Permian Resources Reports $1.94 Free Cash Flow Per Share Amid Record Low Drilling and Completion Costs

Permian Resources (PR) delivered $1.94 in free cash flow per share during the quarter, marking a significant milestone in the company’s financial performance. This result was achieved despite ongoing volatility in crude oil pricing, underscoring the resilience of its operating model. The company achieved a record low average D&C cost of $11.80 per lateral foot, a 12% improvement year-over-year. The decline in D&C expenses was attributed to enhanced rig utilization, optimized supply chain management, and the deployment of more efficient completion techniques across the company’s 150,000 net acres in the Delaware Basin. These operational gains enabled Permian Resources to maintain robust capital efficiency, with a cash conversion ratio of 138%, meaning for every dollar of capital invested, the company generated $1.38 in operating cash flow. The company also reported average production of 185,000 barrels of oil equivalent per day (boe/d), with a 94% recovery rate on new wells. This output, combined with cost reductions, allowed PR to return $220 million to shareholders through dividends and share repurchases during the quarter. The strong free cash flow generation supports the company’s commitment to maintaining a conservative leverage ratio of 1.5x net debt to EBITDA. Market participants responded positively to the results, with PR’s stock rising 6.3% in after-hours trading. Investors highlighted the company’s ability to deliver consistent shareholder returns amid a challenging macroeconomic backdrop. The performance also reinforces Permian Resources’ position as a top-tier operator in the U.S. shale sector, with a focus on long-term value creation through disciplined capital allocation.