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Permian Resources Corporation PR reported first-quarter 2025 adjusted net income per share of 42 cents, which missed the Zacks Consensus Estimate of 44 cents. This underperformance was due to a 12.6% year-over-year increase in operating expenses and lower oil prices. However, the reported figure was in line with the year-ago period. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Meanwhile, Permian Resources’ oil and gas sales of $1.4 billion rose 10.7% from the year-ago quarter but missed the Zacks Consensus Estimate by 1.2%.
PR’s board of directors declared a quarterly cash dividend of 15 cents per share of common stock, equivalent to 60 cents on an annual basis. The dividend will be paid on June 30, 2025, to its shareholders of record as of June 16.
During the quarter, the Midland, TX-based oil and gas exploration and production company completed the previously announced sale of its non-core Barilla Draw gathering systems for $180 million.
Permian Resources Corporation price-consensus-eps-surprise-chart | Permian Resources Corporation Quote
The average daily first-quarter production (comprising 47% oil) was up 16.8% from the year-ago level to 373,209 barrels of oil equivalent (Boe) and surpassed the Zacks Consensus Estimate of 368,855 Boe.
Oil volume for the period was 174,967 barrels per day (Bbls/d), up 15.3% year over year. The consensus mark was pegged at 171,776 Bbls/d. PR’s natural gas production was 673,388 thousand cubic feet (Mcf) per day, while NGL output totaled 86,010 Bbls/d.
The average sales price for oil during the first quarter was $70.48 per barrel, down 7.4% from the prior-year realization of $76.13. The figure was slightly lower than the consensus mark of $71.
The average realized natural gas price was $1.35 per Mcf compared with 75 cents in the year-earlier period. The figure was lower than the Zacks Consensus Estimate of $1.50.
Meanwhile, the average realized NGL price rose to $23.90 per barrel from $23.02 in the first quarter of 2024.
Total operating expenses in the quarter rose to $872 million from $774.1 million in the year-ago quarter. This was primarily due to a 6.5% year-over-year increase in lease operating costs, which rose to $183.6 million and a 15.6% rise in depreciation, depletion and amortization, which totaled $474.2 million.
Adjusted cash flow from operations increased 13.9% to $960.5 million, while Permian Resources’ capital expenditure totaled $501 million, leading to adjusted free cash flow of $460 million.
During the quarter, the company repurchased 4.1 million shares at a weighted average price of $10.52 per share.
As of March 31, the company had $702.2 million in cash and cash equivalents. Permian Resources had a long-term debt of $3.7 billion, reflecting a debt-to-capitalization of 25.6%.
Permian Resources has updated its full-year 2025 guidance with a focus on optimizing capital efficiency while maintaining strong production levels. The company anticipates an average daily production in the band of 360,000-380,000 Boe/d, with oil production specifically ranging from 170,000 Bbls/d to 175,000 Bbls/d.
In terms of costs, controllable cash expenses are projected to be between $7.25 and $8.25 per Boe, with lease operating expenses estimated at approximately $5.55 per Boe. Additionally, the company has reduced its total capital expenditure budget slightly, bringing it down to a range of $1.9-$2 billion compared with the previous estimate of $1.9-$2.1 billion.
Operationally, around 275 gross wells are expected to be turned in line, with an average working interest of approximately 75% and a lateral length of about 10,000 feet.
Moreover, the Zacks Rank #3 (Hold) company has announced a strategic acquisition aimed at strengthening its production capacity. The newly acquired assets are expected to contribute around 12,000 Boe/d in the second half of the year, although this figure is not incorporated into the company’s revised standalone guidance.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While we have discussed PR’s first-quarter results in detail, let us take a look at three other key reports in this space.
Oil and gas equipment and services provider, Liberty Energy LBRT, reported a first-quarter 2025 adjusted net income of 4 cents per share, which marginally beat the Zacks Consensus Estimate of 3 cents. Liberty's outperformance indicated operational efficiencies as well as increased utilization of frac and wireline fleets. However, the bottom line underperformed the year-ago quarter’s reported figure of 48 cents due to a decline in service activity.
As of March 31, Liberty had approximately $24.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $210 million represented a debt-to-capitalization of 9.6%.
Another oil and gas equipment and services provider, Halliburton Company HAL, posted first-quarter 2025 adjusted net income per share of 60 cents. The figure met with the Zacks Consensus Estimate but was down from the year-ago quarter’s profit of 76 cents (adjusted). The numbers reflect softer activity in the region of North America, partly offset by international growth. Meanwhile, Halliburton’s revenues of $5.4 billion decreased 6.7% year over year but beat the Zacks Consensus Estimate of $5.3 billion.
As of March 31, 2025, Halliburton had approximately $1.8 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.8.
Houston, TX-based oil and gas equipment and services provider, Baker Hughes BKR, reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.
As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.
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This article originally published on Zacks Investment Research (zacks.com).
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