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Permian Resources Q2 Earnings Decline Y/Y on Increased Expenses
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Key Takeaways
PR's Q2 EPS met estimates at 27 cents but fell from last year due to higher costs and lower prices.
Q2 oil and gas sales of $1.2B missed estimates, declining 3.8% from the prior-year quarter.
PR raised 2025 oil and total production guidance after strong well output and APA acquisition.
Permian Resources Corporation (PR - Free Report) reported second-quarter 2025 adjusted net income per share of 27 cents, in line with the Zacks Consensus Estimate. However, the bottom line declined from the year-ago quarter’s reported figure of 39 cents. This underperformance was due to a year-over-year increase in operating expenses and lower commodity prices.
Meanwhile, Permian Resources’ oil and gas sales of $1.2 billion declined 3.8% year over year and missed the Zacks Consensus Estimate by 2.4%.
Permian Resources Corporation Price, Consensus and EPS Surprise
PR’s board of directors declared a quarterly cash dividend of 15 cents per share of common stock, equivalent to 60 cents on an annual basis. The dividend will be paid on Sept. 30 to its shareholders of record as of Sept. 16, 2025.
During the quarter, the Midland, TX-based oil and gas exploration and production company closed the previously announced APA New Mexico bolt-onacquisition that added 13,000 net acres directly.
PR’s Production & Price Realizations
The average daily second-quarter production (comprising 46% oil) was up 13.7% from the year-ago level to 385,118 barrels of oil equivalent (Boe) and beat the Zacks Consensus Estimate of 376,103 Boe.
Oil volume for the period was 176,533 barrels per day (Bbls/d), up 15.5% year over year. The consensus mark was pegged at 175,688 Bbls/d. PR’s natural gas production was 664,686 thousand cubic feet (Mcf) per day, while NGL output totaled 97,804 Bbls/d.
The average sales price for oil during the second quarter was $62.71 per barrel, down 21.7% from the prior-year realization of $80.10. The figure was in line with the consensus mark.
The average realized natural gas price in the second quarter was 50 cents per Mcf compared with negative 42 cents in the year-earlier period. The figure slightly missed the Zacks Consensus Estimate of 51 cents.
Meanwhile, the average realized NGL price was $17.75 per barrel, down from $20.07 realized in the second quarter of 2024.
Costs & Expenses for PR
Total operating expenses in the quarter rose to $900.1 million from $791 million in the year-ago quarter. This was primarily due to a 17.7% year-over-year increase in lease operating costs, which rose to $188 million, a 27.5% year-over year increase in Gathering, processing and transportation expenses and an 18.8% rise in depreciation, depletion and amortization, which totaled $506.4 million.
PR’s Financial Position
Adjusted cash flow from operations decreased 3.8% to $816.8 million, while Permian Resources’ capital expenditure totaled $505 million, leading to adjusted free cash flow of $311.8 million.
During the quarter, the company repurchased 4.1 million shares at a weighted average price of $10.52 per share.
As of June 30, the company had $451 million in cash and cash equivalents. Permian Resources had a long-term debt of $3.7 billion, reflecting a debt-to-capitalization of 25.4%.
PR’s Guidance for 2025
Permian Resources has raised its 2025 oil production target by 6 MBbls/d to 178.5 MBbls/d and increased its total production target by 15 MBoe/d to 385 MBoe/d, both based on the mid-point of guidance. This upward revision reflects a strong well performance and the recently completed APA bolt-on acquisition. The company has also adjusted its 2025 cash capital expenditure in the range of $1,920-$2,020 million, incorporating $20 million in additional capex related to the APA acquisition during the second half of the year, in line with prior disclosures.
Following the passage of the One Big Beautiful Bill Act, this Zacks Rank #3 (Hold) company has lowered its 2025 current income tax forecast to under $5 million, down from the prior estimate of under $10 million. The company also anticipates paying less than $50 million in cumulative current income taxes over 2026 and 2027, assuming current strip pricing holds.
While we have discussed PR’s second-quarter results in detail, let us take a look at three other key reports in this space.
Coterra Energy Inc. (CTRA - Free Report) reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.
This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.
As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.
Imperial Oil Limited (IMO - Free Report) reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.
Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.
As of June 30, 2025, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.
TC Energy Corporation (TRP - Free Report) reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.
This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.
As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.
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Permian Resources Q2 Earnings Decline Y/Y on Increased Expenses
Key Takeaways
Permian Resources Corporation (PR - Free Report) reported second-quarter 2025 adjusted net income per share of 27 cents, in line with the Zacks Consensus Estimate. However, the bottom line declined from the year-ago quarter’s reported figure of 39 cents. This underperformance was due to a year-over-year increase in operating expenses and lower commodity prices.
Meanwhile, Permian Resources’ oil and gas sales of $1.2 billion declined 3.8% year over year and missed the Zacks Consensus Estimate by 2.4%.
Permian Resources Corporation Price, Consensus and EPS Surprise
Permian Resources Corporation price-consensus-eps-surprise-chart | Permian Resources Corporation Quote
PR’s board of directors declared a quarterly cash dividend of 15 cents per share of common stock, equivalent to 60 cents on an annual basis. The dividend will be paid on Sept. 30 to its shareholders of record as of Sept. 16, 2025.
During the quarter, the Midland, TX-based oil and gas exploration and production company closed the previously announced APA New Mexico bolt-onacquisition that added 13,000 net acres directly.
PR’s Production & Price Realizations
The average daily second-quarter production (comprising 46% oil) was up 13.7% from the year-ago level to 385,118 barrels of oil equivalent (Boe) and beat the Zacks Consensus Estimate of 376,103 Boe.
Oil volume for the period was 176,533 barrels per day (Bbls/d), up 15.5% year over year. The consensus mark was pegged at 175,688 Bbls/d. PR’s natural gas production was 664,686 thousand cubic feet (Mcf) per day, while NGL output totaled 97,804 Bbls/d.
The average sales price for oil during the second quarter was $62.71 per barrel, down 21.7% from the prior-year realization of $80.10. The figure was in line with the consensus mark.
The average realized natural gas price in the second quarter was 50 cents per Mcf compared with negative 42 cents in the year-earlier period. The figure slightly missed the Zacks Consensus Estimate of 51 cents.
Meanwhile, the average realized NGL price was $17.75 per barrel, down from $20.07 realized in the second quarter of 2024.
Costs & Expenses for PR
Total operating expenses in the quarter rose to $900.1 million from $791 million in the year-ago quarter. This was primarily due to a 17.7% year-over-year increase in lease operating costs, which rose to $188 million, a 27.5% year-over year increase in Gathering, processing and transportation expenses and an 18.8% rise in depreciation, depletion and amortization, which totaled $506.4 million.
PR’s Financial Position
Adjusted cash flow from operations decreased 3.8% to $816.8 million, while Permian Resources’ capital expenditure totaled $505 million, leading to adjusted free cash flow of $311.8 million.
During the quarter, the company repurchased 4.1 million shares at a weighted average price of $10.52 per share.
As of June 30, the company had $451 million in cash and cash equivalents. Permian Resources had a long-term debt of $3.7 billion, reflecting a debt-to-capitalization of 25.4%.
PR’s Guidance for 2025
Permian Resources has raised its 2025 oil production target by 6 MBbls/d to 178.5 MBbls/d and increased its total production target by 15 MBoe/d to 385 MBoe/d, both based on the mid-point of guidance. This upward revision reflects a strong well performance and the recently completed APA bolt-on acquisition. The company has also adjusted its 2025 cash capital expenditure in the range of $1,920-$2,020 million, incorporating $20 million in additional capex related to the APA acquisition during the second half of the year, in line with prior disclosures.
Following the passage of the One Big Beautiful Bill Act, this Zacks Rank #3 (Hold) company has lowered its 2025 current income tax forecast to under $5 million, down from the prior estimate of under $10 million. The company also anticipates paying less than $50 million in cumulative current income taxes over 2026 and 2027, assuming current strip pricing holds.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed PR’s second-quarter results in detail, let us take a look at three other key reports in this space.
Coterra Energy Inc. (CTRA - Free Report) reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.
This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.
As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.
Imperial Oil Limited (IMO - Free Report) reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.
Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.
As of June 30, 2025, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.
TC Energy Corporation (TRP - Free Report) reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.
This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.
As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.