Permian Resources Corporation (PR) reported strong financial performance in its third-quarter earnings call, highlighting record free cash flow and production growth despite lower oil prices. The company generated $0.98 per share in free cash flow, exceeding its original plan by roughly $0.35 per share after adjusting for current pricing. Management attributed this success to efficiency, disciplined spending, and careful investment strategies.
Production increased across all streams, with oil output averaging 208,000 barrels per day and total output reaching 458,000 BOE per day. Controllable cash costs fell to a record low of $7.05 per BOE, driven by power and compression optimization, and artificial-lift monitoring. The company also drilled five of its fastest wells ever, including a record of more than 2,700 feet per day, which helped lower drilling and completion costs.
Gas volumes and realizations rebounded significantly, with natural gas production rising 42% from the second quarter to about 787 million cubic feet per day. The company began delivering gas through Hugh Brinson, reducing its exposure to the Waha market. Full-year oil guidance was raised to a midpoint of 202,000 barrels per day, representing 11% growth from last year.
Permian Resources completed 175 transactions during the quarter, adding 24,000 net acres and 13,000 BOE per day of production. The Ridge Runner acquisition is expected to generate at least 5% free cash flow per share accretion over two, five, and 10 years. Management emphasized that the balance sheet provides strategic flexibility, supporting further acquisitions or shareholder returns.