Permian Resources is the largest pure-play E&P company in the Delaware Basin. Permian Resources ranks #15 in wells drilled in 2022 with 124 wells drilled in the Mid Continent of the US. The Mid Continent region includes Texas, Oklahoma, New Mexico and Louisiana.
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Permian Resources Wells Drilled 2023
Permian Resources Active Rigs July 2023
Oil & Gas Operators in the Delaware Basin
List of Oil & Gas Operators active in the Delaware Basin
Wells Drilled 2023 in the Delaware Basin
Detailed list of all the wells drilled in the Delaware Basin 2023
Management Commentary
“Permian Resources had a strong operational and financial quarter, driven by robust well results across both Texas and New Mexico. Over halfway through the year, our asset base is performing as expected, with year-to-date well productivity in-line with last year’s,” said Will Hickey, Co-CEO of Permian Resources. “Additionally, we recently reduced our operated rig count from seven to six rigs due to continued efficiency gains and remain on pace to achieve our full-year and fourth quarter production targets, highlighting the strength of our operations.”
“We are proud to continue building upon our track record of operational execution and returning capital to shareholders. For the second quarter, we delivered $57 million to shareholders through the base and variable dividends,” said James Walter, Co-CEO of the Company. “Given our expected production growth profile and reduced capital spending for the remainder of the year, we expect to generate significantly more free cash flow during the third and fourth quarters, assuming current strip pricing.”
Operational and Financial Results
Permian Resources continued the efficient development of its core Delaware Basin acreage position in the second quarter, delivering strong well results and driving meaningful operational efficiencies. During the quarter, average daily crude oil production increased 8% compared to the prior quarter to 84,393 barrels of oil per day (“Bbls/d”). Second quarter total production also increased 8% quarter-over-quarter and averaged 165,850 barrels of oil equivalent per day (“Boe/d”). “Strong well results drove a significant increase in production for the quarter and further demonstrate our continued execution in the field,” said Will Hickey, Co-CEO.
Second quarter average realized prices were $71.52 per barrel of oil, $1.24 per Mcf of natural gas and $20.73 per barrel of natural gas liquids (“NGLs”), excluding the effects of hedges and GP&T expenses.
Second quarter total controllable cash costs (LOE, GP&T and cash G&A) were $8.11 per Boe. Second quarter LOE was $5.50 per Boe, an increase of 2% compared to the prior quarter, which was primarily driven by higher water handling costs. As a reminder, the Company closed the divestiture of a portion of its saltwater disposal wells in March. Second quarter GP&T was $1.44 per Boe. Cash G&A decreased 14% quarter-over-quarter to $1.17 per Boe. “Our cash G&A metrics demonstrate the Company’s relentless focus on being a low-cost leader in the Permian Basin,” said James Walter, Co-CEO. “On a per unit basis, our cash G&A ranks lowest compared to similar sized, oily peers2.”
Second quarter total cash and accrued capital expenditures (“capex”) were $371 million and $386 million, respectively, and included higher drilling and completion activity compared to the prior quarter. As previously disclosed, accrued capex during the second half of 2023 is expected to be lower than the first half of the year primarily as a result of reduced drilling capex.
Since closing the merger in September of 2022, Permian Resources has continued to capture significant synergies, driven by higher operational efficiencies and lower costs. Through completion design modifications and quality control initiatives, the Company’s average completed feet and pump hours per day for the quarter increased by 31% and 25%, respectively, compared to the third quarter of 2022. Second quarter drilled feet per day increased by 13% compared to the third quarter of 2022, as a result of the Company high-grading its drilling fleet and optimized drilling practices. Additionally, Permian Resources recently set a new Company drilling record, reaching spud-to-total depth on a two-mile lateral in Eddy County, New Mexico in under eleven days.
“These operational efficiencies have resulted in a meaningful improvement to our cycle times,” said Will Hickey, Co-CEO. “As a result, we recently reduced our operated rig program to six compared to seven during the first half of the year, while maintaining our fourth quarter crude oil production growth target of approximately 10% compared to the prior year period.”
For the second quarter, Permian Resources generated net cash provided by operating activities of $448 million and adjusted free cash flow1 of $80 million, utilizing cash capex, or $65 million, utilizing accrued capex. The Company also reported net income attributable to Class A Common Stock during the second quarter of $73 million, or $0.23 per basic share. Second quarter adjusted net income1 was $150 million or $0.27 per adjusted basic share.
Permian Resources continues to maintain a strong financial position and low leverage profile. At June 30, 2023, the Company had $18 million in cash on hand and $300 million in borrowings outstanding under its revolving credit facility. Total liquidity was approximately $1.2 billion, including letters of credit. Net debt-to-LQA EBITDAX1 at June 30, 2023 was approximately 1.1x, and the Company has no maturities of long-term debt until 2026.
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