Permian Resources (PR) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 production of 412.9 MBoe/d, with oil at 192.3 MBbls/d, driven by strong well performance, operational efficiency, and accelerated production.

• Generated $815 million in operating cash flow, $513 million in adjusted free cash flow, and record free cash flow per share of $0.60, the highest in company history.

• Achieved investment grade credit ratings from all three major agencies, enhancing financial flexibility and reducing borrowing costs.

• Simplified corporate structure to a single share class, eliminated sponsor ownership, and fully aligned management and shareholder interests.

• Completed ~$205 million in bolt-on and ground game acquisitions in Q1 2026, supporting accretive growth.

Financial highlights

• Q1 2026 oil and gas sales totaled $1.39 billion, with adjusted EBITDAX of $1.05 billion and adjusted net income of $336.6 million.

• Lease operating expense was $5.19/Boe, cash G&A $0.77/Boe, and total controllable cash costs $7.32/Boe, all within guidance.

• Net income attributable to Class A Common Stock was $43.6 million, down from $329.3 million in Q1 2025, primarily due to derivative losses and higher depreciation.

• Net debt as of March 31, 2026 was $3.4 billion, with net debt-to-LQA EBITDAX at 0.8x.

• Capital expenditures for drilling and development were $466 million, fully funded from operating cash flow.

Outlook and guidance

• Increased full-year 2026 oil production guidance midpoint to 192.5 MBbls/d, with total production guidance at 400,000–430,000 Boe/d.

• Capital expenditure guidance for 2026 set at $1.75–$1.95 billion, with expectations to be at the upper half of the range.

• Plan to fund remaining 2026 capital expenditures from operating cash flows, supported by anticipated production and hedge positions.

• Maintains flexibility to adjust activity based on crude price and market conditions, with higher free cash flow expected in 2026 than original guidance.

• Targeting 6% year-over-year production growth for 2026.