Core Viewpoint - Permian Resources Corporation has announced the pricing of a public offering of 46,112,899 shares of its Class A Common Stock at a price of $13.53 per share, with the offering being conducted by certain affiliates of Pearl Energy Investments and Riverstone Investment Group LLC [1] Group 1 - The total number of shares being offered is 46,112,899 [1] - The price per share for the public offering is set at $13.53 [1] - The offering is being made by selling stockholders, specifically affiliates of Pearl Energy Investments and Riverstone Investment Group LLC [1]

Group 1 - Permian Resources Corporation has announced the commencement of an underwritten public offering of 46,112,899 shares of its Class A Common Stock [1] - The offering is being conducted by certain affiliates of Pearl Energy Investments and Riverstone Investment Group LLC, referred to as the Selling Stockholders [1] - Permian Resources will not sell any shares of Class A common stock in this offering [1]

Core Insights - The article identifies three dividend stocks with growth potential: Permian Resources Corp., Archrock Inc., and Targa Resources [1][5][17] Company Summaries Permian Resources Corp. (PR) - Formed in September 2022 through a merger, the company operates in the Permian Basin and reported FY '24 revenue of $5 billion, a 60% increase, and net income of $984 million, a 106% increase, resulting in a basic EPS of $1.54 [7] - The forward annual dividend is $0.60 per share, yielding 4.3%, with a payout ratio of 45.58% [7] - Analysts rate it a "Strong Buy" with a score of 4.73 out of 5 and a highest price target of $22 per share, indicating ~58% upside potential [8] Archrock Inc. (AROC) - A provider of natural gas compression services, Archrock reported FY '24 revenue of $1.16 billion, a 17% increase, and net income of $172.2 million, a 64% increase, with an EPS of $1.05 [10][11] - The forward annual dividend is $0.84 per share, yielding 3.34%, with a payout ratio of 49.76% [11] - Over the past five years, the dividend has grown 21.82%, and the stock has appreciated 316.97%, with analysts rating it a "Moderate Buy" and a highest price target of $33 per share, suggesting ~31% upside potential [12] Targa Resources (TRGP) - Targa Resources, which supports natural gas and oil producers, reported FY '24 revenue of $16.38 billion, a 2% increase, and net income of $1.28 billion, a 53% increase, with an EPS of $2.94 [14][15] - The forward annual dividend is $4.00 per share, yielding 2.46%, with a payout ratio of 46.13% [15] - Analysts rate it a "Strong Buy" with a score of 4.67 out of 5 and a highest price target of $240 per share, indicating ~45% upside potential, with a stock gain of over 975% in the past five years [16]

Group 1: Archrock (AROC) - Archrock is an energy infrastructure company focused on midstream natural gas compression, with a recent dividend of 21 cents per share for Q2, marking an 11% increase from Q1, resulting in an annualized yield of 3.3% [3][4] - Mizuho analyst Gabriel Moreen has reiterated a buy rating on Archrock, raising the price target from $31 to $32, while TipRanks' AI Analyst has an "outperform" rating with a target of $27 [4][6] - Moreen highlighted Archrock's strong balance sheet flexibility, allowing for capital returns and dividend expansion, with projected dividend per share growth of 20%, 12%, and 10% for fiscal years 2025, 2026, and 2027 respectively [5][6] Group 2: Brookfield Infrastructure Partners (BIP) - Brookfield Infrastructure Partners declared a quarterly distribution of 43 cents per unit, reflecting a 6% year-over-year increase, offering a dividend yield of 5.6% [8][10] - Jefferies analyst Sam Burwell resumed coverage with a buy rating and a price target of $35, noting significant acquisitions that have strengthened BIP's midstream, transport, and data businesses [10][11] - Burwell expects BIP's funds from operations (FFO) to grow at a nearly 9% compound annual growth rate (CAGR) and solid distribution growth at about 6.5% CAGR through 2027 [13] Group 3: Permian Resources (PR) - Permian Resources, an independent oil and natural gas company, declared a base dividend of 15 cents per share for Q3 2025, resulting in an annualized yield of 4.3% [15][16] - Goldman Sachs analyst Neil Mehta reaffirmed a buy rating with a price forecast of $17, highlighting operational ramp-up and new agreements to enhance cash flow [16][17] - Mehta emphasized PR's focus on cost optimization and strategic investments, projecting incremental free cash flow of over $50 million in 2026 compared to 2024 [17][18]

Group 1 - The analyst has a diverse professional background across multiple industries, including logistics, construction, and retail, which provides a unique perspective on investing [1] - The investment strategy focuses on cyclical industries, aiming for significant returns during economic recovery and growth, while also maintaining a diversified portfolio that includes bonds, commodities, and forex [1] - The importance of balancing risk is acknowledged, leading to the incorporation of fixed-income investments, both long and short [1]

Core Insights - Permian Resources Corporation (PR) reported second-quarter 2025 adjusted net income per share of 27 cents, matching the Zacks Consensus Estimate, but down from 39 cents in the prior year due to increased operating expenses and lower commodity prices [1][8] - Oil and gas sales totaled $1.2 billion, a decline of 3.8% year-over-year, missing the Zacks Consensus Estimate by 2.4% [1][8] Production & Price Realizations - Average daily production increased by 13.7% year-over-year to 385,118 barrels of oil equivalent (Boe), surpassing the Zacks Consensus Estimate of 376,103 Boe [3] - Oil volume for the quarter was 176,533 barrels per day (Bbls/d), up 15.5% year-over-year, exceeding the consensus mark of 175,688 Bbls/d [3] - Average sales price for oil was $62.71 per barrel, down 21.7% from $80.10 in the prior year [4] - Average realized natural gas price was 50 cents per Mcf, compared to negative 42 cents in the year-ago period, slightly missing the consensus estimate of 51 cents [4] - Average realized NGL price was $17.75 per barrel, down from $20.07 in the second quarter of 2024 [5] Costs & Expenses - Total operating expenses rose to $900.1 million from $791 million in the prior year, driven by a 17.7% increase in lease operating costs to $188 million and a 27.5% rise in gathering, processing, and transportation expenses [6] - Depreciation, depletion, and amortization expenses totaled $506.4 million, reflecting an 18.8% year-over-year increase [6] Financial Position - Adjusted cash flow from operations decreased by 3.8% to $816.8 million, while capital expenditure totaled $505 million, resulting in adjusted free cash flow of $311.8 million [7] - The company repurchased 4.1 million shares at a weighted average price of $10.52 per share [7] - As of June 30, 2025, cash and cash equivalents stood at $451 million, with long-term debt of $3.7 billion, leading to a debt-to-capitalization ratio of 25.4% [7] Guidance for 2025 - PR raised its 2025 oil production target by 6 MBbls/d to 178.5 MBbls/d and total production target by 15 MBoe/d to 385 MBoe/d, based on strong well performance and the recent APA acquisition [9] - The company adjusted its 2025 cash capital expenditure range to $1,920-$2,020 million, including an additional $20 million related to the APA acquisition [9] Tax Forecast - Following the passage of the One Big Beautiful Bill Act, PR lowered its 2025 current income tax forecast to under $5 million, down from under $10 million [10]

[Glossary of Units of Measurements and Industry Terms](index=3&type=section&id=Glossary%20of%20Units%20of%20Measurements%20and%20Industry%20Terms) This section defines key units of measurement and industry-specific terms used throughout the report [Cautionary Statement Concerning Forward-Looking Statements](index=6&type=section&id=Cautionary%20Statement%20Concerning%20Forward-Looking%20Statements) This statement highlights inherent uncertainties and risks associated with forward-looking information in the report [Part I—FINANCIAL INFORMATION](index=9&type=section&id=Part%20I%E2%80%94FINANCIAL%20INFORMATION) This part presents comprehensive financial data, including statements, notes, and management's analysis of performance [Item 1. Financial Statements (Unaudited)](index=9&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents unaudited consolidated financial statements, including balance sheets, operations, cash flows, and equity, with notes [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$17.49 billion** as of June 30, 2025, driven by proved properties and derivative instruments | (in thousands) | June 30, 2025 | December 31, 2024 | Change | % Change | | :----------------------------------- | :------------ | :---------------- | :----- | :------- | | **ASSETS** | | | | | | Cash and cash equivalents | $451,002 | $479,343 | $(28,341) | -5.9% | | Accounts receivable, net | $513,121 | $530,452 | $(17,331) | -3.3% | | Derivative instruments (current) | $151,203 | $85,509 | $65,694 | 76.8% | | Total current assets | $1,149,071 | $1,121,594 | $27,477 | 2.4% | | Proved properties, net | $15,974,614 | $15,423,097 | $551,517 | 3.6% | | Total assets | $17,494,406 | $16,897,900 | $596,506 | 3.5% | | **LIABILITIES AND EQUITY** | | | | | | Accounts payable and accrued expenses | $1,397,708 | $1,198,418 | $199,290 | 16.6% | | Current portion of long-term debt | $286,126 | $— | $286,126 | N/A | | Total current liabilities | $1,828,947 | $1,327,337 | $501,610 | 37.8% | | Long-term debt, net | $3,711,355 | $4,184,233 | $(472,878) | -11.3% | | Total liabilities | $6,589,888 | $6,379,381 | $210,507 | 3.3% | | Total equity | $10,904,518 | $10,518,519 | $386,000 | 3.7% | [Consolidated Statements of Operations](index=11&type=section&id=Consolidated%20Statements%20of%20Operations) Net income for Q2 2025 decreased by **12%** to **$207.1 million**, while H1 2025 increased by **40.5%** to **$536.4 million**, influenced by prices and derivatives Consolidated Statements of Operations Highlights | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change (3M) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change (6M) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------ | :------------------------------ | :------------------------------ | :------------ | | Oil and gas sales | $1,197,596 | $1,246,083 | -3.9% | $2,574,047 | $2,489,082 | 3.4% | | Total operating expenses | $900,111 | $790,946 | 13.8% | $1,772,099 | $1,565,021 | 13.2% | | Income from operations | $297,485 | $455,137 | -34.6% | $801,948 | $924,173 | -13.1% | | Net gain (loss) on derivative instruments | $73,019 | $14,298 | 410.7% | $130,750 | $(106,831) | N/A | | Net income attributable to Class A Common Stock | $207,137 | $235,100 | -11.9% | $536,435 | $381,675 | 40.5% | | Basic EPS | $0.30 | $0.38 | -21.1% | $0.76 | $0.66 | 15.2% | | Diluted EPS | $0.28 | $0.36 | -22.2% | $0.72 | $0.61 | 18.0% | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased by **$350.7 million** to **$1.94 billion** for H1 2025, driven by higher production and derivative gains Consolidated Statements of Cash Flows Highlights | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :----------------------------------- | :------------------------------- | :------------------------------- | :----- | | Net cash provided by operating activities | $1,936,728 | $1,586,032 | $350,696 | | Net cash used in investing activities | $(1,485,129) | $(1,294,950) | $(190,179) | | Net cash used in financing activities | $(479,940) | $(316,497) | $(163,443) | | Net increase (decrease) in cash | $(28,341) | $(25,415) | $(2,926) | | Cash, cash equivalents and restricted cash, end of period | $451,002 | $48,449 | $402,553 | - Cash paid for interest increased to **$148.6 million** in 2025 from **$136.6 million** in 2024 for the six months ended June 30[43](index=43&type=chunk) [Consolidated Statements of Shareholders' Equity](index=14&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Total equity increased to **$10.90 billion** as of June 30, 2025, driven by net income and stock-based compensation, offset by dividends and share repurchases - Net income contributed **$329.3 million** and **$207.1 million** to equity for the three months ended March 31, 2025 and June 30, 2025, respectively[45](index=45&type=chunk) - Dividends paid totaled **$107.5 million** and **$107.1 million** for the three months ended March 31, 2025 and June 30, 2025, respectively[45](index=45&type=chunk) - Share repurchases of Class A Common Stock amounted to **$43.3 million** for the three months ended June 30, 2025[45](index=45&type=chunk) [Notes to Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies, significant transactions, and financial instrument details [Note 1—Basis of Presentation and Summary of Significant Accounting Policies](index=16&type=section&id=Note%201%E2%80%94Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) Permian Resources Corporation is an independent oil and natural gas company focused on the Permian Basin, with financial statements prepared under GAAP and SEC rules - Permian Resources Corporation is an independent oil and natural gas company primarily focused on the Permian Basin[48](index=48&type=chunk) - During the six months ended June 30, 2025, the Company entered into a three-year drilling rig contract, resulting in **$10.3 million** of current and **$18.9 million** of noncurrent operating lease liabilities[53](index=53&type=chunk) - The FASB issued ASU No 2023-09 (Improvements to Income Tax Disclosures) and ASU No 2024-03 (Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures), which will require additional disclosures in future financial statements[60](index=60&type=chunk)[61](index=61&type=chunk) [Note 2—Acquisitions](index=18&type=section&id=Note%202%E2%80%94Acquisitions) In June 2025, the Company acquired approximately **13,000 net leasehold acres** from Apache Corporation for **$608 million**, plus smaller acquisitions totaling **$4

Core Insights - Permian Resources reported record operational execution in Q2 2025, leading to increased full-year production guidance and reduced capital expenditure outlook [4][10] - The company completed a $600 million acquisition of Apache assets, integrating them rapidly and generating immediate cost savings [4][9] - New gas and crude contracts are expected to improve netbacks significantly, contributing to a projected $50 million increase in free cash flow for 2026 compared to 2024 [4][17] Production and Financial Performance - Oil production reached 176,500 barrels per day in Q2 2025, with total production at 385,000 barrels of oil equivalent per day [3][10] - Adjusted operating cash flow was $817 million, while adjusted free cash flow stood at $312 million, with cash capital expenditures of $505 million [3][11] - The company maintained approximately one times leverage and $3 billion in liquidity after investments and buybacks [3][13] Strategic Acquisitions and Integration - The Apache acquisition added significant asset overlap and inventory, with integration completed within a week [3][4] - The company added 1,300 net acres through grassroots deals in Q2 2025, enhancing future drilling inventory [3][11] - Management emphasized a focus on high-return drilling and completion rather than large-scale midstream infrastructure ownership [7][9] Marketing and Midstream Agreements - New gas and crude contracts are expected to provide 75 million cubic feet per day of firm gas transportation by year-end 2025, increasing to 450 million by year-end 2028 [6][17] - The agreements are projected to improve gas netbacks by over $0.10 per Mcf and crude oil netbacks by over $0.50 per barrel [6][17] - The company is evolving its marketing strategy to optimize pricing and reduce reliance on Waha hub sales [15][46] Tax and Regulatory Environment - Tax reform is expected to result in cash taxes below $5 million for 2025 and under $50 million cumulatively for 2026 and 2027 [4][19] - Legal changes allowing federal and state commingling in New Mexico are anticipated to reduce capital requirements and operational complexity [7][70] Operational Efficiencies - The company achieved five of its top 10 fastest drills in Q2 2025, with expectations for further efficiency improvements in the second half of the year [6][40] - Microgrid power installations have reduced field power costs by 30% at two locations, supporting lower lease operating expenses [6][64] - Management noted that well costs per foot are expected to decline as drilling efficiencies are implemented [6][67]

Financial Data and Key Metrics Changes - The company reported oil production of 176,500 barrels per day, exceeding expectations, with total production at 385,000 barrels of oil equivalent per day [8][10] - Adjusted operating cash flow reached $817 million, while adjusted free cash flow was $312 million, with cash capital expenditures at $5 million [8][10] - The company maintained leverage at approximately one times and liquidity of about $3 billion [11][12] Business Line Data and Key Metrics Changes - The company executed a buyback program, repurchasing $43 million of shares at an average price of $10.52 per share [6] - The acquisition of Apache for approximately $600 million was completed, contributing about 900 barrels of oil per day to production [6][8] - The company added 1,300 net acres across 130 grassroots acquisitions in Q2, enhancing its development opportunities [9] Market Data and Key Metrics Changes - The company has entered into multiple new transportation and marketing agreements to optimize pricing for hydrocarbons, expecting to improve gas netbacks by over $0.10 per Mcf and crude netbacks by over $0.50 per barrel [13][14] - The company anticipates an incremental 75 million cubic feet per day of firm transport by year-end 2025, ramping to 450 million cubic feet per day by year-end 2028 [13][14] Company Strategy and Development Direction - The company aims to achieve investment grade status, recently receiving its first investment grade rating from Fitch, which is expected to enhance its financial flexibility [10][11] - The marketing strategy is evolving to focus on optimizing pricing and reducing costs, with a goal to sell a larger percentage of gas outside the basin [12][59] - The company is committed to countercyclical investments to deliver shareholder returns throughout market cycles [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate downturns due to its strong balance sheet and asset quality, emphasizing the importance of maintaining operational efficiency [39][40] - The company is cautious about future growth, indicating a preference for flattish to low single-digit growth in production due to market uncertainties [98] Other Important Information - The company highlighted the benefits of the One Big Beautiful Bill Act, which is expected to reduce taxes and regulatory burdens, enhancing investment incentives in domestic shale production [15][16] - The company is focused on maintaining a cash balance of $500 million to $1 billion to ensure liquidity during downturns [110] Q&A Session Summary Question: Can you provide insight into recent production performance? - Management noted strong well results and favorable weather conditions contributed to robust production performance [20][21] Question: How do you view the current landscape and future production guidance? - Management indicated a cautious approach, suggesting that production guidance will be adjusted based on macroeconomic conditions and commodity prices [24][25] Question: What impact do the new marketing agreements have on unit costs? - Management confirmed that there would be no immediate change to GP and T based on the new agreements, but they expect improved netbacks [29][30] Question: Is the company considering expanding its midstream presence? - Management stated that while they have evaluated options, they believe their upstream business offers better returns than midstream investments [33][34] Question: Can you elaborate on the downturn playbook? - Management emphasized the importance of a strong balance sheet and asset quality, stating that downturns can present investment opportunities [39][40] Question: What is the company's perspective on M&A activity? - Management views the company as a potential consolidator in the Delaware Basin, with a robust pipeline of acquisition opportunities [43][44] Question: How do you see the impact of federal land regulations? - Management noted that new regulations allow for more efficient operations in New Mexico, leading to capital savings [104][105] Question: What is the expected cash balance moving forward? - Management indicated a target cash balance of $500 million to $1 billion to maintain liquidity [110] Question: What are the expectations for ground game activity? - Management expects to continue strong ground game activity, particularly following the recent acquisition [112][113]

Financial Data and Key Metrics Changes - The company reported oil production of 176,500 barrels per day, exceeding expectations, with total production at 385,000 barrels of oil equivalent per day [6][10] - Adjusted operating cash flow reached $817 million, and adjusted free cash flow was $312 million, with cash capital expenditures of $5 million [6][10] - The company maintained leverage at approximately one times and liquidity of about $3 billion [10] Business Line Data and Key Metrics Changes - The company executed a buyback program, repurchasing $43 million of shares at an average price of $10.52 per share [5] - The acquisition of Apache for approximately $600 million was completed, contributing about 900 barrels of oil per day to production [5][6] Market Data and Key Metrics Changes - The company has entered into multiple new transportation and marketing agreements to optimize pricing, expecting to improve gas netbacks by over $0.10 per Mcf and crude netbacks by over $0.50 per barrel [12][13] - The agreements are projected to provide an incremental 75 million cubic feet per day of firm transport by year-end 2025, ramping to 450 million cubic feet per day by year-end 2028 [12] Company Strategy and Development Direction - The company aims to achieve investment grade status, recently receiving its first investment grade rating from Fitch, which is expected to enhance capital access and reduce costs [9][10] - The company is focused on countercyclical investments to deliver shareholder returns throughout market cycles [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market volatility and emphasized a cautious approach to production growth amid economic uncertainty [24][95] - The company anticipates current cash taxes to be less than $5 million in 2025 and less than $50 million cumulatively in 2026 and 2027 due to favorable tax provisions [15] Other Important Information - The company added 1,300 net acres across 130 grassroots acquisitions in Q2, which are considered high-return investments [7] - The company is exploring various markets for gas sales, aiming to reduce reliance on Waha pricing over time [57] Q&A Session Summary Question: Can you provide insight into recent production performance? - Management noted strong well results and favorable weather conditions contributed to production exceeding expectations [20][21] Question: How do you view the current landscape and future production guidance? - Management indicated a cautious outlook, suggesting production growth may be flattish to low single digits due to market uncertainties [24][95] Question: What is the impact of recent marketing agreements on unit costs? - Management confirmed no immediate change to GP and T costs based on the new agreements, with expected improvements in netbacks [28][29] Question: Will the company consider expanding its midstream presence? - Management stated that while they evaluate options, the focus remains on upstream operations due to better returns [31][32] Question: Can you elaborate on the downturn playbook? - Management emphasized the importance of a strong balance sheet and asset quality, allowing for opportunistic investments during market downturns [38][39] Question: What is the expected impact of federal land regulations? - Management clarified that new regulations allow for more efficient operations in New Mexico but do not open up previously stranded acreage [98][100] Question: What is the right cash balance to maintain? - Management indicated a target cash balance of $500 million to $1 billion to ensure liquidity during downturns [105] Question: What is the outlook for ground game acquisitions? - Management expressed optimism about future ground game opportunities, particularly following the recent Apache acquisition [107]