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Permian Resources exited 2025 as the largest pure-play Delaware Basin operator with ~480,000 net acres and >105,000 net royalty acres. The company averaged 392.6 MBoe/d in 2025, including 181.8 MBbls/d of oil, and generated $1.6 B of adjusted free cash flow while maintaining year-end leverage of ~0.9x Net Debt-to-LQA EBITDAX.
The 2026 plan reflects a continuation of disciplined capital allocation, improved capital efficiency and steady oil growth, while reducing absolute capital spending year over year.
2026 vs 2025 Operating Comparison
| Metric | 2025 Actual | 2026 Guidance (Midpoint) | Delta YoY |
|---|---|---|---|
| Total Production (MBoe/d) | 393 | ~415 | +6% |
| Oil Production (MBbls/d) | 182 | ~189 | +4% |
| Cash Capex ($B) | $1.97 B | ~$1.85 B | (6%) |
| D&C Cost ($/lateral ft) | ~$730 | ~$675 | (8%) |
| Avg. Lateral Length (ft) | ~10,500 | ~11,000 | +5% |
| Gross TILs | N/A (not disclosed) | ~250 | — |
| Net Debt / LQA EBITDAX | 0.9x | ~0.7x (est.) | Improving |
Operational Activity
Production
Total production averaged 393 MBoe/d in 2025. The 2026 midpoint implies ~415 MBoe/d, representing ~6% growth off a higher base. Oil production is expected to grow ~4% YoY to ~189 MBbls/d.
Capital Program
2025 cash capex totaled ~$1.97 B. The 2026 program is guided to ~$1.75–$1.95 B, with a midpoint of ~$1.85 B, representing a ~6% reduction despite higher volumes. The capital mix remains heavily weighted to high-return Delaware Basin development.
Drilling & Completions
Average D&C costs declined from ~$730 per lateral foot in 2025 to an expected ~$675 per foot in 2026 (~8% improvement).
Average lateral lengths are increasing from ~10,500 ft to ~11,000 ft (~5% increase), further enhancing capital efficiency.
The 2026 program targets ~250 gross TILs with average working interest of 75%–80%, and activity allocated ~65% New Mexico Delaware, ~30% Texas Delaware and ~5% Midland Basin.
Capital efficiency continues to improve, driven by longer laterals, consistent well productivity and lower per-foot well costs.
A&D Activity
2025 was an active year on the acquisition front:
~700 transactions closed
~$1.1 B deployed
~30,000 net acres added
~19,000 net royalty acres added
~13,000 Boe/d of production acquired
During Q4 alone, the company closed ~140 transactions for ~$240 MM, adding ~7,700 net acres and ~1,300 net royalty acres, largely concentrated in Northern Delaware, New Mexico.
Through acquisitions and organic expansion, PR added ~450 locations in 2025, including ~250 high-rate-of-return locations from bolt-on deals and ~200 organic additions.
Importantly, PR replaced >100% of inventory developed for the third consecutive year, reinforcing long-term inventory durability.
Balance Sheet & Capital Allocation
Year-end 2025 net debt was ~$3.4 B, equating to ~0.9x leverage.
2026 leverage is expected to decline toward ~0.7x at $60 WTI, within the company’s 0.5x–1.0x target range.
2025 capital allocation included:
~$635 MM of debt reduction
~$75 MM of share buybacks
~$1.1 B of acquisitions
Base dividend increased 7% entering 2026 to $0.64 per share annualized
Strategic Takeaways
Permian Resources enters 2026 with:
A higher production base
Lower per-foot well costs
Longer laterals
Reduced capital spending
Improving leverage
The 2026 plan reflects improved capital efficiency — delivering production growth while reducing capex — a rare combination in the current large-cap E&P landscape. The company remains highly concentrated in the Delaware Basin, but its scale, bolt-on execution and cost leadership position it to continue driving free cash flow per share growth through disciplined development and accretive A&D.
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