01—Abstract
Summary
Summary of the 8-K filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Permian Resources Corporation (NYSE: PR) reported first quarter 2025 results on May 7, 2025, alongside revised full-year 2025 guidance and an agreement to acquire APA Corporation's Northern Delaware Basin assets.
The company reported crude oil and total average production of 175.0 MBbls/d and 373.2 MBoe/d, net cash provided by operating activities of $898 milliona, and adjusted free cash flow of $460 million, which the company described as the highest in its history. Cash capital expenditures were $501 million, and the company closed the Barilla Draw gathering systems divestiture for $180 million. The company lowered the midpoint of its full-year 2025 capital budget by $50 million to a range of $1.9 to $2.0 billion, while maintaining its oil and total production guidance ranges.
Leverage was 0.8x net debt-to-LQA EBITDAX, with cash of $702 millionb and total liquidity of $3.2 billion. The company also declared a second-quarter base dividend of $0.15 per share and repurchased 4.1 million shares in April at a weighted average price of $10.52 per share.
The pending bolt-on acquisition from APA Corporation covers approximately 13,320 net acres and 8,700 net royalty acres for $608 millionc, adding about 12,000 Boe/d (roughly 45% oil) to second-half 2025 production. The company expects the deal to close by the end of the second quarter of 2025 and states that it is not included in revised standalone guidance.
02—Key points
Key Highlights
- Q1 2025 net cash provided by operating activities of $898 million and adjusted free cash flow of $460 million, described as the highest adjusted free cash flow in company history
- Production of 175.0 MBbls/d crude oil and 373.2 MBoe/d total; oil production was 174,967 Bbls/d, a 2% increase versus the prior quarter
- Full-year 2025 cash capex range reduced to $1.9–$2.0 billion from $1.9–$2.1 billion; oil and total production guidance maintained
- Agreement to acquire APA Corporation's Northern Delaware Basin assets for $608 million, including 13,320 net acres and 8,700 net royalty acres, expected to close by end of Q2 2025
- Balance sheet: leverage of 0.8x, cash of $702 million, total debt of $4.0 billion, and total liquidity of $3.2 billion with the revolver undrawn
- Declared a second-quarter 2025 base dividend of $0.15 per share and repurchased 4.1 million shares in April for $43 million, with a $1 billion repurchase authorization in place
- Q1 2025 net income attributable to Class A Common Stock of $329.3 million, or $0.44 per diluted share, compared with $146.6 million in Q1 2024
03—Questions
Frequently Asked Questions
What is the APA Corporation acquisition and when is it expected to close?
Permian Resources agreed to purchase approximately 13,320 net acres, 8,700 net royalty acres and 12,000 Boe/d of production from APA Corporation's Northern Delaware Basin assets for $608 million, subject to customary purchase price adjustments. The transaction is expected to close by the end of the second quarter of 2025.
Did the company change its 2025 guidance?
The company reduced its total cash capital expenditure range to $1.9–$2.0 billion from $1.9–$2.1 billion and now expects about 275 gross wells to turn-in-line. It maintained its standalone oil production guidance of 170,000–175,000 Bbls/d and total production guidance of 360,000–380,000 Boe/d. The potential impact of the APA acquisition is not included in the revised standalone guidance.
How strong is the company's balance sheet?
At March 31, 2025, net debt-to-LQA EBITDAX was 0.8x, cash and cash equivalents were $702 million, total debt was $4.0 billion, and total liquidity was $3.2 billion. The revolving credit facility was undrawn. The company redeemed $175 million of legacy Earthstone 9.875% Senior Notes in January 2025.
What are the company's shareholder return plans?
The Board declared a second-quarter 2025 base dividend of $0.15 per share, payable June 30, 2025 to holders of record as of June 16, 2025, representing an annualized yield of 5.0% as of May 6, 2025. In April, the company repurchased 4.1 million shares for $43 million at a weighted average price of $10.52 per share, and a $1 billion repurchase authorization is in place.
What did the company report for drilling costs and operating expenses in Q1 2025?
Drilling and completion costs were approximately $750 per lateral foot, an 8% reduction compared to 2024. Total controllable cash costs decreased $0.30 per Boe quarter-over-quarter to $7.54 per Boe, with LOE of $5.35 per Boe, GP&T of $1.39 per Boe and cash G&A of $0.80 per Boe.
04—Continue