William Hickey on merger synergies
From Permian Resources co-CEOs: We can grow and return meaningful capital to shareholders · · CNBC Television
“We’re cutting a lot of costs out of the business, really from operational synergies. Both businesses were very, very good at what they were doing pre-merger. We’ve been really surprised as we laid best practices next to each other, there’s a lot of extra fat we can cut, and we can adopt the best things Centennial did, the best things Colgate did to set up Permian Resources for success.”
On , William Hickey, Co-Chief Executive Officer & Director at PERMIAN RESOURCES CORP, spoke about merger synergies during Permian Resources co-CEOs: We can grow and return meaningful capital to shareholders on CNBC Television.
About William Hickey
In a September 2022 CNBC interview, Permian Resources co-CEO Will Hickey discussed the company's strategy following its merger. Hickey stated that the company aims to grow crude oil production by about 10% in the fourth quarter of 2023 over the prior year while generating $1.1 to $1.3 billion in free cash flow. He said the company can "grow and return meaningful capital to shareholders," describing returning capital as "in our DNA" and projecting a 14% to 15% all-in return of capital yield with a dividend yield approaching 2.5%. Hickey described the merger as "way better than an IPO," saying it built "a bigger, better company than we ever could have done on our own." He noted that the company is cutting costs through operational synergies and that both pre-merger businesses were "very, very good at what they were doing." Hickey expressed confidence in the company's assets in the Delaware Basin, stating that at $75 to $80 oil, Permian Resources can sustain production levels "indefinitely." He attributed this confidence to being in "the lowest break-even basin in the U.S." and cited "years of underinvestment in the space" as a supportive factor for demand.