MIDLAND, Texas - Permian Resources Corporation (NASDAQ: PR) has reported a standout first quarter for 2024, outperforming analyst expectations with an earnings per share (EPS) of $0.42, surpassing the consensus estimate of $0.37. Shares were up 0.7% following the report.
The company's revenue also exceeded forecasts, reaching $1.24 billion against an anticipated $1.21 billion.
The robust financial results are attributed to the company's production outperformance and efficient operational execution, which have led to its best quarter to date. With a notable 11% increase in average daily crude oil production compared to the previous quarter, Permian Resources achieved an average of 151,794 barrels per day. Total production for the quarter averaged at 319,514 barrels of oil equivalent per day.
Permian Resources' management expressed confidence in their operational momentum and increased the mid-point of their full-year oil and total production guidance by 2% to 150 MBbls/d and 320 MBoe/d respectively. This upward revision reflects the company's strong performance and is not inclusive of potential contributions from recent acquisitions expected in the second half of 2024.
The company's financial health remains robust with net cash provided by operating activities totaling $648 million and adjusted free cash flow reaching $324 million or $0.42 per adjusted basic share. Additionally, Permian Resources continues to return value to shareholders through dividends and share repurchases totaling $185 million or $0.24 per share for the quarter.
In terms of future outlook, Permian Resources has revised its standalone oil and total production targets for 2024 upwards by approximately 2%, now aiming for 148-152 MBbls/d and 310-330 MBoe/d based on guidance mid-points. These targets do not yet account for the expected contributions from recent acquisitions which are projected to add around 3,500 Boe/d (~45% oil) in total production during the latter half of the year.
Permian Resources' Co-CEO Will Hickey commented on the successful integration of Earthstone assets and increased synergy targets which have contributed significantly to operational efficiencies and cost reductions. The company remains focused on strategic acquisitions that bolster its core Delaware Basin position while delivering high-return assets that complement its existing portfolio.
As Permian Resources continues to execute on its strategic initiatives and capitalizes on operational synergies, investors can anticipate sustained growth and shareholder returns underpinned by a solid financial framework and a commitment to capital efficiency.
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