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.