A month has gone by since the last earnings report for Permian Resources (PR). Shares have added about 17.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Permian Resources due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Permian Resources Corporation before we dive into how investors and analysts have reacted as of late.
Permian Resources Beats Q2 Earnings on Strong Price Realizations
Permian Resources reported second-quarter 2026 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 56 cents by 23.2%. The bottom line also increased significantly from the year-ago quarter's adjusted earnings of 27 cents. This outperformance was primarily driven by higher oil and NGL price realizations.
The company's oil and gas sales of $1.86 billion beat the Zacks Consensus Estimate of $1.64 billion by 13.3%. Revenues also increased from the year-ago quarter's $1.2 billion, aided by a higher year-over-year contribution from oil sales, NGL sales and purchased gas sales during the quarter.
On Aug. 5, 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 Sept. 30 for its shareholders on record as of Sept. 16.
Q2 Production Details
Permian Resources reported total average production of 376.4 thousand barrels of oil equivalent per day (MBoe/d), comprising 53% oil and 76% liquids, in the second quarter, down from 385.1 MBoe/d in the year-ago period. The figure missed the Zacks Consensus Estimate of 395,272 Boe/d.
Crude oil production averaged 198.1 thousand barrels per day (MBbls/d), up from 176.5 MBbls/d in the prior-year quarter. The figure beat the Zacks Consensus Estimate of 194.8 MBbls/d. Oil production increased, driven primarily by successful ground-game initiatives, which boosted the average working interest in second-quarter completions by 7% above the company's initial expectations. Production also benefited from a more than 50% quarter-over-quarter increase in high-return workover projects.
NGL production came in at 86.2 MBbls/d, down 11.9% year over year. It also missed the Zacks Consensus Estimate by 11.2%. Meanwhile, natural gas production totaled 552.9 million cubic feet per day (MMcf/d), down 16.8% year over year, and missed the Zacks Consensus Estimate by 11.1%.
Price Realizations
Permian Resources' average realized oil price was $97.81 per barrel in the second quarter, compared with $62.71 in the year-ago quarter. The figure beat the consensus mark of $94 per barrel.
The realized NGL price was $23.28 per barrel, up from $17.75 a year ago, and beat the consensus mark of $22.16 per barrel. The company's realized natural gas price was negative $2.40 per Mcf, in contrast to a positive 50 cents in the prior-year quarter. The consensus mark for the same was pegged at a negative of $2.41 per Mcf. Including hedges and purchased gas sales, the realized natural gas price was 38 cents per Mcf, compared with 76 cents a year ago.
Costs & Expenses
Total operating expenses in the quarter rose to $929.9 million from $900.1 million in the year-ago quarter. Lease operating expenses totaled $189.9 million, up from $187.9 million in the year-ago quarter. Severance and ad valorem taxes rose to $143.7 million from $94.9 million a year earlier and the Exploration and other expenses also rose to $9.8 million from $5.1 million in the year-ago quarter. On a per-unit basis, Lease operating expenses increased to $5.55 per Boe from $5.36 a year ago.
Financial Position
PR generated $1.5 billion of net cash provided by operating activities in the second quarter, compared with $1 billion in the year-ago quarter. Adjusted operating cash flow totaled $1.3 billion, while adjusted free cash flow came in at $750.7 million.
Cash capital expenditures were $521.4 million, up from the prior-year period's capital expenditures of $505 million. The company's capital-efficient operating model supported strong free cash flow generation despite continued investment in development and bolt-on acquisitions.
As of June 30, 2026, PR had $131.7 million in cash and cash equivalents. The company had a long-term debt of approximately $3 billion, reflecting a debt-to-capitalization of 20%.
2026 Guidance
Permian Resources raised its 2026 oil production target to 199 MBbls/d, up 10 MBbls/d from its initial February outlook. The increase reflects higher ownership in wells, more workover activity and production from the Ward County acquisition. The company expects full-year working interest above 80% and second-half oil production above 200 MBbls/d. Cash capital spending guidance was increased to $1.9-$2 billion, including about $25 million for Ward County. Full-year guidance calls for total production of 400,000-430,000 Boe/d and oil production of 197,000-201,000 Bbls/d. Controllable cash costs are projected at $7.15-$8.15 per Boe, with the updated plan still focused on cost control and capital efficiency.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 24.77% due to these changes.
VGM Scores
Currently, Permian Resources has a strong Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.
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. Notably, 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, Devon Energy (DVN), a stock from the same industry, has gained 13.2%. The company reported its results for the quarter ended June 2026 more than a month ago.
Devon Energy reported revenues of $7.42 billion in the last reported quarter, representing a year-over-year change of +73.1%. EPS of $1.57 for the same period compares with $0.84 a year ago.
For the current quarter, Devon Energy is expected to post earnings of $1.20 per share, indicating a change of +15.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +10.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Devon Energy. Also, the stock has a VGM Score of A.
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This article originally published on Zacks Investment Research (zacks.com).
