Permian Resources lifts production target after stronger-than-expected first quarter
Executives at Permian Resources Corp., Midland, have raised 2024 production guidance by 2% and say acquisitions recently completed and signed should add another 1% to output.
During first-quarter 2024, Permian Resources produced nearly 152,000 b/d of crude oil and more than 319,000 boe/d of total average output. Those figures topped the forecasts co-chief executive officers Will Hickey and James Walter provided in late February thanks to better well productivity and the faster-than-expected integration of Earthstone Energy Inc. operations.
Permian Resoures’ leaders have set the company’s new oil and total production guidance to about 150,000 b/d and 320,000 boe/d. That number will increase more thanks to $270 million worth of bolt-on and grassroots acquisitions covering about 11,200 net acres. One bolt-on with an undisclosed buyer closed during the first quarter while another is expected to be completed by end-June.
Both deals are for acreage in Eddy County, New Mexico, that sits adjacent to Permian Resources’ Parkway operations. The company plans to start developing 2-mile locations there in this year's second half. Those assets as well as roughly 150 acquired leasing/working interest acquisitions will call for about $50 million of capital spending this year—about 10% of Permian Resources’ first-quarter capex total.
Permian Resources produced a first-quarter net profit (excluding noncontrolling interests) of nearly $147 million, an increase of 44% from the same period of 2023. Operating revenues more than doubled to $1.24 billion and operating income surged to $469 million from $236 million.
Shares of Permian Resources (Ticker: PR) were down about 3% to $17 in afternoon trading May 8. They are, however, still up more than 25% over the past 6 months, a climb that has grown the company’s market capitalization to more than $13 billion.
Geert De Lombaerde | Senior Editor
A native of Belgium, Geert De Lombaerde has more than two decades of business journalism experience and writes about markets and economic trends for Endeavor Business Media publications Healthcare Innovation, IndustryWeek, FleetOwner, Oil & Gas Journal and T&D World. With a degree in journalism from the University of Missouri, he began his reporting career at the Business Courier in Cincinnati and later was managing editor and editor of the Nashville Business Journal. Most recently, he oversaw the online and print products of the Nashville Post and reported primarily on Middle Tennessee’s finance sector as well as many of its publicly traded companies.
