Permian Resources Reports 5% Rise in Third-Quarter Oil Production

The Tip Desk · November 5, 2026 · 3 min read

Third-quarter 2026 total output reached 457,528 Boe/d and adjusted free cash flow was $846 million as the company lifted its 2026 oil midpoint to 202.5 MBbls/d.

Permian Resources Corporation (PR), the Delaware Basin oil and gas producer, reported average daily oil production of 208,029 barrels a day in the third quarter, a 5% increase from the prior quarter after a 3% sequential rise in the second quarter.

Total production was 457,528 barrels of oil equivalent a day, up 22% from the second quarter’s 376.4 MBoe/d. That second-quarter total had fallen from 412,850 Boe/d in the first quarter after the company curtailed high-GOR wells exposed to negative Waha natural gas prices.

NGL volumes rose 37% to 118,312 barrels a day and natural gas volumes rose 42% to 787,125 Mcf/d as those wells were placed back online. The company said it sought to maximize oil production wherever economically feasible while maintaining low unit costs. Realized oil prices were $85.73 a barrel, down from $97.81 in the second quarter. NGL realizations were $24.22 a barrel. Natural gas realizations were $0.74 per Mcf in the release’s prose and $0.72 per Mcf in its operating highlights table.

Oil and gas sales were $1,957.7 million, compared with $1,321.8 million a year earlier. Oil sales were $1,640.8 million, NGL sales $263.6 million and natural gas sales $52.0 million. The company said it increased the amount of natural gas priced at Gulf Coast and DFW markets as incremental firm transportation agreements came into effect.

Adjusted free cash flow was $846 million, up from $751 million in the second quarter, with cash provided by operating activities of $1,255 million and cash capital expenditures of $518 million. Co-CEO Will Hickey said the company generated that free cash flow despite lower oil prices.

Total controllable cash costs fell to a company-record $7.05 a barrel of oil equivalent. Lease operating expenses were $5.11 a Boe, down 8% from the prior quarter, and cash G&A was $0.73 a Boe, down 16%. Gathering, processing and transportation was $1.21 a Boe. The company attributed lower LOE to optimization of power and compression projects.

Net income attributable to Class A common stock was $420.2 million, or $0.49 a share diluted, versus $59.2 million, or $0.08 a share diluted, a year earlier.

Since its last update, Permian Resources executed about 175 transactions adding about 24,000 net acres, 9,000 net royalty acres and about 200 net 10,000-foot locations and 13,000 Boe/d of production for about $1.15 billion in upfront cash consideration, subject to customary post-closing adjustments, plus potential contingent cash payments tied to future oil prices. The Ridge Runner Resources II bolt-on, an EnCap portfolio company, accounted for about $1.025 billion of initial cash consideration. Additional bolt-ons and ground-game deals in New Mexico were about $120 million. Ridge Runner was producing about 6 MBbls/d of oil at closing on October 30, 2026.

The company raised the midpoint of full-year 2026 oil production guidance to 202.5 MBbls/d, a 13.5 MBbls/d increase from its February plan, citing strong new well and base performance, increased working interest and continued workover activity. Cash capital expenditures guidance was updated to $1.975 billion to $2.075 billion.

For the fourth quarter, Permian Resources expects oil production of over 210 MBbls/d with cash capital expenditures similar to the third quarter. Ridge Runner is expected to contribute about 4 MBbls/d in that period.

During the quarter the company redeemed $325 million of legacy Earthstone 9.875% senior notes due 2031. Combined with $550 million redeemed in the second quarter, those redemptions reduce annual cash interest expense by about $75 million. Leverage was about 0.5x. The board declared a fourth-quarter base dividend of $0.16 a share.