PR

Northern Oil and Gas, Inc. NOG reported second-quarter 2026 adjusted earnings per share of $1.13, which beat the Zacks Consensus Estimate of $1.02. The outperformance reflects strong natural gas production. However, the bottom line declined from the year-ago adjusted profit of $1.37 due to weaker natural gas prices. The Minnetonka, MN-based oil and gas exploration and production company reported oil and gas sales of $671 million, beating the Zacks Consensus Estimate of $546 million. Moreover, the top line increased from the year-ago figure of $574 million, driven by higher oil price realization. Northern Oil and Gas, Inc. price-consensus-eps-surprise-chart | Northern Oil and Gas, Inc. Quote On June 1, the company closed the Duvernay Light Oil Joint Development for total consideration of $262.1 million. During the quarter, NOG completed 30 ground game transactions, adding over 2,300 net acres and an additional 6.2 net wells for $44.7 million, which was inclusive of associated development costs. During the second quarter, Northern Oil and Gas repurchased 2.95 million shares of common stock at an average price of $20.37, including commissions and increased the share repurchase authorization program to about $243 million. The second-quarter production increased 9% year over year to 145,659 barrels of oil equivalent per day (Boe/d). Additionally, the figure beat our estimate of 143,105 Boe/d. While oil volume totaled 68,275 Bopd (an 11% decrease year over year), natural gas (and natural gas liquids) amounted to 464,330 thousand cubic feet per day (a 35% increase). Our model estimate for oil volume and natural gas production was pegged at 71,300 Bopd and 415,800 thousand cubic feet per day, respectively. The average sales price for crude was $90.02 per barrel, indicating a 54% increase from the prior-year quarter’s level of $58.37. Moreover, the figure beat our expectation of $69.40 per barrel. The average realized natural gas price was $2.64 per thousand cubic feet compared with $2.89 in the year-earlier period. Our model estimate for the same was pinned at $2.32 per thousand cubic feet. Total operating expenses in the quarter decreased to $392.7 million from $530.6 million in the year-ago period. This was mainly on account of a reduction in production expenses, legal settlement expense, depletion, depreciation, amortization and accretion expenses, impairment of oil and gas assets expenses, and other expenses. The metric was below our estimate of $400.1 million. The company reported capital expenditures of $195.8 million for the second quarter, excluding non-budgeted acquisitions and other unplanned items. Of this total, $151 million was dedicated to drilling and completion activities on organic assets, while $44.7 million was allocated to Ground Game efforts, including associated development costs. During the second quarter, NOG placed 12.7 net wells into production. This Zacks Rank #3 (Hold) company’s free cash flow for the quarter totaled $159 million. As of June 30, 2026, Northern Oil and Gas had $47.6 million in cash and cash equivalents. The company had a long-term debt of $2.7 billion, with a debt-to-capitalization of 57.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. While we have discussed NOG’s second-quarter results in detail, let us take a look at three other key reports in the energy space. U.S. energy operator APA Corporation APA reported second-quarter 2026 adjusted earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.85. The bottom line rose from the year-ago adjusted profit of 87 cents. The outperformance was primarily driven by higher realized oil prices and lower year-over-year expenses. Revenues of $2.4 billion were down 8.2% from the year-ago quarter’s sales and missed the Zacks Consensus Estimate by 1.5%, caused by a decrease in natural gas revenues. As of June 30, APA had $444 million in cash and cash equivalents and $3.7 billion in long-term debt, representing a debt-to-capitalization of 34.8%. Magnolia Oil & Gas Corporation MGY reported a second-quarter 2026 net profit of 99 cents per share, which beat the Zacks Consensus Estimate of 90 cents. The bottom line more than doubled from the year-ago quarter’s 43 cents. This outperformance can be attributed to higher oil and NGL prices and growth in overall production volumes. The oil and gas exploration and production company’s total revenues were $479 million, which beat the Zacks Consensus Estimate of $440 million. The top line also increased 50.2% from $319 million recorded in the year-ago period, driven by higher revenues from oil and natural gas liquids (NGL). As of June 30, 2026, Magnolia had cash and cash equivalents of $295.9 million. The company had long-term debt of $393.6 million, reflecting a debt-to-capitalization of 15.5%. Permian Resources Corporation PR reported second-quarter 2026 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 56 cents by 23.2%. The bottom line also increased significantly from the year-ago quarter’s adjusted earnings of 27 cents. This outperformance was primarily driven by higher oil and NGL price realizations. The company’s oil and gas sales of $1.86 billion beat the Zacks Consensus Estimate of $1.64 billion by 13.3%. Revenues also increased from the year-ago quarter’s $1.2 billion, aided by a higher year-over-year contribution from oil sales, NGL sales and purchased gas sales during the quarter. As of June 30, 2026, PR had $131.7 million in cash and cash equivalents. The company had a long-term debt of approximately $3 billion, reflecting a debt-to-capitalization of 20%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northern Oil and Gas, Inc. (NOG) : Free Stock Analysis Report APA Corporation (APA) : Free Stock Analysis Report Magnolia Oil & Gas Corp (MGY) : Free Stock Analysis Report Permian Resources Corporation (PR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Permian Resources (NYSE:PR) and the rest of the u.s. shale e&p stocks fared in Q2. US shale oil producers extract crude from tight rock formations using horizontal drilling and hydraulic fracturing (fracking) techniques, primarily in basins like the Permian, Bakken, and Eagle Ford. Tailwinds include short-cycle investment flexibility allowing rapid production adjustments, technological improvements enhancing well productivity, and proximity to refining and export infrastructure. Capital discipline has improved financial returns. Headwinds include commodity price sensitivity affecting drilling economics, accelerating well decline rates requiring continuous capital investment, and increasing regulatory and ESG scrutiny. Water usage, induced seismicity concerns, and evolving environmental regulations present ongoing operational challenges. The 11 U.S shale E&P stocks we track reported an exceptional Q2. As a group, revenues beat analysts’ consensus estimates by 10.6%. Thankfully, share prices of the companies have been resilient as they are up 6.4% on average since the latest earnings results. Controlling roughly 450,000 net acres in America's most productive oil patch, Permian Resources (NYSE:PR) is an oil and natural gas producer that drills wells and extracts hydrocarbons from underground reservoirs in West Texas and New Mexico. Permian Resources reported revenues of $1.86 billion, up 55.1% year on year. This print exceeded analysts’ expectations by 10.7%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates. Interestingly, the stock is up 6.8% since reporting and currently trades at $21.15. Read why we think that Permian Resources is one of the best u.s. shale e&p stocks, our full report is free. Operating in the oil-rich northeastern corner of the Midland Basin where Howard and Borden counties meet, HighPeak Energy (NASDAQ:HPK) explores for, develops, and produces crude oil, natural gas liquids, and natural gas. HighPeak Energy reported revenues of $272.4 million, up 25.8% year on year, outperforming analysts’ expectations by 8.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.2% since reporting. It currently trades at $7.51. Is now the time to buy HighPeak Energy? Access our full analysis of the earnings results here, it’s free. One of America's largest private landowners with roughly 868,000 acres in the Permian Basin, Texas Pacific Land (NYSE:TPL) owns land in West Texas and earns revenue from oil and gas royalties, water services, and land leases. Texas Pacific Land reported revenues of $246.1 million, up 31.2% year on year, falling short of analysts’ expectations by 1.4%. It was a mixed quarter as it posted a decent beat of analysts’ EBITDA estimates. Texas Pacific Land delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.3% since the results and currently trades at $346.52. Read our full analysis of Texas Pacific Land’s results here. Operating in counties where legacy oil fields have been producing since the early 1900s, Riley Exploration Permian (NYSE:REPX) drills for and produces oil and natural gas from horizontal wells in the Permian Basin of West Texas and New Mexico. Riley Exploration Permian reported revenues of $165.9 million, up 94.2% year on year. This print surpassed analysts’ expectations by 11.8%. All in all, it was a strong quarter for the company. The stock is up 7.6% since reporting and currently trades at $35.51. Read our full, actionable report on Riley Exploration Permian here, it’s free. Operating primarily in the Delaware Basin where multiple oil-bearing layers lie stacked thousands of feet deep, Matador Resources (NYSE:MTDR) explores for, drills, and produces oil and natural gas from underground rock formations in New Mexico and Texas. Matador Resources reported revenues of $1.19 billion, up 32.5% year on year. This number beat analysts’ expectations by 13.7%. Overall, it was an incredible quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. The stock is up 9.7% since reporting and currently trades at $51.60. Read our full, actionable report on Matador Resources here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? 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Helmerich & Payne, Inc. HP reported a third-quarter fiscal 2026 adjusted net loss of 11 cents per share, in sharp contrast with the Zacks Consensus Estimate of adjusted net income of 11 cents. Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 22 cents. This was primarily due to an adjustment made for a gain of $115 million related to the sale of Utica Square and lower-than-expected performance of the company's North America Solutions segment. Operating revenues of $1 billion beat the Zacks Consensus Estimate of $988 million. Sales from Drilling Services beat the consensus mark by 4.4%. However, the figure decreased by $6 million from the year-ago quarter’s level. This was primarily caused by lower year-over-year revenues from the North America Solutions and International Solutions segments. Helmerich & Payne, Inc. price-consensus-eps-surprise-chart | Helmerich & Payne, Inc. Quote The company distributed approximately $25 million to its shareholders as part of its ongoing dividend program. North America Solutions: Operating revenues of $562.9 million were down 5% year over year, with 142 average active rigs. The top line beat our model projection of $546.1 million. Operating profit totaled $140.3 million compared with $157.6 million in the prior-year period. The reported figure also beat our model estimate of $113.1 million. International Solutions: Operating revenues of $250.1 million decreased 5.9% from the year-ago quarter’s level of $265.8 million. However, the top line beat our projection of $234.9 million. Operating loss reached $54.4 million, compared with the prior-year period loss of $166.5 million. The figure was below our projected loss of $93 million. Offshore Solutions: Revenues of $174.4 million increased 7.8% from the year-ago quarter’s level of $161.8 million. The top line beat our projection of $157.5 million. Operating profit totaled $16.8 million compared with $8.8 million in the year-ago quarter.  The figure beat our estimate of $11 million. HP’s Financial Position As of June 30, 2026, this Zacks Rank #3 (Hold) company spent $200.2 million on capital programs. HP had $204.4 million in cash and cash equivalents, while the long-term debt totaled $1.8 billion (debt-to-capitalization of 41%). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Helmerich & Payne’s fourth-quarter fiscal 2026 outlook points to continued strength in North America, more variable international performance and stable offshore operations. For North America Solutions, the company expects direct margin of $245 million to $255 million, with an average of 145 to 151 active rigs, compared with a fiscal-year average rig range of 140 to 144. International Solutions is expected to generate direct margin of $25 million to $45 million on 60 to 70 average rigs, compared with a fiscal-year average rig range of 60 to 66. Offshore Solutions is projected to deliver direct margin of $26 million to $30 million in the fiscal fourth quarter, while full-year direct margin is expected at $113 million to $117 million, supported by 30 to 35 average rigs/management contracts. The “Other” segment is expected to contribute up to $5 million of direct margin. For the full fiscal 2026, HP expects gross capital expenditures of $270 million to $310 million, depreciation of approximately $700 million, research and development expense of about $28 million, Selling, general & administrative expenses of $265 million to $285 million, cash taxes of $150 million to $180 million, and interest expense of roughly $100 million. Overall, the outlook implies a relatively constructive finish to fiscal 2026, led by higher North American activity and margins. While we have discussed HP’s fiscal third-quarter results in detail, let us take a look at three other key reports in this space. U.S. energy operator APA Corporation APA reported second-quarter 2026 adjusted earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.85. The bottom line rose from the year-ago adjusted profit of 87 cents. The outperformance was primarily driven by higher realized oil prices and lower year-over-year expenses. Revenues of $2.4 billion were down 8.2% from the year-ago quarter’s sales and missed the Zacks Consensus Estimate by 1.5%, caused by a decrease in natural gas revenues. As of June 30, APA had $444 million in cash and cash equivalents and $3.7 billion in long-term debt, representing a debt-to-capitalization of 34.8%. Magnolia Oil & Gas Corporation MGY reported a second-quarter 2026 net profit of 99 cents per share, which beat the Zacks Consensus Estimate of 90 cents. The bottom line more than doubled from the year-ago quarter’s 43 cents. This outperformance can be attributed to higher oil and NGL prices and growth in overall production volumes. The oil and gas exploration and production company’s total revenues were $479 million, which beat the Zacks Consensus Estimate of $440 million. The top line also increased 50.2% from $319 million recorded in the year-ago period, driven by higher revenues from oil and natural gas liquids (NGL). As of June 30, 2026, Magnolia had cash and cash equivalents of $295.9 million. The company had long-term debt of $393.6 million, reflecting a debt-to-capitalization of 15.5%. Permian Resources Corporation PR reported second-quarter 2026 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 56 cents by 23.2%. The bottom line also increased significantly from the year-ago quarter’s adjusted earnings of 27 cents. This outperformance was primarily driven by higher oil and NGL price realizations. The company’s oil and gas sales of $1.86 billion beat the Zacks Consensus Estimate of $1.64 billion by 13.3%. Revenues also increased from the year-ago quarter’s $1.2 billion, aided by a higher year-over-year contribution from oil sales, NGL sales and purchased gas sales during the quarter. As of June 30, 2026, PR had $131.7 million in cash and cash equivalents. The company had a long-term debt of approximately $3 billion, reflecting a debt-to-capitalization of 20%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report APA Corporation (APA) : Free Stock Analysis Report Magnolia Oil & Gas Corp (MGY) : Free Stock Analysis Report Permian Resources Corporation (PR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Permian Resources (PR) is drawing attention after reporting Q2 2026 net income of US$792.46 million, sharply higher than a year earlier, alongside updated production guidance and a reaffirmed cash dividend. See our latest analysis for Permian Resources. The strong Q2 report and higher full year production guidance come after a period of firm momentum, with Permian Resources posting a year to date share price return of 49.31% and a 1 year total shareholder return of 66.34%. If earnings driven moves in energy stocks have your attention, this can be a good moment to widen your watchlist and check out 30 elite gold producer stocks After a 49.31% year to date rise, Permian Resources still trades about 19% below the current analyst price target and at a steep modelled intrinsic discount. Is the market applying healthy caution, or leaving too much on the table? At a last close of $21.50, the most followed narrative for Permian Resources points to a fair value of $32.00, which suggests a sizeable valuation gap that hinges on how durable its cost and balance sheet advantages prove to be. Read the complete narrative. Low lifting costs. Falling well costs. A balance sheet that has shifted gears. Curious which production, pricing and margin paths support a $32.00 narrative fair value. Result: Fair Value of $32.00 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Permian Resources bull case still leans heavily on oil prices holding up and on successful integration of recent acquisitions without eroding its low cost edge. Find out about the key risks to this Permian Resources narrative. With sentiment on Permian Resources split between optimism and caution, this may be a useful time to act promptly and assess the full picture yourself. To see both sides in one place, start with the 3 key rewards and 2 important warning signs. If Permian Resources has sharpened your focus, do not stop here. The right mix of quality, value and resilience can shape your next investing move. Spot potential bargains early by checking out 50 high quality undervalued stocks that currently offer a mix of quality fundamentals and attractive pricing. Prioritise strength and stability with the solid balance sheet and fundamentals stocks screener (50 results) so you are focusing on companies that appear built to handle tougher conditions. Hunt for fresh opportunities using the screener containing 18 high quality undiscovered gems before the wider market starts paying closer attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Permian Resources has delivered a very large 5 year return, yet its current checks on valuation offer a more measured read, with the stock screening as undervalued on earnings multiples but only earning a mixed overall value score. Over the past 5 years, Permian Resources has returned very close to 5x an initial investment, which makes the current price level especially important for anyone thinking about upside from here. Expected cash generation from Permian's acreage and development pipeline can support the present valuation, while ongoing capital needs for drilling and acquisitions may limit how much of that cash ultimately reaches shareholders. On Simply Wall St's framework Permian Resources scores 4 out of 6 valuation checks, which points to a stock that looks cheap on some measures but not like an across the board bargain. The issue now is whether Permian Resources' recent share price around US$21.50 still offers an attractive entry point after such a strong multi year run. Permian Resources delivered 66.3% returns over the last year. See how this stacks up to the rest of the Oil and Gas industry. The P/E ratio is a useful yardstick for Permian Resources because earnings remain a key anchor for how investors assess an oil and gas producer. At a current P/E of about 14.6x, Permian Resources trades above the sector average of roughly 12.5x for other oil and gas stocks, yet still sits well below the peer group average near 50.9x. Simply Wall St's fair P/E ratio for Permian Resources is about 19.0x, which is higher than where the stock currently trades. That indicates the market is pricing Permian Resources below the level implied by its earnings profile, industry, size and risk factors. While investors are not paying a rock-bottom multiple, the gap between the current P/E and this fair ratio points to a stock that still screens on the cheaper side on earnings. On the P/E multiple alone, Permian Resources appears undervalued relative to the earnings-based fair value estimate. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Permian Resources pick up where the P/E discussion leaves off. They spell out which paths for future growth, margins and earnings would need to play out for the stock to be worth materially more or less than today’s price on the Community page. Instead of a single number from a ratio or model, they lay out the underlying future it depends on so you can see whether those assumptions actually hold over time. One of the top community narratives on Permian Resources: 33% undervalued Read one of the top narratives on Permian Resources Do you think there's more to the story for Permian Resources? Head over to our Community to see what others are saying! Permian Resources still screens as undervalued on earnings multiples, although the broader valuation checks are only mixed rather than overwhelmingly supportive. The very large recent share price move means expectations are higher, so the current discount on the P/E ratio is not a clear-cut margin of safety. For many investors the key question now is whether Permian Resources can keep converting its acreage and development pipeline into durable earnings without capital demands eroding that perceived value advantage. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Permian Resources posted a strong second quarter, outperforming Wall Street’s expectations on both revenue and adjusted earnings, which was met with a positive market reaction. Management attributed these results to a mix of increased oil production, effective capital allocation, and swift operational responses to commodity price volatility. Co-CEO William Hickey highlighted the company’s ability to quickly scale up workover activity to capture higher oil prices, as well as successful efforts to increase working interest in completed wells. The team’s focus on operational efficiency, particularly in water recycling and drilling, was also emphasized as a driver of improved margins. Is now the time to buy PR? Find out in our full research report (it’s free). Revenue: $1.86 billion vs analyst estimates of $1.68 billion (55.1% year-on-year growth, 10.7% beat) Adjusted EPS: $0.69 vs analyst estimates of $0.59 (16.9% beat) Operating Margin: 50%, up from 24.8% in the same quarter last year Oil production: up 12.2% year on year Market Capitalization: $17.97 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Scott Hanold (RBC Capital Markets) asked about the sustainability of Permian Resources’ ground game M&A and whether larger asset packages are being considered. Co-CEO James Walter explained that while disciplined on larger deals, the company is confident in continuing smaller, accretive acquisitions, saying, “The opportunity set in front of us looks as good as it ever has.” Neal Dingmann (William Blair) questioned whether recent bolt-on activity in Eddy County signals a move northward in New Mexico. Walter responded that while there is potential for expansion, most activity will remain focused on optimizing existing positions, with strong well performance seen in new areas. Neil Mehta (Goldman Sachs) sought details on operational initiatives to stay ahead of expectations. Co-CEO William Hickey cited progress in water recycling and new drilling technologies, noting these have helped offset rising diesel and casing costs and improved operational efficiency. John Freeman (Raymond James) inquired about changes to capital allocation given strong cash generation. Walter confirmed that the priority remains consistent dividend growth and that current cash allocation between acquisitions, debt repayment, and shareholder returns is expected to continue. Kevin MacCurdy (Pickering Energy Partners) asked for clarity on the bridge between old and new production and capital guidance. CFO Guy Oliphint explained that higher working interest, minimal acquired production, and accelerated workovers were the main contributors to increased production guidance, while cost discipline kept capital requirements efficient. Looking ahead, the StockStory team will be monitoring (1) the execution and integration of recently acquired acreage, (2) ongoing progress in operational efficiency initiatives such as water recycling and drilling innovation, and (3) the sustainability of disciplined capital allocation amid volatile commodity prices. Additional attention will be paid to results from surfactant trials and the success of further bolt-on acquisitions. Permian Resources currently trades at $21.26, up from $19.79 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Permian Resources Corporation PR reported second-quarter 2026 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 56 cents by 23.2%. The bottom line also increased significantly from the year-ago quarter’s adjusted earnings of 27 cents. This outperformance was primarily driven by higher oil and NGL price realizations. The company’s oil and gas sales of $1.86 billion beat the Zacks Consensus Estimate of $1.64 billion by 13.3%. Revenues also increased from the year-ago quarter’s $1.2 billion, aided by a higher year-over-year contribution from oil sales, NGL sales and purchased gas sales during the quarter. Permian Resources Corporation price-consensus-eps-surprise-chart | Permian Resources Corporation Quote On Aug. 5, 2026, the Midland, TX-based exploration and production company declared a quarterly base dividend of 16 cents per Class A common share, translating to an annualized dividend of 64 cents. The payout is scheduled for Sept. 30 for its shareholders on record as of Sept. 16. Permian Resources reported total average production of 376.4 thousand barrels of oil equivalent per day (MBoe/d), comprising 53% oil and 76% liquids, in the second quarter, down from 385.1 MBoe/d in the year-ago period. The figure missed the Zacks Consensus Estimate of 395,272 Boe/d. Crude oil production averaged 198.1 thousand barrels per day (MBbls/d), up from 176.5 MBbls/d in the prior-year quarter. The figure beat the Zacks Consensus Estimate of 194.8 MBbls/d. Oil production increased, driven primarily by successful ground-game initiatives, which boosted the average working interest in second-quarter completions by 7% above the company’s initial expectations. Production also benefited from a more than 50% quarter-over-quarter increase in high-return workover projects. NGL production came in at 86.2 MBbls/d, down 11.9% year over year. It also missed the Zacks Consensus Estimate by 11.2%. Meanwhile, natural gas production totaled 552.9 million cubic feet per day (MMcf/d), down 16.8% year over year, and missed the Zacks Consensus Estimate by 11.1%. Permian Resources’ average realized oil price was $97.81 per barrel in the second quarter, compared with $62.71 in the year-ago quarter. Moreover, the figure beat the consensus mark of $94 per barrel. The realized NGL price was $23.28 per barrel, up from $17.75 a year ago, and beat the consensus mark of $22.16 per barrel. The company’s realized natural gas price was negative $2.40 per Mcf, in contrast to a positive 50 cents in the prior-year quarter. The consensus mark for the same was pegged at a negative of $2.41 per Mcf. Including hedges and purchased gas sales, the realized natural gas price was 38 cents per Mcf, compared with 76 cents a year ago. Total operating expenses in the quarter rose to $929.9 million from $900.1 million in the year-ago quarter. Lease operating expenses totaled $189.9 million, up from $187.9 million in the year-ago quarter. Severance and ad valorem taxes rose to $143.7 million from $94.9 million a year earlier and the Exploration and other expenses also rose to $9.8 million from $5.1 million in the year-ago quarter. On a per-unit basis, Lease operating expenses increased to $5.55 per Boe from $5.36 a year ago. PR generated $1.5 billion of net cash provided by operating activities in the second quarter, compared with $1 billion in the year-ago quarter. Adjusted operating cash flow totaled $1.3 billion, while adjusted free cash flow came in at $750.7 million. Cash capital expenditures were $521.4 million, up from the prior-year period’s capital expenditures of $505 million. The company’s capital-efficient operating model supported strong free cash flow generation despite continued investment in development and bolt-on acquisitions. As of June 30, 2026, PR had $131.7 million in cash and cash equivalents. The company had a long-term debt of approximately $3 billion, reflecting a debt-to-capitalization of 20%. Permian Resources has raised its 2026 oil production target to 199 MBbls/d, up 10 MBbls/d from its initial February guidance. The increase reflects higher working interest from successful ground-game activities, greater workover activity and production from the Ward County bolt-on acquisition. The company expects average working interest to exceed 80% for the full year, while second-half oil production is projected to exceed 200 MBbls/d. To support the higher production outlook, Permian Resources increased its 2026 cash capital expenditure guidance to $1.9-$2 billion, including about $25 million related to the Ward County acquisition. The revised full-year plan calls for total production of 400,000-430,000 Boe/d, oil production of 197,000-201,000 Bbls/d and approximately 250 gross operated TILs, with average lateral lengths of about 11,000 feet. Controllable cash costs are expected at $7.15-$8.15 per Boe, including lease operating expenses of about $5.45, gathering, processing and transportation costs of approximately $1.40, and cash G&A of around 80 cents per Boe. Overall, this Zacks Rank #3 (Hold) company’s updated plan reflects higher production and capital spending while maintaining a focus on capital efficiency and operational growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. While we have discussed PR’s second-quarter results in detail, let us take a look at three other key reports in this space. Expand Energy Corporation EXE reported second-quarter 2026 adjusted earnings per share of $1.33, beating the Zacks Consensus Estimate of $1.22. The company’s bottom line increased from the year-ago adjusted profit of $1.10 per share, fueled by strong production and lower operating expenses. Expand Energy’s ‘natural gas, oil and NGL’ revenues of $1.8 billion missed the Zacks Consensus Estimate of $2 billion. The top line was also below the year-ago figure of $2 billion. As of June 30, 2026, the company had $663 million in cash and cash equivalents. Expand Energy had a long-term debt of $3.7 billion, reflecting a debt-to-capitalization of 16%. NOV Inc. NOV reported second-quarter 2026 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 16 cents. The bottom line also increased 6.9% from the year-ago quarter’s 29 cents, driven by outperformance of the Energy Equipment segment. The oil and gas equipment and services company’s total revenues of $2.1 billion beat the Zacks Consensus Estimate by $39 million. However, NOV’s revenues fell 2.5% from the year-ago quarter’s figure of $2.2 billion due to lower year-over-year revenues from the Energy Products and Services segment. As of June 30, 2026, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.3%. The Williams Companies, Inc. WMB reported second-quarter 2026 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 52 cents. However, the bottom line increased from the year-ago period’s level of 46 cents, driven by better-than-expected performance of its Transmission, Power & Gulf, Northeast G&P and West segments. The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $3 billion missed the Zacks Consensus Estimate by $2 million. The figure increased by 9.8% from the year-ago quarter’s reported revenues. This can be attributed to higher service revenues and increased product sales. As of June 30, 2026, the company had cash and cash equivalents of $203 million and long-term debt of $28.1 billion, with a debt-to-capitalization of 64.7%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Permian Resources Corporation (PR) : Free Stock Analysis Report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report NOV Inc. (NOV) : Free Stock Analysis Report Expand Energy Corporation (EXE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Permian Resources Corporation? Here are five stocks we like better. Record free cash flow: Permian Resources generated $751 million, or $0.88 per share, in second-quarter free cash flow—nearly 50% above the prior quarter—driven by higher oil output, increased working interests and faster workovers. Production and guidance increased: Second-quarter oil production rose 3% sequentially to about 198,000 barrels per day, while full-year 2026 oil-production guidance was raised to 199,000 barrels per day with capital spending guided at $1.95 billion. Delaware Basin expansion: The company acquired roughly 55,000 net acres year to date for approximately $1.05 billion, adding about 330 drilling locations and strengthening its operated inventory through strategic acreage acquisitions and trades. If There's a Domestic Manufacturing Boom, These 3 Stocks Could Win Permian Resources (NYSE:PR) reported record second-quarter free cash flow of $751 million, or $0.88 per share, as higher oil production, increased working interests in completed wells and a rapid response to commodity-price movements supported results. Co-Chief Executive Officer Will Hickey said free cash flow increased nearly 50% from the prior quarter and exceeded the company’s total free cash flow generated during 2023. He said the company expects full-year 2026 free cash flow to be nearly double its 2024 result. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling High Yield Revival: 3 Cash-Rich Dividend Payers on Sale Oil production averaged about 198,000 barrels per day during the second quarter, up 3% sequentially. Hickey said the company increased its workover-rig count by 50% after oil prices moved higher, improving well runtimes and accelerating incremental production. The company also raised its working interest in completed wells to about 82%, compared with its original expectation of 75%. Those factors, along with well performance, drove approximately 6,000 barrels per day of quarter-over-quarter oil growth for cash capital expenditures of $521 million, according to Hickey. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Plastic Surgery: Winners and Losers of the Proposed 10% Interest Cap Permian Resources curtailed natural-gas production from high gas-oil-ratio wells exposed to Waha pricing during the quarter, when Waha natural gas averaged negative $3.14 per Mcf and traded as low as negative $9.52 per Mcf. The curtailments reduced the company’s natural-gas production by about 20% from the prior quarter. Hickey said firm transportation agreements, hedging and the production curtailments enabled Permian Resources to realize $0.38 per Mcf for its gas during the period, providing more than $75 million of revenue uplift on natural-gas sales. → No Hangover: Revisiting Microsoft One Week After Earnings The company returned all previously curtailed wells to production in late June as Waha pricing improved, Chief Financial Officer Guy Oliphint said. He added that third- and fourth-quarter gas volumes should look more normal and that the company has transportation capacity expected to cover roughly all of its net gas volumes in 2027. James Walter, co-CEO, said the company has not seen a meaningful change in basin activity due to improved gas egress. However, he said new pipelines coming online appear able to handle restored volumes and incremental growth, while the company feels more confident about crude and natural-gas takeaway capacity over the next several years. Permian Resources said it has acquired about 55,000 net acres in the core Delaware Basin year to date through roughly 190 separate transactions, for total consideration of approximately $1.05 billion. The transactions added about 330 high-confidence, high-net-revenue-interest drilling locations, the company said. The company closed a $520 million acquisition in Ward County covering approximately 2,000 net acres and 5,000 barrels of oil equivalent per day. The acreage is adjacent to its existing position and is fully held by production, Walter said. Following that acquisition, Permian Resources entered an acreage trade agreement with an offset operator that is expected to close in the third quarter. The trade is designed to address the acquired property’s non-operated, low-working-interest and scattered-acreage characteristics. Walter said it is expected to increase operated net locations from 50 to 120 and extend average lateral lengths by 20%. The company also assembled an approximately 15,000-net-acre contiguous position in Eddy County, New Mexico, called the Parkway bolt-on project. The acreage has two-mile lateral lengths and an 82.5% net revenue interest, Walter said. Management characterized the acquisition strategy as focused on off-market and smaller transactions where the company believes it has commercial, technical or operational advantages. Walter said Permian Resources evaluates larger marketed packages as well, but remains disciplined on purchase prices and full-cycle return targets. Permian Resources raised its full-year 2026 oil-production guidance to 199,000 barrels per day, representing 10% growth from 2025. Its capital-expenditure midpoint is now $1.95 billion, about 1% below 2025 spending, according to management. Oliphint said the revised production outlook increased from 192,500 barrels per day after the first quarter. Of the 6,500-barrel-per-day increase, about 1,000 barrels per day reflects the annualized contribution from the Ward County acquisition. Most of the remaining increase comes from higher working interests in 2026 projects, supplemented by accelerated workovers. Capital guidance increased by $100 million. Oliphint said approximately $25 million relates to Ward County takeover costs, including bringing equipment to the company’s operating standards, while the remainder reflects higher working interests in wells turned in line. He said the increase should not be doubled to estimate an annualized 2027 impact because most of the spending occurred in the second quarter. At its current $1.95 billion to $2 billion spending range, Oliphint said the company would continue to grow production, while maintenance capital would be below that level. Management said future growth versus maintenance decisions will depend on commodity prices and service costs. Hickey said Permian Resources is working to offset inflationary pressure from diesel and casing costs through longer laterals, water recycling, water-based mud in areas prone to drilling-fluid losses, slimmer wellbore designs and completion improvements. The company’s average lateral length has increased to roughly 11,000 feet, and it drilled its first four-mile lateral during the second quarter. Hickey said the company expects lateral lengths to continue rising gradually, rather than through a sharp year-over-year change. Permian Resources also began surfactant trials in completion and production operations. Hickey said two completion trials have been conducted, with one pad online and another yet to begin production. In late-life production applications, the company has seen results ranging from negligible impact to more than 100 barrels per day of uplift, though management said it is too early to determine the ultimate scale of the program. The company ended the quarter with leverage of approximately 0.5 times and expects to remain at about that level at year-end. Hickey said the company intends to continue increasing its base dividend over time, while maintaining its existing overall capital-allocation approach. Permian Resources (NYSE: PR) is an independent exploration and production company focused on the acquisition, development and optimization of oil and natural gas assets in the Permian Basin. The company’s operations encompass all phases of upstream activity, including geological and geophysical analysis, drilling, completion and production. By employing horizontal drilling and hydraulic fracturing technologies, Permian Resources aims to efficiently unlock hydrocarbon reserves and deliver consistent production growth. Headquartered in Oklahoma City, Permian Resources concentrates its asset portfolio in the Delaware and Midland sub-basins of West Texas and southeastern New Mexico. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Permian Resources Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record free cash flow of $751 million in Q2 2026, up nearly 50% quarter-over-quarter, and record free cash flow per share of $0.88. Oil production grew 3% quarter-over-quarter to approximately 198,000 barrels per day, driven by increased workover activity and higher working interest in completed wells (82% vs. 75% expected). Proactive natural gas curtailments during negative Waha prices resulted in a realized gas price of $0.38/MCF and an uplift of over $75 million in revenue. Successful ground game acquisitions added approximately 55,000 net acres and 330 high-confidence locations at attractive valuations ($13,000 per net acre, $2.5 million per net location). Improved capital efficiency: 2026 production guidance raised 10% year-over-year while CapEx midpoint is 1% lower than 2025, with continued operational gains from longer laterals, water recycling, and slim-hole designs. Strong balance sheet with leverage at 0.5 times, allowing for continued acquisitions and capital returns. Successful acreage trade in Ward County increased operated net locations from 50% to 120% and improved lateral lengths by 20%. Early surfactant trials show encouraging results, with potential for improved recoveries and cost savings. Company generated more free cash flow in Q2 2026 than in all of 2023, and expects full-year 2026 free cash flow to nearly double 2024 levels. Differentiated acquisition strategy with a strong pipeline of off-market deals, leveraging proprietary data and Midland relationships. Waha natural gas prices averaged negative $3.14/MCF during Q2, forcing proactive curtailments and reducing natural gas production by 20% quarter-over-quarter. Inflationary pressures from rising diesel and casing prices are partially offsetting efficiency gains, with potential for further cost increases in the back half of the year. The Ward County acquisition was initially challenged by being majority non-operated, low working interest, and scattered, requiring a subsequent trade to improve. Management is hesitant to forecast gas prices, and the back-half cash flow uplift from improved Waha pricing is uncertain. The company's ability to continue acquiring high-quality assets at attractive prices is not guaranteed, and the pace of ground game deals may ebb and flow. Surfactant trials are still early, and results are mixed, with some wells showing no uplift, making it difficult to predict the program's full impact. The company is not planning to increase its base dividend significantly, focusing instead on acquisitions and debt repayment, which may not satisfy income-focused investors. Potential for oil takeaway capacity constraints in the Permian in the coming years, though management is confident in current capacity. The company's growth strategy is dependent on volatile commodity prices, and management may shift to maintenance mode if prices decline. The Parkway bolt-on includes some upside zones that are not yet proven, requiring further appraisal to fully realize potential. Warning! GuruFocus has detected 4 Warning Sign with PR. Is PR fairly valued? Test your thesis with our free DCF calculator. Q: Can you bridge the old production guidance to the new production guidance and do the same on CapEx, breaking out the contribution from higher working interest, acquired production, and any pull-forward or outperformance? A: Guy Oliphant, CFO: On the production side, we were at 192,500 barrels a day at Q1 and are at 199 today. The only production acquired with the $1 billion of acquisitions was 2,500 barrels a day at the time we closed the Ward County Bolt-On a week ago, which adds 1,000 barrels to the 6,500-barrel increase. The significant majority of the remainder is higher working interest in our 2026 projects, with a little contribution from accelerated workovers. On the capital side, we're up $100 million, with $25 million of that being takeover costs for Ward County and the remainder from higher working interest in the 2026 wells, as we took our working interest guidance from 75% to over 80%. Q: What is your perspective on the M&A landscape moving forward, and how do you compare your ground game activity to larger, more competitive marketed deals? A: James Walter, Co-CEO: The ground game effort has been building consistently for 11 years, and the opportunity set looks as good as it ever has. We look at everything in the Delaware and are in the mix for quality packages, but we remain disciplined on purchase price. While some transacted assets are ones we'd like to own, we couldn't achieve our targeted full-cycle returns at those prices. Our focus remains on full-cycle returns and long-term value creation, and we'll be patient if bigger packages don't meet our thresholds. Q: With new gas egress coming online, how do you see activity pace from offset operators, and do you expect oil takeaway capacity to become a constraint in the next couple of years? A: James Walter, Co-CEO: We feel really good about oil takeaway capacity for the next few years, and we're hopeful the industry has learned a lesson on gas. We haven't seen a meaningful reaction in activity levels from the new pipelines, which are able to handle the gas we brought back online. We're entering a new era in Waha gas, with a new eagerness to build pipelines and exciting downstream demand. We feel a lot better about both crude and gas than we have in recent months. Q: Does the Parkway bolt-on suggest you have more confidence moving northwest in Eddy County, and would you consider moving further north in New Mexico? A: James Walter, Co-CEO: The Eddy County area has been a tremendous asset since our first deal in 2016, and we've seen it continue to work as we push modestly west and north. We've been surprised by how strong well performance is in that area and see a lot of white space, both moving north and west and in and amongst our existing position. Most bolt-on activity is now in between our existing assets, but we still see a lot to do in the Parkway area and are excited about the well results and what could be coming. Q: Do you believe production growth is appropriate given the commodity backdrop, and if not, is the plan to keep building cash? A: James Walter, Co-CEO: We don't like to forecast next year's plan, but for 2026, we believed it made sense to invest a little more capital and grow production more than the flattish expectations coming into the year. Growth from here or next year will depend on the returns environment. With high oil prices and low service costs, you'll likely see us in growth mode; with lower oil prices and higher service costs, we'll be back to maintenance mode. We're proving we can react quickly when the time comes. Q: Can you talk about some of the things you're deploying in the field to stay ahead of operational expectations? A: Will Hickey, Co-CEO: Water recycling had another tick up in Q2, the highest quarter in PR history, and we're a big beneficiary of our partner's integrated system in New Mexico. On the drilling side, we've started introducing water-based mud in areas where we take losses, saving $5-$7 a foot. We've also transitioned to a slimmer hole design in New Mexico, running 5 1/2-inch casing inside 8 5/8 instead of 9 5/8, saving on steel, time, and cement. These gains offset inflationary pressures from diesel and casing. Q: With the bolt-ons, how long can you get your laterals, and what does that mean from a P&L perspective? A: Will Hickey, Co-CEO: Lateral length is the most effective way to reduce D&C per foot. We've ticked up every year, moving from just under two miles to now right at 11,000 feet. We drilled our first four-mile lateral in Q2, which was a big success. The combination of our willingness to drill longer, ability to drill U-turns, and the blockiness of our position means you'll continue to see lateral length pick up, likely 500-plus feet longer each year, rather than a step change. Q: With leverage at the bottom end of your target range, will there be any change in cash priorities across acquisitions, balance sheet, buybacks, or growing the dividend? A: James Walter, Co-CEO: Growing the base dividend consistently over time is a priority and will continue. Other than that, we don't have plans to change our capital allocation program. The business is generating a lot of cash, allowing us to pay down debt and do acquisitions while delevering to 0.5 times. Our strategy is working, and you'll see us hold the course. Q: Do the recent acquisitions necessitate any infrastructure investments in the upcoming years? A: James Walter, Co-CEO: Nothing outside of what's baked into our plan and budget for the year. These areas are right next to existing PR operations, so it's easy. We have the right midstream partners, and everything we're doing is a mile or two away from existing ops. Will Hickey added that the only exception is the Ward County bolt-on, which will have minimal incremental CapEx of about $25 million for taking over a new asset. Q: Is your gas production back online now that Waha prices are better, and can you give a sense of the cash flow uplift for the back half of the year? AFor the complete transcript of the earnings call, please refer to the full earnings call transcript.

Permian Resources (PR) came out with quarterly earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +23.21%. A quarter ago, it was expected that this company would post earnings of $0.38 per share when it actually produced earnings of $0.39, delivering a surprise of +2.63%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Permian Resources, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $1.86 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 13.25%. This compares to year-ago revenues of $1.2 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Permian Resources shares have added about 46.1% since the beginning of the year versus the S&P 500's gain of 13%. While Permian Resources has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Permian Resources was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $1.58 billion in revenues for the coming quarter and $1.94 on $6.17 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Kolibri Global Energy Inc. (KGEI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +162.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Kolibri Global Energy Inc.'s revenues are expected to be $20.86 million, up 87.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Permian Resources Corporation (PR) : Free Stock Analysis Report Kolibri Global Energy Inc. (KGEI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record free cash flow of $751 million in Q2, driven by a 50% increase in workover rigs and a successful 'ground game' that raised working interest in completed wells to 82%. Proactively curtailed natural gas production on high-GOR wells during a period of negative WAHA pricing, resulting in a $75 million revenue uplift through firm transportation and hedging. Differentiated acquisition strategy focused on off-market, 'Midland-born' deals and trades that core up acreage and increase working interest ahead of development. Offset inflationary pressures in diesel and casing through operational efficiencies, including longer laterals, water-based mud deployment, and slim-hole wellbore designs. Maintained a basin-leading cost structure with LOE pushing toward $5 per Boe, supported by increased water recycling and microgrid power optimization in New Mexico. Strategic positioning remains focused on the Delaware Basin, utilizing proprietary data and local relationships to identify value in harder, less obvious transactions. Updated 2026 production guidance to 199,000 barrels of oil per day, representing 10% year-over-year growth while maintaining a flat rig count and completion crew cadence. Capital expenditure guidance increased to $1.95 billion, primarily reflecting higher working interests in 2026 projects and takeover costs for the Ward County acquisition. The company anticipates growing free cash flow over time, supported by improved natural gas transportation and pricing expectations for 2027 compared to current headwinds. Future activity levels remain flexible; management indicated a shift to maintenance mode if oil prices decline or service costs rise significantly. Ongoing evaluation of surfactant trials in completion and production operations could provide future upside to recovery rates and capital efficiency. Closed a $520 million acquisition in Ward County, subsequently executing an acreage trade that increased operated net locations from 50 to 120 and lateral lengths by 20%. Assembled a 15,000 net acre position in the Parkway area of Eddy County through approximately 190 separate transactions at an average cost of $13,000 per net acre. Identified potential inflationary risks in casing and steel prices for the second half of 2026, though management expects to mitigate these through continued drilling speed gains. Maintained a fortress balance sheet with leverage at 0.5x, providing the financial flexibility to execute accretive M&A without compromising capital allocation priorities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management remains disciplined on purchase prices for large marketed deals, noting they have passed on high-quality assets that did not meet their full-cycle return thresholds. The 'ground game' remains a consistent, long-term effort that provides more predictable value than lumpy, competitive auctions. Transitioning to 8 5/8-inch intermediate casing from 9 5/8-inch saves approximately one day of drilling time per well and reduces steel and cement costs. Water-based mud is being used strategically in areas with high fluid loss to save $5 to $7 per foot compared to oil-based mud. Management expressed confidence that new pipeline capacity coming online will handle incremental Permian growth and reduce the frequency of price dislocations. Firm transportation agreements for 2027 are expected to cover nearly all net gas volumes, significantly improving price realizations. Successful delineation of the Avalon and deeper Wolfcamp zones in Lea and Eddy Counties is effectively moving proven state-line benches further north. While monitoring the Woodford and Brushy Canyon, these are not currently part of the core 2027 development plan.