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Permian Resources (PR) is an independent oil and gas company primarily focused on extracting crude oil and natural gas from the Permian Basin.

• Permian Resources is an independent oil and gas company that solely focuses on finding and extracting crude oil and natural gas, much like the exploration and production (E&P) divisions within major energy companies such as ExxonMobil or Chevron.
• Think of it as a dedicated oil and gas driller whose business is almost entirely concentrated on the highly prolific Permian Basin, similar to how a specialized unit of a global energy giant like BP or Shell might focus on a key resource region.

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• Crude Oil: Extracted from underground reservoirs in the Delaware Basin, this raw petroleum is a primary energy source.
• Natural Gas: A gaseous hydrocarbon fuel produced from the company's wells, used for heating, electricity generation, and industrial purposes.
• Natural Gas Liquids (NGLs): These are liquid components separated from natural gas, including ethane, propane, and butane, used as feedstocks for petrochemicals and fuels.

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Permian Resources (symbol: PR), an independent oil and natural gas exploration and production company, sells its crude oil and natural gas production primarily to other companies. Its customers are generally not individual consumers but rather entities involved in the further processing, transportation, and marketing of these commodities.

Its customers typically fall into the following categories:

• Major integrated oil and gas companies: These companies often have their own refining and marketing operations and purchase crude oil and natural gas for their downstream segments. Examples of such publicly traded companies include ExxonMobil (XOM), Chevron (CVX), and Shell plc (SHEL).
• Independent refiners and marketing companies: These companies specialize in processing crude oil into refined products (like gasoline, diesel, and jet fuel) or marketing natural gas to various end-users. Examples of publicly traded independent refiners include Marathon Petroleum (MPC) and Valero Energy (VLO).
• Midstream companies and other purchasers: These companies often provide transportation, processing, and storage services for crude oil and natural gas, purchasing the commodities at the wellhead for further movement and sale. Examples of such publicly traded companies include Enterprise Products Partners (EPD), Kinder Morgan (KMI), and Plains All American Pipeline (PAA).

Due to the fungible nature of crude oil and natural gas and the liquid market for these commodities, Permian Resources sells to a diverse group of purchasers and does not typically rely on a few specific major customers for the majority of its revenue.

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Will Hickey, Co-Chief Executive Officer

Mr. Hickey has served as Co-Chief Executive Officer of Permian Resources since September 2022. He co-founded Colgate Energy with James Walter in 2015, where he served as President & Co-Chief Executive Officer. Prior to Colgate, he worked for the energy private equity firm EnCap Investments, evaluating and monitoring investments in the oil and gas sector with a focus on the Permian Basin. Earlier in his career, he worked for Pioneer Natural Resources in various engineering roles, including Chief of Staff to the Chief Operating Officer. Mr. Hickey's compensation is 100% in performance stock units, with no cash salary or bonus.

James Walter, Co-Chief Executive Officer

Mr. Walter has served as Co-Chief Executive Officer of Permian Resources since September 2022. He co-founded Colgate Energy with Will Hickey in 2015, serving as President & Co-Chief Executive Officer. Before forming Colgate, he worked for the energy private equity firm Denham Capital, where he evaluated and monitored investments in the oil and gas space, with a focus on the Permian Basin. He also previously worked for Boston Consulting Group, primarily evaluating upstream assets for exploration and production companies. Mr. Walter's compensation is 100% in performance stock units, with no cash salary or bonus.

Guy Oliphint, Executive Vice President and Chief Financial Officer

Mr. Oliphint has served as Chief Financial Officer of Permian Resources since March 2023, having joined the company as Executive Vice President of Finance in January 2023 as part of a succession plan. Prior to joining Permian Resources, he was Managing Director and Co-Head of Upstream Americas with Jefferies LLC in the Energy Investment Banking Group since 2018. He brings nearly two decades of experience advising upstream energy companies on financial and strategic decisions, including engagements with Colgate and Centennial, the predecessor companies of Permian Resources.

Jay Shannon, Executive Vice President of Corporate Services

Mr. Shannon has served as Executive Vice President of Corporate Services since September 2022. He previously served as Vice President and Chief Accounting Officer of Colgate Energy since March 2016. Before that, he was the Controller of Burnett Petroleum, and also worked in the Audit Group of KPMG LLP, focusing on upstream oil and gas companies.

John Gaynor, Executive Vice President of Business Development and Strategy

Mr. Gaynor has served as Executive Vice President of Business Development and Strategy since September 2022. Prior to this role, he was Senior Vice President of Business Development and Strategy at Colgate Energy. Before joining Colgate in 2016, Mr. Gaynor held various positions at Concho Resources, including Land Lead for the Southern Delaware Basin and the New Mexico Shelf. He also has experience as an independent landman in Midland, Texas.

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1. Commodity Price Volatility: Permian Resources' financial performance is highly susceptible to the volatile prices of crude oil, natural gas, and natural gas liquids (NGLs). Global factors such as geopolitical events, decisions by OPEC+, and shifts in macroeconomic demand can cause significant fluctuations in these prices. A prolonged period of low commodity prices could severely impact the company's revenue, cash flow, and the carrying value of its properties, hindering its ability to fund operations and execute capital expenditures.
2. Geographical Concentration and Associated Regional Risks: The company's operations are concentrated solely in the Permian Basin, with a primary focus on the Delaware Basin. This geographical concentration exposes Permian Resources to regional-specific risks, including infrastructure constraints (particularly concerning natural gas pipeline capacity which can lead to negative or discounted Waha Hub pricing), local supply and demand imbalances, and adverse weather conditions. Any challenges or disruptions unique to this region can have a disproportionately significant impact on the company's production and profitability.
3. Regulatory and Environmental Risks: The oil and natural gas industry is subject to extensive and evolving federal, state, and local laws and regulations, especially those pertaining to environmental protection, climate change, greenhouse gas (GHG) emissions, and hydraulic fracturing. Changes in these regulations, or the implementation of new, stricter policies, could lead to increased operational costs, necessitate significant capital expenditures for compliance, or even limit the company's drilling and production opportunities, thereby adversely affecting its financial performance and growth prospects.

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The accelerating global transition to electric vehicles (EVs) and the broader adoption of renewable energy sources pose a clear emerging threat. This shift directly reduces the long-term demand for crude oil in the transportation sector and natural gas in electricity generation, which are the primary products of Permian Resources.

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Crude Oil Market Size (Permian Basin, U.S.)

Natural Gas Market Size (Permian Basin, U.S.)

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1. Increased Production Volumes: Permian Resources is focused on growing its oil and natural gas production. The company increased its 2025 oil and total production targets, and for 2026, it plans for oil production between 186,000–192,000 barrels per day (Bbls/d) and total output of 400,000–430,000 barrels of oil equivalent per day (Boe/d), targeting approximately 4% oil growth. This growth is supported by bringing new wells online, with an expectation to turn-in-line around 250 gross wells in 2026. The company has also consistently replaced its developed inventory, ensuring future drilling opportunities.

2. Strategic Acquisitions and Acreage Expansion: The company has demonstrated a robust acquisition strategy, executing approximately $1.1 billion in accretive acquisitions in 2025. This includes closing 250 deals, primarily in New Mexico, which added 5,500 net leasehold acres and 2,400 net royalty acres. Permian Resources continues to pursue selective acreage additions and strategic development opportunities, which will further expand its operational footprint in the Delaware Basin.

3. Improved Operational Efficiencies and Cost Reductions: Permian Resources is committed to enhancing its capital efficiency and reducing costs. In Q3 2025, the company reduced controllable cash costs by 6% quarter-over-quarter through lower lease operating expenses (LOE) and drilling and completion (D&C) costs. Significant efficiency gains have been achieved, including new company records for the fastest well drilled, most feet drilled per day, and lowest completions cost per foot. These operational improvements allow the company to deliver higher production with a lower capital budget.

4. Enhanced Commodity Price Realizations: Permian Resources is actively improving its all-in netbacks through new transportation and marketing agreements. These agreements are expected to increase natural gas realizations by over $0.10 per Mcf in 2026 compared to 2024. Additionally, new crude oil purchase agreements provide increased exposure to Gulf Coast markets, such as Houston WTI, which are anticipated to boost crude oil realizations by over $0.50 per Bbl in 2026 compared to 2024. Specifically, agreements to sell natural gas out of the basin are projected to yield approximately $1 per Mcf higher pricing net of fees in 2026, contributing over $100 million to free cash flow.

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Permian Resources (PR) Capital Allocation Decisions

Share Repurchases

• Permian Resources authorized a new $1 billion share repurchase program in 2024.
• In the first three quarters of 2024, the company spent $61 million to repurchase approximately 3.8 million shares.
• In April 2025, Permian Resources repurchased 4.1 million shares for $43 million at an average price of $10.52 per share.

Share Issuance

• Permian Resources issued 26.5 million Class A common shares for net proceeds of $402.2 million, related to an acquisition by January 2025.

Inbound Investments

• Permian Resources was formed on September 1, 2022, through a $7.0 billion merger between Centennial Resource Development, Inc. and Colgate Energy Partners III, LLC. The merger valued Colgate at approximately $3.9 billion, including 269.3 million shares of Centennial stock, $525 million in cash, and the assumption of around $1.4 billion of Colgate's net debt.

Outbound Investments

• On November 1, 2023, Permian Resources completed the $4.5 billion acquisition of Earthstone Energy, Inc., significantly enhancing its position in the Delaware Basin.
• In 2024, the company executed approximately $1.2 billion in acquisitions, adding 50,000 net acres and 20,000 BOE per day.
• For the full year 2025, Permian Resources executed approximately $1.1 billion of accretive acquisitions, encompassing over 700 transactions, 30,000 net acres, and 19,000 net royalty acres.

Capital Expenditures

• For 2023, the total capital budget was approximately $1.25 billion to $1.45 billion, with a focus on optimizing the Delaware Basin acreage position and turning in approximately 150 gross wells.
• The estimated cash capital expenditure budget for 2024 was approximately $1.9 billion to $2.1 billion, with about 75% allocated to drilling and completions, and the majority of operating activity (70%) directed towards the Northern Delaware Basin.
• Permian Resources expects a 2026 total cash capital expenditure budget of $1.75 billion to $1.95 billion, projecting approximately 4% year-over-year oil growth compared to 2025 with anticipated drilling and completion costs of $675 per foot.