Permian Resources Corp
For the period ended Mar 31, 2026. Filed May 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
PR$21.52-1.1%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001658566-25-000092
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001658566-26-000072
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 78 current paragraphs.
32 unchanged; 32 reworded; 12 added; 23 removed; 19 previous and 2 current paragraphs rearranged.
Tables are not compared: 16 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Oil prices declined through the end of 2025 and into early 2026, reflecting concerns regarding global economic growth, elevated interest rates, persistent inflation, increased global oil supply, and evolving tariffs and international trade policies. While global demand remained relatively strong and geopolitical risks persisted, higher‑than‑anticipated production increases from OPEC and the potential impact on global inventory levels contributed to additional downward pressure on prices during this period. More recently, oil prices have increased, with NYMEX WTI spot prices reaching a high of $102.88 per barrel on March 30, 2026, driven primarily by supply disruptions associated with heightened geopolitical tensions in the Middle East, including disruptions to key shipping routes in the Strait of Hormuz, which have adversely affected global supply conditions.
Current report
Corporation Reorganization
Current report
On January 7, 2026, we completed a corporate reorganization pursuant to which we, among other things, reorganized under a new public holding company (the “Reorganization”). In connection with the Reorganization, the public holding company prior to the Reorganization became a wholly owned subsidiary of the new public holding company, which, following completion of the Reorganization, changed its name to “Permian Resources Corporation,” became the successor issuer of the prior public holding company and replaced the prior public holding company, with its shares of Class A Common Stock continuing to trade on the NYSE on an uninterrupted basis.
Current report
In connection with the Reorganization, certain holders of our Class C Common Stock exchanged all of their Common Units for Class A Common Stock on a one-for-one basis (and their corresponding shares of Class C Common Stock were cancelled for no consideration).
Current report
Separate from and subsequent to the Reorganization, the remaining Class C Common stockholders exchanged all of their outstanding Common Units for Class A Common Stock, which fully eliminated our noncontrolling interest as of March 31, 2026.
Current report
During the first quarter of 2026, we achieved investment grade corporate and issuer credit ratings from Standard & Poor’s Financial Services LLC (“S&P”). Subsequently, on April 1, 2026, we achieved investment grade corporate and issuer credit ratings from Moody’s Ratings (“Moody’s”). Previously, in July 2025, we achieved investment grade corporate and issuer credit ratings from Fitch Ratings Inc. (“Fitch”). As a result, we are now rated investment grade by all three rating agencies, which we believe reflects the strength of our balance sheet, our disciplined acquisition and capital financing, and our growing scale. We anticipate this achievement will result in reduced interest expense, improved access to capital markets, and enhanced liquidity, among other benefits.
Current report
On April 30, 2026, OpCo entered into a credit agreement with a syndicate of banks that provides for an unsecured revolving credit facility, maturing in April 2031 (the “New Credit Agreement”). In connection with our entry into the New Credit Agreement, we terminated our existing secured revolving credit facility (the “Credit Agreement”). Refer to Liquidity and Capital Resources for additional information regarding the New Credit Agreement.
Current report
During 2026, we achieved investment grade credit ratings from S&P and Moody’s. We previously achieved investment grade credit ratings from Fitch in 2025. We believe this achievement enhances our financial flexibility by broadening our access to investment grade debt markets, reducing our cost of borrowing, and expanding potential investors eligible to hold our indebtedness.
Current report
On April 30, 2026, OpCo entered into the New Credit Agreement that provides for a $3.0 billion senior unsecured credit facility. The New Credit Agreement replaces the existing Credit Agreement, which was terminated without penalty in connection with the consummation of the New Credit Agreement.
Current report
The New Credit Agreement has a scheduled maturity date of April 30, 2031, and includes an option to extend the term for successive one-year periods, subject to, among certain other terms and conditions, the consent of the lenders holding greater than 50% of the commitments then outstanding under the New Credit Agreement. The New Credit Agreement commits the lenders thereunder to provide advances up to an aggregate principal amount of $3.0 billion outstanding at any given time, with an option to request increases in the aggregate commitments to an amount not to exceed $4.0 billion, subject to certain terms and conditions. The New Credit Agreement also includes a swingline subfacility and a letter of credit subfacility.
Current report
Advances under the New Credit Agreement will accrue interest based on either SOFR plus an applicable margin, or the Alternate Base Rate plus an applicable margin at our election. The applicable margin used in connection with interest rates, as well as commitment fees for undrawn commitments, will be based on our credit rating for our long-term senior unsecured indebtedness for borrowed money (not supported by third-party credit enhancement) at the applicable time. As of April 30, 2026, the applicable margin for SOFR and Alternate Base Rate Loans is 150 basis points and 50 basis points, respectively, and the commitment fee is 20 basis points.
Current report
The New Credit Agreement contains representations, warranties, covenants and events of default that we believe are customary for investment grade, senior unsecured commercial bank credit agreements, including a financial covenant for the maintenance of a ratio of Total Indebtedness to Capitalization Ratio (as defined in the New Credit Agreement) of no greater than 65%.
Removed paragraphs (23)
Previous report
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 report
On June 16, 2025, we completed an acquisition of approximately 13,000 net leasehold acres with Apache Corporation for an unadjusted purchase price of $608 million. The acreage acquired is predominately located directly offsetting our existing asset position in the core of our New Mexico operating area.
Previous report
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 report
During September 2025, we completed the redemption of all of our outstanding 3.25% senior unsecured convertible notes due 2028 (the “Convertible Senior Notes”) for a combination of shares of Class A Common Stock and cash (the “Redemption”). The Redemption resulted in the issuance of 30.6 million shares of our Class A Common Stock at a 179.9208 conversion rate per $1,000 principal amount of the Convertible Senior Notes as well as a cash payment of $0.1 million.
Previous report
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 report
G&A expenses for the three months ended September 30, 2025 were $50.0 million compared to $43.8 million for the three months ended September 30, 2024. Stock-based compensation increased $3.9 million between periods and was primarily related to additional grants of performance stock units (“PSUs”) and restricted stock since the third quarter of 2024. Cash G&A was $2.3 million higher between periods mainly related to increased employee expense and consulting and professional services due to our increased headcount and overall corporate growth.
Previous report
Loss on extinguishment of debt. The loss on extinguishment of debt incurred during the three months ended September 30, 2025 of $264.3 million was primarily related to the Redemption of our Convertible Senior Notes. This loss was determined based on the difference in the value of our Class A Common Stock issued and cash paid for the Redemption and the carrying amount of the Convertible Senior Notes less professional fees incurred in connection with the Redemption. The 2025 loss was greater than prior debt redemption losses as the Convertible Notes were redeemed mainly by issuing Class A Common Stock, which has risen significantly in value since the Convertible Senior Notes were issued in 2021. Refer to Note 4—Long-Term Debt under Part I, Item 1 of this Quarterly Report for additional information regarding the Redemption.
Previous report
During the three months ended September 30, 2024, we recognized $5.1 million of loss on extinguishment of debt related to the redemption of our 7.75% senior notes due 2026.
Previous report
Our provisions for income taxes for the three months ended September 30, 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 report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Previous report
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 report
Operating Expenses. The following table summarizes our operating expenses for the periods indicated:
Previous report
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 report
Other Income and Expenses.
Previous report
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 report
Loss on extinguishment of debt. The loss on extinguishment of debt incurred during the nine months ended September 30, 2025 of $270.1 million was primarily related to the Redemption of our Convertible Senior Notes. This loss was determined based on the difference in the value of our Class A Common Stock issued and cash paid for the Redemption and the carrying amount of the Convertible Senior Notes less professional fees incurred in connection with the Redemption. The 2025 loss was greater than prior debt redemption losses as the Convertible Notes were redeemed mainly by issuing Class A Common Stock, which has risen significantly in value since the Convertible Senior Notes were issued in 2021. Refer to Note 4—Long-Term Debt under Part I, Item 1 of this Quarterly Report for additional information regarding the Redemption.
Previous report
During the nine months ended September 30, 2024, we recognized $8.6 million of loss on extinguishment of debt related to the redemptions of our 7.75% senior notes due 2026 and 6.875% senior notes due 2027.
Previous report
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 report
The Credit Agreement contains restrictive covenants that limit our ability to, among other things: (i) incur additional indebtedness; (ii) make investments and loans; (iii) enter into mergers; (iv) make restricted payments; (v) repurchase or redeem junior debt; (vi) enter into commodity hedges exceeding a specified percentage of our expected production; (vii) enter into interest rate hedges exceeding a specified percentage of its outstanding indebtedness; (viii) incur liens; (ix) sell assets; and (x) engage in transactions with affiliates.
Previous report
The Credit Agreement also requires OpCo to maintain compliance with the following financial ratios:
Previous report
(i) a current ratio, which is the ratio of OpCo’s consolidated current assets (including an add back of unused commitments under the revolving credit facility and excluding non-cash derivative assets and certain restricted cash) to its consolidated current liabilities (excluding the current portion of long-term debt under the Credit Agreement and non-cash derivative liabilities), of not less than 1.0 to 1.0; and
Previous report
(ii) a leverage ratio, which is the ratio of total funded debt to consolidated EBITDAX (with such terms defined within the Credit Agreement) for the most recent quarter annualized, of not greater than 3.5 to 1.0.
Previous report
The Credit Agreement includes fall away covenants, lower interest rates and reduced collateral requirements that OpCo may elect if OpCo is assigned an Investment Grade Rating (as defined within the Credit Agreement). OpCo was in compliance with the covenants and the applicable financial ratios described above as of September 30, 2025 and through the filing of this Quarterly Report.
Reworded paragraphs (32)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying consolidated financial statements and related notes. The following discussion and analysis contain forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside our control. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, future market prices for oil, NGLs and natural gas, future production volumes, estimates of proved reserves, capital expenditures, economic and competitive conditions, inflation, regulatory changes, and other uncertainties, as well as those factors discussed in “Cautionary Statement Concerning Forward-Looking Statements” and under the heading “Item 1A. Risk Factors” in this Quarterly Report and the 2024 Annual Report; all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may or may not occur. We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying consolidated financial statements and related notes. The following discussion and analysis contain forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside our control. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, future market prices for oil, NGLs and natural gas, future production volumes, estimates of proved reserves, capital expenditures, economic and competitive conditions, international conflict, inflation, tariffs, regulatory changes, and other uncertainties, as well as those factors discussed in “Cautionary Statement Concerning Forward-Looking Statements” and under the heading “Item 1A. Risk Factors” in this Quarterly Report and the 2025 Annual Report; all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may or may not occur. We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.
Previous wording
Permian Resources Corporation is an independent oil and natural gas company focused on the responsible acquisition, optimization and development of high-return oil and natural gas properties. Our assets are mainly located in the core of the Permian Basin. Our principal business objective is to increase shareholder value by efficiently developing our oil and natural gas assets in an environmentally and socially responsible way, with an overall objective of improving our rates of return and generating sustainable free cash flow. Unless otherwise specified or the context otherwise requires, all references in these discussions to “Permian Resources,” “we,” “us,” or “our” are to Permian Resources Corporation and its consolidated subsidiaries, including Permian Resources Operating, LLC (“OpCo”).
Current wording
Permian Resources Corporation is an independent oil and natural gas company focused on driving returns to our stockholders through the acquisition, optimization and development of high-return oil and natural gas properties. Our assets and operations are located in the Permian Basin, with a concentration in the core of the Delaware Basin. Our principal business objective is to increase shareholder value by efficiently developing our oil and natural gas assets, with an overall objective of improving our rates of return and generating sustainable free cash flow. Unless otherwise specified or the context otherwise requires, all references in these discussions to “Permian Resources,” “we,” “us,” or “our” are to Permian Resources Corporation and its consolidated subsidiaries, including Permian Resources Operating, LLC (“OpCo”).
Previous 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.
Current wording
Throughout 2025 and 2026, natural gas prices in the Permian Basin have been adversely 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.
Previous wording
The oil and natural gas industry is cyclical, and it is likely that commodity prices, as well as commodity price differentials, will continue to be volatile due to fluctuations in global supply and demand, inventory levels, geopolitical events, federal and state government regulations, including the OBBBA, weather conditions, growth in alternative energy sources, supply chain constraints and other factors. The following table highlights the quarterly average price trends for NYMEX WTI spot prices for crude oil and NYMEX Henry Hub index price for natural gas since the first quarter of 2023:
Current wording
The oil and natural gas industry is cyclical, and it is likely that commodity prices, as well as commodity price differentials, will continue to be volatile due to fluctuations in global supply and demand, inventory levels, geopolitical events, federal and state government regulations, weather conditions, growth in alternative energy sources, supply chain constraints and other factors. The following table highlights the quarterly average price trends for NYMEX WTI spot prices for crude oil and NYMEX Henry Hub index price for natural gas since the first quarter of 2024:
Previous wording
Lower commodity prices and lower futures curves for oil and gas prices can result in impairments of our proved oil and natural gas properties or undeveloped acreage and may materially and adversely affect our operating cash flows, liquidity, financial condition, results of operations, future business and operations, and/or our ability to finance planned capital expenditures, which could in turn impact our ability to comply with covenants under our secured revolving credit facility (the “Credit Agreement”) and senior notes. Lower realized prices may also reduce the borrowing base under our Credit Agreement, which is determined at the discretion of the lenders and is based on the collateral value of our proved reserves that have been mortgaged to the lenders. Upon a redetermination, if any borrowings in excess of the revised borrowing capacity were outstanding, we could be forced to immediately repay a portion of the debt outstanding under the Credit Agreement.
Current wording
Lower commodity prices and lower futures curves for oil and gas prices can result in impairments of our proved oil and natural gas properties or undeveloped acreage and may materially and adversely affect our operating cash flows, liquidity, financial condition, results of operations, future business and operations, and/or our ability to finance planned capital expenditures.
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 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. The cost of oilfield goods and services are closely linked to commodity price trends, rising when prices increase and decreasing when prices fall. In addition, the U.S. saw higher levels of inflation during 2025 and 2026 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 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.
Current wording
During the three months ended March 31, 2026, we completed multiple acquisitions of oil and natural gas properties for a cumulative adjusted purchase price of approximately $204.9 million. These acquisitions are part of our ongoing bolt-on and grassroots acquisition programs.
Previous 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.
Current wording
During the three months ended March 31, 2026, we declared and paid quarterly base dividends of $0.16 per share of Class A Common Stock. The cash dividends paid totaled $134.9 million for the three months ended March 31, 2026.
Previous wording
During January 2025, we redeemed $175 million of our senior notes due 2031 (the “2031 Senior Notes”) at a redemption 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.
Current wording
On April 15, 2026, we redeemed all of our outstanding 8.00% senior notes due 2027 at a redemption price equal to 100% of the aggregate principal amount outstanding of $550.0 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 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.
Current wording
Oil and Gas Sales. Total net revenues for the three months ended March 31, 2026 were $11.7 million (or 1%) higher than total net revenues for the three months ended March 31, 2025. 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 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.
Current wording
Net production volumes for oil, NGLs and natural gas increased 10%, 20% and 4%, respectively, between periods. The increase in oil production resulted from additional production added from wells placed online or acquired since the first quarter of 2025. 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 20% and 4% increases in NGL and natural gas volumes between periods. NGL volumes were further impacted by processors operating in higher ethane-recovery during the first quarter of 2026 as compared to the same 2025 period, resulting in a higher percentage of NGLs being recovered from our wet gas stream between periods.
Previous 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.
Current wording
These increases were partially offset by lower realized sales prices for NGLs and natural gas which decreased 31% and 121%, respectively, in the first quarter of 2026 compared to the same 2025 period. The 31% decrease in the average realized NGL price between periods was primarily attributable to lower Mont Belvieu spot prices for plant products in the first quarter of 2026 compared to the same 2025 period. Our average realized natural gas price decreased 121% between periods to negative $0.29 during the first quarter of 2026 due to negative regional market prices as discussed under the “Market Conditions” section above. The negative gas price realized during the three months ended March 31, 2026, was partially offset by net proceeds of $24.7 million from our purchased gas sales that facilitate additional gas sales at markets that had more favorable pricing during the period.
Previous 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.
Current wording
Lease Operating Expenses. Lease operating expenses (“LOE”) per Boe for the first quarter of 2026 decreased 3% to $5.19 from $5.35 during the first quarter of 2025. This decrease in our LOE per Boe rate was primarily driven by increased production volumes with only a limited increase in nominal LOE. While LOE per Boe decreased between periods, total LOE for the three months ended March 31, 2026 increased $13.3 million compared to the three months ended March 31, 2025 as a direct result of our higher well count between periods primarily due to additional wells placed on production or acquired since March 31, 2025.
Previous 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.
Current wording
Severance and Ad Valorem Taxes. Severance and ad valorem taxes for the three months ended March 31, 2026 decreased $6.7 million compared to the three months ended March 31, 2025. Our severance and ad valorem taxes as a percentage of revenues also decreased between periods from 7.8% for the three months ended March 31, 2025 to 7.3% for the three months ended March 31, 2026. 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. The lower rate in the current period was primarily driven by higher total oil and gas sales as well as lower ad valorem tax assessments compared to the prior period.
Previous 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.
Current wording
Gathering, Processing and Transportation Expenses. Gathering, processing and transportation costs (“GP&T”) for the three months ended March 31, 2026 increased $4.0 million as compared to the three months ended March 31, 2025. 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 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.
Current wording
For the three months ended March 31, 2026, DD&A expense amounted to $526.3 million, an increase of $52.1 million over the same 2025 period. The primary factor contributing to higher DD&A expense in 2026 was the increase in our overall production volumes between periods, which increased DD&A expense by $50.4 million, while our slightly higher DD&A rate of $14.16 per Boe increased DD&A expense by $1.7 million 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
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.
Current wording
G&A expenses for the three months ended March 31, 2026 were $43.8 million compared to $43.1 million for the three months ended March 31, 2025. Higher G&A for the first quarter of 2026 was the result of $1.8 million higher cash G&A between periods mainly related to our increased headcount and overall corporate growth. These increased expenses were partially offset by a $1.0 million decrease in stock-based compensation between periods associated with the timing of grants and vesting of our equity awards.
Previous wording
While cash G&A expense increased between periods, on a per Boe basis our cash G&A rate decreased 9% from $0.95 per Boe during the three months ended September 30, 2024 to $0.86 per Boe during the three months ended September 30, 2025. This per Boe rate decrease was the result of focus on controlling costs and growing production.
Current wording
While cash G&A expense increased between periods, on a per Boe basis our cash G&A rate decreased 4% from $0.80 per Boe during the three months ended March 31, 2025 to $0.77 per Boe during the three months ended March 31, 2026. This per Boe rate decrease was the result of focus on controlling costs and growing production.
Previous 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.
Current wording
Interest expense decreased $6.8 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 primarily due to less interest incurred on our senior notes that were fully or partially redeemed or repurchased since March 31, 2025. Refer to Note 4—Long-Term Debt under Part I, Item 1 of this Quarterly Report for additional information regarding our senior notes.
Previous 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.
Current wording
For the three months ended March 31, 2026, we generated pre-tax net income of $63.9 million and recorded income tax expense of $13.5 million.
Previous wording
Our drilling and completion activities require us to make significant capital expenditures. Historically, our primary sources of liquidity have been cash flows from operations, borrowings under our revolving credit facility, proceeds from offerings of debt or equity securities, or proceeds from the sale of oil and gas properties. Our future cash flows are subject to a number of variables, including oil and natural gas prices, which have been and will likely continue to be volatile. Lower commodity prices can negatively impact our cash flows and our ability to access debt or equity markets, and sustained low oil and natural gas prices could have a material and adverse effect on our liquidity position. To date, our primary uses of capital have been for drilling and development capital expenditures and the acquisition of oil and natural gas properties.
Current wording
Our primary sources of liquidity have been cash flows from operations, borrowings under our credit facility, proceeds from offerings of debt or equity securities, or proceeds from the sale of oil and gas properties. Our future cash flows are subject to a number of variables, including oil and natural gas prices, which have been and will likely continue to be volatile. Lower commodity prices can negatively impact our cash flows and our ability to access debt or equity markets, and sustained low oil and natural gas prices could have a material and adverse effect on our liquidity position. To date, our primary uses of capital have been for drilling and development capital expenditures and the acquisition of oil and natural gas properties.
Previous 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.
Current wording
We continually evaluate our capital needs and compare them to our capital resources. During the three months ended March 31, 2026 our total capital expenditures incurred for drilling and development activity were $466.2 million. We funded our capital expenditures for the three months ended March 31, 2026 entirely from cash flows from operations, and we expect to fund the remainder of our 2026 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 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.
Current wording
We plan to return capital to shareholders primarily through our base dividend, in addition to opportunistic share repurchases. During the three months ended March 31, 2026, we declared and paid quarterly dividends totaling $0.16 per share of Class A Common Stock. The cash dividends paid totaled $134.9 million for the three months ended March 31, 2026.
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 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.
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.
Previous wording
Although we cannot provide any assurance that cash flows from operations or other sources of needed capital will be available to us at acceptable terms, or at all, and noting thatour ability to access the public or private debt or equity capital markets at economic terms in the future will be affected by general economic conditions, the domestic and global oil and financial markets, our operational and financial performance, the value and performance of our debt or equity securities, prevailing commodity prices and other macroeconomic factors outside of our control, we believe that based on our current expectations and projections, we will have sufficient capital available to fund our capital expenditure requirements through the 12-month period following the filing of this Quarterly Report and the long-term.
Current wording
Although we cannot provide any assurance that cash flows from operations or other sources of needed capital will be available to us at acceptable terms, or at all, and noting thatour ability to access the public or private debt or equity capital markets at economic terms in the future will be affected by general economic conditions, the domestic and global oil and financial markets, our operational and financial performance, the value and performance of our debt or equity securities, prevailing commodity prices and other macroeconomic factors outside of our control, we believe that based on our current expectations and projections, we will have sufficient capital available to fund our capital expenditure requirements through the 12-month period following the filing of this Quarterly Report and the long-term. Additionally, our recently achieved investment grade credit ratings from each of S&P, Moody’s and Fitch are expected to further support our access to the debt capital markets at favorable terms.
Previous 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.
Current wording
For the three months ended March 31, 2026, we generated $815.1 million of cash from operating activities, a decrease of $83.0 million from the same period in 2025. Cash provided by operating activities decreased primarily due to lower realized prices for NGLs and natural gas, higher lease operating expenses and GP&T as well as the timing of collections on our receivables and payments to our suppliers during the three months ended March 31, 2026 as compared to the same 2025 period.
Previous 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.
Current wording
During the three months ended March 31, 2026, cash flows from operating activities and cash on hand were used to (i) fund $466.2 million of drilling and development cash capital expenditures; (ii) fund acquisitions of oil and gas properties of $204.9 million; and (iii) pay $134.9 million in dividends to our shareholders.
Previous 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.
Current wording
During the three months ended March 31, 2025, cash flows from operating activities and proceeds of $176.0 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 $500.7 million of drilling and development cash capital expenditures; (ii) redeem $175.0 million of our senior notes; (iii) pay $121.0 million in dividends and cash distributions to our shareholders and holders of our Common Units; and (iv) fund acquisitions of oil and gas properties of $35.4 million.
Previous 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.
Current wording
OpCo had a secured revolving Credit Agreement with a syndicate of banks maturing in February 2028. As of March 31, 2026, we had no borrowings outstanding and $2.5 billion in available borrowing capacity. In connection with our entry into the New Credit Agreement, we terminated the Credit Agreement. For further information on our Credit Agreement, refer to Note 4—Long-Term Debt under Part I, Item 1 of this Quarterly Report.
Previous wording
OpCo has $3.5 billion in debt outstanding as of September 30, 2025, consisting of senior unsecured notes with maturity dates ranging from 2027 to 2033. For further information on our debt instruments, refer to Note 4—Long-Term Debt under Part I, Item 1 of this Quarterly Report.
Current wording
OpCo had $3.5 billion in debt outstanding as of March 31, 2026, consisting of senior unsecured notes with maturity dates ranging from 2027 to 2033. For further information on our debt instruments, refer to Note 4—Long-Term Debt under Part I, Item 1 of this Quarterly Report.
Previous wording
Our contractual obligations include operating and transportation agreements, drilling rig contracts, office and equipment leases, asset retirement obligations, long-term debt obligations and cash interest expense on long-term debt obligations, which we routinely enter into, modify or extend. Since December 31, 2024, there have not been any significant, non-routine changes in our contractual obligations other than (i) a drilling rig contract entered into and (ii) a series of firm transportation agreements that guarantee volumetric capacity on pipelines for gas transportation entered into as discussed in Note 1—Basis of Presentation and Summary of Significant Accounting Policiesand Note 11—Commitments and Contingencies, respectively, under Part I, Item 1 of this Quarterly Report.
Current wording
Our contractual obligations include operating and transportation agreements, drilling rig contracts, office and equipment leases, asset retirement obligations, long-term debt obligations and cash interest expense on long-term debt obligations, which we routinely enter into, modify or extend. Since December 31, 2025, there have not been any significant, non-routine changes in our contractual obligations.
Previous wording
Refer to Note 1—Basis of Presentation and Summary of Significant Accounting Policies under Part I, Item 1 of this Quarterly Report for a discussion of recently adopted accounting standards and the potential effects of new accounting pronouncements.
Current wording
Refer to Note 1—Basis of Presentation and Summary of Significant Accounting Policies under Part I, Item 1 of this Quarterly Report for a discussion of the potential effects of new accounting pronouncements.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
During the three months ended March 31, 2025, we generated pre-tax net income of $490.9 million and recorded income tax expense of $100.3 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.
Current report — wording carried from elsewhere
These decreasing factors were partially offset by higher production volumes, more realized derivative gains and lower severance and ad valorem taxes and cash interest expense during the three months ended March 31, 2026 as compared to the same 2025 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.
Rearranged previous paragraphs (19)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
The following table provides the components of our net revenues and net production (net of all royalties, overriding royalties and production due to others) for the periods indicated, as well as each period’s average prices and average daily production volumes:
Previous report — wording carried elsewhere
(1) Calculated by converting natural gas to oil equivalent barrels at a ratio of six Mcf of natural gas to one Boe.
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
Depreciation, Depletion and Amortization. The following table summarizes our DD&A for the periods indicated:
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
General and Administrative Expenses. The following table summarizes our G&A expenses for the periods indicated:
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
Interest Expense. The following table summarizes our interest expense for the periods indicated:
Previous report — wording carried elsewhere
Net Gain (Loss) on Derivative Instruments. Net gains and losses are a function of (i) changes in derivative fair values associated with fluctuations in the forward price curves for the commodities underlying each of our hedge contracts outstanding and (ii) monthly cash settlements on any closed out hedge positions during the period.
Previous report — wording carried elsewhere
The following table presents gains and losses on our derivative instruments for the periods indicated:
Previous report — wording carried elsewhere
Income Tax Expense. The following table summarizes our pre-tax income and income tax expense for the periods indicated:
Previous report — wording carried elsewhere
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.