Permian Resources Corporation

Permian Resources reported Q2 free cash flow of $751 million, a record and nearly 50% higher quarter-over-quarter, and free cash flow per share of $0.88. Oil production was approximately 198,000 barrels per day, up 3% quarter-over-quarter, and the company said those results came with cash capital expenditures of $521 million. Management said natural gas realized price was $0.38 per Mcf after curtailing output amid WAHA prices that averaged negative $3.14 per Mcf and traded as low as negative $9.52 per Mcf, creating an uplift of over $75 million in gas revenue. For 2026, the company lifted full-year oil production guidance to 199,000 barrels per day and CapEx midpoint to $1.95 billion, while expecting year-end leverage of approximately 0.5x.

Will Hickey framed the quarter as a demonstration of PR’s ability to react quickly to volatile commodity prices, using more workovers, higher working interest, and gas curtailments to protect cash flow. He emphasized that the company is focused on increasing free cash flow per share over the long term and said operational initiatives such as water recycling, slimmer well designs, and surfactant trials should continue to improve capital efficiency. His tone was confident and operationally focused, with repeated references to the business being at the strongest level in company history.

Guy Oliphint highlighted a fortress balance sheet, saying Q2 leverage was about 0.5x and expected year-end leverage is also about 0.5x. He broke down the 2026 guidance increase by saying the company moved from 192,500 barrels per day in Q1 guidance to 199,000 barrels per day, with only 2,500 barrels per day of production coming from the Ward County acquisition at closing and most of the rest from higher working interest plus some accelerated workovers. On CapEx, he said the midpoint rose by $100 million, including about $25 million of takeover costs for Ward County, with the rest tied to higher working interest in 2026 TILs.

Analysts focused on M&A, gas takeaway, 2027 capital allocation, and whether growth should continue in the current commodity environment. Management said the ground-game acquisition pipeline remains strong, but bigger packages must still meet strict full-cycle return hurdles, and they are willing to stay patient on marketed assets. On gas, they said all curtailed wells were back online by the end of June and that new pipeline capacity and longer-haul agreements should make 2027 gas realizations much better; on cap allocation, they reiterated that dividend growth remains a priority but said the current framework is working and they do not plan major changes.