Permian Resources Q3 production rises 22% on acquisitions and cost control

Overview

• U.S. oil and gas producer's Q3 total production rose 22% quarter-over-quarter, oil up 5%

• Company generated $846 mln in adjusted free cash flow for Q3

• Company completed Ridge Runner Resources acquisition and other bolt-on deals

Outlook

• Permian Resources raises 2026 oil production guidance to 201,000–204,000 Bbls/d

• Company updates 2026 capital expenditures guidance to $1.975–$2.075 bln

• Permian Resources expects Q4 oil production of over 210 MBbls/d

Result Drivers

• HIGHER PRODUCTION - Co said increased oil, NGL and gas volumes drove Q3 results, aided by bringing high-GOR wells back online and maximizing output amid elevated prices

• COST CONTROL - Co attributed lower unit costs to operational efficiencies, including power and compression optimization and reduced G&A expenses

• ACQUISITIONS - Co said recent acquisitions expanded production capacity and inventory in the Delaware Basin

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Permian Resources Corporation is $28.00, about 16.7% above its November 3 closing price of $24.00

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Nov 2 - Diamondback Energy Q3 revenue beats on higher oil output

• Nov 3 - Matador Q3 adjusted EPS and net income beat estimates on record production

• Nov 3 - Ovintiv Q3 profit rises on higher energy prices, lower costs

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)