Permian Resources tops Q3 profit estimates, raises oil output forecast

Permian Resources (PR) said on Nov. 4 that third-quarter adjusted profit rose to 69 cents per share from 37 cents a year earlier, topping the 59-cent consensus estimate. Revenue of $1.96 billion also topped the $1.81 billion estimate, and the company raised its 2026 oil production forecast.

Shares fell 1.1% in after-hours trading as of 4:42 p.m. ET, from a regular-session close of $22.43.

Permian Resources is an independent oil and natural gas company headquartered in Midland, Texas, with about 560,000 net acres in West Texas and Southeast New Mexico.

Here's how the company did:

• Adjusted EPS: 69 cents per share vs. 37 cents a year earlier, 59 cents expected
• Revenue: $1.96 billion vs. $1.32 billion a year earlier, $1.81 billion expected
• Adjusted free cash flow: $846 million vs. $469 million a year earlier
• Total production: 457,528 barrels of oil equivalent a day, up 22% from the prior quarter

Oil production averaged 208,029 barrels a day, up 5% from the prior quarter. Realized oil prices averaged $85.73 per barrel. Cash capital expenditures were $518 million.

Guidance raised

The company raised its 2026 oil production forecast to 201,000 to 204,000 barrels a day, from 197,000 to 201,000 barrels a day in its Aug. 5 results.

Total production guidance is now 415,000 to 445,000 barrels of oil equivalent a day, up from 400,000 to 430,000. Cash capital expenditure guidance is $1.98 billion to $2.08 billion, from $1.90 billion to $2.00 billion.

For the fourth quarter, the company expects oil production of more than 210,000 barrels a day, with cash capital expenditures similar to the third quarter.

Co-CEO James Walter said, "our current plan is expected to generate an incremental $300 million of free cash flow this year compared to our original plan in February, normalized for commodity prices."

Acquisitions and Ridge Runner

The company executed about 175 transactions that added about 24,000 net acres, for upfront cash consideration of $1.15 billion, subject to customary post-closing adjustments. Other bolt-on and ground game deals in New Mexico totaled about $120 million.

The transactions include the acquisition of Ridge Runner Resources II, LLC and its affiliated royalty company from EnCap Investments L.P. portfolio companies, for initial cash consideration of approximately $1.03 billion.

The Ridge Runner deal carries potential contingent cash payments of up to $125 million, based on quarterly WTI prices over 2027 and 2028. The deal closed on Oct. 30, 2026, when it was producing about 6,000 barrels of oil a day. The company expects it to contribute about 4,000 barrels a day in the fourth quarter.

The company funded the Ridge Runner closing with cash on hand and the issuance of commercial paper.

Debt, leverage and dividend

The company redeemed $325 million in principal of legacy Earthstone 9.875% Senior Notes due 2031 during the quarter. Combined with $550 million of legacy Earthstone notes redeemed in the second quarter, the company said the redemptions reduce annual cash interest expense by about $75 million.

Leverage was about 0.5x, and the company expects less than 0.5x at year-end 2026.

The board declared a fourth-quarter base dividend of $0.16 per share, payable on Dec. 31, 2026 to shareholders of record as of Dec. 17, 2026. The company said the dividend represents an annualized yield of 2.7% as of Nov. 3, 2026.