It has been about a month since the last earnings report for Permian Resources (PR Quick QuotePR - Free Report) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Permian Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Permian Resources Q1 Earnings Beat Estimates on Strong Output, Revenues Miss

Permian Resources 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.

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.

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%.

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.

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%.

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.

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.

Guidance for 2026

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 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.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 8.26% due to these changes.

VGM Scores

Currently, Permian Resources has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Permian Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Permian Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Chord Energy Corporation (CHRD Quick QuoteCHRD - Free Report) , a stock from the same industry, has gained 1.7%. The company reported its results for the quarter ended March 2026 more than a month ago.

Chord Energy Corporation reported revenues of $1.15 billion in the last reported quarter, representing a year-over-year change of -5.3%. EPS of $4.56 for the same period compares with $4.04 a year ago.

Chord Energy Corporation is expected to post earnings of $6.12 per share for the current quarter, representing a year-over-year change of +241.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +14.4%.

Chord Energy Corporation has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.