Permian Resources Stock

Permian Resources Corporation, together with its subsidiary, Centennial Resource Production, LLC (CRP), operates as an independent oil and natural gas company. The company focuses on the acquisition, optimization and development of high-return oil and natural gas properties. The company’s assets are located in the core of the Delaware Basin.

Properties

The company’s assets are concentrated in the core of the Delaware Basin and consist of large, contiguous acreage blocks in West Texas and New Mexico. As of December 31, 2022, the company had approximately 176,380 net leasehold acres, 96% of which it operates, and approximately 40,000 net royalty acres. Approximately 69% of the company’s total acreage is located in Texas, primarily in Reeves and Ward counties and the remaining 31% is located in Lea and Eddy counties in New Mexico. As of December 31, 2022, approximately 96% of the company net acreage is held by production.

Marketing and Customers

The company markets the majority of the production from properties it operates on account of both itself and that of the other working interest owners in these properties. The company generally sells its oil, natural gas and NGL (natural gas liquid) production to purchasers at prevailing market prices, which in certain cases are adjusted for contractual differentials, and the majority of its revenue contracts have terms greater than twelve months. The company normally sells production to a relatively small number of customers, as is customary in its business.

For the year ended December 31, 2022, the company’s customers that accounted for 10% or more of its total net revenues included BP America; Shell Trading (US) Company; Enterprise Crude Oil, LLC; and Eagleclaw Midstream Ventures, LLC.

Regulation

The company is required to observe such anti-market manipulation laws and related regulations enforced by the Federal Energy Regulatory Commission (FERC) under the federal Energy Policy Act of 2005 (EP Act of 2005) and those enforced by the U.S. Commodity Futures Trading Commission (the ‘CFTC’) under the Commodity Exchange Act, as amended (the ‘CEA’) and CFTC regulations promulgated thereunder.

The natural gas pipelines in the company’s gathering systems meet the traditional tests FERC has used to establish a pipeline’s status as a gatherer not subject to regulation as a natural gas company. The process for obtaining permits under the Clean Water Act also has the potential to impact the company’s operations. A violation of the Oil Pollution Act of 1990 (OPA) has the potential to adversely affect the company’s operations.

The company is subject to the requirements of the Occupational Safety and Health Act (OSHA) and comparable state statutes whose purpose is to protect the health and safety of workers. In addition, OSHA’s hazard communication standard, the Emergency Planning and Community Right-to-Know Act, comparable state statutes and any implementing regulations require that the company organizes and/or discloses information about hazardous materials used or produced in its operations and that this information be provided to employees, state and local governmental authorities and citizens.

History

The company was incorporated in 2015. It was formerly known as Silver Run Acquisition Corporation and changed its name to Centennial Resource Development, Inc. in 2016 and then to Permian Resources Corporation in 2022.