Permian Resources Corporation, a leading pure-play operator in the Delaware Basin, has reported strong first-quarter 2025 financial and operational results and announced a strategic bolt-on acquisition of APA Corporation’s Northern Delaware Basin assets for $608 million.
The acquisition adds thousands of highly economic acres directly adjacent to the company’s core operations in New Mexico and reflects a continuation of Permian Resources’ disciplined capital allocation, cost efficiency, and balance sheet fortification strategy in a volatile commodity price environment.
Operational and Financial Performance
Permian Resources reported record adjusted free cash flow of $460 million for the first quarter, underpinned by strong production, lower operating costs, and improved well economics.
Q1 2025 Operational Highlights:
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Crude oil production: 175,000 barrels/day (▲2% QoQ)
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Total production: 373,200 boe/day
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Natural gas volumes: 673,388 Mcf/day
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NGL volumes: 86,010 barrels/day
Oil outperformance was supported by high well uptime, enhanced production optimization, and particularly strong performance on assets acquired in 2024. The upside in natural gas was driven by elevated ethane rejection.
Realized Pricing:
Cash and Capital Metrics:
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Adjusted operating cash flow: $961 million
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Net cash from operations: $898 million
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Controllable cash costs: $7.54/boe (▼4% QoQ)
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D&C cost per lateral foot: $750 (▼8% from 2024)
Balance Sheet Strength:
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Cash on hand: $702 million (▲$223M QoQ)
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Net debt-to-LQA EBITDAX: 0.8x
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Total liquidity: $3.2 billion
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Total debt: $4.0 billion (▼4% QoQ)
“Through our team’s relentless pursuit of enhancing our low cost leadership… we reduced controllable cash costs per Boe by 4% quarter-over-quarter and lowered D&C costs to $750 per foot,” said Will Hickey, Co-CEO.
$608M for High-Return, Low-Decline APA Assets
In a countercyclical move that underscores its M&A discipline, Permian Resources has agreed to acquire 13,320 net acres and 8,700 net royalty acres in New Mexico from APA Corporation (NASDAQ: APA) for $608 million. The acreage directly offsets PR’s existing core position in the Northern Delaware Basin, specifically within its highly efficient Parkway asset in Eddy County.
Deal Highlights:
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Expected production (2H 2025): 12,000 boe/d (≈45% oil)
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Operatorship: Over 65% of the acquired position is operated
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Average NRI: ~83% (8/8ths)
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Drilling Inventory: >100 gross operated two-mile locations
“This acquisition is a natural fit for us and has material upside that Permian Resources is uniquely positioned to realize,” said James Walter, Co-CEO. “We believe the addition of high-quality assets adjacent to our core position… will further enhance short and long-term returns for investors.”
Valuation Metrics:
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$6,000 per net royalty acre
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$2 million per net location
The company expects $20 million in additional capex tied to development activity in H2 2025 on the new acreage. The inventory will be scheduled for near-term development and is expected to be fully accretive to all per-share financial metrics.
Additionally, the assets expand PR’s working interest in over 100 existing operated locations and offer leverageable non-op acreage for trading into operated units.
Despite the lower capex, the company expects to generate comparable free cash flow at $60/bbl WTI in 2025 as it did in 2024 at $75/bbl—a testament to the quality of its asset base and disciplined cost structure.
Since inception, Permian Resources has focused on balance sheet strength to weather downturns and deploy capital counter-cyclically:
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Liquidity increased by $1B since YE 2023
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Hedged ~25% of 2025 oil at attractive levels
Recent strategic moves include:
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4.1 million shares repurchased in April 2025 ($10.52 avg. price)
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The APA acquisition aligns with the company’s goal of “driving long-term value for shareholders”
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Debt reduction via $175M redemption of high-yield Earthstone notes
Permian Resources’ balance sheet remains solid post-transaction, with expected leverage of <1x and liquidity of >$3B at year-end 2025, assuming $60 WTI.
Recent Consolidation Activity
Permian Resources has emerged as a dominant consolidator in the Delaware Basin:
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Earthstone Energy: $4.5B acquisition (2023)
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Occidental Southern Delaware Assets: $818M deal (2024)
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Multiple “ground game” transactions executed in recent quarters
Final Word
Permian Resources is proving that capital discipline, strategic timing, and operational excellence can yield outsized returns even in lower-price environments. With the APA acquisition and another quarter of record financial performance, the company continues to solidify its leadership among independent U.S. shale operators.
“Our overarching goal is to drive long-term value for our investors… and we believe this acquisition further enhances that objective,” concluded Co-CEO James Walter.
