Permian Resources Corporation PR is set to release first-quarter 2026 results on May 6. The bottom-line estimate for the to-be-reported quarter is pegged at a profit of 38 cents on revenues of $1.4 billion.
Let us delve into the factors that might have influenced this Midland, TX-based oil and gas exploration and production company’s results in the quarter. Before diving in, it is important to consider how PR performed last quarter.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, Permian Resources posted adjusted net income per share of 37 cents, which beat the Zacks Consensus Estimate of 28 cents. The bottom line also increased from the year-ago quarter’s reported figure of 36 cents, backed by a rise in production volumes. However, PR’s revenues of $1.2 billion missed the Zacks Consensus Estimate by 9%.
The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, were in line in one and fell short in one, resulting in an average surprise of 12.7%.
This is depicted in the graph below:
Permian Resources Corporation Price and EPS Surprise
Permian Resources Corporation price-eps-surprise | Permian Resources Corporation Quote
PR’s Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter 2026 earnings has seen three upward revisions and two downside movements over the past 30 days. The estimated figure indicates a 9.5% decline year over year. The Zacks Consensus Estimate for revenues implies year-over-year growth of 1%.
Factors to Consider Ahead of PR’s Q1 Release
The West Texas oil and gas operator makes money by exploring for, developing and producing oil and liquids-rich natural gas in the Permian Basin, then selling those hydrocarbons into domestic and international energy markets. PR’s revenues are likely to have increased in the quarter to be reported. The Zacks Consensus Estimate for first-quarter revenues is up from the year-ago quarter’s $1.38 billion. Based on our estimate, the company's total average daily net production is projected to rise 11.5% year over year, reaching 411,443 barrels of oil equivalent. The company provided guidance to grow its production by about 5% in 2026 on lower capital, highlighting improved capital efficiency and lower breakevens. Additionally, improved gas marketing and reduced WAHA exposure are expected to have enhanced realizations, while a strong hedge position provides downside protection. Consistent well productivity, inventory depth and accretive bolt-on acquisitions further underpin sustainable free cash flow per share growth, positioning the company well for upside versus expectations in the to-be-reported quarter.
Adding to the bearish outlook, macro uncertainty, including supply disruptions in oil markets and volatile gas pricing, may weigh on realizations. Management flagged a potentially “bumpy” gas environment in 2026, which could impact near-term revenues despite mitigation efforts. Inflationary pressures on non-D&C CapEx and limited deflation in infrastructure costs may have constrained the margin upside in the quarter to be reported. Additionally, a disciplined approach to growth and capital allocation, while positive long term, could limit near-term production upside versus more aggressive peers. Any operational variability or weaker commodity prices could have therefore resulted in earnings falling short of expectations.
What Does Our Model Say About PR?
The proven Zacks model predicts an earnings beat for Permian Resources this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. This is exactly the case here.
PR’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +1.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PR’s Zacks Rank:PR currently sports a Zacks Rank #1.
Other Stocks to Consider
Here are some other firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Shell plc SHEL has an Earnings ESP of +3.56% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Valued at around $252 billion, SHEL stock has gained 36.6% in a year. Shell is one of the primary oil supermajors with operations that span almost every corner of the globe. The company participates in almost every aspect related to energy — from oil production to refining and marketing. The firm is scheduled to release earnings on May 7. The Zacks Consensus Estimate for Shell’s 2026 earnings indicates 58.3% year-over-year growth.
Targa Resources Corp. TRGP has an Earnings ESP of +0.77% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on May 7. Valued at around $54.6 billion, Targa Resources stock has surged 60.6% in a year.
The company is a premier energy infrastructure company that provides integrated midstream services in North America and derives its revenues from gathering, compressing, treating, processing and selling natural gas. The Zacks Consensus Estimate for Targa Resources’ 2026 earnings indicates 21.6% year-over-year growth.
W&T Offshore, Inc. WTI has an Earnings ESP of +185.72% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on May 7. Valued at around $614.5 million, WTI stock has soared 259.1% in a year.
W&T Offshore is a leading oil and natural gas explorer with operations primarily focused on resources located off the coast of the Gulf of America. The Zacks Consensus Estimate for W&T Offshore’s 2026 earnings indicates 40.5% year-over-year growth.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
W&T Offshore, Inc. (WTI): Free Stock Analysis Report
Targa Resources, Inc. (TRGP): Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis Report
Permian Resources Corporation (PR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).