Financial Performance - Q2'25 adjusted EBITDAX was $894 million[17] - Adjusted operating cash flow for Q2'25 reached $817 million[17] - Adjusted free cash flow for Q2'25 was $312 million[17] - Net debt stood at $3581 million with a net debt-to-LQA EBITDAX ratio of 10x[17] Production and Operations - Total average production for Q2'25 was 3851 MBoe/d, including 1765 MBbls/d of oil, 978 MBbls/d of NGLs, and 6647 MMcf/d of natural gas[17,18] - The company increased the mid-point of full year oil and total production guidance to 1785 MBbls/d and 3850 MBoe/d respectively[18] - Cash capital expenditures for Q2'25 amounted to $505 million[18] Strategic Initiatives - The company closed the APA New Mexico bolt-on acquisition, adding approximately 13000 net acres[18] - Approximately 130 grassroots transactions added ~1,300 net acres and ~80 net royalty acres for ~$10 million[18] - The company expects recent marketing agreements to drive an incremental ~$50 million uplift to 2026E FCF versus 2024[18,39] Shareholder Returns and Balance Sheet - A base dividend of $015 per share was declared, representing a 44% dividend yield[18] - $43 million of PR stock was repurchased at an average of $1052 per share in April[18,20] - The company maintained a strong balance sheet with leverage of 10x and total liquidity of ~$3 billion[18,20]

Core Insights - Permian Resources reported quarterly earnings of $0.27 per share, matching the Zacks Consensus Estimate, but down from $0.39 per share a year ago [1] - The company posted revenues of $1.2 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.41% and down from $1.25 billion year-over-year [2] - The stock has underperformed, losing about 4.7% since the beginning of the year compared to the S&P 500's gain of 7.1% [3] Earnings Performance - The company has surpassed consensus EPS estimates two times over the last four quarters [1] - The earnings surprise for the last quarter was -4.55%, with actual earnings of $0.42 per share against an expected $0.44 [1] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $1.33 billion, and for the current fiscal year, it is $1.41 on revenues of $5.28 billion [7] - The estimate revisions trend for Permian Resources was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently in the bottom 27% of Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

[Second Quarter 2025 Performance and Outlook](index=1&type=section&id=Second%20Quarter%202025%20Performance%20and%20Outlook) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Permian Resources reported strong Q2 2025 results, with total production of 385.1 MBoe/d and adjusted free cash flow of $312 million, increasing full-year production guidance, closing a significant acquisition, repurchasing stock, and receiving an investment-grade credit rating Q2 2025 Key Metrics | Metric | Value | | :--- | :--- | | Total Average Production | 385.1 MBoe/d | | Oil Production | 176.5 MBbls/d | | Cash Capital Expenditures | $505 million | | Cash from Operating Activities | $1.0 billion | | Adjusted Free Cash Flow | $312 million | | Base Dividend per Share | $0.15 | | Share Repurchases | $43 million | | Balance Sheet Leverage | 1.0x | - The company increased its full-year 2025 production guidance, with the **midpoint for oil now at 178.5 MBbls/d** and **total production at 385.0 MBoe/d**[4](index=4&type=chunk) - Strategic activities included closing the APA New Mexico bolt-on (~**13,000 net acres**), grassroots acquisitions (~**1,300 net acres**), and receiving an inaugural investment-grade credit rating (**BBB-**) from Fitch[4](index=4&type=chunk)[8](index=8&type=chunk) - As a result of the One Big Beautiful Bill Act, the company **lowered its 2025 current income tax estimate to less than $5 million**[4](index=4&type=chunk)[14](index=14&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Co-CEOs Will Hickey and James Walter highlighted the company's strong operational execution, citing record efficiency in drilling and completions, and emphasizing the successful execution of their 'downturn playbook' through strategic acquisitions and share repurchases - The company achieved record operational efficiencies in Q2, including the fastest well drilled, most feet drilled per day, and lowest completions cost per foot[3](index=3&type=chunk) - Management executed its 'downturn playbook' by deploying **approximately $600 million in acquisitions** and buying back shares at prices considered below mid-cycle values[3](index=3&type=chunk) - The company maintains a strong balance sheet and **total liquidity of approximately $3 billion**, positioning it to 'play offense' during future market volatility or macroeconomic uncertainty[3](index=3&type=chunk) [Financial and Operational Results](index=3&type=section&id=Financial%20and%20Operational%20Results) In Q2 2025, Permian Resources produced an average of 385,118 Boe/d, driven by strong well performance and the APA bolt-on acquisition, generating $1.0 billion in cash from operations and $312 million in adjusted free cash flow, while maintaining low leverage at 1.0x Net Debt-to-LQA EBITDAX Q2 2025 Production and Financial Summary | Metric | Value | | :--- | :--- | | Avg. Daily Oil Production | 176,533 Bbls/d | | Avg. Daily Total Production | 385,118 Boe/d | | Cash Capital Expenditures | $505 million | | Net Cash from Operations | $1.0 billion | | Adjusted Free Cash Flow | $312 million | | Total Controllable Cash Costs | $7.82 per Boe | Q2 2025 Realized Prices | Commodity | Realized Price | | :--- | :--- | | Oil | $62.71 / Bbl | | NGL | $17.75 / Bbl | | Natural Gas | $0.53 / Mcf | - The company maintained a strong financial position with **$451 million in cash**, an undrawn revolving credit facility, and **total liquidity of approximately $3 billion**. **Net debt-to-LQA EBITDAX was 1.0x**[8](index=8&type=chunk) [Strategic Execution](index=3&type=section&id=Strategic%20Execution) During Q2, Permian Resources executed its 'downturn playbook' by repurchasing 4.1 million shares for $43 million at a significant discount and closing the APA Corporation's New Mexico assets acquisition, maintaining a strong balance sheet with projected year-end 2025 leverage of approximately 0.8x - **Repurchased 4.1 million shares at a weighted average price of $10.52 per share, a 23% discount** to the share price as of August 5, 2025[10](index=10&type=chunk) - Closed the acquisition of APA Corporation's New Mexico assets, adding low breakeven inventory and low decline production in core operating areas[11](index=11&type=chunk) - Continued its 'ground game' by adding ~**1,300 net acres** and **80 net royalty acres** through ~**130 grassroots transactions**[11](index=11&type=chunk) - **Projects year-end 2025 net debt-to-EBITDAX to be approximately 0.8x**, assuming $60/bbl WTI for the rest of the year[12](index=12&type=chunk) [Updated 2025 Guidance and Outlook](index=4&type=section&id=Updated%202025%20Guidance%20and%20Outlook) The company increased its full-year 2025 production guidance, raising the midpoint for oil to 178.5 MBbls/d and total production to 385.0 MBoe/d, while adjusting cash capital expenditures and anticipating improved netbacks from new marketing agreements Updated Full Year 2025 Guidance | Metric | Midpoint/Range | | :--- | :--- | | Oil Production | 178.5 MBbls/d | | Total Production | 385.0 MBoe/d | | Cash Capital Expenditures | $1,920 – $2,020 million | - New transportation and marketing agreements are expected to **increase natural gas realizations by over $0.10/Mcf** and **crude oil realizations by over $0.50/Bbl** in 2026 compared to 2024[15](index=15&type=chunk)[16](index=16&type=chunk) - These new marketing arrangements are projected to generate an **incremental $50 million of free cash flow** in 2026 compared to 2024[17](index=17&type=chunk) - The full-year 2025 current income tax estimate was **lowered to less than $5 million** due to the One Big Beautiful Bill Act[14](index=14&type=chunk) [Shareholder Returns and Hedging](index=4&type=section&id=Shareholder%20Returns%20and%20Hedging) Permian Resources declared a Q3 2025 base dividend of $0.15 per share and repurchased $43 million of its stock in Q2, while adding incremental oil hedges for 2H 2025 and full year 2026 to manage price risk - The Board of Directors declared a **Q3 2025 base dividend of $0.15 per share ($0.60 annualized)**, payable on September 30, 2025[19](index=19&type=chunk) - In Q2, the company **repurchased 4.1 million shares for $43 million at an average price of $10.52 per share**[20](index=20&type=chunk) - **Added 12,000 Bbls/d of incremental oil swaps for 2H 2025 at an average price of $70.18/Bbl**. **Approximately 32% of expected oil production is now hedged** for the remainder of 2025[18](index=18&type=chunk) - **Added 12,000 Bbls/d of oil hedges for the full year 2026 at an average price of $66.12/Bbl, bringing total 2026 oil hedges to 29.5 MBbls/d**[18](index=18&type=chunk) [Financial Statements (Unaudited)](index=9&type=section&id=Financial%20Statements%20(Unaudited)) [Operating Highlights and Expenses](index=9&type=section&id=Operating%20Highlights%20and%20Expenses) For Q2 2025, total oil and gas sales decreased to $1.198 billion due to lower realized oil prices, despite higher production volumes, with lease operating expenses slightly increasing to $5.36 per Boe Q2 Production Volumes (YoY) | Production | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Oil (Bbls/d) | 176,533 | 152,883 | +15.5% | | NGL (Bbls/d) | 97,804 | 84,736 | +15.4% | | Natural Gas (Mcf/d) | 664,686 | 606,856 | +9.5% | | **Total (Boe/d)** | **385,118** | **338,761** | **+13.7%** | Q2 Operating Expenses per Boe (YoY) | Expense per Boe | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Lease Operating Expenses | $5.36 | $5.18 | | Gathering, Processing & Transport | $1.59 | $1.42 | [Consolidated Statement of Operations](index=11&type=section&id=Consolidated%20Statement%20of%20Operations) For Q2 2025, Permian Resources reported net income attributable to Class A Common Stock of $207.1 million, or $0.28 per diluted share, a decrease from the prior year due to lower operating revenues and higher operating expenses, despite a net gain on derivative instruments Q2 Statement of Operations Summary (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Oil and gas sales | $1,197,596 | $1,246,083 | | Total operating expenses | $900,111 | $790,946 | | Income from operations | $297,485 | $455,137 | | Net income | $245,021 | $308,908 | | **Net income attributable to Class A Common Stock** | **$207,137** | **$235,100** | Earnings Per Share (Diluted) | Period | EPS (Diluted) | | :--- | :--- | | Q2 2025 | $0.28 | | Q2 2024 | $0.36 | [Consolidated Balance Sheet](index=12&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, Permian Resources' total assets increased to $17.5 billion, with $451 million in cash and total liabilities at $6.6 billion, resulting in total equity of $10.9 billion Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $451,002 | $479,343 | | Total current assets | $1,149,071 | $1,121,594 | | Total property and equipment, net | $16,026,776 | $15,473,478 | | **Total Assets** | **$17,494,406** | **$16,897,900** | | Total current liabilities | $1,828,947 | $1,327,337 | | Long-term debt, net | $3,711,355 | $4,184,233 | | **Total Liabilities** | **$6,589,888** | **$6,379,381** | | **Total Equity** | **$10,904,518** | **$10,518,519** | [Consolidated Statement of Cash Flows](index=13&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was $1.94 billion, with net cash used in investing activities of $1.49 billion and financing activities of $480 million, ending the period with a cash balance of $451 million Six Months Ended June 30, 2025 Cash Flow Summary (in thousands) | Cash Flow Activity | Amount | | :--- | :--- | | Net cash provided by operating activities | $1,936,728 | | Net cash used in investing activities | ($1,485,129) | | Net cash used in financing activities | ($479,940) | | **Net decrease in cash** | **($28,341)** | | **Cash at end of period** | **$451,002** | [Appendix: Non-GAAP Financial Measures and Hedging](index=14&type=section&id=Appendix%3A%20Non-GAAP%20Financial%20Measures%20and%20Hedging) [Reconciliation of Non-GAAP Measures](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company provides non-GAAP measures for investor evaluation, reporting Q2 2025 Adjusted EBITDAX of $893.9 million, leverage of 1.0x, adjusted free cash flow of $311.8 million, and adjusted net income per diluted share of $0.27 [Adjusted EBITDAX and Net Debt](index=14&type=section&id=Adjusted%20EBITDAX%20and%20Net%20Debt) Adjusted EBITDAX for Q2 2025 was $893.9 million, a decrease from the prior quarter, with net debt at $3.58 billion as of June 30, 2025, resulting in a Net Debt-to-LQA EBITDAX ratio of 1.0x Adjusted EBITDAX Trend (in thousands) | Quarter | Adjusted EBITDAX | | :--- | :--- | | Q2 2025 | $893,930 | | Q1 2025 | $1,045,000 | | Q4 2024 | $976,655 | | Q2 2024 | $928,092 | Net Debt Calculation (as of June 30, 2025) | Metric | Value (in thousands) | | :--- | :--- | | Total debt, net | $3,997,481 | | Less: cash and cash equivalents | ($451,002) | | **Net debt (Non-GAAP)** | **$3,580,720** | | **Net debt-to-LQA EBITDAX** | **1.0x** | [Adjusted Operating Cash Flow and Free Cash Flow](index=18&type=section&id=Adjusted%20Operating%20Cash%20Flow%20and%20Free%20Cash%20Flow) For Q2 2025, adjusted operating cash flow was $816.8 million, and after subtracting $505.0 million in total cash capital expenditures, the company generated $311.8 million in adjusted free cash flow Q2 Adjusted Free Cash Flow Reconciliation (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,038,696 | $938,434 | | Adjustments for working capital, etc. | ($221,871) | ($89,762) | | **Adjusted operating cash flow** | **$816,825** | **$848,672** | | Less: total cash capital expenditures | ($504,996) | ($516,412) | | **Adjusted free cash flow** | **$311,829** | **$332,260** | [Adjusted Net Income and Adjusted Shares](index=17&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Shares) In Q2 2025, adjusted net income was $223.2 million, or $0.27 per adjusted diluted share, compared to $297.4 million, or $0.37 per adjusted diluted share, in Q2 2024, with adjusted diluted weighted average shares outstanding at 845.1 million Q2 Adjusted Net Income (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Adjusted net income | $223,237 | $297,409 | | Adjusted diluted shares outstanding | 845,075 | 815,724 | | **Adjusted net income per diluted share** | **$0.27** | **$0.37** | [Derivative Contracts Summary](index=20&type=section&id=Derivative%20Contracts%20Summary) As of July 31, 2025, the company held significant hedging positions for crude oil and natural gas through 2027, including 57,000 Bbls/d of crude oil swaps for the remainder of 2025 at over $70/Bbl and 165,000 MMBtu/d of natural gas swaps Crude Oil Swaps (NYMEX WTI) as of July 31, 2025 | Period | Volume (Bbls/d) | Wtd. Avg. Price ($/Bbl) | | :--- | :--- | :--- | | Jul - Dec 2025 | 57,000 | ~$71.71 | | Full Year 2026 | 29,500 | ~$68.57 | Natural Gas Swaps (NYMEX Henry Hub) as of July 31, 2025 | Period | Volume (MMBtu/d) | Wtd. Avg. Price ($/MMBtu) | | :--- | :--- | :--- | | Jul - Dec 2025 | 165,000 | ~$3.80 | | Full Year 2026 | 91,000 | ~$3.79 | | Full Year 2027 | 140,000 | ~$3.77 |

Core Viewpoint - Analysts project that Permian Resources will report a quarterly earnings per share (EPS) of $0.27, reflecting a year-over-year decline of 30.8%, with revenues expected to reach $1.23 billion, down 1.5% from the same quarter last year [1]. Earnings Projections - The consensus EPS estimate has been revised 15.2% higher in the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Key Metrics - Analysts estimate the 'Average daily net production - Total' to be 376,103 barrels of oil equivalent per day, up from 338,761 barrels in the same quarter last year [5]. - The 'Average daily net production - Natural gas' is projected to reach 673,266 thousand cubic feet per day, compared to 606,856 thousand cubic feet per day a year ago [5]. - The 'Average daily net production - NGL' is estimated at 88,131 barrels of oil per day, an increase from 84,736 barrels in the same quarter last year [6]. - The 'Average daily net production - Oil' is forecasted to be 175,688 barrels of oil per day, up from 152,883 barrels in the same quarter last year [6]. Sales Prices - The 'Average sales prices - Oil - Including Derivative Cash Settlements' is projected to be $65.74, down from $78.99 a year ago [7]. - The 'Average sales prices - Oil - Excluding the effects of hedging' is expected to be $63.12, compared to $80.10 in the previous year [7]. - The 'Average sales prices - NGL - Excluding the effects of GP&T' is estimated at $17.79, down from $22.51 in the same quarter last year [8]. Stock Performance - Shares of Permian Resources have changed by -0.6% in the past month, contrasting with a +1% move in the Zacks S&P 500 composite [8].

The market expects Permian Resources (PR) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 15.17% higher over the last 30 days to the cu ...

Core Insights - The First Trust Energy AlphaDEX ETF (FXN) is a smart beta ETF that provides broad exposure to the Energy sector, having debuted on May 8, 2007 [1] - The ETF industry has been traditionally dominated by market capitalization weighted indexes, but smart beta strategies aim to outperform through stock selection based on fundamental characteristics [2][3] - FXN is sponsored by First Trust Advisors and has assets totaling approximately $278.76 million, positioning it as an average-sized ETF in the Energy category [5] Fund Structure and Strategy - FXN seeks to match the performance of the StrataQuant Energy Index, which is a modified equal-dollar weighted index designed to identify stocks from the Russell 1000 Index that may generate positive alpha [6] - The fund has an annual operating expense ratio of 0.61% and a 12-month trailing dividend yield of 2.92%, which is competitive within its peer group [7] Sector Exposure and Holdings - The fund has a significant allocation to the Energy sector, representing 93.5% of its portfolio [8] - First Solar, Inc. (FSLR) is the largest holding at approximately 5.8%, with the top 10 holdings accounting for about 41.17% of total assets [9] Performance Metrics - Year-to-date, FXN has experienced a loss of approximately -3.71%, and over the last 12 months, it is down about -14.12% as of July 18, 2025 [11] - The fund has a beta of 0.90 and a standard deviation of 28.29% over the trailing three-year period, indicating a higher risk profile compared to peers [11] Alternatives in the Market - For investors seeking to outperform the Energy ETFs segment, alternatives such as the Vanguard Energy ETF (VDE) and the Energy Select Sector SPDR ETF (XLE) are available, with VDE having $7.15 billion in assets and XLE at $27.57 billion [13] - VDE and XLE have lower expense ratios of 0.09% and 0.08% respectively, making them more attractive options for cost-conscious investors [13]

Group 1 - Permian Resources is highlighted as a leading example of efficiency, disciplined growth, and financial robustness in the North American shale industry in 2025 [1] - The company possesses high-quality assets located in the Delaware Basin, which contribute to its exceptional profit margins [1]

Core Insights - The report focuses on Permian Resources Corporation (NYSE: PR) as a valuable investment option during periods of high market volatility [1] Company Analysis - The company is characterized by sustained free cash flows, low leverage, and sustainable debt levels, indicating financial stability [1] - Permian Resources is positioned in the oil and gas sector, which is often overlooked by the market, presenting potential value opportunities [1] - The company operates in emerging markets, showcasing high margins and promising medium to long-term investment prospects [1] Investment Strategy - The analysis emphasizes a preference for companies with a strong pro-shareholder attitude, including consistent buyback programs and dividend distributions [1] - The focus is on identifying companies that are currently in distress but possess high recovery potential, making them attractive for value investors [1]

Group 1 - Permian Resources announced another acquisition during the first quarter earnings press release, indicating ongoing growth and expansion strategies [2] - The revised guidance provided by Permian Resources did not account for the latest acquisition, suggesting potential for further adjustments in future forecasts [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis of oil and gas companies focuses on identifying undervalued names within the sector, examining balance sheets, competitive positions, and development prospects [1] - Members of the Oil & Gas Value Research service receive early access to analyses and insights that are not available on the free site [1]

Core Insights - Permian Resources is establishing itself as a significant player in the oil industry, particularly in the West Texas region, following a merger in 2022 that has led to substantial growth [1] Group 1: Company Overview - The company is focused on building a robust oil business that can thrive in a volatile market environment [1] - The merger in 2022 has been a pivotal moment for the company, allowing it to expand its operations and market presence [1] Group 2: Investment Potential - The company is characterized by strong growth in revenue, earnings, and free cash flow, making it an attractive option for investors [1] - Permian Resources is noted for its excellent growth prospects, which could lead to favorable valuations in the future [1]