Permian Resources Achieves Investment-Grade Credit Rating from Fitch
Permian Resources announced it received its first investment-grade rating from Fitch, recognizing its strong credit metrics and operational track record.
This rating milestone is expected to influence the company's ability to access more favorable debt terms and expand financing options.
Management highlighted that the Fitch recognition reflects their disciplined financial strategy and robust free cash flow generation.
Achieving investment-grade status positions Permian Resources as a more attractive partner for future acquisitions and strategic investments.
Adjusted EBITDA was $440.4 million including a $48.6 million legal settlement impact.
CapEx was $210 million, 16% lower sequentially, allocated 34% Permian, 25% Williston, 15% Uinta, and 26% Appalachia.
Fitch upgraded NOG's credit rating to BB-.
Free cash flow excluding the legal settlement was approximately $126 million, marking the 22nd consecutive quarter of positive free cash flow totaling over $1.8 billion.
Lease operating costs per BOE rose 6% to $9.95 due to higher expenses in Williston and Permian regions.
Liquidity at quarter end was over $1.1 billion, including $26 million cash and $1.1 billion available on revolving credit.
NOG delivered a solid Q2 2025 with total average daily production of approximately 134,000 BOE per day, up 9% versus Q2 2024 and flat sequentially.
NOG recorded a $115.6 million noncash impairment charge due to lower oil prices, leading to reduced DD&A guidance per BOE.
Oil production was approximately 77,000 barrels per day, up 10.5% year-over-year and down 2% sequentially due to lower Williston activity.
Uinta Basin volumes increased 18.5% sequentially, and Appalachian JV wells started contributing in the back half of the quarter with record gas volumes of approximately 343 mmcf per day.
Diamondback's Industry Consolidation Strategy and M&A Outlook
Diamondback views itself as the natural consolidator in the Permian, emphasizing its ability to execute acquisitions at lower costs and integrate seamlessly, citing the recent Endeavor acquisition which nearly doubled the company's size.
The company considers itself the consolidator of choice until proven otherwise and remains focused on selective, high-quality acquisitions, especially targeting sub-$40 breakeven inventory.
Diamondback maintains a patient approach to M&A, with a focus on high-quality inventory, and sees additional consolidation opportunities in the Permian, particularly in Viper Energy, which is pursuing a roll-up strategy.
Duke Energy reported adjusted earnings per share (EPS) of $1.25 for Q2 2025, up from $1.18 in Q2 2024, driven by top-line growth across Electric Utilities.
Electric Utilities and Infrastructure segment EPS increased by $0.10 year-over-year due to new rates in Carolinas, Florida, and Indiana, partially offset by higher O&M and interest expenses.
Gas Utilities and Infrastructure results were flat year-over-year, consistent with seasonal trends in the LDC business.
The company is on track to achieve its 2025 EPS guidance range of $6.17 to $6.42 and maintain a long-term EPS growth rate target of 5% to 7% through 2029.
The Other segment declined by $0.02 primarily due to higher planned interest expense.
Impact of Infrastructure Challenges on Production and Mitigation Strategies
Natural gas processing issues in New Mexico caused well shut-ins and deferred oil production, but the impact on revenue was minimal as oil revenue is the primary driver.
Disruptions are timing issues rather than well performance problems, presenting opportunities for midstream and power projects aimed at improving flow assurance.
The company is advancing midstream and power generation projects, including compressor station expansions, to mitigate future infrastructure constraints and support stable production.
Dafinchi