Permian Resources (PR) - 2025 Q2 - Quarterly Report

Glossary of Units of Measurements and Industry Terms This section defines key units of measurement and industry-specific terms used throughout the report Cautionary Statement Concerning Forward-Looking Statements This statement highlights inherent uncertainties and risks associated with forward-looking information in the report Part I—FINANCIAL INFORMATION This part presents comprehensive financial data, including statements, notes, and management's analysis of performance Item 1. Financial Statements (Unaudited) This section presents unaudited consolidated financial statements, including balance sheets, operations, cash flows, and equity, with notes Consolidated Balance Sheets 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 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 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] Consolidated Statements of Shareholders' Equity 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] - Dividends paid totaled $107.5 million and $107.1 million for the three months ended March 31, 2025 and June 30, 2025, respectively[45] - Share repurchases of Class A Common Stock amounted to $43.3 million for the three months ended June 30, 2025[45] Notes to Consolidated Financial Statements 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 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] - 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] - 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][61] Note 2—Acquisitions In June 2025, the Company acquired approximately 13,000 net leasehold acres from Apache Corporation for $608 million, plus smaller acquisitions totaling **$4