a should confident we're would usual for would and it state continue officially

Neil Mehta

you done clear. M&A, very great a bolt-on have on. curious is transformative bolt-on your focus But That's perspective M&A say perspective the right guys would about on your the as but just M&A now, more market, what versus is then And it M&A that be just to think we fair with consolidation. job

James Walter

Yes. think the set feels more I like mean M&A. today bolt-on definitely opportunity I

come. been shareholders. wanted business shareholder with business that to driven are at the bar really important outsized to I'd base make we've And we've today, in raises us X I buy a really that's for way and for times always the the return a the of and buy that quality is, think buying high. really right that And better we've us, deals turns for businesses outsized part I years the drive our successful over right years of assets got say can really, that confident the for think past

of there business and all that of a just at looked our we've are the the make our return don't think lately I better. and out achieve hurdles deals lot And deals don't

life are on deals what the focus accretive So been capital, and compete inventory X. think of that kind more has cash our does I smaller kind bolt-ons lately doing of day we're for that to those -- and

we evaluating But today the always things. we're be do And lot along, a the as all on more got momentum bolt-on and to to obviously we'd these be to if think come it. time one, the I seems more they -- excited right on acquisitions. of open So of

Operator

Gabe come will question next with TD Our Daoud from Cowen.

Gabriel Daoud

to guess, back go Just to, wanted spend infrastructure I XXXX. for

just questions couple XX% of was of bit around the or is just this infrastructure. so elevated year assets. do a ago noted given You Earthstone's that spend capital But towards a I actually guys some think

-- So could that's And infrastructure XXXX? the expect case? confirm how should just we you maybe capital to trend into

William Hickey

'XX. Yes. infrastructure had, the I associated we working still that mean of correct call we're through confirm $XXX XXXX. through you're it, Earthstone came I with that million spend in can acquisition

a So infrastructure spend absent down to be and few, course a expect [indiscernible] this not We've few quite over done then We've acquisitions year of the as well. size but quite the year-over-year. between acquisition. any acquisitions, Earthstone OXY done I'd

I'm it that I what So XX% or XXX% like down fair spitballing don't down spend that like. slightly but just looks only that it though. it's know it's means down I exactly now yet, I have exactly know looks infrastructure what been if year-over-year. don't think be that would But should

Gabriel Daoud

Okay.

longer more when materialize. of can couple then the Well, Blackcomb? release, gas dated? a get you're That's I sense Just to in next just remarks prepared the an guess the of over question is noted I trying that to natural follow-up, referring Or would it equity a in guess, pipe it I something long-haul be Okay. as helpful. And in prepared [indiscernible] potentially taking stake but yes, years. remarks, the guess you is a or

James Walter

specific right that sales points table. ensuring on if But today return and be to I'd the stake ongoing made so plan going -- No, Nothing table. that confident earn may potential and But on all got a not share into that's the intended disposal say, specifics our we've side. whole can it's kind an something we equity really a nothing certainly on good sense, but options be do one to like of investment, that both at I'd feel like any the today. go say that's on today and interconnectivity our think of can tools conversations have downstream we are of I strategy we more kind the we on

Operator

Our question John Abbott come will Research. Wolfe with next from

John Abbott

start bit I approach differently. XXXX little want want to XXXX. with a to I

So you in to reduced costs compared by well your remarks in your year. approximately press release, last million $X

costs for had If think out CapEx today, would your first XXXX -- would you repeat it where you at? if those shake you

William Hickey

that way. maybe we million 'XX. off different a answer were So 'XX, off just of $X of

So maybe, it year. think and way guidance I'd the near our in put come to XX TILs expecting added of easy we've to I midpoint the CapEx the we're is,

a So what better maybe that's answer way to you're saying.

John Abbott

of that your had just my you are your next fair. I'm CapEx had Yes. you today, repeat of you've your -- get have But sort if program are of Then operations just strategically you important a and and just keep were question of from is doing think -- sense, to operations. certain where activity There that's I to consistent about to trying think to rigs well. number very number a your today forward. was efficiency of maintaining going as benefits cost extraordinarily you going are sort you a sort -- your in. would frac you come operations, that think perspective is when as crews there about an just Strategically, you certain

William Hickey

really the and missing rigs pick beat. out over with the shown a acquisitions drop fleets without up, team years last ability to frac of Our has and change couple

beat. run and say rigs think new. and But a that in I And and have anywhere X to X I'd well. confidence to great XX-rig it's between missing working the really frac ability is their to I running without the are XX program XX go fleets that's So something rigs, go

And there around. would a to X years of after out the well couple picking have where what of rigs good say time up they new the count all kind acquisition, bounce just lot we with changing dropping was a of in in rig Earthstone a ours, had and do I'd a or given a cetera, rigs seen of are they pick rest hesitation the I've rig, ago like within it, rig, point as up as X. et I

probably ways question. answer X your So different to

I think to really the nerves the But XX-rig rig efficient that's is. right a or seems and X.X there's frac not operational and -- I'm no working well. dropping program be fleet what of answer me picking up for

John Abbott

just follow-up to X all really that. quick then And

So any think you build it's growth you just do year, terms think you just don't whether ever value efficiency not operations willing of about see would to for be next Or and or to DUCs? DUCs? into about building about

William Hickey

we went DUCs I in to COVID. -- back built mean oil if

if bunch [ not XX in to ] DUCs. oil production XX we is getting in So build a that and would scenario. the long oil capital of -- to I do we without it for a or price normal something ground there's leave don't think went a spend the time would But

Operator

Zach Our next Parham JPMorgan. from with question come will

Zachary Parham

First, you process about talked going on but a XXXX? But bit the now gains costs what driving in trend the through how you're you're any a talk that call sure negotiating on I'm potential lower. thoughts can lot might little and on you about efficiency service seeing side? deflation the

William Hickey

biggest things of progress true Yes, few like on we've seen -- kind water. being over sand, last of X deflation, sources we the sand a lot made the and in a materials, the little quarters

efficiency a price just a little big-ticket We company or win-wins water there. side think bit the has some a sand reduction where found of stuff but we've or on more there's been is little we're in little concession service progress one, recycling there. made areas The I probably here with stickier. we seen being --

environment like efficiencies. think of the go we're we to to of be I our probably squeeze So to it in hands feels really before and find maintain power an just this trying kind but win-wins margins constructive is that where is continue balance

Zachary Parham

just I follow-up taxes. then X And makes think that cash sense. on

You subject lowered That's $XX next to how year. to XXXX? you do the quite Any million $XX AMT to at trend And of beginning year? be taxes lower estimate the were to the you million. in thoughts on a than will expect bit cash the

Unknown Executive

our The a tax from optimization of Yes, refinement, team, really just really lot thanks. reduction around just not accounting Earthstone. is

So that's great progress been there.

[indiscernible] to in expect have we expect tax our to We'll in to 'XX. meaningful work also. don't deferral finalize We detail We subject have do provide 'XX be to more but on February. to in continue that

more but we'll far. so provide detail So work good

Operator

will Leo question ROTH. Mariani from next with Our come

Leo Mariani

you to tick expected. ask bit versus had certainly wanted fourth here. fast I a probably quarter see Obviously, think of XQ? Are down kind you all on to just activity of really little TILs XQ and than heading I XQ more the in activity kind in went expecting into guys

we activity to versus a should CapEx and down in expect little of So XQ? be kind XQ bit

William Hickey

Yes.

kind just A CapEx should function that of of think that is working down in I quarter. of a be interest quarter-over-quarter. the lot

of be slightly XX you'll more it's CapEx, see rigs -- QX mix to we'll of But QX. and keep of well next year our So the it But expecting we're year. kind through our just quarter-over-quarter the of a running the function we're from end of into down drilling. kind

Leo Mariani

the the clearly to about your efficiencies here. consideration of CapEx lot put were sense some following just comments with say, you that. and to of and do And in same trying you previously of up that But giving XXX kind to year trying thinking extra kind capture XX of are more kind trying you're pace as with opposed XX it to faster this get able to that? Are some with those the and just you of closer you -- of planned about kind a on to then that, savings to you Appreciate Just rigs. kind doing got Okay. get wells XX wells this if into How capital. rigs? already of go of, to back this to a alluded more thinking

William Hickey

XX definitely what to We wanted we if with drill that's do. wells year next rigs, XXX could

efficiencies that on roll what think out to much capital whatever I exactly the reflect in spend will the February picked count we plan X over the we've quarters. want yet there is. But we we're right not So rig and up last how

Operator

come will Oliver Huang question next Our TPH. from with

Hsu-Lei Huang

program repeatable similar targeting have sizes, pad I zone mix, to a a all past, you know in the spoken allocation. regional fairly running

XX, any given average on is an lever program of and to months? zone maybe expanding the of increased consideration of to as kind next size kind XX pad of the potentially potentially the costs in further tacking scale certain Just today, the business plan well there number further drive down potentially for even wells the when the areas of considering incremental or on a per

William Hickey

on is few we say is plan I'd the believe kind going kind has basis been still last over our unit-by-unit and of balance assets our of of a what consistent years the right to forward. how develop

developing we There's Texas areas of DSUs, rock need that's strategy and reminder, all co-complete the where of we're very are go of lot a needs. the kind kind a what that them side, you the and some there. specific benches on the as the we Just to different execute different to

different move to As us packages. that different some Mexico, New zones need be we allow there to development benches that into break to are

So we'll what rock do. We'll of right that's the answer kind dictate let what is. the

say and as kind would today last the from pad business bigger, tolerance higher pad I can rigs, our number was it lumpiness and we the prior, of total higher it of than number is size And than was year of sizes of mask for the really larger better business. just wells is, last year driving the scale than the it size in gets up year

it So some year, was that the pads where the to next we do XX pad and size scared year this tolerance bet this well all need rock that that's the we're places. because to to. And still we But year have. in that we'll in what because certain said, had higher slightly not areas of is continue being just I we dictated do than

Hsu-Lei Huang

Awesome. color. a That's maybe follow-up helpful And for question.

thoughts these you had around see to reliability days. if any wanted power Just all

capital TIL kind to from side are the any schedule? ensure just you're with might of sort the ahead made fast need of a investments beyond how norm working staying of be you all Just to that

William Hickey

I think the power. have right I way is we mean, to think -- reliable

see due reliability." shows lot a we that's of and like LOE future expect side. do never for of don't production our to think an a have ever opportunity up the "downtime operations, to to probably power You I kind miss from or can efficiency gains that

of entire get us kind I'm that still just et to across Mexico where position New where to time heavy grid that regulations, it cetera, that up of just help is And speed hopeful very overall kind federal takes and that's function bit. built things the -- new Our the state the may of maybe state. is, is. new a generator a little

to into. building But like are which ourselves, of it improve. But that also on balance, or if that's are we'd that know we don't our that's in wouldn't view as continue just we with reliability I generator we the alongside on out a something efficiencies comes working looking the using I some utilities, which to field, the concern. see you'll It's overhead it. the of of can more that and cost if or think to to own gas get on off savings power I

Operator

Our Kevin Partners. Energy with next MacCurdy question from Pickering will come

Kevin MacCurdy

XXX edge does the equal on I efficiencies cycle to of to does the times, something guess way, said wells think year more your many how rates? X that using crews, year? XX X than I up and Following drilling translate another X you kind with wells does rigs more leading completion that asked faster the a --

William Hickey

and have it we X slightly this probably didn't January year now. because that think it, of if have just Yes, we about you

over of growing amount this the was some of year. there's added the we XX course year or the So

our rate run XXX. you probably the more slightly If true took than

Kevin MacCurdy

And as I have seen have NGL Gap] volumes been last [Audio wanted step quarters a a X in big touch to The Appreciate follow-up, just that. and on prices up NGLs.

Unknown Executive

like Gap] WAHA, recovery driven [Audio gas pricing. ethane weakened basin weak by

we're to recovering uplift but an slightly less NGLs, BOEs. gas So overall basically

Operator

next will from Johnston question One. with come Phillips Our Capital

Phillips Johnston

versus at Barilla I first First guidance end cost. properties that range, of sort back expecting half. of some midstream implying Looks of is the recall high include a half ownership be to Draw seem the in unit you're on the sort like of GP&T that to there. uptick year the

So the can drivers about maybe you talk there?

Unknown Executive

always in to where rates on slight variance be just pop and wells of going depending is contract that kind of we there's GP&T kind mix.

bit of a pressure It will but on midstream there. we're GP&T nothing out different a have assets, modest pennies. the GP&T. OXY upward that's little has talking So than ordinary

Phillips Johnston

terms year relative given might rate what and where about the to And expect where next end Draw parts. like to XX Barilla the you that maybe deal of in then other decline you can look months PDP a few the you moving talk in the and year came

William Hickey

growth an much. basis don't but rate to helps our probably going we've decline this the organic I from The that Barilla is had a think offsets little Draw change it. year

been that year call of the for X. we've So I'd last high kind XXs in it same mid- to X or

Operator

Diamond from Citi. will question Paul with come next Our

Paul Diamond

those is growth a that's really game. the asks? of on Just forward? going quick Current of something story pricing shifted still be organic one going part Or any to ground volatility that bid that they're consistent a

James Walter

story Yes. highly confident be of part will We're our going it forward. growth

game here I team side. think saw doing that's good development of in in a X bit it quarter be are do ground caused successfully land and our been extremely something years for the I our you we've teams volatility to slower Midland definitely think on out QX the been and a business at.

I lumpy deals done. pretty think actually being end and on that there's can a lot when of natural get up fluctuations that

some see see the in And we'll of I think strong to game continue of volatility. ground seen people side. will widens I X bid-ask we'll volatility the last used But years over I the But spreads. consistency think really last when what's the more the kind pace or you yes, on time, months, we've think been definitely couple that get a

Paul Diamond

your we then I Or Got will it. cadence Just how an years? it. more And more pricing? Coast or linear? several like that be Is idea Appreciate that guess, should how over non-WAHA lumpy, think Gulf Gap] wanted to just it next [Audio on should goal we get of what's midterm about

Unknown Executive

not capacity. I the quarter. there think we'll next over nearer-term but chipping of things more at are kind that going it. next time, slow the just of away burn. than years, to trying get much to think over I as be Gap] sooner think some of And But of [Audio was couple Kind be it I much

Operator

come will from with Bank Noah Our Hungness next of question America.

Noah Hungness

I start guess to LOE. I on off want

that assume was fair Just to of then What's is LOE end it of guidance. assumption? like continue to costs that? And could we is LOE -- of kind it good seems where your kind below driving XQ low a trend go-forward the

William Hickey

But think still in it get from uptick operated of Earthstone the and trending OXY. we a said, the Yes. to range. we integrated something say, thought OXY us a see range first end we'd I'd just for to stuff QX, as PR close where quickly yes, guidance back asset, If always $X.XX in of to faster historically the to had I by kind mean of where kind slight better [indiscernible] is. the of do thought, got we've which low That is QX, I that really was we the we you'll drop. expect there reminder, than due be. it month

So a you'll QX. in slight uptick see

as get hope get think then And to call $X.XX into of we it, I to range. kind that, next we year, back LOE down

yes, the -- don't guidance term. are in $X.XX, probably the where $X.XX next think So not range medium somewhere over but range of we is kind I below the

Noah Hungness

the should of base down And it use of build on expect of sense. excluding next moving payment Should balance on the sheet? about of is forward, the revolver the for the how just we dividend? mean we and with cash question use to kind Makes kind cash. just flow then free paid the I the think

James Walter

we Yes, our kind reinvestment on think opportunities see us. do with what of front of cash flow of is going to the free I we in dependent be kind

with right think trying If accretive to those. do strategically, to the acquisitions that we're we've we see going what been really clear. pursue I we're fits

we the excited be lean if buyback. stock heavily think I see the in in the right to dislocations price, on we'd

sheet. But opportunities, of balance kind excited kind of that cash absent to either to the of we're those put

sheet amount balance long-term think like or we accruing of cash debt, this quarter some of like could kind down I frankly, some think sheet did the balance on like we earlier I that today. paying the be debt

we're the proud that, of. balance think fortress gives us like that that the further our flexibility really and enhances sheet and liquidity of I kind we profile strategic just

Operator

call this At in now no I'm I questions James turn the time, closing remarks. to will showing further back for Walter queue.

James Walter

come. a can results the company to perform well the years to today, continues the for business quarters sets very you reported high which the at As and we up from level, see

continue shareholders. next lowest to drive track outsized record we for year, the into As Delaware, in we returns head plan our the cost operator build our on as to to

joining follow to and story. Thanks today Resources everyone for for Permian the to call continuing the

Operator

This line conclude and Please have Permian your a this at the does Resources you. time XXXX Quarter Earnings Call. disconnect day. wonderful Thank Third

Permian Resources (PR) 7 Nov 242024 Q3 Earnings call transcript