The leaders of Permian Resources Corp., Midland, have added about 3% to their full-year targets for both oil and total production, a boost they say is thanks to both strong well results and the purchase in mid-June of more than 13,000 acres in the northern Delaware basin from APA Corp. (OGJ Online, May 8, 2025).
Will Hickey and James Walter, co-chief executive officers, and their teams now expect Permian to produce 178,500 b/d and 385,000 boe/d for all of 2025. Their move comes after a second quarter in which the company averaged 176,533 b/d of oil and 385,118 boe/d in all. The APA acquisition contributed about 900 b/d of oil to Permian’s second quarter.
On an Aug. 7 conference call with analysts, Hickey said Permian drilled five of the company’s 10 fastest wells ever during the quarter. Permian’s overall cost per foot drilled during the quarter was roughly in line with that of the first quarter—after a series of notable gains in previous periods—due in part to average lateral lengths being slightly shorter. Hickey said leaders are focused on improving the performance of all wells the company is drilling.
“We’re starting to really push the envelope of the best wells. We need to keep making progress on the average well and on the worst wells,” he said. “We’ve proven to ourselves there’s a lot of stuff we can go get and we’ve done it now on a handful of wells. We’ve just got to go do it on the average.”
In the 3 months that ended June 30, Permian produced a net profit of $245 million on operating revenues of nearly $1.2 billion. In the same period of 2024, those numbers were $309 million and $1.25 billion, respectively. The company’s average sale price for its oil fell to $62.71 from $80.10 a year earlier.
Other details from the company’s second-quarter report and conference call included:
- As previously indicated, executives have added about $20 million in capex to their full-year budget to cover second-half spending on the APA assets. The company’s range is now $1.92-2.02 billion.
- During the quarter, the company also acquired about 1,300 net acres and about 80 net royalty acres via roughly 130 transactions.
- The One Big Beautiful Bill Act passed last month will result in the company saving about half of the nearly $10 million in income taxes executives had expected they’d need to pay.
Shares of Permian (Ticker: PR) were changing hands around $13 early in the afternoon of Aug. 11. They have lost about 13% of their value over the past 6 months, which has cut the company’s market capitalization to about $10 billion.
