Permian Resources Corporation Q3 FY2025 earnings call

• Strong production outperformance: Q3 production exceeded expectations with oil production up 6% QoQ and total production growth. - Cost reductions: Controllable cash costs reduced by 6%, with LOE and D&C costs below guidance. - Acquisition strategy: Closed 250 deals in Q3 adding 5,500 net leasehold acres and 2,400 net royalty acres for ~$180 million. - Balance sheet improvements: Called 2026 senior notes, redeemed legacy debt, reduced debt by over $450 million, and received investment-grade ratings. - Gas marketing agreements: Agreements to sell ~330 million cubic feet per day out of the basin in 2026, increasing to 700 million cubic feet per day in 2028, expected to uplift free cash flow. - Capital allocation flexibility: Ability to allocate capital to highest return opportunities, with flexibility in M&A, buybacks, debt reduction, and dividends.

In Q3, oil production was 187,000 barrels of oil per day, up 6% from Q2, and total production was 410,000 barrels of oil equivalent per day. Controllable cash costs were reduced by 6% quarter-over-quarter, with LOE at $5.07 per Boe and D&C cost at $7.25 per foot. Adjusted operating cash flow was $949 million and adjusted free cash flow was $469 million with $480 million of cash CapEx.

• Raised midpoint of full year production guidance to 181,500 bbl/day oil and 394,000 Boe/day, keeping CapEx guidance unchanged. - 2026 guidance to be formalized in February, expecting better realizations with crude realizations ~$0.50 higher and gas netback ~$0.20 better based on agreements. - Anticipate 2026 to be a capital-efficient year with continued operational efficiency and productivity.

• Commodity price volatility affecting production, costs, and capital allocation. - Market uncertainties impacting M&A activity and the ability to find accretive deals. - Potential slowdown in Permian Basin activity affecting production growth in the long term.

Q: Can you give a general sense of 2026 activity pace and its impact on oil production and CapEx?

A: 2026 guidance to be formalized in February, with flexibility to react to macro environment; expects 2026 to be strong with potential for capital-efficient programs depending on macro.

Q: Are there other opportunities like the Haley pad across the asset base?

A: Haley was unique but the rest of the portfolio is expected to perform as well, with the Haley pad's performance in line with overall portfolio productivity.

Q: Thoughts on peak Permian?

A: Activity has been slowing, with rig count and completions down, but it's too early to tell when production growth will slow and decline.

Q: Criteria for share buybacks?

A: Buy back shares when there are material dislocations in share price, weighing against other opportunities like acquisitions or balance sheet cash.