Permian Resources Corp

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, 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.

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, 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

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 wording

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 prices reaching a high of $112.95 per barrel on April 7, 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 and the Red Sea, which has adversely affected global supply conditions. Significant uncertainty remains regarding the ability to resolve these conflicts, reopen trade and shipping routes and their ultimate impact on global oil supply and prices.

Previous 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.

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. Notably during the second quarter of 2026, Waha natural gas prices averaged negative $3.14 per Mcf and traded as low as negative $9.52 per Mcf on April 16, 2026.

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, 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:

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 and conflicts, 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

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.

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, among other things, over international conflicts, tariffs, potential sanctions 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

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.

Current wording

During the six months ended June 30, 2026, we completed multiple acquisitions of oil and natural gas properties for a cumulative adjusted purchase price of approximately $482.3 million. These acquisitions are part of our ongoing bolt-on and grassroots acquisition programs.

Previous 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.

Current wording

We have declared and paid quarterly base dividends of $0.16 per share of Class A Common Stock each quarter for a total of $0.32 per share for the six months ended June 30, 2026. The cash dividends paid totaled $269.1 million for the six months ended June 30, 2026.

Previous 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.

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 million plus accrued and unpaid interest up to, but excluding, the redemption date.

Previous wording

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 wording

On April 30, 2026, we entered into a new credit agreement with a syndicate of banks that provides for a $3.0 billion senior unsecured revolving credit facility maturing on April 30, 2031 (the “Credit Agreement”). In connection with entering into the Credit Agreement, we terminated our existing secured revolving credit facility without penalty. Refer to Liquidity and Capital Resources for additional information regarding the Credit Agreement.

Previous 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.

Current wording

Oil and Gas Sales. Total net revenues for the three months ended June 30, 2026, were $660.4 million (or 55%) higher than total net revenues for the three months ended June 30, 2025. Revenues are primarily a function of oil, NGL and natural gas volumes sold and average commodity prices realized.

Previous 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.

Current wording

Lease Operating Expenses. Lease operating expenses (“LOE”) for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, stayed relatively consistent while our LOE per Boe for the second quarter of 2026 increased 4% to $5.55 from $5.36 during the second quarter of 2025. The increase in our LOE per Boe rate was primarily driven by the decrease in total production volumes between periods as discussed above.

Previous 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.

Current wording

Severance and Ad Valorem Taxes. Severance and ad valorem taxes for the three months ended June 30, 2026, increased $48.8 million compared to the three months ended June 30, 2025. 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 second quarter of 2026 increased $51.1 million, or 64%, compared to the same 2025 period primarily due to the 55% higher total oil and gas sales between periods. This increase was partially offset by ad valorem taxes that decreased $2.3 million for the second quarter of 2026 compared to the same 2025 period primarily due to lower ad valorem tax assessments between periods, which also drove the decrease in our severance and ad valorem taxes as a percentage of revenues between periods.

Previous 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.

Current wording

Gathering, Processing and Transportation Expenses. Gathering, processing and transportation costs (“GP&T”) for the three months ended June 30, 2026, decreased $19.2 million as compared to the three months ended June 30, 2025. This decrease in expense was mainly attributable to lower NGL and natural gas volumes sold between periods, which in turn resulted in a lower amount of plant processing fees and gathering costs being incurred. Additionally, the decrease was the result of changes to certain gathering agreements resulting in a greater portion of gathering, processing and transportation fees being reflected as a net reduction to our NGL and natural gas sales than as GP&T expense.

Previous 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.

Current wording

For the three months ended June 30, 2026, DD&A expense amounted to $500.2 million, a decrease of $6.3 million over the same 2025 period. The primary factor contributing to lower DD&A expense in 2026 was the decrease in our overall production volumes between periods, which decreased DD&A expense by $11.5 million, while our slightly higher DD&A rate of $14.60 per Boe increased DD&A expense by $5.2 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

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.

Current wording

Interest expense decreased $13.1 million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily due to less interest incurred on our senior notes that were redeemed since June 30, 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

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 wording

During 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. 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

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.

Current wording

The average realized sales price for oil increased by 27% between periods which was mainly the result of higher NYMEX WTI crude prices during the first half of 2026 compared to the same 2025 period. This increase was partially offset by lower realized sales prices for natural gas and NGLs, which decreased 234% and 5%, respectively, in the first half of 2026 compared to the same 2025 period. Our average realized natural gas price decreased to negative $1.23 per Mcf during the first half of 2026 compared to $0.92 per Mcf in the same 2025 period due to negative regional market prices as discussed under the “Market Conditions” section above. The negative gas price realized during the six months ended June 30, 2026, was mitigated in part by $57.9 million in net proceeds from our purchased gas sales, which facilitate additional gas sales at markets that had more favorable pricing during the period. The 5% decrease in the average realized NGL price was primarily attributable to lower Mont Belvieu spot prices for plant products for the first half of 2026 compared to the same 2025 period.

Previous 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.

Current wording

Net production volumes for oil also increased 11% between periods as a result of additional production added from wells placed online since the second quarter of 2025, which was partially offset by normal production declines across our existing wells. NGLs and natural gas are produced concurrently with our crude oil volumes, which typically results in a high correlation between fluctuations in oil quantities sold and NGL and natural gas quantities sold. However, NGL volumes increased only 3% between periods, below the 11% increase in oil volumes, while natural gas volumes decreased 6% between periods. Lower NGL and natural gas volumes compared to oil during the period were the result of production curtailments of certain wells with higher gas-to-oil production ratios during periods of negative natural gas prices. Further, certain processors of our raw gas operated in higher ethane-recovery mode during the first half of 2026 as compared to the same 2025 period, resulting in a higher percentage of NGLs being recovered from our wet gas stream as compared to natural gas.

Previous 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.

Current wording

G&A expenses for the six months ended June 30, 2026, were $91.7 million compared to $92.9 million for the six months ended June 30, 2025. Lower G&A for the first half of 2026 was the result of a $2.1 million decrease in stock-based compensation compared to the same 2025 period. Stock-based compensation fluctuates between periods based on the timing of grants and the vesting of our equity awards. This was partially offset by $1.0 million of higher cash G&A between periods, mainly related to our overall corporate growth.

Previous 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.

Current wording

We continually evaluate our capital needs and compare them to our capital resources. During the six months ended June 30, 2026, our total capital expenditures incurred for drilling and development activity were $987.7 million. We funded our capital expenditures for the six months ended June 30, 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 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.

Current 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, 2026, we declared and paid quarterly dividends of $0.16 per share of Class A Common Stock for a total of $0.32 per share. The cash dividends paid totaled $269.1 million for the six months ended June 30, 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.

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 second quarter of 2026, we redeemed our 8.00% senior notes due 2027 at a redemption price equal to 100% of the $550.0 million principal amount outstanding, plus accrued and unpaid interest. Additionally, on July 15, 2026, we redeemed our 9.875% senior notes due 2031 at a redemption price equal to 104.938% of the $325.0 million principal amount outstanding, plus accrued and unpaid interest.

Previous 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.

Current wording

For the six months ended June 30, 2026, we generated $2.3 billion of cash from operating activities, an increase of $384.0 million from the same period in 2025. Cash provided by operating activities increased primarily due to higher realized prices and production volumes for oil, more purchased gas sales, less cash interest expense and lower GP&T expense during the six months ended June 30, 2026, as compared to the same 2025 period. These increasing factors were partially offset by lower realized prices for NGLs and natural gas, less realized cash settlements on our derivative contracts, higher severance and ad valorem taxes and lease operating expenses, as well as the timing of collections on our receivables during the six months ended June 30, 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.

Previous 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.

Current wording

During the six months ended June 30, 2026, cash flows from operating activities and cash on hand were used to (i) fund $987.7 million of drilling and development cash capital expenditures; (ii) redeem $550.0 million of our senior notes; (iii) fund acquisitions of oil and gas properties of $534.3 million; and (iv) pay $269.1 million in dividends to our shareholders.

Previous 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.

Current wording

During the six months ended June 30, 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 $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.

Previous wording

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 wording

The 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 Credit Agreement. The Credit Agreement provides for aggregate commitments of $3.0 billion, 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 and includes a swingline subfacility and a letter of credit subfacility.

Previous wording

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 wording

Borrowings under the Credit Agreement bear interest, at our election, based on either SOFR plus an applicable margin or the Alternate Base Rate plus an applicable margin. The applicable margins for SOFR and Alternate Base Rate borrowings, as well as commitment fees for undrawn commitments, are based on our credit rating for our long-term senior unsecured indebtedness. As of June 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.

Previous wording

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%.

Current wording

The 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 Credit Agreement) of no greater than 65%.

Previous 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.

Current wording

OpCo had $3.0 billion in debt outstanding as of June 30, 2026, consisting of senior unsecured notes with maturity dates ranging from 2029 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.