Permian Resources Announces Significant Increase to its Base Dividend
MIDLAND, Texas – Permian Resources Corporation (“Permian Resources” or the “Company”) (NYSE:PR) today announced an update to its return of capital strategy, which increases its quarterly base dividend from $0.06 per share to $0.15 per share ($0.60 per share annually). This represents a 150% increase to the Company’s prior base dividend and provides a leading base dividend yield amongst U.S. independent E&Ps.
As part of its updated shareholder return policy, the Board of Directors has also authorized a new share repurchase program of $1 billion, replacing the existing $500 million program. The Company’s approach to share buybacks will remain consistent with its historical strategy of focusing on opportunistic share repurchases.
“We have always believed that the base dividend is the most important and most efficient mechanism for returning cash to investors over time, and our updated dividend policy underscores that priority,” said James Walter, Co-CEO of Permian Resources. “Additionally, the revised return of capital strategy will provide better visibility for our shareholders to current and future dividends while positioning Permian Resources to continue delivering strong dividend growth and leading total shareholder returns for years to come.”
“We are confident that our new base dividend is sustainable through future downcycles, which we define as being comfortably maintained for over two years at oil prices below $50 per barrel. The base dividend is supported by our leading cost structure in the Delaware Basin, deep bench of low breakeven drilling locations and strong balance sheet,” said Will Hickey, Co-CEO of Permian Resources.
Since inception, Permian Resources has been focused on maximizing value for its shareholders and has delivered best-in-class returns for the E&P sector over the last two years. During this time, Permian Resources has continued to demonstrate its low-cost leadership in the Delaware Basin while executing accretive M&A and maintaining consistently low leverage. These actions have resulted in significant growth in the Company’s production per share and free cash flow per share, which in turn has driven peer-leading total shareholder return.
The Company’s updated shareholder return policy replaces its previous formulaic variable return policy. Permian Resources expects its first quarterly base dividend of $0.15 per share under its new capital return policy to commence with its third quarter 2024 dividend.
Upcoming Conference Participation
Will Hickey and Guy Oliphint, Chief Financial Officer, are scheduled to present at the Barclays CEO Energy-Power Conference in New York City on September 3, 2024 at 12:40 p.m. Eastern Time. The live webcast and presentation materials used at the conference will be available on the Company’s website at www.permianres.com under the Investor Relations tab.
About Permian Resources
Headquartered in Midland, Texas, Permian Resources is an independent oil and natural gas company focused on 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 Section 27A of the Securities Act of 1933 as amended and Section 21E of Securities Exchange Act of 1934 as amended...
Hays Mabry – Vice President Investor Relations
(832) 240-3265
ir@permianres.com