# Permian Resources Corporation (PR) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/PR/thesis · /stocks/PR/memo

## Financial Snapshot

---
title: "Step 04 — Financial Snapshot"
ticker: PR
company: Permian Resources Corporation
source: coverage-next-full
date: 2026-05-29
---

### Step 04 — Financial Snapshot: Permian Resources Corporation (PR)

#### 1. Three-Year Financial Summary

| Metric ($M unless noted) | FY2022 | FY2023 | FY2024 | FY2025 | TTM (Q1'26) |
|--------------------------|--------|--------|--------|--------|-------------|
| Revenue | $2,131 | $3,121 | $5,001 | $5,065 | $5,077 |
| YoY Growth | — | +46% | +60% | +1.3% | — |
| Gross Profit | $1,706 | $2,417 | $3,754 | $3,722 | $3,723 |
| Gross Margin | 80.1% | 77.4% | 75.1% | 73.5% | 73.4% |
| Operating Income | $1,008 | $1,097 | $1,745 | $1,463 | $1,426 |
| Operating Margin | 47.3% | 35.1% | 34.9% | 28.9% | 28.1% |
| EBITDA | $1,452 | $2,104 | $3,521 | $3,495 | $3,510 |
| EBITDA Margin | 68.1% | 67.4% | 70.4% | 69.0% | 69.1% |
| Net Income | $515 | $476 | $985 | $935 | $650 |
| Net Margin | 24.2% | 15.3% | 19.7% | 18.5% | 12.8% |
| EPS (Diluted) | $1.61 | $1.24 | $1.45 | $1.28 | $0.86 |
| Operating Cash Flow | $1,372 | $2,214 | $3,412 | $3,608 | — |
| Capex | $784 | $1,794 | $3,121 | $3,050 | — |
| Free Cash Flow | $588 | $420 | $291 | $557 | — |
| Adj. EBITDAX (company) | — | — | $3,740 | — | — |
| Net Debt | ~$2,152 | ~$3,837 | ~$3,827 | ~$3,527 | ~$3,517 |
| Net Debt/EBITDA | 1.5x | 1.8x | 1.1x | 1.0x | 1.0x |

*Note: FY2022 figures are pro forma Permian Resources (merger closed Sep 1, 2022; historical CDEV legacy only for Q1-Q3 2022). FY2023+ are consolidated Permian Resources.*

#### 2. Key Observations

**Revenue Step-Change (FY2022→FY2024):** The 135% revenue growth from $2.1B to $5.0B over two years reflects the combination of merger integration, organic drilling, and the OXY bolt-on acquisition (Jul 2024). FY2025 revenue growth flatlined (+1.3%) as commodity prices softened; volume growth (~15%) was mostly offset by lower realized prices.

**EBITDA Margin Stability:** Gross and EBITDA margins have been remarkably consistent at 68-75%, reflecting the company's low-cost operating position in the Delaware Basin. Even as WTI declined, continuous LOE/Boe improvement has partially offset pricing pressure.

**FCF Dynamics:** FCF is volatile due to large, lumpy acquisition capex:
- FY2024 FCF was only $291M because capex included $2.06B D&C + ~$1.1B acquisition payments (OXY deal)
- Adjusted FCF (excluding acquisition payments, company-defined) was $1.36B in FY2024 [S1]
- Organic FCF power at $70/bbl WTI is ~$1.0-1.5B/year on steady-state operations

**Net Debt Trajectory:** Net debt peaked at ~$3.8B in FY2023-2024 (post-merger financing + OXY acquisition). The company has been actively deleveraging: net debt/EBITDAX improved from 1.8x (2023) to 0.8x (Q3 2025) — well within management's 1.0-1.5x target range. [S2]

#### 3. Accounting Quality Assessment

| Check | Assessment |
|-------|-----------|
| Revenue recognition | PASS — oil sold at delivery; standard E&P revenue recognition |
| Reserve estimation | PASS — third-party reserve engineers (independent audit) |
| DD&A methodology | PASS — units of production method (industry standard) |
| Hedge accounting | PASS — derivatives marked to market; fair value disclosed |
| Non-cash items | NOTE — large DD&A ($17-18/Boe est.) vs. peer benchmark |
| SBC | LOW — Co-CEOs 100% PSUs; total SBC modest relative to FCF |
| Acquisition accounting | PASS — purchase price accounting for Centennial+Colgate merger well documented |
| Adjusted EBITDAX | JUDGMENT — company adds back several items (exploration expense, acquisition costs, non-cash hedge settlements); adjustments are disclosed and appear reasonable |

**One accounting complexity:** the company uses "Adjusted EBITDAX" and "Adjusted Free Cash Flow" as primary metrics, both of which exclude items management deems non-recurring. The definitions are disclosed in press releases. Adjusted FCF ($1.36B in FY2024) differs meaningfully from GAAP FCF ($291M) primarily because the company excludes acquisition-related capex. Investors should be aware of this distinction.

#### 4. Adversarial Research Sweep

**Short Reports:** No known dedicated short reports targeting PR as of May 2026.

**Securities Litigation:** 
- No material securities class actions identified.
- The merger in 2022 had some proxy-related scrutiny (standard for merger-of-equals transactions) but no material litigation resulted.

**Accounting Investigations:** None identified.

**Activist Campaigns:** None identified. Institutional ownership is dominated by large passive/value funds; PE sponsor (Riverstone/Pearl Energy) has been selling down but through orderly block trades.

**Environmental/Regulatory Issues:**
- PR operates in Delaware Basin, which includes federal acreage in New Mexico — BLM permitting delays are a systemic risk for all operators
- No material EPA enforcement actions identified
- Industry-wide methane emissions scrutiny under IRA methane fee provisions

**ESG Controversies:**
- Routine for E&P; flaring and methane emissions are industry-wide issues
- PR has published sustainability reports with emissions reduction targets
- No ESG-specific controversies that would materially impair access to capital

**Governance Red Flags:**
- Dual Co-CEO structure is unusual; risks include decision-making paralysis, succession uncertainty
- PE sponsor overhang: Riverstone Holdings and Pearl Energy have been reducing positions; could pressure stock on block sales
- Management compensation: Co-CEOs receive 100% equity (PSUs) — highly aligned with long-term shareholders [S3]

#### 5. Balance Sheet Quick View (Q3 2025)

| Metric | Value |
|--------|-------|
| Cash | $112M |
| Total Debt | $3,689M |
| Net Debt | $3,577M |
| Net Debt/EBITDAX | 0.8x |
| Total Liquidity | >$2.6B (credit facility + cash) |
| Total Assets | ~$17.9B (YE2025) |

#### 6. Source Index

| Code | Source |
|------|--------|
| [S1] | PR Q4/FY2024 Earnings Press Release — "Adjusted FCF of $1.36B" |
| [S2] | PR Q3 2025 Earnings Press Release — Net Debt/EBITDAX 0.8x |
| [S3] | PR 2025 Proxy Statement — Co-CEO compensation |
| [S4] | StockAnalysis.com — Annual financial data FY2021-FY2025 |

*Note: Earnings transcript analysis was not performed — this is the filings-and-consensus research path.*

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/PR/fundamental

## Navigation

- Overview: /stocks/PR
- Financials (this page): /stocks/PR/financials
- Thesis: /stocks/PR/thesis
- Investment Memo: /stocks/PR/memo
- Coverage universe: /stocks