01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Permian Resources Corporation's first-quarter 2026 10-Q reports oil and gas sales of $1.39 billiona, essentially flat versus $1.38 billion a year earlier, while net income fell to $50.4 million from $390.6 million.
The decline was driven largely by a $339.9 millionb net loss on derivative instruments, which included a $369.3 million non-cash mark-to-market loss, compared with a $57.7 million gain in the prior-year period. Operating income was $467.2 million versus $504.5 million, and net production rose 11% to 412,850 Boe/d, helped by bolt-on acquisitions of $204.9 million. Realized natural gas prices turned negative, at $(0.29) per Mcf, due to negative regional Waha prices.
Balance sheet and capital return were the main structural developments in the quarter. The company reorganized into a new public holding company on January 7, 2026, and eliminated its noncontrolling interest by March 31, 2026. It achieved investment grade ratings from S&P in the first quarter and from Moody's on April 1, 2026, joining Fitch's rating from July 2025.
Total debt was $3.55 billionc, and the company paid $134.9 million in dividends ($0.16 per share). Subsequent to quarter end, it redeemed the $550.0 million 8.00% senior notes due 2027 on April 15, 2026, and entered an unsecured $3.0 billion revolving credit facility on April 30, 2026, which replaced the prior secured facility.
02—Key points
Key Highlights
- Oil and gas sales were $1,388.1 million, up 1% from $1,376.5 million, with oil sales up 11% to $1,227.6 million.
- Net income declined to $50.4 million from $390.6 million, largely due to a $339.9 million net loss on derivative instruments versus a $57.7 million gain a year earlier.
- Net production rose 11% to 412,850 Boe/d, with oil volumes up 10% and natural gas realized price at negative $0.29 per Mcf.
- Operating cash flow was $815.1 million, down $83.0 million from the prior-year period, and drilling and development capital expenditures were $466.2 million.
- The company achieved investment grade ratings from S&P (Q1 2026) and Moody's (April 1, 2026), and is now rated investment grade by all three agencies.
- Noncontrolling interest was fully eliminated by March 31, 2026, after the January 7, 2026 reorganization into a new public holding company.
- Subsequent events include redemption of $550.0 million 8.00% senior notes due 2027 and a new $3.0 billion unsecured revolving credit facility maturing April 2031.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.39B$1.38B | +0.8% |
| Operating Expenses | $920.90M$871.99M | +5.6% |
| Operating Income | $467.25M$504.46M | −7.4% |
| Net Income | $43.62M$329.30M | −86.8% |
| EPS (Basic) | $0.05$0.47 | −89.4% |
| EPS (Diluted) | $0.05$0.44 | −88.6% |
| Shares Outstanding (Basic) | 812.21M704.03M | +15.4% |
| Shares Outstanding (Diluted) | 827.96M748.20M | +10.7% |
05—Questions
Frequently Asked Questions
Why did net income fall so sharply in the first quarter of 2026?
Net income fell to $50.4 million from $390.6 million, mainly because of a $339.9 million net loss on derivative instruments, which included a $369.3 million non-cash mark-to-market loss. In the prior-year quarter the company recorded a $57.7 million gain on derivatives. Operating income also declined modestly to $467.2 million from $504.5 million.
How did commodity prices affect realized revenue?
Oil sales rose to $1,227.6 million, with realized oil price of $70.91 per Bbl, roughly flat versus $70.48. NGL realized prices fell 31% to $16.60 per Bbl, and natural gas realized prices turned negative at $(0.29) per Mcf due to negative regional Waha market prices. Oil including hedging effects was $68.10 per Bbl.
What changed in the company's debt and credit position?
Long-term debt, net, was $3.55 billion at March 31, 2026, with no borrowings under the prior secured credit facility. The company redeemed its $550.0 million 8.00% senior notes due 2027 on April 15, 2026. On April 30, 2026, it entered a $3.0 billion unsecured revolving credit facility maturing April 2031, which replaced the prior facility.
What is the company's capital return policy this quarter?
The company declared and paid quarterly base dividends of $0.16 per share of Class A Common Stock, totaling $134.9 million for the quarter. It did not repurchase any common stock in the open market during the first quarter of 2026.
What did the corporate reorganization change for shareholders?
On January 7, 2026, the company reorganized under a new public holding company that became the successor issuer and continued trading on the NYSE. Class C shares were exchanged for Class A shares, and the noncontrolling interest, which was 10% at December 31, 2025, was fully eliminated by March 31, 2026.
06—Continue