Permian Resources (PR) - 2025 Q3 - Quarterly Results

Production and Sales - Average daily crude oil production increased by 6% to 186,937 Bbls/d in Q3 2025, with total production at 410,225 Boe/d[4] - The company increased its full-year oil production guidance by 3.0 MBbls/d to 181.5 MBbls/d and total production guidance by 9.0 MBoe/d to 394.0 MBoe/d[13] - Net average daily production guidance for 2025 is updated to 398,000 Boe/d, with oil production at 182,000 Bbls/d[27] - Oil sales for the three months ended September 30, 2025, reached $1,113,847 thousand, compared to $1,099,318 thousand in the same period of 2024[29] - Average daily net production for oil increased to 186,937 Bbls/d in Q3 2025, up from 160,801 Bbls/d in Q3 2024[29] - Average sales price for oil per Bbl in Q3 2025 was $64.77, down from $74.31 in Q3 2024[29] Financial Performance - Adjusted free cash flow for Q3 2025 was $469 million, with cash provided by operating activities at $766 million[6] - Net income attributable to Class A Common Stock for the nine months ended September 30, 2025, was $595,669 thousand, down from $768,051 thousand in 2024[33] - Net income for the nine months ended September 30, 2025, was $717.05 million, down from $995.03 million in the same period of 2024, representing a decrease of about 28%[37] - Adjusted EBITDAX for the three months ended September 30, 2025, was $1.02 billion, compared to $904.98 million for the same period in 2024, indicating an increase of approximately 12.9%[41] - Adjusted free cash flow for Q3 2025 was $468,837,000, up from $302,691,000 in Q3 2024, representing a 55% increase[49] - Adjusted net income for Q3 2025 was $315,136,000, compared to $281,221,000 in Q3 2024, indicating a 12.1% increase[53] Capital Expenditures and Investments - Cash capital expenditures for Q3 2025 were $480 million, with drilling and completion costs reduced to approximately $725 per lateral foot, an 11% decrease from 2024[5] - Total cash capital expenditure program for 2025 is revised to $2,020 million, up from $1,920 million[27] - Year-to-date, the company has deployed over $800 million on high-quality acquisitions, continuing its disciplined acquisition strategy[12] Debt and Liquidity - Total debt was reduced by 11% quarter-over-quarter to $3.6 billion, with a leverage ratio of approximately 0.8x and total liquidity exceeding $2.6 billion[8] - Long-term debt decreased to $3.54 billion as of September 30, 2025, from $4.18 billion at December 31, 2024, a decrease of about 15.3%[35] - Net debt as of September 30, 2025, was $3.46 billion, with a net debt-to-LQA EBITDAX ratio of 0.8x, indicating a stable leverage position[43] Operating Expenses - Total controllable cash costs decreased by 6% quarter-over-quarter to $7.36 per Boe, driven by lower lease operating expenses[7] - Lease operating expenses per Boe decreased to $5.07 in Q3 2025 from $5.43 in Q3 2024[31] - Total operating expenses for the nine months ended September 30, 2025, were $2,702,951 thousand, compared to $2,385,772 thousand in 2024[33] Dividends and Shareholder Returns - The board declared a base dividend of $0.15 per share, representing an annualized yield of 4.8%[15] Market and Pricing - The company expects approximately 75% of 2026 natural gas production to be priced at Gulf Coast and DFW markets, improving pricing by approximately $1 per Mcf relative to Waha[14] - The average price for crude oil swaps in Q4 2025 is $70.99 per barrel, with a total volume of 5,244,000 barrels[54] - The company has natural gas swaps for Q4 2025 at an average price of $4.02 per MMBtu, with a total volume of 15,180,000 MMBtu[55] Stock and Shares - The company reported a total of 807.94 million adjusted basic weighted average shares outstanding for the three months ended September 30, 2025, compared to 794.36 million in 2024, an increase of approximately 1.8%[46] - Adjusted diluted weighted average shares outstanding increased to 846,217 in Q3 2025 from 836,909 in Q3 2024[53] Management and Strategy - The company expects to internally fund future exploration and development activities through adjusted operating cash flow and adjusted free cash flow[48] - The company’s management believes adjusted financial measures provide meaningful indicators of actual sources and uses of capital associated with operations[48]