After recent acquisitions and efficiencies increased its production, Midland-based Permian Resources raised its fullyear oil production guidance by 6,500 barrels per day to 158,500 b/d and its total production by 16,000 boed to 341,000 boed. Permian Resources said, “The majority of the increase in fullyear production guidance is driven by continued strong well performance and operational efficiencies.” Third quarter production was 160,800 b/d of oil and 347,100 boed.
Will Hickey, co-CEO, said Nov. 6, “Reduced cycle times have driven a significant reduction in well costs. We are now drilling and completing wells for approximately $1 million cheaper than 2023.” James Walter, co-CEO, added, “We are proud to increase fullyear production guidance for the third consecutive quarter while maintaining our original capital budget… The vast majority of our increase year-to-date has been driven by outperformance of our base business – highlighting the quality of our asset base.”
Permian Resources controls about 450,000 net acres in west Texas and southeast New Mexico. Drilling and completion costs fell to about $800 per lateral foot in 3Q. Capital spending for 2024 is forecast steady at $1.9 billion to $2.1 billion.