Permian Resources Corporation (PR) Earnings & Analysis

Latest quarter

Permian Resources reported Q3 FY2026 revenue of $2.0 billion, up 48.1% from $1.3 billion a year earlier and 7.1% above the consensus. Its non-GAAP earnings of $0.69 per share were 13.7% above the consensus. Diluted earnings per share were $0.49, compared with $0.08 a year earlier.

The company’s filing attributed higher realized prices for oil, natural gas liquids and natural gas primarily to higher benchmark and regional prices. It also said production volumes rose across all three streams as wells brought online since the third quarter of 2025 more than offset normal declines at existing wells. Total daily production was 457,528 barrels of oil equivalent.

Permian Resources reported an operating margin of 45.4%, compared with 29.6% a year earlier. Its filing said higher production volumes increased depreciation, depletion and amortization expense, while higher sales contributed to increased severance taxes. The company reported $1,255 million in cash from operating activities and $846 million in adjusted free cash flow for the quarter.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Co-CEO Will Hickey said Permian Resources increased production in response to commodity prices while reducing downtime, acquiring additional working interests and bringing wells online faster. He said workovers, equipment changes and artificial-lift monitoring helped reduce controllable cash costs to $7.05 per BOE in Q3. Drilling and completion improvements, including longer laterals and water recycling, helped offset diesel and steel inflation, he said.

Hickey said the company brought high-gas-to-oil-ratio wells back online after curtailing them in Q2 when Waha gas prices were deeply negative. Gas production rose 42% quarter over quarter to approximately 787 million cubic feet per day. He said higher volumes and improved prices took natural gas revenue from negative $90 million in Q2 to over positive $50 million in Q3, before hedges. The company also began deliveries through Hugh Brinson, increasing its access to Gulf Coast and Dallas-Fort Worth markets.

Co-CEO James Walter said the company’s acquisitions included Ridge Runner and smaller transactions. He said Ridge Runner closed on October 30 and included a contingent payment tied to commodity prices in 2027 and 2028. Walter said the company generally faces competition for larger transactions, while smaller deals are often negotiated directly with sellers.

In the question-and-answer session, Hickey discussed tests of surfactants used in wells. He said results varied between wells and that the company was still assessing whether the treatment increases ultimate recoveries or accelerates production that would have occurred anyway. On workovers, he said the team had also pursued proactive projects, including changes to lift equipment, as well as returning offline wells to production.

For Q4, Walter said he expected oil production to be more or less flat with Q3 apart from the addition of Ridge Runner barrels. He also said the company’s gas contracts retain flexibility to redirect some sales to Waha if that market becomes favorable.

Guidance

Walter said Permian Resources raised its FY2026 oil production midpoint to 202,000 barrels per day from the 199,000 barrels per day it gave on the prior call. The company also updated its full-year cash capital expenditure midpoint to $2.025 billion, from the prior midpoint of $1.95 billion.

Walter said FY2026 free cash flow would be approximately $300 million higher than the original plan would have achieved, adjusted for the latest actual commodity pricing.