PR

Permian producers spent much of this year paying buyers to haul away the natural gas that comes up with their oil. Waha Hub spot prices stayed below zero for a record 90 days in a row before turning positive on June 16, Reuters reported, and the hub had averaged minus $2.19 per million British thermal units for the year up to that point. Four of the five companies below still posted record results in the second quarter. Three of the five don't drill at all, and one of the two that do works mostly in North Dakota, far from Waha. The U.S. Energy Information Administration's October outlook has domestic crude output rising from 13.9 million barrels per day this year to 14.3 million in 2027 and assumes Middle East oil flows stay constrained through the fourth quarter. Permian-focused executives surveyed by the Dallas Fed in June named gas takeaway capacity and regulatory issues as the constraints on drilling they cited most often. Third-quarter earnings start arriving in the coming weeks, so the second-quarter figures below are the latest each company has reported. Permian Resources Corporation (NYSE: PR) netted 38 cents per thousand cubic feet for its natural gas in the second quarter, hedges included, in a period when Waha averaged negative $3.14. Management said on the earnings call that it curtailed gas from wells with a high gas-to-oil ratio, which cut gas output by about 20 percent from the first quarter, and that firm transportation and hedges did the rest. Unhedged, the company still realized negative $1.74, though that was $1.40 better than Waha, and the hedges added $2.12 on top. It turned every curtailed well back on in late June once prices recovered. Adjusted free cash flow came in at a record $751 million, up from $312 million a year earlier, on oil production of 198,071 barrels per day. The company raised its full-year oil guidance to 199,000 barrels per day, 10,000 more than it projected in February, and expects second-half production above 200,000 barrels per day on less than $1 billion of capital spending. Co-CEO James Walter said it will produce nearly 10 percent more oil than last year on less capital than it spent in 2025. Permian Resources also spent $1.05 billion this year on about 190 acquisitions, picking up roughly 54,000 net acres and 20,000 net royalty acres in the Delaware Basin in deals struck at a weighted average front-month WTI price of $72.50 a barrel. Net debt is down to about 0.5 times EBITDAX, and total debt has fallen roughly 35 percent since the end of 2024, from $4.2 billion to $2.7 billion. Derivatives cost Permian Resources $12.44 a barrel in the second quarter, which took its realized oil price from $97.81 to $85.37, and about 70,000 barrels per day, roughly a third of production, are swapped at between $67 and $69 through December. Realized prices in the quarter were well above those swap levels, so that portion of production missed the rally. Kinetik Holdings Inc. (NYSE: KNTK) processed 1.74 billion cubic feet of gas per day in the second quarter, the same as a year earlier, even though producers shut in an estimated 250 million cubic feet per day because of Waha prices. Adjusted EBITDA still reached a record $280.8 million, up from $242.9 million, and free cash flow roughly tripled to $105.2 million. The company credited better natural gas liquids recoveries and condensate yields, optimization work and favorable commodity prices and spreads, so part of the beat came from commodity margins and not from volumes. Kinetik raised its 2026 adjusted EBITDA guidance to between $1.04 billion and $1.1 billion, a midpoint 7 percent above the February forecast, and assumes curtailments will average only about 25 million cubic feet per day in the second half. In May it approved Kings Landing II, a roughly $260 million sour gas processing expansion that will lift system capacity to 2.7 billion cubic feet per day in 2028. It is also building a 40-megawatt power plant at its Diamond Cryo complex, due in service in the second quarter of 2027, and has secured firm Gulf Coast market access for residue gas starting that year. CEO Jamie Welch said customer activity is "pulling forward" now that curtailments have eased. Kinetik guided third-quarter adjusted EBITDA to between $260 million and $270 million, below the second quarter's record, and its $3.94 billion of net debt works out to about 3.8 times trailing EBITDA. The guidance assumes a fourth-quarter processed gas exit rate of nearly 2.2 billion cubic feet per day, up roughly 20 percent exit to exit, and a full-year Waha average of minus 26 cents per million British thermal units. Both depend on the new pipeline capacity holding up and producers keeping their wells on. Kodiak Gas Services Inc. (NYSE: KGS) burned through $87.5 million of free cash flow in the second quarter and raised its full-year guidance anyway. The cash is going into power, where Kodiak closed its $576 million purchase of Distributed Power Solutions on April 1, spent $134 million of growth capital in the quarter and agreed to buy up to one gigawatt of gas turbines for delivery by 2030. It expects $400 million to $450 million of power capital spending this year against $95 million to $125 million of power revenue, and it raised about $836 million by selling stock at $71 a share in May. Total debt was $2.8 billion at the end of June, or 3.2 times EBITDA under its credit agreement, and adjusted earnings per share slipped to 55 cents from 59 cents in the first quarter. Contract compression still produces roughly 90 percent of segment adjusted gross margin. Kodiak, which calls itself a market leader in the Permian, had 98.2 percent of its compression fleet earning revenue in the second quarter, held adjusted gross margin on that business at 70 percent and posted record segment revenue of $315.1 million, with full-year compression revenue guided to between $1.25 billion and $1.28 billion. Average unit size rose to 991 horsepower from 952 a year earlier, and CEO Mickey McKee pointed to a "tight supply environment for compression equipment" when explaining why he stays constructive on the business. Adjusted EBITDA hit a record $216.8 million, up 21.7 percent from a year earlier, and full-year guidance now stands at $830 million to $860 million. The new power segment ended the quarter with a 405-megawatt fleet that was 89.6 percent utilized in its first full quarter. Chevron's planned power plant in Reeves County will need land and water, and Texas Pacific Land Corporation (NYSE: TPL) has agreed to provide both. Under a June agreement for Chevron's Project Kilby, which is meant to power a customer's data center, TPL contributed surface acreage for cash and received the exclusive right to source groundwater for the plant. CEO Tyler Glover said the project "validates West Texas as a premier location for compute infrastructure." Oilprice.com has reported that Kilby is tied to a 20-year agreement with Microsoft and that a final investment decision is due before the end of the year. TPL also spent $110.2 million in the quarter on land acquisitions, including tracts in Shackelford and Jones counties meant for data center and power projects beyond the immediate Permian Basin, and it began commissioning a 10,000-barrel-per-day produced water desalination plant in Orla, Texas. TPL's royalty production set a record at 39.7 thousand barrels of oil equivalent per day, up 7 percent from the first quarter, and because the company doesn't hedge, oil royalty revenue jumped to $119.3 million from $90.6 million as realized prices climbed to $97.55 a barrel. Net income of $153.9 million and free cash flow of $155.5 million were both records, on revenue of $246.1 million and adjusted EBITDA of $215.6 million, an 88 percent margin. Water sales volumes fell 19 percent from the first quarter to 663,000 barrels per day, and water sales revenue dropped to $39.7 million from $46.9 million. Management said on the earnings call that weak in-basin gas prices led operators to shift some development away from the Delaware Basin. Gas royalties took the same hit, falling to $2.6 million from $9.8 million on a realized price of 40 cents per thousand cubic feet. Produced water royalties went the other way, rising to $37.1 million on a record 4.9 million barrels per day, up 6 percent from the first quarter. The deepest well in the Williston Basin now belongs to Chord Energy Corporation (NASDAQ: CHRD), which drilled it to a measured depth of 33,810 feet as part of a push into four-mile laterals. The company has executed 26 four-mile wells so far, says costs and early results are in line with its expectations and expects the longer wells to become a larger part of its program. Adjusted free cash flow was $414 million in the second quarter, up from $141 million a year earlier, on oil production of 165,400 barrels per day, which landed at the top of guidance. Chord returned 54 percent of that cash to shareholders, through a $1.30 per share dividend and $147.4 million of buybacks at an average of $133.47 a share, and plans to raise the payout to 75 percent in the third quarter now that leverage is below half a turn. For the full year it expects about $3.0 billion of adjusted EBITDA and $1.3 billion of adjusted free cash flow, down from $3.1 billion and $1.4 billion in May, with its second-half price assumption lowered to $75 WTI from $80. Chord plans to drop its second frac crew in the third quarter, with capital spending guided to $375 million at the midpoint against $417 million in the second quarter, and it expects fourth-quarter oil volumes of 156,000 to 159,000 barrels per day, below the third quarter's range. Derivatives cost the company $106.2 million on oil in the second quarter, and its realized oil price, which averaged $1.27 a barrel above WTI, is expected to lose that premium, with the full-year differential guided at between zero and 80 cents below WTI. The company has hedged about 38 percent of its second-half oil volumes and about 18 percent of 2027. By Michael Kern for Oilprice.com More Top Reads From Oilprice.com - Small Indian Factories Face Blackouts as Coal Stocks Plunge - Why Diesel Prices Are So Much Higher Than Gasoline - Princeton Researchers Find a Lower-Energy Route to Fusion Ignition Oilprice Intelligence brings you the signals before they become front-page news. This is the same expert analysis read by veteran traders and political advisors. Get it free, twice a week, and you'll always know why the market is moving before everyone else. You get the geopolitical intelligence, the hidden inventory data, and the market whispers that move billions - and we'll send you $389 in premium energy intelligence, on us, just for subscribing. Join 400,000+ readers today. Get access immediately by clicking here.

Permian Resources currently trades at $21.37 per share and has shown little upside over the past six months, posting a small loss of 0.6%. The stock also fell short of the S&P 500's 21.4% gain during that period. Is now the time to buy PR? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it's free. 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. A company's long-term performance can give signals about its business quality. Even a bad business, especially in a cyclical industry, can shine for a year or so, but a top-tier one should exhibit resilience through cycles. Over the last five years, Permian Resources grew its sales at an incredible 51.4% compounded annual growth rate. Its growth surpassed the average energy upstream and integrated energy company and shows its offerings resonate with customers. While energy gross margins can be distorted by commodity prices, hedging, and short-term cost swings, sustained margins across a full cycle reflect a producer's underlying asset quality, infrastructure position, and cost structure. Permian Resources, which averaged 76.1% gross margin over the last five years, exhibits enviable unit economics in the sector. It means the company will remain profitable at lower commodity prices than peers with inferior gross margins and serves as an advantaged starting point for ultimate operating profits and free cash flow generation. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Permian Resources has shown terrific cash profitability, driven by its lucrative business model that enables it to reinvest, return capital to investors, and stay ahead of the competition. The company's free cash flow margin was among the best in the energy upstream and integrated energy sector, averaging 29.7% over the last five years. These are just a few reasons why we're bullish on Permian Resources. With its shares lagging the market recently, the stock trades at 9.6× forward P/E (or $21.37 per share). Is now a good time to buy? See for yourself in our in-depth research report, it's free. 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

A month has gone by since the last earnings report for Permian Resources (PR). Shares have added about 17.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Permian Resources due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Permian Resources Corporation before we dive into how investors and analysts have reacted as of late. Permian Resources 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. 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. 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 raised its 2026 oil production target to 199 MBbls/d, up 10 MBbls/d from its initial February outlook. The increase reflects higher ownership in wells, more workover activity and production from the Ward County acquisition. The company expects full-year working interest above 80% and second-half oil production above 200 MBbls/d. Cash capital spending guidance was increased to $1.9-$2 billion, including about $25 million for Ward County. Full-year guidance calls for total production of 400,000-430,000 Boe/d and oil production of 197,000-201,000 Bbls/d. Controllable cash costs are projected at $7.15-$8.15 per Boe, with the updated plan still focused on cost control and capital efficiency. In the past month, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 24.77% due to these changes. Currently, Permian Resources has a strong Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Permian Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Permian Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Devon Energy (DVN), a stock from the same industry, has gained 13.2%. The company reported its results for the quarter ended June 2026 more than a month ago. Devon Energy reported revenues of $7.42 billion in the last reported quarter, representing a year-over-year change of +73.1%. EPS of $1.57 for the same period compares with $0.84 a year ago. For the current quarter, Devon Energy is expected to post earnings of $1.20 per share, indicating a change of +15.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +10.4% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Devon Energy. Also, the stock has a VGM Score of A. 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 Devon Energy Corporation (DVN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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.