Permian Resources increased its 2023 oil production target by 4% to approximately 85 MBbls/d and raised its total production target by 3% to approximately 162 MBoe/d, based on the mid-point of guidance. Permian Resources also lowered its full year 2023 guidance range for controllable cash costs (LOE, Cash G&A and GP&T) on a per unit basis by approximately 5%, compared to its preliminary full year outlook.
The estimated fiscal year 2023 total capital budget is approximately $1.25 billion to $1.45 billion. Permian Resources expects to turn-in-line (“TIL”) approximately 150 gross wells, with an average working interest of approximately 85% and 8/8ths net revenue interest of approximately 78%. This represents an increase from its previously expected full year working interest of 80%. The Company also expects its average completed lateral length during 2023 to increase to approximately 9,300 feet, compared to 9,000 feet previously.
2023 Financial and Operational Plan
- Increased 2023 oil and total production guidance by 4% and 3%, respectively, compared to previous outlook
- Continue to target oil production growth of ~10% in the fourth quarter 2023 compared to the prior year period, despite exceeding fourth quarter 2022 production outlook
- Currently operating seven rigs, with plans to reduce to six rigs during second quarter 2023 as a result of operational synergies
- Reduced controllable cash costs by ~5% to $7.60 per Boe compared to previous outlook
- Announced 2023 total capital budget of $1.25 to $1.45 billion
- Increase to prior outlook driven primarily by higher working interest (85% from 80% previously) and longer lateral lengths (9,300′ from 9,000′ previously)
- Variable return to be initiated based upon first quarter 2023 results
- Delivered fourth quarter oil production of 81.4 MBbls/d