Permian Resources Corporation

Permian Resources is an independent oil and natural gas producer concentrated in the Delaware Basin of West Texas and southeastern New Mexico. Its shares trade on the New York Stock Exchange under PR. It reports on a calendar-year basis.

Latest financial and operating results

Adjusted free cash flow removes changes in working capital from operating cash flow and deducts cash capital spending. Cash from operations minus that spending was $736.3 million in Q3, compared with $984.3 million in Q2. Payment timing explains why this measure declined while adjusted free cash flow increased.

Reported profit was affected by derivatives: Q3 included a $308.6 million derivative loss, compared with a $139.1 million gain in Q2. Of the current loss, $225.6 million was noncash and $83.0 million came from cash settlements. Current adjusted net income was $596.5 million, or $0.69 per adjusted diluted share, excluding noncash derivative movements and specified other adjustments.

Q3 gas revenue including purchased-gas transactions was $53.3 million, compared with a loss of $87.4 million in Q2. Higher gas prices enabled curtailed gas-rich wells to restart, while additional transportation arrangements shifted more sales toward Gulf Coast and Dallas-Fort Worth markets. Oil prices after hedge settlements were $79.96 a barrel, compared with $85.37 in Q2.

Reported gathering, processing and transportation costs of $1.21 per barrel of oil equivalent were below the year-earlier $1.43. Changed contracts moved more fees into deductions from gas and liquids revenue, explaining much of that decline. Lease operating expenses were $5.11 per equivalent barrel and cash general and administrative expenses $0.73.

Earlier targets and current outlook

The initial February 2026 oil forecast was 186,000 to 192,000 barrels a day, with a cash capital budget of $1.75 billion to $1.95 billion. August raised those ranges to 197,000 to 201,000 barrels and $1.9 billion to $2.0 billion. The latest ranges are 201,000 to 204,000 barrels and $1.975 billion to $2.075 billion.

Higher well ownership interests, stronger well performance and additional work on existing wells underpin the production increases. The latest annual plan includes approximately $20 million of spending for Ridge Runner. Fourth-quarter oil production is expected to exceed 210,000 barrels a day, including about 4,000 barrels from Ridge Runner, with capital spending similar to Q3's $518 million.

Management estimates that the revised annual plan would generate about $3.2 billion of free cash flow at current commodity prices, versus about $2.9 billion for February's plan repriced at those same prices. This is the company's current comparison of the two plans.

Completed acquisitions

The Ridge Runner Resources II acquisition and affiliated royalty business closed October 30, 2026, for approximately $1.025 billion in initial cash consideration, subject to adjustments. Up to $125 million of additional payments depend on quarterly oil prices during 2027 and 2028. The assets are adjacent to existing operations in New Mexico.

Ridge Runner produced approximately 13,000 barrels of oil equivalent a day at closing, about 45% oil. It contributed no third-quarter production. Together with other recently described transactions, the company added approximately 24,000 net acres and 9,000 net royalty acres for about $1.15 billion in initial consideration.

A separate Ward County acquisition closed July 31, 2026, producing about 5,000 equivalent barrels a day, approximately half oil. That earlier transaction was already included in August's outlook.

Financing and shareholder returns

At September 30, cash was $95.0 million and total debt had a carrying value of $3.046 billion, or $3.093 billion before unamortized debt costs and discounts. That included $393 million of commercial paper. These balances precede the Ridge Runner closing, funded with cash and commercial paper.

A $3 billion unsecured revolving facility, maturing April 30, 2031, backs the commercial-paper program of up to $2 billion. The company intends to maintain unused revolving capacity at least equal to outstanding commercial paper.

Permian Resources redeemed $550 million of 2027 notes in April and $325 million of 2031 notes in July. Its remaining senior-note principal at September 30 was $700 million due July 2029, $1 billion due January 2032 and $1 billion due February 2033.

The declared quarterly base dividend is $0.16 a share, payable December 31 to shareholders of record December 17. For the fourth quarter, oil-price swaps cover 70,000 barrels a day at an average $67.10 before basis adjustments. Gas hedges use several regional benchmarks, so realized prices reflect both market access and the hedge mix.