Permian Resources Announces Portfolio Optimization Transactions

Permian Resources Corporation (“Permian Resources” or the “Company”) (NYSE: PR) today announced a series of recent portfolio optimization transactions consisting of two bolt-on acquisitions, a sizeable acreage swap, a divestiture of non-core assets and additional grassroots acquisitions.

“Since closing the Earthstone transaction, Permian Resources has added 14,000 net acres and 5,300 net royalty acres located in the core of the Delaware Basin at attractive valuations,” said James Walter, Co-CEO of Permian Resources. “As a result of our portfolio management efforts over the past year, Permian Resources has more than replaced the approximately 150 wells included in its 2023 development schedule, effectively increasing inventory life. Going forward, we will continue our relentless focus on portfolio optimization, which is one of several key value drivers we believe differentiates Permian Resources.”

Recent Acquisitions

The Company recently executed two separate transactions to acquire a total of approximately 11,500 net leasehold acres and 4,000 net royalty acres located in Eddy County, New Mexico from undisclosed third-parties for a total consideration of approximately $175 million, or approximately $10,000 per net leasehold acre after adjusting for production value.

Together, the acquired properties consist of predominately undeveloped acreage, contiguous to legacy Earthstone’s position and offset Permian Resources’ highly capital efficient Parkway asset. Permian Resources has identified over 100 gross operated, two-mile locations with high NRIs on the acquired properties which immediately compete for capital.

“The quality of the acquired acreage is consistent with our core Parkway position, which represents one of the highest returning assets within our portfolio. We are excited to begin development on the recently acquired acreage later this year,” said Will Hickey, Co-CEO of Permian Resources.

Additionally, Permian Resources continues to be highly successful executing upon its ground game, consisting of smaller grassroots acquisitions. During the fourth quarter of 2023, the Company added approximately 500 net acres through over 35 grassroots leasing and working interest acquisitions. Notably, the majority of these acquisitions are executed ahead of the drill-bit, making them highly accretive.

Recent Acreage Trade

During the first quarter of 2024, the Company executed an acreage trade that added high-return, operated inventory with advantaged NRIs and further bolstered its position in Lea County, New Mexico. Permian Resources traded into approximately 2,000 net acres with increased working interest adjacent to its current position. As part of the transaction, the Company traded out of approximately 2,000 net acres of non-operated acreage and lower working interest operated acreage, which consisted of shorter lateral development that was not on the Company’s near-term drill schedule. The Company expects to begin development on the newly acquired acreage in 2024.

Recent Non-Core Divestiture

In the fourth quarter of 2023, Permian Resources closed the previously announced divestiture of legacy Earthstone’s Eagle Ford assets for a purchase price of $67 million, which included approximately 1,000 barrels of oil equivalent per day of net production.

Full Year 2023 Acquisition & Divestiture Review

Since the beginning of 2023, Permian Resources remained active in high-grading its portfolio through a series of bolt-on acquisitions (3), acreage swaps (2), grassroots acquisitions (>140) and non-core divestitures (2). Overall, Permian Resources’ robust portfolio optimization efforts added approximately 17,000 Permian net acres, 7,300 Permian net royalty acres and over 200 high-quality, gross operated locations in the core of the Delaware Basin. The cumulative effect of these transactions resulted in the Company replacing over 100% of its developed inventory during 2023 on a standalone basis for less than $100 million net of divestitures.

Additionally, the combined net production impact attributable to the transactions discussed in this press release is expected to be immaterial to the Company’s 2024 production. Permian Resources plans to issue full year 2024 guidance concurrent with its fourth quarter and full year 2023 earnings results in late February. For maps and further details summarizing Permian Resources’ recent transactions, please see the presentation materials on its website under the Investor Relations tab.

About Permian Resources

Headquartered in Midland, Texas, Permian Resources is an independent oil and natural gas company focused on the responsible acquisition, optimization and development of high-return oil and natural gas properties. The Company’s assets and operations are concentrated in the core of the Delaware Basin, making it the second largest Permian Basin pure-play E&P. For more information, please visit www.permianres.com.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.

Forward-looking statements may include statements about:

• volatility of oil, natural gas and NGL prices or a prolonged period of low oil, natural gas or NGL prices and the effects of actions by, or disputes among or between, members of the Organization of Petroleum Exporting Countries (“OPEC”), such as Saudi Arabia, and other oil and natural gas producing countries, such as Russia, with respect to production levels or other matters related to the price of oil;
• political and economic conditions in or affecting other producing regions or countries, including the Middle East, Russia, Eastern Europe, Africa and South America;
• our business strategy and future drilling plans;
• our reserves and our ability to replace the reserves we produce through drilling and property acquisitions;
• our ability to realize the anticipated benefits and synergies from the Earthstone merger and effectively integrate Earthstone’s assets;
• our drilling prospects, inventories, projects and programs;
• our financial strategy, return of capital program, liquidity and capital required for our development program;
• our realized oil, natural gas and NGL prices;
• the timing and amount of our future production of oil, natural gas and NGLs;
• our ability to identify, complete and effectively integrate acquisitions of properties or businesses;
• our hedging strategy and results;
• our competition and government regulations;
• our ability to obtain permits and governmental approvals;
• our pending legal or environmental matters;
• the marketing and transportation of our oil, natural gas and NGLs;
• our leasehold or business acquisitions;
• costs of developing or operating our properties;
• our anticipated rate of return;
• general economic conditions;
• weather conditions in the areas where we operate;
• credit markets;
• our ability to make dividends, distributions and share repurchases;
• uncertainty regarding our future operating results;
• our plans, objectives, expectations and intentions contained in this press release that are not historical; and
• the other factors described in our most recent Annual Report on Form 10-K, and any updates to those factors set forth in our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the development, production, gathering and sale of oil and natural gas. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, risks relating to the Earthstone merger, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures and the other risks described in our filings with the SEC.

Reserve engineering is a process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way. The accuracy of any oil and gas reserve estimate depends on the quality of available data, the interpretation of such data, and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.

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