Key Highlights

  • Second-quarter output averaged 376,400 barrels of oil equivalent per day, with oil up 3% from the first quarter.
  • GAAP net income reached $792.5 million, or $0.93 per diluted share, while non-GAAP adjusted free cash flow was $751 million.
  • Permian Resources bought Ward County assets for about $520 million on July 31 and agreed an August 3 acreage trade.
  • Permian Resources redeemed $875 million of senior notes in 2026 and had no revolver borrowings at June 30.

Permian Resources (NYSE:PR) shares were trading near their 52-week high at USD 24.86 on October 19, 2026, up 1.10%. The Midland, Texas, oil and natural gas producer last reported on August 5, posting second-quarter net income of $792.5 million and updating its full-year guidance. Six large brokerages have posted ratings or targets since then, and third-quarter results are due after the market closes on November 4.

Six brokerages have weighed in since the August results

Morgan Stanley raised its target to $27 from $25 on October 15 and kept an Overweight rating. Wells Fargo lifted its target to $28 from $27 on October 14, also at Overweight. On October 12, Citi and Truist each moved their targets to $28 from $24 and kept Buy ratings. RBC Capital Markets reiterated an Outperform rating with a $27 target on September 24, and UBS raised its target to $29 from $24 on September 14 with a Buy rating. The price sits below all six targets. These are the firms' own views, not a forecast.

A GAAP profit, higher oil output and a busy second quarter

Total operating revenues were $1,858.0 million in the second quarter. Net income was $792.5 million, or $0.93 per diluted share. Production averaged 376,400 barrels of oil equivalent per day, with oil at 198,100 barrels, up from 192,300 in the first quarter, a gain the company credits to a higher working interest and more workovers.

On a non-GAAP basis, adjusted net income was $591 million, or $0.69 per adjusted diluted share, and adjusted free cash flow was $751 million, or $0.88 per diluted share. The company described the per-share figure as a quarterly record. Cash capital expenditures were $521 million, against $466 million in the first quarter.

Negative gas prices, new acreage and the balance sheet

Natural gas was the weak spot. Waha benchmark prices averaged a negative $3.14 per Mcf in the quarter, so the company curtailed high gas-to-oil ratio wells and cut gas output about 20% from the first quarter, to 552.9 million cubic feet a day, and its unhedged realized gas price was negative $1.74 per Mcf.

The Ward County deal added about 20,500 net acres in the Texas Delaware Basin and about 5,000 barrels of oil equivalent per day, roughly half of it oil. The August 3 trade would swap about 8,300 mostly non-operated net acres for about 11,100 contiguous operated net acres, and the company expected it to close in the third quarter. Its August 5 deck put year-to-date acquisitions at about 54,000 net acres for about $1.05 billion across roughly 190 transactions.

At June 30, cash was $131.7 million and the company carried long-term debt of $2.99 billion. The company redeemed $550 million of 8.00% notes due 2027 on April 15 and $325 million of 9.875% notes due 2031 on July 15, and its new $3.0 billion senior unsecured revolver, which matures April 30, 2031, was undrawn.

Guidance and what comes next

Full-year 2026 oil production guidance is 197,000 to 201,000 barrels per day, up 10,000 since February, the deck says. Total production guidance of 400,000 to 430,000 barrels of oil equivalent per day was unchanged, and the deck cites the second-quarter curtailments. Cash capital expenditure guidance of $1.9 billion to $2.0 billion was updated, with about $25 million tied to Ward County. For the second half, the company expects oil production above 200,000 barrels per day and capital spending below $1 billion. These are the company's own estimates.

The board declared a quarterly base dividend of $0.16 per share on August 5, payable September 30 to holders of record on September 16. The company made no share repurchases in the first half, and its deck lists an authorization of about $925 million.