Permian Resources Financial Analysis 2024

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Questions and Answers

Which valuation method accounts for 80% in the NAV Bridge?

  • V2 - EV/2025E Production COMPS
  • Implied Share Price
  • V1 - NAV Model (correct)
  • V3 - EV/2025E EBITDA PROCS

The Unfavorable Strip Price in the Downside Case Bridge is higher than the Base Case value.

False (B)

What is the projected price for Crude Oil in 2024E?

77.00

The additional development cost in the Downside Case Bridge is $_______.

<p>14.08</p> Signup and view all the answers

Match the following components with their respective categories:

<p>Crude Oil = Commodity Pricing Production -20%-+20% = Cost Analysis EV/2025E EBITDA PROCS = Valuation Methods Base Case = Profitability Metrics</p> Signup and view all the answers

What is the Total Production in mboe/d for 2024E?

<p>337 (D)</p> Signup and view all the answers

The Operating Netback Margin for 2024E is 73.1%.

<p>True (A)</p> Signup and view all the answers

What is the After-tax G&A amount listed in the Net Revenue section?

<p>-237</p> Signup and view all the answers

The Oil Mix percentage for 2024E is ___%.

<p>46.3</p> Signup and view all the answers

Match the following metrics with their respective values for 2024E:

<p>Total Production = 337 mboe/d Net Revenue = $1,105 Operating Netback Margin = 73.1% After-tax G&amp;A = ($237)</p> Signup and view all the answers

What percentage change is indicated for production costs in the development cost section?

<p>-20.00% (D)</p> Signup and view all the answers

The Implied Share Price does not take production costs into account.

<p>False (B)</p> Signup and view all the answers

What is the amount of PD Standalone Net Revenue?

<p>1,343</p> Signup and view all the answers

What is the assumed inflation percentage for the period starting from 2024 according to the global assumptions?

<p>2.00% (B)</p> Signup and view all the answers

The barrel of oil equivalent (boe) conversion rate is 6.0 for crude oil to natural gas.

<p>True (A)</p> Signup and view all the answers

What does 'NAV' stand for in valuation models?

<p>Net Asset Value</p> Signup and view all the answers

The company uses __________ to analyze profitability metrics related to production.

<p>TEV/Production</p> Signup and view all the answers

Match the following valuation methods with their descriptions:

<p>NAV Model = Estimates the value of a company's net assets TEV/EBITDA = Compares company value to earnings before interest, taxes, depreciation, and amortization TEV/Production = Relates company valuation to total production output COMPS = Compares financial metrics with similar companies</p> Signup and view all the answers

Which method uses the TEV multiple on earnings before interest, taxes, depreciation, and amortization for valuation?

<p>TEV/EBITDA (C)</p> Signup and view all the answers

Operating cost flex is considered in scenario analysis.

<p>True (A)</p> Signup and view all the answers

Which valuation method considers market comparables to derive an equity value?

<p>COMPS</p> Signup and view all the answers

Implied __________ is used to derive an estimate of the company's share price based on valuation models.

<p>Share Price</p> Signup and view all the answers

Match the following components with their respective roles in valuation:

<p>Net Debt = Liabilities subtracted from asset value Preferred Shares = Equity for preferred stockholders Minority Interest = Value attributed to minority ownership stakes Potential Upside = Estimated percentage increase in value</p> Signup and view all the answers

Flashcards

Net Debt

The total amount of debt a company has minus the total amount of cash and cash equivalents on hand.

Corporate NAV

Net Asset Value of the company's assets, representing the estimated worth of company’s investment portfolio.

NAV Bridge

A method to estimate the net asset value (NAV) by dividing the total value of assets by the total number of shares outstanding.

Implied Share Price

A calculated share price based on the assumed value of a company's assets or future earnings.

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Comparable Companies

Companies similar to the target company, used to determine a valuation range based on similar financial details and market position.

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Production (mboe/d) 2024E

The estimated daily production volume (million barrels of oil equivalent per day) for 2024

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Net Revenue (UFCF) 2024E

Total revenue after deducting operational expenses in 2024.

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Operating Netback Margin 2024E

The percentage of revenue remaining after operational costs.

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PD Standalone (mboe/d) 2024E

Estimated daily production volume (mboe/d) from PD operations in 2024.

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PD Standalone Revenue 2024E

Revenue from PD operations alone, in dollars (MM USD)

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Oil Mix (%) 2024E

Percentage of oil in the total production mix for 2024.

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Asset NAV 2024E

Estimated total value of all assets in 2024.

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PD Barilla Draw (2024E)

The estimated production volume that arises from specific barilla drawing process.

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Permian Resources (PR) Inputs

Data used in financial models to project future performance of Permian Resources (PR). Includes inflation rates, energy conversion factors, and other assumptions.

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Inflation Rate

The projected rate of price increase over time, used in financial modeling.

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Barrel of Oil Equivalent

A standardized unit for measuring oil and natural gas production, used in energy industry valuation.

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Sensitivity Analysis

Examination of how changes in input values affect calculations/projected results.

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Valuation 1 - NAV Model

Determining the value of Permian Resources (PR) based on asset values less debt.

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Valuation 2 - COMPS 2P Multiple

Estimating Permian Resources' value by comparing it to similar companies.

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EBITDA

Earnings before interest, taxes, depreciation, and amortization; measures profitability.

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2P Reserves

Proven and probable oil and gas reserves. Used in valuation.

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Potential Upside

Possibilities of increased in share price.

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Study Notes

Permian Resources (NYSE:PR) Financial Data

  • Date: 8/23/2024
  • Currency: USD
  • Ticker: NYSE:PR
  • 2024 Onwards Inflation: 2.00%

Industry Assumptions

  • Barrel of Oil Equivalent Conversion: 6.00000 (bbl Crude/mcf Natural Gas)

Valuation Models

  • Several valuation models are presented, including:
    • Valuation 1 - NAV Model
    • Valuation 2 - COMPS 2P Multiple
    • Valuation 3 - COMPS TEV/EBITDA
    • Valuation 4 - PROCS TEV/EBITDA
    • Valuation 5 - PROCS TEV/Production
    • Valuation 6 - PROCS TEV/2P

Production

  • Production (2024E): 337 mboe/d
  • Oil Mix PD: 46.3%

Net Revenue (UFCF)

  • PD Standalone: $1,343
  • PUD Standalone: ($237)
  • After-tax G&A: $1,105
  • Total: $1,105
  • Operating Netback Margin: 73.1%

Additional Financial Data

  • Various financial figures are provided under different categories (e.g., various valuations, assets, implied share prices)
  • Specific components of the financial models are shown, like Net Debt, Preferred Shares etc.
    • Extensive financial data including valuations, production forecasts, input assumptions, and financial metrics are included for Permian Resources.

Additional Data

  • Production and other key elements are discussed in further detail for different scenarios
  • Numerous financial and key elements related to financial figures, projections, and valuations for Permian Resources (NYSE:PR) are included.
  • Detailed information is available about various production, development and operating costs and margins
  • Several data points (some with multiple sub-categories) provide details about expected future performance, financial performance, and general market valuations for the company.

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Permian Resources (NYSE:PR) Financial Model PDF

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