Permian Resources Corporation (PR Quick QuotePR - Free Report) reported first-quarter 2026 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 38 cents by 3%. This outperformance was primarily driven by stronger production volumes, improved well performance, reduced downtime and continued drilling and completion efficiencies. However, the bottom line declined from the year-ago quarter’s adjusted earnings of 43 cents due to weaker NGL and natural gas realizations, along with higher operating expenses.

The company’s oil and gas sales of $1.39 billion missed the Zacks Consensus Estimate of $1.4 billion by 0.83%. However, revenues increased slightly from the year-ago quarter’s $1.38 billion, aided by a higher year-over-year contribution from oil sales (10.6%) and purchased gas sales during the quarter.

Permian Resources Corporation Price, Consensus and EPS Surprise

Permian Resources Corporation price-consensus-eps-surprise-chart | Permian Resources Corporation Quote

On May 6, 2026, the Midland, TX-based exploration and production company declared a quarterly base dividend of 16 cents per Class A common share, translating to an annualized dividend of 64 cents. The payout is scheduled for June 30, 2026, for its shareholders on record as of June 16. Management reiterated that the base dividend remains a top capital allocation priority. Beyond the base dividend, the company intends to focus on debt repayment, cash accumulation, accretive acquisitions and opportunistic share repurchases, depending on market conditions.

PR’s Production Details

The company reported total average production of 412.9 thousand barrels of oil equivalent per day (MBoe/d), comprising 47% oil and 72% liquids, in the first quarter, up from 373.2 MBoe/d in the year-ago period. The figure beat the Zacks Consensus Estimate of 411,665 Boe/d due to strong runtime, improved recent well performance and efforts to accelerate incremental oil volumes in March through increased workover activity. The company also accelerated oil production volumes during March.

Crude oil production averaged 192.3 thousand barrels per day (MBbls/d), up from 175 MBbls/d in the prior-year quarter. The figure beat the Zacks Consensus Estimate of 189.6 MBbls/d.

NGL production came in at 103.3 MBbls/d, up 20.1% year over year. However, it missed the Zacks Consensus Estimate by 1.01%. Meanwhile, natural gas production totaled 703 million cubic feet per day (MMcf/d), up 4.4% year over year, but missed the Zacks Consensus Estimate by 0.62%.

PR’s Price Realizations

Permian Resources’ average realized oil price was $70.91 per barrel in the first quarter, compared with $70.48 in the year-ago quarter. However, the figure missed the consensus mark of $72 per barrel.

The realized NGL price was $16.60 per barrel, down from $23.90 a year ago. Moreover, the figure missed the consensus mark of $17.35 per barrel. The company’s realized natural gas price was negative 29 cents per Mcf, in contrast to a positive $1.35 in the prior-year quarter. The figure also missed the consensus mark of 24 cents per Mcf. Including hedges and purchased gas sales, the realized natural gas price was $1.33 per Mcf, compared with $1.45 a year ago.

PR’s Costs & Expenses

Total operating expenses in the quarter rose to $920.9 million from $872 million in the year-ago quarter. Lease operating expenses totaled $192.9 million, up from $179.6 million in the year-ago quarter. Depreciation, depletion and amortization expenses rose to $526.3 million from $474.2 million a year earlier. On a per-unit basis, Lease operating expenses increased to $5.19 per Boe from $5.35 a year ago. Gathering, processing and transportation expenses were $50.6 million, compared with $46.7 million in the prior-year period.

First-quarter drilling and completion costs were approximately $685 per lateral foot, representing a 2% reduction from the previous quarter and a 6% reduction compared with 2025 levels.

In its earnings presentation, the company highlighted record quarterly drilling and completion costs per foot, roughly 70% recycled water utilization in completion operations, and the installation of four microgrids that reduced generator counts by more than 25 and lowered electricity costs at associated well sites by roughly 30%.

PR’s Financial Position

PR generated $815.1 million of net cash provided by operating activities in the first quarter, compared with $898 million in the year-ago quarter. Adjusted operating cash flow totaled $979 million, while adjusted free cash flow came in at $513 million.

Cash capital expenditures were $466 million, down from the prior-year period’s drilling and development capital expenditures of $500.7 million. The company’s capital-efficient operating model supported strong free cash flow generation despite continued investment in development and bolt-on acquisitions.

PR’s Balance Sheet

As of March 31, 2026, PR had $170.8 million in cash and cash equivalents. The company had a long-term debt of $3.5 billion, reflecting a debt-to-capitalization of 23.8%.

The company continued to improve its balance sheet strength. It received investment-grade credit ratings from S&P and Moody’s, adding to its existing Fitch rating. Subsequent to quarter-end, PR entered into a new $3 billion unsecured revolving credit facility and redeemed $550 million of legacy Earthstone 8.00% senior notes due 2027.

PR’s Guidance

The company now expects 2026 net average daily oil production in the range of 190,000-195,000 barrels per day, reflecting an increase of roughly 2% from the previous outlook. Total net average daily production is projected in the band of 400,000-430,000 barrels of oil equivalent per day (Boe/d).

For 2026, the company anticipates total controllable cash costs in the band of $7.15-$8.15 per Boe, including lease operating expense of nearly $5.45, gathering, processing and transportation expense of around $1.40 and cash general and administrative expense of about 80 cents. Severance and ad valorem taxes are forecasted at 6.5-8.5% of revenues.

The company expects total cash capital expenditures for 2026 to be between $1.75 billion and $1.95 billion and indicated that spending will likely trend toward the upper half of the range under the current commodity-price environment. Drilling and completions spending is estimated at approximately $1.45 billion, while facilities, infrastructure, capital workover and non-operated expenditures are expected to total nearly $400 million.

Operationally, this Zacks Rank #1 (Strong Buy) company plans to run around 250 gross operated drilling rigs during the year, with average working interest projected at 75-80% and average lateral lengths of roughly 11,000 feet. Activity is expected to be concentrated primarily in New Mexico, Texas, Delaware and the Midland regions. You can see the complete list of today’s Zacks #1 Rank stocks here.

Management also expects strong pricing realizations in 2026, with realized oil prices forecast at 97-100% of West Texas Intermediate (WTI), natural gas prices anticipated at a premium of 25-75 cents per Mcf to Waha Hub pricing and NGL realizations projected at 23-25% of WTI pricing. Additionally, the company expects nearly $20 million in current income tax expense for 2026 at present strip prices, supported by stronger oil-price assumptions.

Important Earnings at a Glance

While we have discussed PR’s first-quarter results in detail, let us take a look at three other key reports in this space.

Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL Quick QuoteHAL - Free Report) , posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.

Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.

Houston, TX-based oil and gas storage and transportation company, Kinder Morgan Inc. (KMI Quick QuoteKMI - Free Report) , posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.

As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.

Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation (RRC Quick QuoteRRC - Free Report) , posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.

Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.