Permian Resources Corp

Previous wording

Concerns of global economic growth, elevated interest rates, inflation, increases in global oil supply and tariffs and international trade policies have resulted in lower oil prices over the past year. Despite recent geopolitical tensions, international conflicts and strong global demand, higher than anticipated supply increases from the OPEC resulted in further downward pressure on prices through the end of the second quarter of 2025.

Current wording

Concerns of global economic growth, elevated interest rates, inflation, increases in global oil supply, tariffs and international trade policies have resulted in lower oil prices over the past year. Despite recent geopolitical tensions and strong global demand, higher than anticipated supply increases from OPEC and their potential impact to global inventories resulted in further downward pressure on prices through the end of the third quarter of 2025.

Previous wording

Throughout 2024 and the first half of 2025, natural gas prices in the Permian Basin have been negatively impacted by low demand as a result of pipeline capacity constraints out of the basin, pipeline maintenance, and higher production levels. These factors have led to lower and, during certain periods, negative regional gas prices being realized for natural gas sales at the Waha Hub in West Texas resulting in lower gas realizations on our production sold at these regional price points.

Current wording

Throughout 2024 and 2025, natural gas prices in the Permian Basin have been negatively impacted by low demand as a result of pipeline capacity constraints out of the basin, pipeline maintenance, and higher production levels. These factors have led to lower or, during certain periods, negative regional gas prices being realized for natural gas sales at the Waha Hub in West Texas resulting in lower gas realizations on our production sold at these regional price points.

Previous wording

Due to the cyclical nature of the oil and gas industry, fluctuating demand for oilfield goods and services can put pressure on the pricing structure within our industry. As commodity prices rise, costs of oilfield goods and services generally also increase; however, during periods of commodity price declines, oilfield costs typically lag and do not adjust downward as fast as oil prices do. In addition, the U.S. saw higher levels of inflation during 2024 and through the first half of 2025, which is expected to remain heightened throughout 2025 due to concerns over international conflicts, tariffs and trade policies. Inflationary pressures such as these may also result in increases to the costs of our oilfield goods, services and personnel, which can in turn cause our capital expenditures and operating costs to rise.

Current wording

Due to the cyclical nature of the oil and gas industry, fluctuating demand for oilfield goods and services can put pressure on the pricing structure within our industry. As commodity prices rise, costs of oilfield goods and services generally also increase; however, during periods of commodity price declines, oilfield costs typically lag and do not adjust downward as fast as oil prices do. In addition, the U.S. saw higher levels of inflation during 2024 and 2025 due to concerns over international conflicts, tariffs and trade policies. Inflationary pressures such as these may also result in increases to the costs of our oilfield goods, services and personnel, which can in turn cause our capital expenditures and operating costs to rise.

Previous wording

Additionally, during the six months ended June 30, 2025, the Company completed multiple acquisitions of oil and natural gas properties for a cumulative adjusted purchase price of approximately $43.6 million. These acquisitions are part of our ongoing bolt-on and grassroots acquisition programs.

Current wording

Additionally, during the nine months ended September 30, 2025, we completed multiple acquisitions of oil and natural gas properties for a cumulative adjusted purchase price of approximately $225.6 million. These acquisitions are part of our ongoing bolt-on and grassroots acquisition programs.

Previous wording

During the six months ended June 30, 2025, we declared and paid quarterly base dividends totaling $0.30 per share of Class A Common Stock and distributions totaling $0.30 per share of Class C Common Stock (each of which has an underlying common unit of OpCo (“Common Units”)). The cash dividends and distributions paid to common unitholders totaled $241.6 million for the six months ended June 30, 2025.

Current wording

During the nine months ended September 30, 2025, we declared and paid quarterly base dividends totaling $0.45 per share of Class A Common Stock and distributions totaling $0.45 per share of Class C Common Stock (each of which has an underlying common unit of OpCo (“Common Units”)). The cash dividends and distributions paid to common unitholders totaled $366.8 million for the nine months ended September 30, 2025.

Previous wording

During the six months ended June 30, 2025, we paid $43.3 million to repurchase 4.1 million shares of our Class A Common Stock at a weighted average price of $10.52 per share as part of our stock repurchase program. The shares that were repurchased were subsequently canceled.

Current wording

During the nine months ended September 30, 2025, we paid a total of $73.7 million to repurchase 4.4 million shares of our Class A Common Stock and 2.0 million Class C Common Stock at a weighted average price of $11.57 per share as part of our stock repurchase program. The shares that were repurchased were subsequently canceled.

Previous wording

During June 2025, we repurchased $2.7 million of our senior notes due 2026 (the “2026 Senior Notes”) at a price equal to 99.7% of the principal amount paid plus accrued and unpaid interest up to, but excluding, the repurchase date. Following the repurchase transaction, the remaining aggregate principal amount of the 2026 Senior Notes outstanding was $286.7 million.

Current wording

During June 2025, we repurchased $2.7 million of our senior notes due 2026 (the “2026 5.375% Senior Notes”) at a price equal to 99.7% of the principal amount paid plus accrued and unpaid interest up to, but excluding, the repurchase date. Subsequently, during September 2025, we redeemed all remaining 2026 5.375% Senior Notes at a price equal to 100% of the aggregate principal amount outstanding of $286.7 million plus accrued and unpaid interest up to, but excluding, the redemption date.

Previous wording

Oil and Gas Sales. Total net revenues for the three months ended June 30, 2025 were $48.5 million (or 4%) lower than total net revenues for the three months ended June 30, 2024. Revenues are primarily a function of oil, NGL and natural gas volumes sold and average commodity prices realized.

Current wording

Oil and Gas Sales. Total net revenues for the three months ended September 30, 2025 were $106.2 million (or 9%) higher than total net revenues for the three months ended September 30, 2024. Revenues are primarily a function of oil, NGL and natural gas volumes sold and average commodity prices realized.

Previous wording

Net production volumes for oil, NGLs and natural gas increased 15%, 16%, and 13%, respectively, between periods. The increase in oil production resulted from additional production added from wells placed online or acquired since the second quarter of 2024. These oil volume increases were partially offset by normal production declines across our existing wells. NGLs and natural gas are produced concurrently with our crude oil volumes, which typically result in a high correlation between fluctuations in oil quantities sold and NGL and natural gas quantities sold driving the respective 16% and 13% increases in NGL and gas volumes between periods.

Current wording

Net production volumes for oil, NGLs and natural gas increased 16%, 23% and 17%, respectively, between periods. The increase in oil production resulted from additional production added from wells placed online or acquired since the third quarter of 2024. These oil volume increases were partially offset by normal production declines across our existing wells. NGLs and natural gas are produced concurrently with our crude oil volumes, which typically result in a high correlation between fluctuations in oil quantities sold and NGL and natural gas quantities sold driving the respective 23% and 17% increases in NGL and natural gas volumes between periods.

Previous wording

Total net revenues increases were also driven by higher average realized sales prices of natural gas, which increased 513% in the first half of 2025 compared to the same 2024 period. This increase was the result of significantly higher local and national average index gas prices between periods.

Current wording

Total net revenues increases were also driven by higher average realized sales prices of natural gas, which increased 178% in the third quarter of 2025 compared to the same 2024 period. This increase was the result of significantly higher regional and national average index gas prices between periods.

Previous wording

Average realized sales price for oil and NGLs decreased 22% and 12%, respectively, in the second quarter of 2025 compared to the same 2024 period. The 22% decrease in the average realized oil price was mainly the result of lower NYMEX crude prices between periods. The 12% decrease in the average realized NGL price between periods was primarily attributable to lower Mont Belvieu spot prices for plant products in the second quarter of 2025 compared to the same 2024 period.

Current wording

These increases were partially offset by lower realized sales prices for oil and NGLs which decreased 13% and 10%, respectively, in the third quarter of 2025 compared to the same 2024 period. The 13% decrease in the average realized oil price was mainly the result of lower NYMEX crude prices between periods. The 10% decrease in the average realized NGL price between periods was primarily attributable to lower Mont Belvieu spot prices for plant products in the third quarter of 2025 compared to the same 2024 period.

Previous wording

Lease Operating Expenses. Lease operating expenses (“LOE”) for the three months ended June 30, 2025 increased $28.3 million compared to the three months ended June 30, 2024 and was the direct result of our higher well count between periods primarily due to additional wells placed on production or acquired since June 30, 2024. LOE per Boe for the second quarter of 2025 was $5.36, which represents a slight increase of 3% from the second quarter of 2024.

Current wording

Lease Operating Expenses. Lease operating expenses (“LOE”) per Boe for the third quarter of 2025 decreased 7% to $5.07 from $5.43 during the third quarter of 2024. This decrease in our LOE per Boe rate was primarily driven by lower semi-variable well costs, including water disposal rates and wellhead chemicals that resulted from operational efficiencies. While LOE per Boe decreased period over period, total LOE for the three months ended September 30, 2025 increased $18.1 million compared to the three months ended September 30, 2024 as a direct result of our higher well count between periods primarily due to additional wells placed on production or acquired since September 30, 2024.

Previous wording

Severance and Ad Valorem Taxes. Severance and ad valorem taxes for the three months ended June 30, 2025 increased $1.9 million compared to the three months ended June 30, 2024. Severance taxes are based on the market value of our oil and gas production at the wellhead, while ad valorem taxes are generally based on the assessed taxable value of proved developed oil and gas properties and vary across the different counties in which we operate. Severance taxes for the second quarter of 2025 increased $1.8 million compared to the same 2024 period primarily due to less tax credits received on wells designated “high cost gas” by the state of Texas during the second quarter of 2025 as compared to the same 2024 period. As a result, our severance and ad valorem taxes as a percentage of revenues also increased slightly between periods from 7.5% for the three months ended June 30, 2024 to 7.9% for the three months ended June 30, 2025.

Current wording

Severance and Ad Valorem Taxes. Severance and ad valorem taxes for the three months ended September 30, 2025 increased $9.9 million compared to the three months ended September 30, 2024. Severance taxes are based on the market value of our oil and gas production at the wellhead, while ad valorem taxes are generally based on the assessed taxable value of proved developed oil and gas properties and vary across the different counties in which we operate. Severance taxes for the third quarter of 2025 increased $10.6 million compared to the same 2024 period primarily due to (i) higher NGL and natural gas revenues between periods; and (ii) less tax credits received on wells designated “high cost gas” by the state of Texas during the third quarter of 2025 as compared to the same 2024 period. As a result, our severance and ad valorem taxes as a percentage of revenues also increased between periods from 7.5% for the three months ended September 30, 2024 to 7.7% for the three months ended September 30, 2025.

Previous wording

Gathering, Processing and Transportation Expenses. Gathering, processing and transportation costs (“GP&T”) for the three months ended June 30, 2025 increased $12.0 million as compared to the three months ended June 30, 2024. This increase in expense was mainly attributable to higher NGL and natural gas volumes sold between periods, which in turn resulted in a higher amount of plant processing fees and gathering costs being incurred. GP&T on a per Boe basis increased from $1.42 for the three months ended June 30, 2024 to $1.59 for the three months ended June 30, 2025. This increase was mainly related to higher GP&T rates based on the location of new wells placed on production since the second quarter of 2024.

Current wording

Gathering, Processing and Transportation Expenses. Gathering, processing and transportation costs (“GP&T”) on a per Boe basis decreased from $1.57 for the three months ended September 30, 2024 to $1.43 for the three months ended September 30, 2025. This decrease in rate was mainly attributable to lower GP&T rates based on the location of new wells placed on production since the third quarter of 2024. While our GP&T per Boe was lower period versus period, total GP&T for the three months ended September 30, 2025 increased $3.8 million as compared to the three months ended September 30, 2024. This increase in expense was mainly attributable to higher NGL and natural gas volumes sold between periods, which in turn resulted in a higher amount of plant processing fees and gathering costs being incurred.

Previous wording

For the three months ended June 30, 2025, DD&A expense amounted to $506.4 million, an increase of $80.0 million over the same 2024 period. The primary factor contributing to higher DD&A expense in 2025 was the increase in our overall production volumes between periods, which increased DD&A expense by $58.4 million, while our slightly higher DD&A rate of $14.45 per Boe increased DD&A expense by $21.6 million between periods.

Current wording

For the three months ended September 30, 2025, DD&A expense amounted to $526.9 million, an increase of $73.3 million over the same 2024 period. The primary factor contributing to higher DD&A expense in 2025 was the increase in our overall production volumes between periods, which increased DD&A expense by $82.5 million, while our slightly lower DD&A rate of $13.96 per Boe decreased DD&A expense by $9.2 million between periods.

Previous wording

DD&A per Boe was $14.45 for the second quarter of 2025 as compared to $13.83 for the same period in 2024, a 4% increase between periods. Our DD&A rate can fluctuate as a result of finding and development costs incurred, acquisitions, and impairments, as well as changes in proved developed and proved undeveloped reserves.

Current wording

DD&A per Boe was $13.96 for the third quarter of 2025 as compared to $14.21 for the same period in 2024, a 2% decrease between periods. Our DD&A rate can fluctuate as a result of finding and development costs incurred, acquisitions, and impairments, as well as changes in proved developed and proved undeveloped reserves.

Previous wording

Interest expense decreased $2.7 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 primarily due to (i) $13.9 million less interest incurred related to senior notes that have been fully or partially redeemed or repurchased, inclusive of the loss on extinguishment of debt associated with their redemptions; and (ii) $5.1 million less interest expense incurred on our credit facility due to lower weighted average borrowings outstanding during the 2025 period. These decreases were partially offset by $15.6 million in interest incurred on our senior notes due 2033 that were issued in July 2024.

Current wording

Interest expense decreased $5.4 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 primarily due to (i) $10.0 million less interest incurred on our senior notes that were fully or partially redeemed or repurchased; and (ii) $1.6 million less interest expense incurred on our credit facility due to lower weighted average borrowings outstanding during the 2025 period. These decreases were partially offset by an additional $5.9 million in interest incurred during the 2025 period on our senior notes due 2033 (“2033 Senior Notes”) that were issued in July 2024.

Previous wording

For the three months ended June 30, 2025, we generated pre-tax net income of $307.5 million and recorded income tax expense of $62.5 million. During the three months ended June 30, 2024, we generated pre-tax net income of $391.2 million and recorded income tax expense of $82.3 million. The primary factor decreasing our income tax expense below the U.S. statutory rate for both periods was the portion of pre-tax income that was attributable to our non-controlling interest partners and not taxable to the Company.

Current wording

For the three months ended September 30, 2025, we generated pre-tax net income of $168.9 million and recorded income tax expense of $87.4 million. The primary factor increasing our income tax expense above the U.S. statutory rate was the tax impact associated with the Redemption of the Convertible Senior Notes, which was partially offset by the portion of the pre-tax income attributable to our non-controlling interest partners that is not taxable to the Company. During the three months ended September 30, 2024, we generated pre-tax net income of $563.0 million and recorded income tax expense of $106.5 million. The primary factor decreasing our income tax expense below the U.S. statutory rate was the portion of pre-tax income attributable to our non-controlling interest partners that is not taxable to the Company.

Previous wording

Oil and Gas Sales. Total net revenues for the six months ended June 30, 2025 were $85.0 million, or 3%, higher than total net revenues for the six months ended June 30, 2024. Revenues are primarily a function of oil, NGL and natural gas volumes sold and average commodity prices realized.

Current wording

Oil and Gas Sales. Total net revenues for the nine months ended September 30, 2025 were $191.2 million, or 5%, higher than total net revenues for the nine months ended September 30, 2024. Revenues are primarily a function of oil, NGL and natural gas volumes sold and average commodity prices realized.

Previous wording

Additionally, net production volumes for oil, NGLs and natural gas increased 15%, 15% and 10%, respectively, between periods. The increase in oil production resulted from additional production added from wells placed online or acquired since the second quarter of 2024. These oil volume increases were partially offset by normal production declines across our existing wells. NGLs and natural gas are produced concurrently with our crude oil volumes, which typically result in a high correlation between fluctuations in oil quantities sold and NGL and natural gas quantities sold driving the respective 15% and 10% increases in NGL and gas volumes between periods.

Current wording

Net production volumes for oil, NGLs and natural gas increased 15%, 19%, and 14%, respectively, between periods. The increase in oil production resulted from additional production added from wells placed online or acquired since the third quarter of 2024. These oil volume increases were partially offset by normal production declines across our existing wells. NGLs and natural gas are produced concurrently with our crude oil volumes, which typically result in a high correlation between fluctuations in oil quantities sold and NGL and natural gas quantities sold driving the respective 19% and 14% increases in NGL and natural gas volumes between periods.

Previous wording

These decreases were partially offset by higher average realized sales prices of natural gas, which increased 219% in the second quarter of 2025 compared to the same 2024 period. This increase was the result of significantly higher local and national average index gas prices between periods.

Current wording

Total net revenue increases were also driven by higher average realized sales prices of natural gas, which increased 700% in the first nine months of 2025 compared to the same 2024 period. This increase was the result of higher regional and national average index gas prices between periods.

Previous wording

These increases were partially offset by decreases in the average realized sales prices for oil and NGLs, which decreased 15% and 4%, respectively, in the first half of 2025 compared to the same 2024 period. The 15% decrease in the average realized oil price was mainly the result of lower NYMEX crude prices between periods. The 4% decrease in the average realized NGL price between periods was primarily attributable to lower Mont Belvieu spot prices for plant products for first half of 2025 compared to the same 2024 period.

Current wording

These increases were partially offset by decreases in the average realized sales prices for oil and NGLs, which decreased 14% and 6%, respectively, in the first nine months of 2025 compared to the same 2024 period. The 14% decrease in the average realized oil price was mainly the result of lower NYMEX crude prices between periods. The 6% decrease in the average realized NGL price between periods was primarily attributable to lower Mont Belvieu spot prices for plant products for the first nine months of 2025 compared to the same 2024 period.

Previous wording

Lease Operating Expenses. LOE for the six months ended June 30, 2025 increased by $39.3 million compared to the six months ended June 30, 2024 and was the direct result of our higher well count between periods primarily due to additional wells placed on production or acquired since June 30, 2024. LOE per Boe for the six months ended June 30, 2024 was $5.36, which represents a slight decrease of 2% compared to the same 2024 period.

Current wording

Lease Operating Expenses. LOE per Boe for the nine months ended September 30, 2024 was $5.25, which represents a 4% decrease compared to the same 2024 period. This decrease in our LOE per Boe rate was primarily driven by lower semi-variable well costs, including lower water disposal rates and wellhead chemicals that resulted from operational efficiencies. While LOE per Boe decreased period over period, total LOE for the nine months ended September 30, 2025 increased by $57.3 million compared to the nine months ended September 30, 2024 and was the direct result of our higher well count between periods primarily due to additional wells placed on production or acquired since September 30, 2024.

Previous wording

Severance and Ad Valorem Taxes. Severance and ad valorem taxes for the six months ended June 30, 2025 increased $13.7 million compared to the six months ended June 30, 2024. Severance taxes are based on the market value of our production at the wellhead, while ad valorem taxes are generally based on the assessed taxable value of our proved developed oil and gas properties and vary across the different counties in which we operate. Severance taxes for the first half of 2025 increased $13.7 million compared to the same 2024 period primarily due to (i) higher NGL and natural gas revenues between periods; and (ii) less tax credits received on wells designated “high cost gas” by the state of Texas. As a result, our severance and ad valorem taxes as a percentage of revenues also increased between periods from 7.6% for the six months ended June 30, 2024 to 7.9% for the six months ended June 30, 2025.

Current wording

Severance and Ad Valorem Taxes. Severance and ad valorem taxes for the nine months ended September 30, 2025 increased $23.6 million compared to the nine months ended September 30, 2024. Severance taxes are based on the market value of our production at the wellhead, while ad valorem taxes are generally based on the assessed taxable value of our proved developed oil and gas properties and vary across the different counties in which we operate. Severance taxes for the first nine months of 2025 increased $24.3 million compared to the same 2024 period primarily due to (i) higher NGL and natural gas revenues between periods; and (ii) less tax credits received on wells designated “high cost gas” by the state of Texas. As a result, our severance and ad valorem taxes as a percentage of revenues also increased between periods from 7.6% for the nine months ended September 30, 2024 to 7.8% for the nine months ended September 30, 2025.

Previous wording

Gathering, Processing and Transportation Expenses. GP&T for the six months ended June 30, 2025 increased $19.6 million compared to the six months ended June 30, 2024. This increase in expense was mainly attributable to higher NGL and natural gas volumes sold between periods, which in turn resulted in a higher amount of plant processing fees and gathering costs being incurred. Additionally, GP&T increased on a per Boe basis from $1.38 for the first half of 2024 to $1.49 for the first half of 2025. This increase was mainly related to higher GP&T rates based on the location of new wells placed on production since the second quarter of 2024.

Current wording

Gathering, Processing and Transportation Expenses. GP&T on a per Boe basis remained relatively consistent increasing from $1.45 for the first nine months of 2024 to $1.47 for the first nine months of 2025. Total GP&T for the nine months ended September 30, 2025 increased $23.4 million compared to the nine months ended September 30, 2024. This increase in expense was mainly attributable to higher NGL and natural gas volumes sold between periods, which in turn resulted in a higher amount of plant processing fees and gathering costs being incurred.

Previous wording

For the six months ended June 30, 2025, DD&A expense amounted to $980.6 million, an increase of $144.0 million over the same 2024 period. The primary factor contributing to higher DD&A expense in 2025 was the increase in our overall production volumes between periods, which increased DD&A expense by $121.9 million during the first half of 2025, while slightly higher DD&A rates between periods increased DD&A expense by $22.1 million for the six months ended June 30, 2025.

Current wording

For the nine months ended September 30, 2025, DD&A expense amounted to $1.5 billion, an increase of $217.3 million over the same 2024 period. The primary factor contributing to higher DD&A expense in 2025 was the increase in our overall production volumes between periods, which increased DD&A expense by $204.3 million during the first nine months of 2025, while slightly higher DD&A rates between periods increased DD&A expense by $13.0 million for the nine months ended September 30, 2025.

Previous wording

DD&A per Boe was $14.29 for the six months ended June 30, 2025 as compared to $13.97 for the same period in 2024, a 2% increase between periods. Our DD&A rate can fluctuate as a result of finding and development costs incurred, acquisitions, impairments, as well as changes in proved developed and proved undeveloped reserves.

Current wording

DD&A per Boe was $14.17 for the nine months ended September 30, 2025 as compared to $14.05 for the same period in 2024, a 1% increase between periods. Our DD&A rate can fluctuate as a result of finding and development costs incurred, acquisitions, impairments, as well as changes in proved developed and proved undeveloped reserves.

Previous wording

G&A expenses for the six months ended June 30, 2025 were $92.9 million compared to $86.1 million for the six months ended June 30, 2024. Higher G&A for the first six months of 2025 was the result of a $3.9 million increase in total stock-based compensation and $2.9 million increase in cash G&A between periods. The $3.9 million increase in stock-based compensation was primarily related to (i) additional grants of performance stock units (“PSUs”) and restricted stock since the second quarter of 2024; and (ii) the modification of the Co-CEO’s PSUs that resulted in more accelerated expense period over period. This was partially offset by less expense associated with accelerated vestings of equity awards that occurred during the first half of 2024 that did not reoccur during the same 2025 period. The $2.9 million increase in cash G&A between periods was primarily related to higher consulting and professional services as well as higher employee expenses related to our overall corporate growth.

Current wording

G&A expenses for the nine months ended September 30, 2025 were $142.9 million compared to $129.9 million for the nine months ended September 30, 2024. Stock-based compensation increased $7.8 million primarily related to (i) additional grants of PSUs and restricted stock since the third quarter of 2024; and (ii) the modification of the Co-CEO’s PSUs that resulted in more accelerated expense period over period. This was partially offset by less expense associated with accelerated vestings of equity awards that occurred during the first nine months of 2024 that did not reoccur during the same 2025 period. Cash G&A was $5.1 million higher between periods mainly related to increased employee expenses and consulting and professional services related to our increased headcount and overall corporate growth.

Previous wording

While cash G&A increased between periods, on a per Boe basis our cash G&A rate decreased 8% from $0.91 per Boe during the six months ended June 30, 2024 to $0.84 per Boe during the six months ended of 2025 as a result of improved operational execution and realization of cost synergies following various transactions.

Current wording

While cash G&A expense increased between periods, on a per Boe basis our cash G&A rate decreased 8% from $0.92 per Boe during the nine months ended September 30, 2024 to $0.85 per Boe during the nine months ended September 30, 2025. This per Boe rate decrease was the result of focus on controlling costs and growing production.

Previous wording

Interest expense was $4.4 million higher for the six months ended June 30, 2025 compared to the same 2024 period mainly due to an increase of $31.3 million in interest incurred on our 2033 Senior Notes that were issued in July 2024. This increase was partially offset by (i) $23.2 million less interest incurred related to senior notes that have been fully or partially redeemed or repurchased, inclusive of the loss on extinguishment of debt associated with their redemptions; and (ii) $4.9 million less interest expense incurred on our credit facility due to lower weighted average borrowings outstanding during the 2025 period.

Current wording

Interest expense was $3.4 million lower for the nine months ended September 30, 2025 compared to the same 2024 period mainly due to (i) $35.5 million less interest incurred on our senior notes that were fully or partially redeemed or repurchased; and (ii) $6.5 million less interest expense incurred on our credit facility due to lower weighted average borrowings outstanding during the 2025 period. These decreases were partially offset by a $37.2 million increase in interest incurred on our 2033 Senior Notes that were issued in July 2024.

Previous wording

Our provisions for income taxes for the first half of 2025 and 2024 differ from the amounts that would be provided by applying the U.S. federal statutory rate of 21% to pre-tax book income primarily due to (i) the portion of pre-tax net income that is attributable to our non-controlling interest and which is therefore not taxable to the Company; (ii) other permanent differences; and (iii) state income taxes.

Current wording

Our provisions for income taxes for the first nine months of 2025 and 2024 differ from the amounts that would be provided by applying the U.S. federal statutory rate of 21% to pre-tax book income primarily due to (i) the portion of pre-tax net income that is attributable to our non-controlling interest and which is therefore not taxable to the Company; (ii) other permanent differences; and (iii) state income taxes.

Previous wording

For the six months ended June 30, 2025 we generated pre-tax net income of $798.4 million and recorded income tax expense of $162.8 million. During the six months ended June 30, 2024, we generated pre-tax net income of $669.7 million and recorded income tax expense of $131.2 million. The primary factor decreasing our income tax expense below the U.S. statutory rate for both periods was the portion of pre-tax income that was attributable to our non-controlling interest partners and not taxable to the Company.

Current wording

For the nine months ended September 30, 2025 we generated pre-tax net income of $967.3 million and recorded income tax expense of $250.2 million. The primary factor increasing our income tax expense above the U.S. statutory rate was the tax impact associated with the Redemption of the Convertible Senior Notes, which was partially offset by the portion of the pre-tax income attributable to our non-controlling interest partners that is not taxable to the Company. During the nine months ended September 30, 2024, we generated pre-tax net income of $1.2 billion and recorded income tax expense of $237.7 million. The primary factor decreasing our income tax expense below the U.S. statutory rate was the portion of pre-tax income attributable to our non-controlling interest partners that is not taxable to the Company.

Previous wording

We continually evaluate our capital needs and compare them to our capital resources. During the six months ended June 30, 2025 our total development capital expenditures were $1.0 billion. We expect our total drilling, completion and facilities capital expenditures for 2025 to be between $1.92 billion to $2.02 billion. We funded our capital expenditures for the six months ended June 30, 2025 entirely from cash flows from operations, and we expect to fund the remainder of our 2025 capital expenditures budget entirely from cash flows from operations given our anticipated level of oil and gas production, current commodity prices and our commodity hedge positions in place.

Current wording

We continually evaluate our capital needs and compare them to our capital resources. During the nine months ended September 30, 2025 our total development capital expenditures were $1.5 billion. We expect our total drilling, completion and facilities capital expenditures for 2025 to be between $1.92 billion to $2.02 billion. We funded our capital expenditures for the nine months ended September 30, 2025 entirely from cash flows from operations, and we expect to fund the remainder of our 2025 capital expenditures budget entirely from cash flows from operations given our anticipated level of oil and gas production, current commodity prices and our commodity hedge positions in place.

Previous wording

We are the operator of a high percentage of our acreage and can control the amount and timing of our capital expenditures. Accordingly, we can choose to defer or accelerate a portion of our planned capital expenditures depending on a variety of factors, including but not limited to: (i) prevailing and anticipated prices for oil and natural gas; (ii) oil storage or transportation constraints; (iii) the success of our drilling activities; (iv) the availability of necessary equipment, infrastructure and capital; (v) the receipt and timing of required regulatory permits and approvals; (vi) seasonal conditions; (vii) property or land acquisition costs; and (viii) the level of participation by other working interest owners.

Current wording

We are the operator of a high percentage of our acreage and can control the amount and timing of our capital expenditures. Accordingly, we can choose to defer or accelerate a portion of our planned capital expenditures depending on a variety of factors, including but not limited to: (i) prevailing and anticipated prices for oil and natural gas; (ii) oil and gas storage or transportation constraints; (iii) the success of our drilling activities; (iv) the availability of necessary equipment, infrastructure and capital; (v) the receipt and timing of required regulatory permits and approvals; (vi) seasonal conditions; (vii) property or land acquisition costs; and (viii) the level of participation by other working interest owners.

Previous wording

We plan to return capital to shareholders primarily through our base dividend, in addition to opportunistic share repurchases. During the six months ended June 30, 2025, we declared and paid quarterly base dividends totaling $0.30 per share of Class A Common Stock and distributions totaling $0.30 per share of Class C Common Stock (each of which has an underlying Common Unit of OpCo). The cash dividends and distributions paid to common unitholders totaled $241.6 million for the six months ended June 30, 2025. Additionally, we repurchased 4.1 million shares of Class A Common Stock for $43.3 million under our stock repurchase program during the six months ended June 30, 2025.

Current wording

We plan to return capital to shareholders primarily through our base dividend, in addition to opportunistic share repurchases. During the nine months ended September 30, 2025, we declared and paid quarterly base dividends totaling $0.45 per share of Class A Common Stock and distributions totaling $0.45 per share of Class C Common Stock (each of which has an underlying Common Unit of OpCo). The cash dividends and distributions paid to common unitholders totaled $366.8 million for the nine months ended September 30, 2025. Additionally, we repurchased 4.4 million shares of Class A Common Stock for $46.8 million and 2.0 million shares of Class C Common Stock for $26.9 million under our stock repurchase program during the nine months ended September 30, 2025.

Previous wording

In addition, we may, from time to time, seek to retire or purchase our outstanding senior notes through cash purchases and/or exchanges for debt in open-market purchases, privately negotiated transactions or otherwise. During the six months ended June 30, 2025, we redeemed $175 million of our 2031 Senior Notes at a price equal to 109.875% of the aggregate principal amount redeemed plus accrued and unpaid interest up to, but excluding, the redemption date. Following the redemption, the remaining aggregate principal amount of the 2031 Senior Notes outstanding was $325 million. Additionally, we repurchased $2.7 million of our 2026 Senior Notes at a price equal to 99.7% of the principal amount paid plus accrued and unpaid interest up to, but excluding, the repurchase date. Following the transaction, the remaining aggregate principal amount of the 2026 Senior Notes outstanding was $286.7 million.

Current wording

In addition, we may, from time to time, seek to retire or purchase our outstanding senior notes through cash purchases and/or exchanges for debt in open-market purchases, privately negotiated transactions or otherwise. During the nine months ended September 30, 2025, we (i) redeemed an aggregate principal amount of $175 million of our 2031 Senior Notes at a price equal to 109.875% of the aggregate principal amount; (ii) repurchased and redeemed an aggregate principal amount of $289.4 million of our 2026 5.375% Senior Notes; and (iii) redeemed the aggregate principal amount of $170 million of our Convertible Senior Notes for 30.6 million shares of our Class A Common Stock at a conversion rate of 179.9208 shares per $1,000 principal amount of Convertible Senior Notes as well as a cash payment of $0.1 million.

Previous wording

For the six months ended June 30, 2025, we generated $1.9 billion of cash from operating activities, an increase of $350.7 million from the same period in 2024. Cash provided by operating activities increased primarily due to higher production volumes, realized derivative gains, realized prices for gas and lower merger and integration expense as well as the timing of payments to our suppliers and collections on our receivables during the six months ended June 30, 2025 as compared to the same 2024 period. These increasing factors were partially offset by lower realized prices for oil and NGLs, higher lease operating expenses, GP&T, severance and ad valorem taxes and interest expense during the six months ended June 30, 2025 as compared to the same 2024 period. Refer to “Results of Operations” for more information on the impact of volumes and prices on revenues and on fluctuations in our operating costs between periods.

Current wording

For the nine months ended September 30, 2025, we generated $2.7 billion of cash from operating activities, an increase of $162.8 million from the same period in 2024. Cash provided by operating activities increased primarily due to higher production volumes, realized derivative gains, realized prices for gas and lower merger and integration expense as well as the timing of payments to our suppliers during the nine months ended September 30, 2025 as compared to the same 2024 period. These increasing factors were partially offset by lower realized prices for oil and NGLs, higher lease operating expenses, severance and ad valorem taxes, and GP&T as well as the timing of our collections on our receivables during the nine months ended September 30, 2025 as compared to the same 2024 period. Refer to “Results of Operations” for more information on the impact of volumes and prices on revenues and on fluctuations in our operating costs between periods.

Previous wording

During the six months ended June 30, 2025, cash flows from operating activities and proceeds of $176.0 million from the sale of natural gas and oil gathering systems that were acquired during a prior year acquisition were used to (i) fund $1.0 billion of drilling and development cash capital expenditures; (ii) fund acquisitions of oil and gas properties of $650.3 million; (iii) pay $241.6 million in dividends and cash distributions to our shareholders and holders of our Common Units; (iv) redeem $177.7 million of our senior notes; and (v) repurchase $43.3 million of our Class A Common Stock.

Current wording

During the nine months ended September 30, 2025, cash flows from operating activities, cash on hand and proceeds of $179.6 million primarily from the sale of oil and natural gas gathering systems that were acquired during a prior year acquisition were used to (i) fund $1.5 billion of drilling and development cash capital expenditures; (ii) fund acquisitions of oil and gas properties of $830.3 million; (iii) redeem $464.5 million of our senior notes; (iv) pay $366.8 million in dividends and cash distributions to our shareholders and holders of our Common Units; and (v) repurchase $73.7 million of our Class A and C Common Stock.

Previous wording

During the six months ended June 30, 2024, cash flows from operating activities, cash on hand and net borrowings under our revolving credit facility were used to (i) fund $1.0 billion of drilling and development cash capital expenditures; (ii) redeem $356.4 million of our senior notes; (iii) pay $270.1 million in dividends and cash distributions to our shareholders and holders of our Common Units; (iv) fund acquisitions of oil and gas properties of $262.3 million; and (v) repurchase $61.0 million of our Class C Common Stock (and underlying Common Units).

Current wording

During the nine months ended September 30, 2024, cash flows from operating activities, proceeds from the issuance of our 2033 Senior Notes and proceeds from an underwritten public offering of 26.5 million Class A Common Stock were used to (i) fund $1.6 billion of drilling and development cash capital expenditures; (ii) fund acquisitions of oil and gas properties of $1.0 billion; (iii) redeem $656.4 million of our senior notes; (iv) pay $440.3 million in dividends and cash distributions to our shareholders and holders of our Common Units; and (v) repurchase $61.0 million of our Class C Common Stock.

Previous wording

OpCo, our consolidated subsidiary, has a secured revolving Credit Agreement with a syndicate of banks maturing in February 2028 that, as of June 30, 2025, had a borrowing base of $4.0 billion and elected commitments of $2.5 billion. As of June 30, 2025, we had no borrowings outstanding and $2.5 billion in available borrowing capacity, which was net of $2.5 million in letters of credit outstanding. The elected commitments and borrowing base were reaffirmed during the spring 2025 borrowing base redetermination.

Current wording

OpCo, our consolidated subsidiary, has a secured revolving Credit Agreement with a syndicate of banks maturing in February 2028 that, as of September 30, 2025, had a borrowing base of $4.0 billion and elected commitments of $2.5 billion. As of September 30, 2025, we had no borrowings outstanding and $2.5 billion in available borrowing capacity, which was net of $2.5 million in letters of credit outstanding. The elected commitments and borrowing base were reaffirmed during the spring and fall 2025 borrowing base redeterminations.