Q2 2026 Permian Resources Corporation Earnings Call Transcript

Aug 6, 2026 / 02:00 PM GMT

Release Date Price: MXN357

Transcript 10-Q8-K

Key Points

Positve

Record free cash flow of $751 million in Q2 2026, up nearly 50% quarter-over-quarter, and record free cash flow per share of $0.88.
Oil production grew 3% quarter-over-quarter to approximately 198,000 barrels per day, driven by increased workover activity and higher working interest in completed wells (82% vs. 75% expected).
Proactive natural gas curtailments during negative Waha prices resulted in a realized gas price of $0.38/MCF and an uplift of over $75 million in revenue.
Successful ground game acquisitions added approximately 55,000 net acres and 330 high-confidence locations at attractive valuations ($13,000 per net acre, $2.5 million per net location).
Improved capital efficiency: 2026 production guidance raised 10% year-over-year while CapEx midpoint is 1% lower than 2025, with continued operational gains from longer laterals, water recycling, and slim-hole designs.
Strong balance sheet with leverage at 0.5 times, allowing for continued acquisitions and capital returns.
Successful acreage trade in Ward County increased operated net locations from 50% to 120% and improved lateral lengths by 20%.
Early surfactant trials show encouraging results, with potential for improved recoveries and cost savings.
Company generated more free cash flow in Q2 2026 than in all of 2023, and expects full-year 2026 free cash flow to nearly double 2024 levels.
Differentiated acquisition strategy with a strong pipeline of off-market deals, leveraging proprietary data and Midland relationships.

Negative

Waha natural gas prices averaged negative $3.14/MCF during Q2, forcing proactive curtailments and reducing natural gas production by 20% quarter-over-quarter.
Inflationary pressures from rising diesel and casing prices are partially offsetting efficiency gains, with potential for further cost increases in the back half of the year.
The Ward County acquisition was initially challenged by being majority non-operated, low working interest, and scattered, requiring a subsequent trade to improve.
Management is hesitant to forecast gas prices, and the back-half cash flow uplift from improved Waha pricing is uncertain.
The company's ability to continue acquiring high-quality assets at attractive prices is not guaranteed, and the pace of ground game deals may ebb and flow.
Surfactant trials are still early, and results are mixed, with some wells showing no uplift, making it difficult to predict the program's full impact.
The company is not planning to increase its base dividend significantly, focusing instead on acquisitions and debt repayment, which may not satisfy income-focused investors.
Potential for oil takeaway capacity constraints in the Permian in the coming years, though management is confident in current capacity.
The company's growth strategy is dependent on volatile commodity prices, and management may shift to maintenance mode if prices decline.
The Parkway bolt-on includes some upside zones that are not yet proven, requiring further appraisal to fully realize potential.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

PR.N - Permian Resources Corporation
Q2 2026 Permian Resources Corporation Earnings Call
Aug 06, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning, and welcome to Permian Resources' conference call to discuss its second quarter 2026 earnings. Today's call is being recorded. A replay of the call will be available by visiting the company's website at www.permianres.com. At this time, I will now turn the call over to Hayes Mabry, Permian Resources' Vice President of Investor Relations, for some opening remarks. Please go ahead.

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Unidentified_2 [2]
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Thanks Elodie, and thank you all for joining us. On the call today are Will Hickey and James Walter, our Chief Executive

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