Permian Resources 2025 Q2 Earnings Record Net Income Amid Revenue Decline

Permian Resources (PR) reported its Q2 2025 earnings on August 7, 2025. While total revenue declined 3.9% to $1.20 billion from $1.25 billion in the same period a year ago, the company set a new 10-year record for net income, showcasing strong operational performance and cost efficiencies.

Revenue

Permian Resources reported total revenue of $1.20 billion in Q2 2025, a 3.9% decrease compared to $1.25 billion in Q2 2024. The company’s revenue is diversified across its core energy segments: oil, natural gas liquids (NGLs), and natural gas. Oil sales accounted for the largest portion, contributing $1.01 billion, followed by NGL sales at $158.02 million. Natural gas sales generated $30.17 million, and the company also reported $1.96 million from purchased gas sales, net. The decline in overall revenue was driven by lower average realized prices, particularly in natural gas, reflecting market volatility and broader industry trends.

Earnings/Net Income

Permian Resources’ net income reached $245.02 million in Q2 2025, marking a 20.7% decrease compared to $308.91 million in Q2 2024. Earnings per share (EPS) also declined by 21.1% to $0.30 from $0.38 in the prior year. Despite these declines, the company set a new record high for Q2 net income, reflecting strong operational efficiencies and cost management.

Price Action

The stock price of Permian Resources experienced a downturn in the wake of the earnings report. Over the latest trading day, the stock dropped 3.71%, while over the course of the full trading week, it fell 6.50%. For the month-to-date, the stock tumbled 8.18%, reflecting investor caution and market volatility following the earnings release.

Post Earnings Price Action Review

Despite the short-term price decline, investors who employed a post-earnings strategy of buying Permian Resources when the company outperformed expectations saw robust returns. The strategy of purchasing shares after an earnings beat and holding for 30 days yielded a 94.92% return, significantly outperforming the benchmark return of 58.63%. This strategy generated an excess return of 36.29% and achieved a compound annual growth rate of 26.15%, showcasing strong growth potential. Additionally, the strategy maintained a maximum drawdown of 0.00% and a Sharpe ratio of 0.58, demonstrating solid risk management and a balanced approach to growth and stability.

CEO Commentary

Will Hickey, Co-CEO of Permian Resources, emphasized the company’s operational performance, noting record achievements in drilling speed and completions cost efficiency. He highlighted the company’s continued leadership in low-cost operations and high-quality assets, which support strong shareholder returns across varying commodity cycles. James Walter, Co-CEO, added that the company executed $600 million in acquisitions and repurchased $43 million in shares at attractive prices. Both executives expressed confidence in the company’s ability to deliver strong returns and sustain momentum, supported by a robust balance sheet and liquidity.

Guidance

Permian Resources increased the mid-point of its full-year 2025 oil and total production guidance to 178.5 MBbls/d and 385.0 MBoe/d, respectively. The company expects cash capital expenditures of approximately $505 million for Q2 and anticipates strong cash flow from operations and adjusted free cash flow. It also expects less than $5 million in current income tax for 2025 and less than $50 million in cumulative current income tax for 2026 and 2027. The company maintains a strong liquidity position, with $451 million in cash on hand and total liquidity of approximately $3 billion.

Additional News

Permian Resources made significant strides in its M&A activities during Q2 2025, completing the APA New Mexico bolt-on acquisition, which added 13,000 net acres to its operations. The company also executed grassroots transactions, adding 1,300 net acres and 80 net royalty acres through 130 deals. These acquisitions were funded at a relatively low cost, demonstrating the company’s continued success in securing new resources. Additionally, Permian Resources repurchased 4.1 million shares for $43 million at an average price of $10.52 per share, reflecting confidence in its stock’s value. The company also received its inaugural investment grade credit rating from Fitch (BBB-), enhancing its financial credibility and opening doors to more favorable financing terms. Looking ahead, the company plans to pursue further investment grade ratings from S&P and Moody's, aiming to strengthen its financial standing further.