Permian Resources Corp

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. 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.

Current wording

Throughout 2025 and 2026, natural gas prices in the Permian Basin have been adversely impacted by 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, Waha natural gas prices traded as low as negative $9.52 per MMBtu on April 16, 2026. More recently, Waha natural gas prices have returned to positive territory and averaged approximately $1.75 per MMBtu during the third quarter of 2026, driven primarily by additional pipeline capacity out of the Permian Basin.

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.

Current wording

Lower commodity prices and lower futures curves for oil and gas prices can result in impairments of our proved oil and 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. 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.

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. experienced elevated inflation during 2025 and 2026 due to concerns, among other things, over international conflicts, tariffs, potential sanctions and higher energy prices as discussed above. 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

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 wording

Separate from and subsequent to the Reorganization, the remaining holders of Class C Common Stock exchanged all of their outstanding Common Units for Class A Common Stock, which fully eliminated our noncontrolling interest as of March 31, 2026.

Previous 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.

Current wording

During the nine months ended September 30, 2026, we completed multiple acquisitions of oil and natural gas properties for a cumulative adjusted purchase price of approximately $1.1 billion, adding approximately 54,000 net acres and 20,000 net royalty acres in the core of the Delaware Basin. These acquisitions are part of our ongoing bolt-on and grassroots acquisition programs with the acquired acreage directly offset to our existing core position in the Delaware Basin allowing for seamless integration, extended lateral lengths and higher working interest in existing properties.

Previous 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.

Current wording

We have declared and paid quarterly base dividends of $0.16 per share of Class A Common Stock for a total of $0.48 per share for the nine months ended September 30, 2026. The cash dividends paid totaled $404.1 million for the nine months ended September 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 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 (“2027 Senior Notes”) 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 July 15, 2026, we redeemed all of the outstanding 9.875% senior notes due 2031 at a redemption price equal to 104.938% of the aggregate principal amount outstanding of $325.0 million plus accrued and unpaid interest up to, but excluding, the redemption date.

Current wording

On July 15, 2026, we redeemed all of the outstanding 9.875% senior notes due 2031 (“2031 Senior Notes”) at a redemption price equal to 104.938% of the aggregate principal amount outstanding of $325 million plus accrued and unpaid interest up to, but excluding, the redemption date.

Previous wording

Oil and Gas Sales. Total net revenues for the three months ended June 30, 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.

Current wording

Oil and Gas Sales. Total net revenues for the three months ended September 30, 2026, were $635.9 million (or 48%) higher than total net revenues for the three months ended September 30, 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 also increased by 12% between periods. This increase in oil production resulted from additional production added from wells placed online since the second quarter of 2025 that 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 results in a high correlation between fluctuations in oil quantities sold and NGL and natural gas quantities sold. However, NGL and natural gas volumes decreased 12% and 17%, respectively, between periods, reflecting production curtailments of certain wells with higher gas-to-oil production ratios during periods of negative natural gas prices.

Current wording

Net production volumes for oil, NGLs and natural gas increased by 11%, 12% and 12%, respectively, between periods. These increases resulted from additional production added from wells placed online since the third quarter of 2025, partially offset by normal production declines across our existing wells.

Previous 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.

Current wording

Lease Operating Expenses. Lease operating expenses (“LOE”) per Boe for the third quarter of 2026 was $5.11, consistent with the same 2025 period rate of $5.07, a 1% increase between periods. While LOE per Boe remained relatively unchanged, total LOE for the three months ended September 30, 2026, increased by $23.7 million compared to the three months ended September 30, 2025, and was the direct result of our higher well count between periods primarily due to additional wells placed on production since the third quarter of 2025.

Previous 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.

Current wording

Severance and Ad Valorem Taxes. Severance and ad valorem taxes for the three months ended September 30, 2026, increased $50.4 million compared to the three months ended September 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. The primary driver of the increase between periods related to higher severance taxes for the third quarter of 2026 compared to the same 2025 period was primarily due to the 48% higher total oil and gas sales between periods.

Previous 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.

Current wording

Gathering, Processing and Transportation Expenses. Gathering, processing and transportation (“GP&T”) expenses per Boe decreased to $1.21 for the three months ended September 30, 2026, from $1.43 for the three months ended September 30, 2025. This decrease was primarily 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 rather than as GP&T expense. Refer to Note 12—Revenues under Part I, Item 1 of this Quarterly Report for additional information regarding our treatment of GP&T fees.

Previous 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.

Current wording

For the three months ended September 30, 2026, DD&A expense amounted to $592.9 million, an increase of $66.0 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 $60.7 million, while our slightly higher DD&A rate of $14.09 per Boe increased DD&A expense by $5.3 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 three months ended June 30, 2026, were $48.0 million compared to $49.8 million for the three months ended June 30, 2025. Lower G&A for the second quarter of 2026 compared to the same 2025 period was primarily the result of a $1.1 million decrease in stock-based compensation between periods based on the timing of grants and the vesting of our equity awards.

Current wording

G&A expenses for the three months ended September 30, 2026, were $48.8 million compared to $50.0 million for the three months ended September 30, 2025. Lower G&A for the third quarter of 2026 compared to the same 2025 period was the result of a $1.9 million decrease in cash G&A driven primarily by lower consulting and professional services costs. This decrease was partially offset by higher software costs and employee compensation as well as a $0.8 million increase in stock-based compensation between periods based on the timing of grants and the vesting of our equity awards.

Previous 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.

Current wording

Interest expense decreased $16.1 million for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, primarily due to the lower debt level resulting from senior notes that were redeemed since the beginning of the third quarter of 2025. This decrease was partially offset by higher interest expense incurred on borrowings under our Credit Agreement and on Commercial Paper outstanding, due to higher average borrowings outstanding during the 2026 period compared to the 2025 period. Refer to Note 4—Debt under Part I, Item 1 of this Quarterly Report for additional information regarding our debt.

Previous 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.

Current wording

During 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.

Previous wording

Oil and Gas Sales. Total net revenues for the six months ended June 30, 2026, were $672.1 million (or 26%) higher than total net revenues for the six months ended June 30, 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 nine months ended September 30, 2026, were $1.3 billion (or 34%) higher than total net revenues for the nine months ended September 30, 2025. Revenues are primarily a function of oil, NGL and natural gas volumes sold and average commodity prices realized.

Previous 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.

Current wording

The average realized sales prices for oil and NGLs increased by 29% and 10%, respectively, between periods, which was mainly the result of higher NYMEX WTI crude oil and Mont Belvieu spot prices during the first nine months of 2026 compared to the same 2025 period. These increases were partially offset by lower average realized sales prices for natural gas that decreased by 160% between periods. Our average realized natural gas price decreased to negative $0.47 per Mcf during the first nine months of 2026 compared to $0.78 per Mcf in the same 2025 period due to suppressed regional market prices as discussed under the “Market Conditions” section above. These negative gas price realizations were mitigated in part by $59.2 million in net proceeds from our purchased gas sales, which facilitate additional gas sales at markets that had more favorable pricing during the period.

Previous 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.

Current wording

Net production volumes for oil and NGLs increased 11% and 6%, respectively, for the nine months ended September 30, 2026 compared to the same 2025 period, while natural gas volumes were flat between periods. The increase in oil production was from wells placed online since the third quarter of 2025, 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 and natural gas volumes increased less than oil volumes as a result of production curtailments of certain wells with higher gas-to-oil production ratios during periods of negative natural gas prices. NGL volumes increased more than natural gas volumes as certain processors of our raw gas operated in higher ethane-recovery mode during the first nine months 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

Lease Operating Expenses. LOE per Boe for the six months ended June 30, 2026 and 2025, stayed consistent at $5.36 during each period. While LOE per Boe remained unchanged, total LOE for the six months ended June 30, 2026, increased by $15.2 million compared to the six months ended June 30, 2025, and was the direct result of our higher well count between periods primarily due to additional wells placed on production since June 30, 2025.

Current wording

Lease Operating Expenses. LOE per Boe for the nine months ended September 30, 2026, was $5.27, consistent with the rate of $5.25 for the nine months ended September 30, 2025. While LOE per Boe remained unchanged, total LOE for the nine months ended September 30, 2026, increased by $38.9 million compared to the nine months ended September 30, 2025, and was the direct result of our higher well count between periods primarily due to additional wells placed on production since the third quarter of 2025.

Previous wording

Severance and Ad Valorem Taxes. Severance and ad valorem taxes for the six months ended June 30, 2026, increased $42.1 million compared to the six 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 first half of 2026 increased $47.9 million, or 28%, compared to the same 2025 period primarily due to the 26% higher total oil and gas sales between periods. This increase was partially offset by ad valorem taxes that decreased $5.8 million for the first half 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.

Current wording

Severance and Ad Valorem Taxes. Severance and ad valorem taxes for the nine months ended September 30, 2026, increased $92.6 million compared to the nine months ended September 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 first nine months of 2026 increased $101.2 million, or 39%, compared to the same 2025 period primarily due to the 34% higher total oil and gas sales between periods. This increase was partially offset by ad valorem taxes that decreased $8.6 million for the first nine months 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. Total GP&T expense for the six months ended June 30, 2026, decreased $15.2 million compared to the six months ended June 30, 2025. This decrease in expense was mainly attributable to lower 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.

Current wording

Gathering, Processing and Transportation Expenses. Total GP&T expense for the nine months ended September 30, 2026, decreased $18.1 million compared to the nine months ended September 30, 2025. This decrease in expense was mainly attributable to 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 rather than as GP&T expense.

Previous wording

Our GP&T per Boe rate decreased to $1.22 for the first half of 2026 from $1.49 for the first half of 2025, driven primarily by the changes in our gathering agreements and by our natural gas volumes declining more than our total production volumes between periods. Refer to Note 12—Revenues under Part I, Item 1 of this Quarterly Report for additional information regarding our treatment of GP&T fees.

Current wording

Our GP&T per Boe rate decreased to $1.22 for the first nine months of 2026 from $1.47 for the first nine months of 2025, driven primarily by the changes in our gathering agreements and by the increase in our total production volumes while our natural gas volumes remained flat between periods. Refer to Note 12—Revenues under Part I, Item 1 of this Quarterly Report for additional information regarding our treatment of GP&T fees.

Previous wording

For the six months ended June 30, 2026, DD&A expense amounted to $1.0 billion, an increase of $45.8 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 $39.6 million during the first half of 2026, while slightly higher DD&A rates between periods increased DD&A expense by $6.2 million for the six months ended June 30, 2026. Our DD&A rate can fluctuate as a result of finding and development costs incurred, acquisitions, impairments, as well as changes in proved developed and proved undeveloped reserves.

Current wording

For the nine months ended September 30, 2026, DD&A expense amounted to $1.6 billion, an increase of $111.9 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 $101.0 million during the first nine months of 2026, while slightly higher DD&A rates increased DD&A expense by $10.9 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 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.

Current wording

G&A expenses for the nine months ended September 30, 2026, were $140.6 million compared to $142.9 million for the nine months ended September 30, 2025. Lower G&A for the first nine months of 2026 was the result of a $1.3 million decrease in stock-based compensation and a $1.0 million decrease in cash G&A 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. The decrease in cash G&A was primarily due to lower consulting and professional services costs, partially offset by higher employee compensation and software costs.

Previous wording

Interest expense was $19.9 million lower for the six months ended June 30, 2026, compared to the same 2025 period primarily due to less interest incurred on our senior notes that were fully or partially redeemed or repurchased 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.

Current wording

Interest expense was $36.1 million lower for the nine months ended September 30, 2026, compared to the same 2025 period primarily due to the lower debt level resulting from senior notes that were redeemed since the beginning of 2025. This decrease was partially offset by higher interest expense incurred on borrowings under our Credit Agreement and on Commercial Paper outstanding, due to higher average borrowings outstanding during the 2026 period compared to the 2025 period. Refer to Note 4—Debt under Part I, Item 1 of this Quarterly Report for additional information regarding our debt.

Previous wording

During the six months ended June 30, 2025, we generated pre-tax net income of $798.4 million and recorded income tax expense of $162.8 million. 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 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.

Previous 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.

Current wording

Our primary sources of liquidity have been cash flows from operations, borrowings under our credit facility or commercial paper program, or proceeds from offerings of debt or equity securities. 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

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 wording

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. Additionally, in August 2026 we established a commercial paper program that provides us with an additional source of short-term financing and generally allows us to borrow at lower interest rates than our revolving credit facility.

Previous 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.

Current wording

We continually evaluate our capital needs and compare them to our capital resources. During the nine months ended September 30, 2026, our total capital expenditures incurred for drilling and development activity were $1.5 billion. We funded our capital expenditures for the nine months ended September 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 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.

Current wording

We plan to return capital to shareholders primarily through our base dividend, in addition to opportunistic share repurchases. During the nine months ended September 30, 2026, we declared and paid quarterly dividends of $0.16 per share of Class A Common Stock for a total of $0.48 per share. The cash dividends paid totaled $404.1 million for the nine months ended September 30, 2026. Our stock repurchase program can be used to reduce our shares of common stock outstanding. Such repurchases would be made at terms and prices determined by us based upon prevailing market conditions, applicable legal requirements, available liquidity, compliance with our debt agreements and other factors.

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 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.

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 2027 Senior Notes at a redemption price equal to 100% of the $550.0 million principal amount outstanding, plus accrued and unpaid interest. Additionally, during the third quarter, we redeemed our 2031 Senior Notes 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 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.

Current wording

For the nine months ended September 30, 2026, we generated $3.6 billion of cash from operating activities, an increase of $872.1 million from the same period in 2025. Cash provided by operating activities increased primarily due to higher realized prices and production volumes for oil and NGLs, more purchased gas sales, less cash interest expense, lower GP&T expense and less cash G&A expense during the nine months ended September 30, 2026, as compared to the same 2025 period. These increasing factors were partially offset by lower realized prices for natural gas, less realized cash settlements on our derivative contracts, higher severance and ad valorem taxes and lease operating expenses during the nine months ended September 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 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.

Current wording

During the nine months ended September 30, 2026, cash flows from operating activities, net borrowings under our commercial paper program and cash on hand were used to (i) fund $1.5 billion of drilling and development cash capital expenditures; (ii) fund acquisitions of oil and gas properties of $1.2 billion; (iii) redeem $875.0 million of our senior notes; and (iv) pay $404.1 million in dividends to our shareholders.

Previous 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.

Current wording

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

Previous wording

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%.

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 Total Indebtedness to Capitalization Ratio (as defined in the Credit Agreement) of no greater than 65%.

Previous 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.

Current wording

OpCo had $2.7 billion in long-term debt outstanding as of September 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—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, 2025, there have not been any significant, non-routine changes in our contractual obligations.

Current wording

Our contractual obligations include operating and transportation agreements, drilling rig contracts, office and equipment leases, asset retirement obligations, 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.