$PR

Oil Drops on Diplomatic Progress with Iran, Tight Inventories Limits Downside, RBC Says

Oil prices came under renewed pressure on Friday after the White House signaled that a nuclear agreement with Iran could be reached in the near term, raising expectations for additional crude supplies to return to the market, RBC Capital Markets analyst Scott Hanold said in a Friday note.US benchmark West Texas Intermediate crude fell below $80 per barrel, although prices remain approximately 18% higher than levels seen before the outbreak of conflict in late February. Shares of US exploration and production companies also weakened, leaving the sector up just 6% since the start of the conflict.Despite the prospect of an easing in geopolitical tensions, Hanold said the impact on global oil fundamentals has already been significant. Supply and inventory buffers have been substantially reduced, supporting expectations for higher medium-term oil prices. Analysts estimate that the industry's mid-cycle oil price could remain at or above $75 per barrel for the next several years.US crude inventories currently stand about 5% below their five-year average. In its latest Short-Term Energy Outlook, the US Energy Information Administration projected total OECD oil inventories will fall below 2.3 billion barrels by December, the lowest level since the agency began tracking the data in 2003.Energy equities broadly declined over the past week. Oil-focused E&P companies fell roughly 5%, while natural gas-focused producers declined about 6%. Large-cap energy stocks were down 4%, while small- and mid-cap names lost 5%. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 4% during the period, as WTI crude declined 7% and Henry Hub natural gas prices dropped 8%.Investor interest in the energy sector remains intact but highly selective, according to discussions with long-only funds, generalist investors, and hedge funds. Investors continue to cite attractive valuations, with free cash flow-to-enterprise value and free cash flow-to-market capitalization yields averaging in the low- to mid-teens.Interest in natural gas producers remains more limited amid concerns that a strengthening El Nino weather pattern could weigh on demand. However, investors have shown growing interest in Expand Energy (EXE) due to its relative valuation. Other energy names drawing attention include Devon Energy (DVN), ConocoPhillips (COP), Diamondback Energy (FANG), and Permian Resources (PR).Price: $167.10, Change: $+3.69, Percent Change: +2.26%

Market Chatter: Permian Operators Shut Wells as Waha Gas Prices Stay Below Zero

Persistently weak gas prices in the Permian Basin are forcing some producers to curb output even as stronger crude prices encourage additional oil drilling, Bloomberg reported Monday.Producers, including Permian Resources (PR) and Devon Energy (DVN), have shut in wells with elevated gas-to-oil ratios after prices at the Waha Hub remained below zero for 124 straight days.Describing the move as an obvious economic decision, Permian Resources Co-Chief Executive Officer James Walter said the company curtailed gas-heavy production that was generating losses.While gas producers struggle with negative pricing, crude output across the Permian continues to climb as operators respond to oil prices that remain roughly 50% above levels seen before the Iran conflict.Flooding the market with associated gas from oil wells, rising crude-focused activity has overwhelmed existing pipeline infrastructure across West Texas and southeastern New Mexico.According to Targa Resources (TRGP) President Jennifer Kneale, producers are currently shutting in between 200 million and 400 million cubic feet of gas per day, compared with basin-wide dry gas production of about 23 Bcf/d.Middle East-related supply disruptions have encouraged additional oil-weighted drilling, which is adding further pressure to already constrained gas takeaway capacity, Rystad Energy Vice President Matt Bernstein said.Despite stronger crude prices, some operators have refrained from increasing production because losses tied to associated gas can offset gains from oil sales, Bernstein added.Instead of curtailing output, privately held Elevation Resources has opted to flare excess gas, allowing the company to free up infrastructure capacity and continue producing more crude oil, according to the report.Highlighting the pressure facing gas-focused operators, Elevation Resources Chief Executive Officer Steve Pruett said, "We're losing money hand over fist on gas," adding that natural gas accounts for roughly half of the company's production.Recent production curtailments have started to tighten the market, helping lift natural gas prices at the Waha Hub, according to the report.Recovering from a record low of negative $9.60 per million British thermal units on April 24, Waha prices improved to negative $0.33/MMBtu on Thursday, their highest level since February.Later this year, new Permian gas pipeline projects are expected to ease transportation constraints, allowing producers to move more gas to demand centers and improving in-basin pricing, the report said.Despite those expected improvements, Kinetik Holdings (KNTK) raised its full-year gas curtailment outlook and said higher oil prices continue to encourage crude-focused operators to expand activity while gas-focused producers face a much more challenging market environment."It's a tale of two cities: crude folks that are doing cartwheels and backflips," Kinetik Holdings (KNTK) Chief Executive Officer Jamie Welch said, while "those that are literally localized, gas-centric sellers are literally crying poverty."(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Permian Resources Insider Sold Shares Worth $1,282,998, According to a Recent SEC Filing

Guy M Oliphint, Executive Vice President, Chief Financial Officer, on May 21, 2026, sold 62,769 shares in Permian Resources (PR) for $1,282,998. Following the Form 4 filing with the SEC, Oliphint has control over a total of 542,503 Class A common shares of the company, with 542,503 shares held directly.SEC Filing:https://www.sec.gov/Archives/edgar/data/1658566/000165856626000084/xslF345X05/wk-form4_1779410869.xml

Permian Resources Raises Guidance as Flexes Hydrocarbons Output Higher Amid Market's Surge

Texas-headquartered Permian Resources (PR) managed to push up its hydrocarbons production in Q1 to capture more value from the surge in oil and gas prices after the outbreak of conflict in the Middle East it said in its Q1 earnings update on Wednesday.It said it will seek further production increases while retaining flexibility to scale back in the event of a macroeconomic downturn.The company increased the mid-point of FY 2026 production guidance, adding 3,500 barrels per day for a targeted 192,500 barrels. It said all other guidance metrics were unchanged.Production averaged 412,900 barrels of oil equivalent per day, including 192,300 of oil, 103,300 barrels of natural gas liquids and 703 million cubic feet per day of natural gas.Strong new well performance helped the company to produce beyond its own expectations in the quarter as well as steps it took in March to raise output incrementally, it said.Permian Resources said it had reduced well costs on a per lateral foot basis through operational efficiencies. Drilling and completion costs fell about $685 per lateral foot, down about 2% from the previous quarter, it said.

Permian Resources Q1 Adjusted Earnings Fall, Revenue Rises

Permian Resources (PR) reported Q1 adjusted earnings late Wednesday of $0.39 per diluted share, down from $0.43 a year earlier.Analysts polled by FactSet expected $0.38.Revenue for the quarter ended March 31 was $1.39 billion, up from $1.38 billion a year earlier.Analysts surveyed by FactSet expected $1.41 billion.The company kept its quarterly dividend at $0.16 per share, payable on June 30 to shareholders of record as of June 16.Shares of Permian Resources were down nearly 4% in after-hours trading.

Earnings Flash (PR) Permian Resources Posts Q1 Adjusted EPS $0.39, vs. FactSet Est of $0.38

RBC Capital Markets Raises Commodity Price Outlook for 2026-28

RBC Capital Markets has raised its commodity price outlook due to the potentially long-lasting impact of the conflict between the US and Iran.The analysts said the tightening of supply and demand fundamentals has prompted them to raise their 2026-2028 equilibrium price for Brent/WTI by $10 to $80/$75 and Henry Hub natural gas by $0.25 to $4.00 per million cubic feet."This move reflects ongoing collateral damage in the Gulf region and a rising call on barrels globally from an energy security standpoint," RBC's research note said.It added that share buy-back activities were likely to slow given the recent sharp rise in equities valuations, up by more than 50% in the calendar year so far.In terms of trading ideas, RBC highlighted ConocoPhillips (COP) and EOG Resources (EOG) among large players, California Resources (CRC), Permian Resources (PR) and Chord Energy Group (CHRD) among small to medium and Expand Energy Corp (EXE) in gas.RBC said it had raised its EPS-to-cash flow per share estimates by an average 45% to reflect its revised commodity price expectations with oil players in this basket generally up closer to 55%.In keeping with this, price targets have been raised 27% on average, the note said.