Permian Resources Q2 Earnings Decline Y/Y on Increased Expenses

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]