Fourth Quarter (4Q) Update

Permian Resources to Grow Production 6% in 2026

Email    |    Print    |    Bookmark

You Need to login first

   |    Thursday,February 26,2026

Permian Resources exited 2025 as the largest pure-play Delaware Basin operator with ~480,000 net acres and >105,000 net royalty acres. The company averaged 392.6 MBoe/d in 2025, including 181.8 MBbls/d of oil, and generated $1.6 B of adjusted free cash flow while maintaining year-end leverage of ~0.9x Net Debt-to-LQA EBITDAX.

The 2026 plan reflects a continuation of disciplined capital allocation, improved capital efficiency and steady oil growth, while reducing absolute capital spending year over year.

2026 vs 2025 Operating Comparison

Operational Activity

Production

Total production averaged 393 MBoe/d in 2025. The 2026 midpoint implies ~415 MBoe/d, representing ~6% growth off a higher base. Oil production is expected to grow ~4% YoY to ~189 MBbls/d.

Capital Program

2025 cash capex totaled ~$1.97 B. The 2026 program is guided to ~$1.75–$1.95 B, with a midpoint of ~$1.85 B, representing a ~6% reduction despite higher volumes. The capital mix remains heavily weighted to high-return Delaware Basin development.

Drilling & Completions

Average D&C costs declined from ~$730 per lateral foot in 2025 to an expected ~$675 per foot in 2026 (~8% improvement).

Average lateral lengths are increasing from ~10,500 ft to ~11,000 ft (~5% increase), further enhancing capital efficiency.

The 2026 program targets ~250 gross TILs with average working interest of 75%–80%, and activity allocated ~65% New Mexico Delaware, ~30% Texas Delaware and ~5% Midland Basin.

Capital efficiency continues to improve, driven by longer laterals, consistent well productivity and lower per-foot well costs.

A&D Activity

2025 was an active year on the acquisition front:

~700 transactions closed
~$1.1 B deployed
~30,000 net acres added
~19,000 net royalty acres added
~13,000 Boe/d of production acquired

During Q4 alone, the company closed ~140 transactions for ~$240 MM, adding ~7,700 net acres and ~1,300 net royalty acres, largely concentrated in Northern Delaware, New Mexico.

Through acquisitions and organic expansion, PR added ~450 locations in 2025, including ~250 high-rate-of-return locations from bolt-on deals and ~200 organic additions.

Importantly, PR replaced >100% of inventory developed for the third consecutive year, reinforcing long-term inventory durability.

Balance Sheet & Capital Allocation

Year-end 2025 net debt was ~$3.4 B, equating to ~0.9x leverage.

2026 leverage is expected to decline toward ~0.7x at $60 WTI, within the company’s 0.5x–1.0x target range.

2025 capital allocation included:

~$635 MM of debt reduction
~$75 MM of share buybacks
~$1.1 B of acquisitions
Base dividend increased 7% entering 2026 to $0.64 per share annualized

Strategic Takeaways

Permian Resources enters 2026 with:

A higher production base
Lower per-foot well costs
Longer laterals
Reduced capital spending
Improving leverage

The 2026 plan reflects improved capital efficiency — delivering production growth while reducing capex — a rare combination in the current large-cap E&P landscape. The company remains highly concentrated in the Delaware Basin, but its scale, bolt-on execution and cost leadership position it to continue driving free cash flow per share growth through disciplined development and accretive A&D.