Permian Resources Raises Dividend 7% and Guides 5% Production Growth With $1.85B CapEx
Permian Resources boosted its quarterly base dividend 7% to $0.16, delivering 2025 free cash flow per share of $1.94 (up 18%) and cutting debt by over $600M. Permian Resources forecasts selling 400MMcf/d gas in 2026 (700MMcf/d in 2027) and guiding 2026 production to 415,000 BOE/d with $1.85B CapEx.
1. Operational and Financial Highlights
Permian Resources reported record Q4 operational metrics, including highest oil production, lowest drilling and completion cost per foot, and lowest controllable cash costs. For full-year 2025 the company delivered free cash flow per share of $1.94 (up 18% year-over-year), outperformed oil guidance by 5%, and reduced net debt by over $600 million.
2. Gas Realization and Marketing Strategy
The company has reduced Waha exposure to roughly 10% of gas volumes for 2026 and expects to realize a $0.50 premium to Waha benchmarks, versus a $0.40 discount in 2025. Agreements executed will support sales of approximately 400 MMcf/d in 2026, rising to about 700 MMcf/d in 2027, leveraging expanded midstream and marketing initiatives.
3. 2026 Production and CapEx Guidance
Permian Resources targets average 2026 production of 415,000 BOE/d (5% growth), including 189,000 bbl/d of oil, funded by $1.85 billion of capital spending, $120 million below last year. Drilling and completion costs are expected at $675 per foot, a 20% reduction versus 2024, with activity weighted 65% to New Mexico and 30% to Texas.
4. Dividend and Capital Allocation
The quarterly base dividend was raised 7% to $0.16 per share, reflecting a 40% compound annual growth rate since its 2022 inception. Management prioritizes the dividend, with excess free cash flow earmarked for accretive acquisitions, further debt paydown and opportunistic share repurchases.