Will Hickey, Co-CEO of Permian Resources, said: "Permian Resources delivered another strong operational quarter as we remain focused on executing on our 2023 plan, with quarterly production and costs in-line with or ahead of expectations."

"We continue to build upon our operational track record and are committed to driving strong well results, improving operational efficiencies and maintaining capital discipline."

"In the inaugural quarter of our variable return program, we are pleased to be able to return $85 million to shareholders through the base dividend, variable dividend and share buybacks," said James Walter, Co-CEO of the Company. "Going forward, we will continue to leverage our high-quality assets, efficient operations and strong financial position to provide a unique and attractive value proposition to investors."

Operational and Financial Results

Permian Resources met or exceeded its first quarter production targets while continuing to drive cost efficiency improvements and remains on track to achieve its full year production and capital expenditure guidance. During the quarter, average daily crude oil production was 78,332 barrels of oil per day ("Bbls/d"), and first quarter total production averaged 153,822 barrels of oil equivalent per day ("Boe/d").

First quarter average realized prices were $74.38 per barrel of oil, $1.81 per Mcf of natural gas and $27.12 per barrel of natural gas liquids ("NGLs"), excluding the effects of hedges and GP&T expenses. Oil (98% of NYMEX oil) and NGL (36% of NYMEX oil) realizations were in-line with Company expectations. Realized natural gas prices were lower than expected, which was primarily driven by regional pricing dynamics that the Company believes to be non-recurring in nature. Permian Resources expects continued weakness for Waha natural gas prices during parts of the year and has reduced its exposure through the use of Waha basis hedges, in addition to pricing a portion of its residue natural gas at Houston Ship Channel.

First quarter total controllable cash costs (LOE, cash G&A and GP&T) were $7.86 per Boe, which were in-line with expectations. The Company anticipates total controllable cash costs on a per unit basis to decline during the year as total production is expected to grow. Total accrued capital expenditures were $360 million during the first quarter, and total cash capital expenditures realized for the quarter were $315 million. The difference between accrued and cash capital expenditures during the quarter was driven by normal course changes in working capital, and the Company expects accrued and cash capital expenditures to be approximately equivalent over time.

For the quarter, Permian Resources generated net cash provided by operating activities of $438 million and adjusted free cash flow¹ of $101 million, utilizing accrued capital expenditures, or $146 million, utilizing cash capital expenditures. The Company also reported net income attributable to Class A Common Stock during the first quarter of $102 million, or $0.35 per basic share. First quarter adjusted net income¹ was $192 million or $0.34 per adjusted basic share.

Since its last update on February 22, 2023, the Company has added incremental oil hedges for the second half of 2023 and full year 2024 and 2025. For the second half of 2023, the Company entered into 3,000 Bbls/d of incremental oil swaps at a weighted average fixed price of $77.32 per barrel. As a result, Permian Resources now has approximately 30% of its expected crude oil production hedged for the remainder of 2023 (using the mid-point of guidance) at a weighted average floor price of $82.48 per Bbl. For the full year 2024, Permian Resources has 17,000 Bbls/d of oil hedged at a weighted average fixed price of $75.48 per Bbl. The Company has 5,000 Bbls/d of oil hedged in 2025 at a weighted average fixed price of $68.00 per Bbl.

In addition to the hedge positions discussed above, the Company has certain other natural gas hedges, crude oil and natural gas basis swaps and crude oil roll differential swaps in place. (For a summary table of Permian Resources' derivative contracts as of April 30, 2023, please see the Appendix to this press release.)

Permian Resources continues to maintain a strong financial position and low leverage profile. In April, the Company's bank group reaffirmed the borrowing base under its revolving credit facility at $2.5 billion and maintained its level of elected commitments at $1.5 billion. At March 31, 2023, the Company had $26 million in cash on hand and $285 million in borrowings outstanding under the facility. Total liquidity was approximately $1.2 billion, including letters of credit. Net debt-to-LQA EBITDAX¹ at March 31, 2023 was approximately 1.0x, and the Company has no debt maturities until 2026.

Shareholder Returns

Permian Resources announced today that its Board of Directors (the "Board") declared a quarterly base cash dividend of $0.05 per share of Class A common stock, or $0.20 per share on an annualized basis. Additionally, based upon first quarter financial results, the Board has declared a quarterly variable cash dividend of $0.05 per share of Class A common stock. Combined, the base and variable dividends represent a total of $0.10 per share. The base and variable dividends are payable on May 24, 2023 to shareholders of record as of May 16, 2023.

Permian Resources returned additional capital to shareholders in the first quarter by repurchasing 2.75 million shares of Class C Common Stock for $29.4 million during a secondary offering from selling shareholders.

Portfolio Optimization Review

During the first quarter, Permian Resources closed a series of portfolio management transactions, which consisted of a bolt-on acquisition, a sizable acreage swap and a divestiture of a portion of its water infrastructure, in addition to properties added through its ongoing grassroots acquisition program.

Permian Resources closed the previously announced transaction to acquire 4,000 net leasehold acres, 3,300 net royalty acres and associated production, located predominantly in Lea County, New Mexico for a purchase price of $98 million, before post-closing adjustments. The acquired operated position consists of largely undeveloped acreage and is contiguous to one of the Company's existing core blocks in Lea County.

Also during the quarter, the Company executed an acreage trade that further bolstered its position in Eddy County, New Mexico. Permian Resources traded into approximately 3,400 net acres, consisting of seven newly created, operated drilling spacing units (DSUs) adjacent to its current position and increased working interest in existing acreage on the Company's near-term drilling schedule. As part of the transaction, the Company traded out of approximately 3,200 net acres of lower working interest acreage, which was not on its near-term drill schedule and had no material production.

"We are excited to trade into high quality inventory in one of our core operating areas, which has demonstrated highly productive results. Importantly, we expect to begin drilling activity on approximately half of the inbound acreage over the next twelve months, making this type of transaction highly accretive to shareholders," said James Walter, Co-CEO. "We believe active portfolio management is a key competency for Permian Resources and will continue to drive value for our shareholders."

Finally, as previously announced, the Company divested a portion of its saltwater disposal wells and associated produced water infrastructure in Reeves County, Texas for total cash consideration of $125 million received at closing, with $60 million of such consideration subject to future performance obligations by the Company.

Quarterly Report on Form 10-Q

Permian Resources' financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, which is expected to be filed with the Securities and Exchange Commission ("SEC") on May 9, 2023.