Executive Summary

Q1 2025 delivered record adjusted free cash flow of $460M with crude oil production at 175.0 MBbls/d and total production at 373.2 MBoe/d; controllable cash costs fell to $7.54/Boe and D&C costs dropped to $750/ft, reinforcing PR’s low-cost leadership .
Consensus vs actual: EPS $0.42 vs $0.415 est (beat), revenue $1.376B vs $1.383B est (slight miss), EBITDA $1.042B vs $1.016B est (beat); stronger production and cost cuts drove the EPS/EBITDA outperformance (Values retrieved from S&P Global).*
Guidance tightened: capex midpoint reduced by $50M to $1.90–$2.00B while oil (170–175 MBbls/d) and total production (360–380 MBoe/d) ranges maintained; TILs cut to ~275 from ~285 reflecting capital efficiency .
Strategic bolt-on: $608M for 13,320 net acres and 8,700 net royalty acres in Northern Delaware adds >100 high-NRI two-mile locations and ~12 MBoe/d in 2H25; accretive to all key per share metrics and breakeven ~$30 WTI .
Balance sheet and capital returns: cash rose to $702M; net debt-to-LQA EBITDAX improved to 0.8x; declared $0.15 base dividend; repurchased 4.1M shares at $10.52 during April’s dislocation; total liquidity $3.2B .

What Went Well and What Went Wrong

What Went Well

Record adjusted free cash flow ($460M) on higher production and lower costs; D&C at $750/ft and controllable cash costs $7.54/Boe demonstrate structural efficiency gains .
Opportunistic capital allocation amid volatility: $43M of buybacks (4.1M shares at $10.52) and a $608M bolt-on acquisition, both executed from a “fortress balance sheet” position .
Management confidence on cost resilience: “we reduced controllable cash costs per Boe by 4% q/q and lowered D&C costs to $750 per foot… helped generate record quarterly adjusted free cash flow” – Will Hickey, Co-CEO .

What Went Wrong

Revenue modestly below consensus despite strong oil/NGL realizations; gas realized price remained weak at $1.35/Mcf, reflecting basin headwinds (minor revenue miss vs consensus) (Values retrieved from S&P Global).*
TILs reduced to ~275 from prior ~285; while capital efficient, implies slightly lower activity cadence versus February plan .
GP&T per Boe edged higher vs Q4 on mix; while controllable costs improved overall, severance/ad valorem taxes rose to 7.8% of revenue in Q1 .

Financial Results

Income Statement Bridge (GAAP)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$1,215.6	$1,296.1	$1,376.5
Net Income ($USD Millions)	$386.4	$216.7	$329.3
Diluted EPS ($USD)	$0.53	$0.29	$0.44
Cash from Operations ($USD Millions)	$954.4	$871.6	$898.0
Total Cash Capex ($USD Millions)	$520.2	$504.5	$500.7

Margins and EBITDA (S&P Global)

Metric	Q3 2024	Q4 2024	Q1 2025
EBITDA ($USD Millions)	$1,088.3*	$877.2*	$1,041.6*
EBITDA Margin (%)	89.53%*	67.68%*	75.67%*
Net Income Margin (%)	31.79%*	16.72%*	23.92%*

Values retrieved from S&P Global.*

Operational KPIs and Unit Costs

KPI	Q3 2024	Q4 2024	Q1 2025
Oil Production (Bbls/d)	160,801	171,274	174,967
Total Production (Boe/d)	347,091	368,414	373,209
Realized Oil Price ($/Bbl)	$74.31	$69.66	$70.48
LOE ($/Boe)	$5.43	$5.42	$5.35
GP&T ($/Boe)	$1.57	$1.49	$1.39
Cash G&A ($/Boe)	$0.95	$0.93	$0.80

Estimates vs Actual (S&P Global)

Metric	Q3 2024 Actual	Q3 2024 Consensus	Q4 2024 Actual	Q4 2024 Consensus	Q1 2025 Actual	Q1 2025 Consensus
Revenue ($USD Millions)	$1,215.6	$1,214.6*	$1,296.1	$1,297.9*	$1,376.5	$1,383.9*
EPS ($USD)	$0.35*	$0.323*	$0.36*	$0.341*	$0.42*	$0.415*
EBITDA ($USD Millions)	$1,088.3*	$877.2*	$877.2*	$938.6*	$1,041.6*	$1,015.9*

Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net avg daily production (Boe/d)	FY 2025	360,000–380,000	360,000–380,000	Maintained
Net avg daily oil production (Bbls/d)	FY 2025	170,000–175,000	170,000–175,000	Maintained
Total controllable cash costs ($/Boe)	FY 2025	$7.25–$8.25	$7.25–$8.25	Maintained
LOE ($/Boe)	FY 2025	~$5.55	~$5.55	Maintained
GP&T ($/Boe)	FY 2025	~$1.30	~$1.30	Maintained
Cash G&A ($/Boe)	FY 2025	~$0.90	~$0.90	Maintained
Total cash capex ($MM)	FY 2025	$1,900–$2,100	$1,900–$2,000	Lowered ($50M midpoint)
TILs (gross)	FY 2025	~285	~275	Lowered
Avg working interest	FY 2025	~75%	~75%	Maintained
Avg lateral length (ft)	FY 2025	~10,000	~10,000	Maintained
Base dividend ($/share)	Q2 2025	$0.15	$0.15	Maintained

Notes: The announced bolt-on is expected to add ~12 MBoe/d (~45% oil) in 2H25 and ~$20M incremental capex; its impact is excluded from standalone guidance .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Cost efficiency (D&C $/ft)	~$800/ft; cycle time down 16% y/y	~$775/ft; further reductions	$750/ft; potential modest further deflation	Improving
Controllable cash costs	$7.95/Boe	$7.84/Boe; Q4 LOE $5.42	$7.54/Boe; LOE $5.35	Improving
Balance sheet & leverage	Liquidity ~$2.8B; ~1x leverage	Liquidity ~$3.0B; 0.95x	Liquidity $3.2B; 0.8x	Strengthening
Gas marketing/realizations	Non-Waha sales up to ~30%	Plan to optimize over multi-year	Updates targeted by August; 2026+ step-change targeted	Building
Capital allocation	Base dividend increased to $0.15	Maintain $0.15; pursue efficient buybacks	$0.15 dividend; $43M buybacks on dislocation	Balanced returns
M&A/ground game	Barilla Draw closed; >100 grassroots transactions	~$1.2B 2024 M&A; inventory replaced	$608M bolt-on; high-NRI inventory	Accretive, ongoing

Management Commentary

“We reduced controllable cash costs per Boe by 4% quarter-over-quarter and lowered D&C costs to $750 per foot, which helped generate record quarterly adjusted free cash flow of $460 million.” – Will Hickey, Co-CEO .
“Our recent production outperformance allows us to reduce our capital budget by $50 million while maintaining production at the high end of our guidance range.” – James Walter, Co-CEO .
“We bought 4.1 million shares at an average price of $10.52 and announced a $608 million bolt-on… accretive to all key financial metrics.” – James Walter, Co-CEO .
“At our current cost structure… we can generate the same free cash flow this year if oil remains at $60 as we did last year at $75.” – Will Hickey, Co-CEO .

Q&A Highlights

Acquisition rationale and quality: Lower decline PDP, high NRI inventory with breakevens ~$30 WTI; immediate capital competitiveness; plan to trade non-op into operated over time .
Share repurchases strategy: Ample capacity; rifle-shot approach in clear dislocations; readiness to scale buybacks if market re-tests April levels .
Production outperformance drivers: Artificial lift swaps and stronger-than-expected well performance from 2024 acquisitions; cost cuts embedded .
Service cost and OpEx trends: Early signs of service price concessions; OpEx per Boe lower aided by fixed-cost dilution from higher volumes .
Lateral length and development: Area supports 2–3 mile laterals; Parkway costs ~$100/ft cheaper than broader program .

Estimates Context

Q1 2025: EPS $0.42 vs $0.415 est (beat), revenue $1.376B vs $1.384B est (slight miss), EBITDA $1.042B vs $1.016B est (beat); cost discipline and oil mix drove EPS/EBITDA outperformance while weak basin gas modestly pressured revenue (Values retrieved from S&P Global).*
Trajectory: Q3/Q4 2024 showed consistent EPS beats vs consensus and strong EBITDA outperformance in Q3 2024; Q4 EBITDA below consensus despite capex discipline as pricing/mix moved (Values retrieved from S&P Global).*
Implication: Street models may need to reflect structurally lower D&C/controllable unit costs and higher oil mix; FY capex midpoint reduction likely modestly lifts FY FCF per share (Values retrieved from S&P Global).*

Key Takeaways for Investors

Structural cost edge: D&C at $750/ft and controllable cash costs $7.54/Boe position PR to sustain FCF at $60 WTI comparable to 2024 at $75 WTI; this underpins downside-protected returns .
Capital efficiency decision: $50M capex midpoint cut with maintained production guidance signals discipline; expect Q2 peak capex then step-down in 2H .
Accretive growth inventory: $608M bolt-on adds >100 high-NRI two-mile locations and ~12 MBoe/d in 2H25; breakeven ~$30 WTI enhances resilience and per-share accretion .
Balance sheet optionality: 0.8x net debt-to-LQA EBITDAX, $3.2B liquidity and an undrawn revolver enable opportunistic buybacks/M&A through volatility .
Return of capital: $0.15 quarterly base dividend (~5.0% yield at announcement) maintained; management favors opportunistic, dislocation-driven buybacks vs steady pace .
Near-term trading: Watch for Q2 capex peak and 2H production lift; catalysts include closing the bolt-on, further cost wins, and updates on gas marketing strategy by August .
Medium-term thesis: High-return, long-dated inventory and low breakevens support durable FCF growth per share; a potential investment-grade rating could compress capital costs and support multiple expansion .

Appendix: Additional Data and Disclosures

Operating Highlights (Q1 2025): Oil and gas sales $1,376.5M; LOE $179.6M; DD&A $474.2M; net income $329.3M; diluted shares 748.2M; adjusted diluted shares 847.8M .
Cash flow: CFO $898.0M; cash increased to $702.2M; redeemed $175M of legacy notes; share repurchases executed in April .
Hedging: ~25% 2025 oil hedged at ~$73–$74/bbl; detailed swap/basis/roll schedules across 2025–2026 .

All document-based figures and quotes are cited to company filings and transcripts as indicated. Estimates figures are from S&P Global and marked with an asterisk.

Permian Resources Corp (PR)·Q1 2025 Earnings Summary