Track market-moving stories before they get noisy

After reaching an important support level, PBF Energy (PBF - Free Report) could be a good stock pick from a technical perspective. PBF surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Over the past four weeks, PBF has gained 13.8%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.

Looking at PBF's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 6 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on PBF for more gains in the near future.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at PBF Energy (PBF - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. PBF Energy currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if PBF is a promising momentum pick, let's examine some Momentum Style elements to see if this refiner holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For PBF, shares are up 3.91% over the past week while the Zacks Oil and Gas - Refining and Marketing industry is up 2.68% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 11.63% compares favorably with the industry's 13.48% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of PBF Energy have risen 22.79%, and are up 93.13% in the last year. In comparison, the S&P 500 has only moved 7.88% and 25.61%, respectively.

Investors should also take note of PBF's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now PBF is averaging 3,301,196 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with PBF.

Over the past two months, 6 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost PBF's consensus estimate, increasing from $0.97 to $6.70 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that PBF is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep PBF Energy on your short list.

, /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) ("PBF Energy") today announced that its indirect subsidiary, PBF Holding Company LLC ("PBF Holding"), intends to offer, subject to market and other conditions, $500 million in aggregate principal amount of senior notes due 2034 (the "Notes") in a private offering. The Notes will be co-issued by PBF Finance Corporation, a wholly owned subsidiary of PBF Holding. Completion of the offering is subject to, among other things, pricing and market conditions. PBF Holding intends to use the net proceeds from the proposed offering and available cash to fund the redemption in full of its outstanding 6.00% Senior Notes due 2028 (the "2028 Notes").

The Notes will be offered in a private placement and are expected to be resold by the initial purchasers to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The offer of the Notes will be made only by means of a private offering memorandum to qualified investors and has not been and will not be registered under the Securities Act or any applicable state securities laws, and the Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act.

This press release is being issued pursuant to Rule 135c under the Securities Act, and is neither an offer to sell nor a solicitation of an offer to buy the Notes and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of any Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, qualification or exemption under the securities laws of any such jurisdiction.

Forward-Looking Statements

Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the risks relating to the proposed offering, the proposed redemption, the securities markets generally and the company's expectations with respect to the timing and size of the proposed offering and the anticipated use of proceeds therefrom. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable securities laws.

About PBF Energy Inc.

PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.

PBF Energy is also a 50% partner in the St. Bernard Renewables joint venture focused on the production of next generation sustainable fuels.

Contacts:

Colin Murray (investors)
[email protected]
Tel: 973.455.7578

Michael C. Karlovich (media)
[email protected]
Tel: 973.455.8994

SOURCE PBF Energy Inc.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: PBF Energy (PBF - Free Report) Based in New jersey, PBF Energy Inc. is a leading refiner of crude. Through five oil refineries and associated infrastructure in the United States, the company provides end products that comprise heating oil, transportation fuels, lubricants and many related products. The refineries can collectively process 1,000,000 barrels of crude every day.

PBF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 5.71; value investors should take notice.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $3.70 to $6.70 per share. PBF also boasts an average earnings surprise of +113.3%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, PBF should be on investors' short list.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: PBF Energy (PBF - Free Report) PBF Energy Inc. is a leading independent refiner of crude oil based in Parsippany, New Jersey. Through six oil refineries and associated infrastructure in the United States, the company produces unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products. The refineries can collectively process about 1,000,000 barrels of crude oil per day.

PBF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. PBF has a Growth Style Score of A, forecasting year-over-year earnings growth of 262.2% for the current fiscal year.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $3.00 to $6.70 per share. PBF also boasts an average earnings surprise of +113.3%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PBF should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: PBF Energy (PBF - Free Report) PBF Energy Inc. is a leading independent refiner of crude oil based in Parsippany, New Jersey. Through six oil refineries and associated infrastructure in the United States, the company produces unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products. The refineries can collectively process about 1,000,000 barrels of crude oil per day.

PBF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Oils-Energy stock. PBF has a Momentum Style Score of A, and shares are up 1.2% over the past four weeks.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $2.38 to $6.91 per share. PBF boasts an average earnings surprise of +113.3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PBF should be on investors' short list.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Permian Resources (PR - Free Report) , which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, could be a great candidate to consider.

This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 27.74%.

For the most recent quarter, Permian Resources was expected to post earnings of $0.28 per share, but it reported $0.37 per share instead, representing a surprise of 32.14%. For the previous quarter, the consensus estimate was $0.3 per share, while it actually produced $0.37 per share, a surprise of 23.33%.

Price and EPS Surprise

For Permian Resources, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Permian Resources has an Earnings ESP of +1.32% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #1 (Strong Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on May 6, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Wall Street expects a year-over-year increase in earnings on higher revenues when W&T Offshore (WTI - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on May 7, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis independent oil and gas company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +84.6%.

Revenues are expected to be $136.98 million, up 5.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 41.03% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for W&T?For W&T, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +185.72%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that W&T will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that W&T would post a loss of$0.09 per share when it actually produced a loss of -$0.14, delivering a surprise of -55.56%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

W&T appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Oil and Gas - Exploration and Production - United States industry, Permian Resources (PR - Free Report) , is soon expected to post earnings of $0.38 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -9.5%. This quarter's revenue is expected to be $1.39 billion, up 1% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Permian Resources has been revised 10.1% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.32%, reflecting a higher Most Accurate Estimate.

When combined with a Zacks Rank of #1 (Strong Buy), this Earnings ESP indicates that Permian Resources will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Permian Resources to report Q1 results on May 6, with EPS seen at 38 cents on $1.4B revenues.PR's production is expected to rise 11.5% YoY, with better gas marketing and hedges aiding realizations.PR faces macro uncertainty, volatile gas prices and inflation that may limit margins and upside. Permian Resources Corporation (PR - Free Report) is set to release first-quarter 2026 results on May 6. The bottom-line estimate for the to-be-reported quarter is pegged at a profit of 38 cents on revenues of $1.4 billion.

Let us delve into the factors that might have influenced this Midland, TX-based oil and gas exploration and production company’s results in the quarter. Before diving in, it is important to consider how PR performed last quarter.

Highlights of Q4 Earnings & Surprise HistoryIn the last reported quarter, Permian Resources posted adjusted net income per share of 37 cents, which beat the Zacks Consensus Estimate of 28 cents. The bottom line also increased from the year-ago quarter’s reported figure of 36 cents, backed by a rise in production volumes. However, PR’s revenues of $1.2 billion missed the Zacks Consensus Estimate by 9%.

The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, were in line in one and fell short in one, resulting in an average surprise of 12.7%.

This is depicted in the graph below:

PR’s Trend in Estimate RevisionThe Zacks Consensus Estimate for first-quarter 2026 earnings has seen three upward revisions and two downside movements over the past 30 days. The estimated figure indicates a 9.5% decline year over year. The Zacks Consensus Estimate for revenues implies year-over-year growth of 1%.

Factors to Consider Ahead of PR’s Q1 ReleaseThe West Texas oil and gas operator makes money by exploring for, developing and producing oil and liquids-rich natural gas in the Permian Basin, then selling those hydrocarbons into domestic and international energy markets. PR’s revenues are likely to have increased in the quarter to be reported. The Zacks Consensus Estimate for first-quarter revenues is up from the year-ago quarter’s $1.38 billion. Based on our estimate, the company's total average daily net production is projected to rise 11.5% year over year, reaching 411,443 barrels of oil equivalent. The company provided guidance to grow its production by about 5% in 2026 on lower capital, highlighting improved capital efficiency and lower breakevens. Additionally, improved gas marketing and reduced WAHA exposure are expected to have enhanced realizations, while a strong hedge position provides downside protection. Consistent well productivity, inventory depth and accretive bolt-on acquisitions further underpin sustainable free cash flow per share growth, positioning the company well for upside versus expectations in the to-be-reported quarter.

Adding to the bearish outlook, macro uncertainty, including supply disruptions in oil markets and volatile gas pricing, may weigh on realizations. Management flagged a potentially “bumpy” gas environment in 2026, which could impact near-term revenues despite mitigation efforts. Inflationary pressures on non-D&C CapEx and limited deflation in infrastructure costs may have constrained the margin upside in the quarter to be reported. Additionally, a disciplined approach to growth and capital allocation, while positive long term, could limit near-term production upside versus more aggressive peers. Any operational variability or weaker commodity prices could have therefore resulted in earnings falling short of expectations.

What Does Our Model Say About PR?The proven Zacks model predicts an earnings beat for Permian Resources this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. This is exactly the case here.

PR’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +1.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

PR’s Zacks Rank:PR currently sports a Zacks Rank #1.

Other Stocks to ConsiderHere are some other firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

Shell plc (SHEL - Free Report) has an Earnings ESP of +3.56% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Valued at around $252 billion, SHEL stock has gained 36.6% in a year. Shell is one of the primary oil supermajors with operations that span almost every corner of the globe. The company participates in almost every aspect related to energy — from oil production to refining and marketing. The firm is scheduled to release earnings on May 7. The Zacks Consensus Estimate for Shell’s 2026 earnings indicates 58.3% year-over-year growth.

Targa Resources Corp. (TRGP - Free Report) has an Earnings ESP of +0.77% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on May 7. Valued at around $54.6 billion, Targa Resources stock has surged 60.6% in a year.

The company is a premier energy infrastructure company that provides integrated midstream services in North America and derives its revenues from gathering, compressing, treating, processing and selling natural gas. The Zacks Consensus Estimate for Targa Resources’ 2026 earnings indicates 21.6% year-over-year growth.

W&T Offshore, Inc. (WTI - Free Report) has an Earnings ESP of +185.72% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on May 7. Valued at around $614.5 million, WTI stock has soared 259.1% in a year.

W&T Offshore is a leading oil and natural gas explorer with operations primarily focused on resources located off the coast of the Gulf of America. The Zacks Consensus Estimate for W&T Offshore’s 2026 earnings indicates 40.5% year-over-year growth.

MIDLAND, Texas--(BUSINESS WIRE)--Permian Resources Corporation (“Permian Resources” or the “Company”) (NYSE: PR) today announced its first quarter 2026 financial and operational results and revised 2026 guidance.

Recent Financial and Operational Highlights

Reported total average production of 412.9 MBoe/d, including 192.3 MBbls/d of oil, 103.3 MBbls/d of NGLs and 703.0 MMcf/d of natural gas Announced cash capital expenditures of $466 million, cash provided by operating activities of $815 million and adjusted free cash flow1 of $513 million Reduced D&C costs to ~$685 per lateral foot, representing a 6% reduction compared to 2025 results Demonstrated continued bolt-on and ground game success, executing on ~40 transactions for $205 million Declared quarterly base dividend of $0.16 per share Increased mid-point of full year guidance for oil production by 3.5 MBbls/d to 192.5 MBbls/d Received investment grade credit ratings from S&P and Moody’s and maintained strong balance sheet with leverage1 of ~0.8x Completed simplification of Permian Resources’ corporate structure to further enhance peer-leading shareholder alignment Continue to prioritize flexibility to respond quickly to range of market conditions Successfully accelerated first quarter crude oil production and anticipate modest acceleration of production and capital in the second quarter Maintain significant flexibility to respond to market conditions in the second half of 2026 and beyond Management Commentary

“We delivered a strong first quarter across the board, with record-low D&C costs per foot, 2% oil production growth quarter-over-quarter and more than $500 million of free cash flow,” said Will Hickey, Co-CEO of Permian Resources. “This performance highlights our ability to drive higher production and free cash flow per share, while continuing to lower costs.”

“Since inception, Permian Resources has generated consistent free cash flow per share growth throughout cycles,” said James Walter, Co-CEO of Permian Resources. “This has been driven by a combination of lowering costs, executing accretive acquisitions and delivering high-return organic growth. Going forward, our business plan remains the same, and we'll continue to leverage these unique advantages to drive outsized returns for our investors.”

Financial and Operational Results

During the quarter, average daily crude oil production was 192,349 barrels of oil per day (“Bbls/d”), a 2% increase compared to the prior quarter. Reported NGL and natural gas volumes were 103,338 Bbls/d and 702,979 Mcf/d, respectively. Total production was 412,850 barrels of oil equivalent per day (“Boe/d”). During the first quarter, production exceeded expectations due to strong runtime and new well performance, in addition to certain steps the Company took to accelerate incremental production in March such as increased workover activity.

The Company continues to reduce well costs on a per lateral foot basis through continued operational efficiencies. For the first quarter, drilling and completion costs per lateral foot were approximately $685, or a 2% reduction from the previous quarter. Total cash capital expenditures for the first quarter were $466 million.

Realized prices for the quarter were $70.91 per barrel of oil, $16.60 per barrel of NGL and $0.10 per Mcf of natural gas. The Company continues to realize the positive impact from its improved natural gas transportation portfolio, with unhedged realized natural gas prices reflecting a $1.21 per Mcf premium to Waha pricing during the quarter. Permian Resources’ natural gas hedges further improved realizations to $1.33 per Mcf, or a $2.44 per Mcf premium to Waha.

The Company’s current firm transportation capacity and operational flexibility have provided it the ability to successfully navigate the volatile Waha gas environment, while minimizing the impact to oil production. Permian Resources expects its natural gas realized prices to continue to benefit over time through its growing firm transportation capacity, which will provide over 700 MMcf/d exposed to the Gulf Coast and DFW markets in 2027.

During the quarter, total controllable cash costs (LOE, GP&T and cash G&A) were $7.32 per Boe. First quarter LOE was $5.19 per Boe, GP&T was $1.36 per Boe and cash G&A was $0.77 per Boe.

For the first quarter, Permian Resources generated net cash provided by operating activities of $815 million, adjusted operating cash flow1 of $979 million and adjusted free cash flow1 of $513 million. Adjusted diluted shares1 outstanding were 852.3 million for the three months ended March 31, 2026.

2026 Operational Plan Update

Given higher crude prices in March, the Company reacted quickly to increase oil production during the first quarter. In the second quarter, Permian Resources expects to continue to accelerate production and anticipates second quarter oil production and capital expenditures to be modestly higher than the first quarter as a result. If negative Waha prices persist, the Company anticipates lower natural gas and NGL volumes in the second quarter.

For the second half of 2026, the Company retains significant operational flexibility to maximize free cash flow in 2026 and 2027. In the event of prolonged higher crude prices, Permian Resources anticipates that maintaining its current number of rigs and completion crews would generate capital efficient production growth. The Company maintains equal flexibility to reduce activity and deliver a similar level of production and capital as the first quarter, in the event the macro environment weakens.

Based on recent results and current outlook, Permian Resources has increased its full year 2026 oil production target by 3.5 MBbls/d to 192.5 MBbls/d at the mid-point of guidance. There are no further changes to the Company’s guidance ranges.

“Today, our team is responding quickly to the current environment to increase oil production and free cash flow. Going forward, Permian Resources maintains maximum operational flexibility and will continue to swiftly react to the changing macro environment,” said Will Hickey, Co-CEO. "I would like to thank our operations team for their hard work and dedication to execute a plan that maximizes shareholder value in a period of significant volatility."

Improving PR's Fortress Balance Sheet

Permian Resources continues to enhance its balance sheet strength, receiving investment grade credit ratings, increasing liquidity and reducing debt. Permian Resources has now achieved investment grade ratings from all three rating agencies. In March, S&P upgraded Permian Resources to BBB-, and in April Moody’s upgraded the Company to Baa3. This follows the Company’s initial investment grade credit rating from Fitch, which upgraded Permian Resources to BBB- in July 2025. With investment grade credit ratings from all three agencies, Permian Resources expects enhanced access to capital throughout market cycles and a reduced cost of capital.

On April 30, 2026, the Company entered into a new five-year revolving credit facility. Elected commitments under the new credit facility increased to $3.0 billion from $2.5 billion under the Company’s prior credit facility. The new revolving credit facility provides for no security or collateral, reduced interest expense and fees and more attractive covenants.

On April 15, 2026, Permian Resources redeemed $550 million in principal of legacy Earthstone 8.00% Senior Notes due 2027. Since year-end 2024, Permian Resources has reduced total debt by approximately $1.2 billion.

Corporate Simplification and Continued Peer-Leading Shareholder Alignment

Peer-leading shareholder alignment has been a priority for Permian Resources since its formation, and the Company has taken significant steps year-to-date to enhance this strength. During the first quarter, the Company’s remaining Class C shareholders converted their shares to Class A shares. As a result, the Company’s corporate structure is now a traditional C-Corp. with a single share class structure, simplifying its capital structure and further improving shareholder alignment.

The Company also announced the recent elimination of its sponsor ownership. Since inception, Permian Resources has successfully partnered with its private equity shareholders to monetize or distribute over 300 million shares of common stock, reducing the combined disclosed sponsor ownership from approximately 45% in 2023 to 0% today.

"Since inception, we have made tremendous progress towards simplifying our corporate structure and reducing our sponsor ownership, while at the same time generating leading shareholder returns," said James Walter, Co-CEO. "These actions have made our business more transparent, more aligned with our shareholders and even better positioned to continue creating outsized returns for our investors."

Shareholder Returns

Permian Resources announced today that its Board of Directors declared the Company’s second quarter 2026 base dividend of $0.16 per share of Class A common stock, or $0.64 per share on an annualized basis. The base dividend is payable on June 30, 2026 to shareholders of record as of June 16, 2026. The Company’s base dividend represents an annualized yield of 2.9% as of May 5, 2026.

Quarterly Report on Form 10-Q

Permian Resources’ financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, which is expected to be filed with the U.S. Securities and Exchange Commission on May 7, 2026.

Conference Call and Webcast

Permian Resources will host an earnings conference call on Thursday, May 7, 2026, at 9:00 a.m. Central (10:00 a.m. Eastern). Interested parties are invited to participate on the call by dialing (800) 715-9871 (Conference ID: 1442298) at least 15 minutes prior to the start of the call or via the internet at www.permianres.com. A replay of the call will be available on the Company’s website or by phone at (800) 770-2030 (Passcode: 1442298) for a 14-day period following the call.

About Permian Resources

Headquartered in Midland, Texas, Permian Resources is an independent oil and natural gas company focused on driving peer-leading returns through the acquisition, optimization and development of high-return oil and natural gas properties. The Company’s assets are located in the Permian Basin, with a concentration in the core of the Delaware Basin. Through its position of approximately 500,000 net acres in West Texas and Southeast New Mexico, Permian Resources is the second largest Permian Basin pure-play E&P. For more information, please visit www.permianres.com.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.

Factors that could cause results to differ from those projected or assumed in any forward-looking statements include, but are not limited to:

volatility of oil, NGL and natural gas prices or a prolonged period of low oil, NGL or natural gas prices and the effects of actions by, or disputes among or between, members of the Organization of Petroleum Exporting Countries, such as Iran, Saudi Arabia and Venezuela, and other oil and natural gas producing countries, such as the United Arab Emirates and Russia, with respect to production levels or other matters related to the price of oil, NGLs and natural gas; political and economic conditions and events in or affecting other producing regions or countries, including the Middle East, Russia, Eastern Europe, Africa and South America, including recent developments in and around Iran; uncertainty inherent in estimating oil, NGL and natural gas reserves, including the impact of commodity price declines on the economic producibility of such reserves, and in projecting future rates of production; our business strategy and future drilling plans; our reserves and our ability to replace the reserves we produce through drilling and property acquisitions; our drilling prospects, inventories, projects and programs, including the timing and amount of our future production of oil, NGLs and natural gas and the cost of developing or operating our properties; our financial strategy, return of capital program, leverage, liquidity and capital required for our development program; our realized oil, NGL and natural gas prices; our ability to identify, complete and effectively integrate acquisitions of properties, or businesses; our hedging strategy and results; competition for assets, materials, people and capital, which can be exacerbated by supply chain disruptions, including as a result of tariffs or other changes in trade policy or international conflict; the geographic concentration of our operations and/or consolidated in the oil and natural gas industry in the areas in which we operate and otherwise; our ability to obtain permits and governmental approvals; our compliance with government regulations, including those related to environmental, health and safety regulations and liabilities thereunder; the marketing and transportation of our oil, NGLs and natural gas; general economic, market and business conditions, including as it relates to credit and capital markets; environmental and climate related risks, including seasonal weather conditions; changes in the financial strength of counterparties to our credit agreement and hedging contracts; midstream capacity constraints and potential interruptions in production, including from limits to the build out of midstream infrastructure; our ability to make dividend payments, distributions and share repurchases; changes to tax laws or interpretations thereof and the impact of such changes on us; technological advancement, including artificial intelligence and its application in our industry; security threats, including evolving cybersecurity risks such as those involving unauthorized access, denial-of-service attacks, third-party service provider failures, malicious software, data privacy breaches by employees, insiders or other with authorized access, cyber or phishing-attacks, ransomware, social engineering, physical breaches or other actions; risks relating to our sustainability initiatives; our plans, objectives, expectations and intentions contained in this press release that are not historical; and the other risk factors described in our most recent Annual Report on Form 10-K, and any updates to those factors set forth in our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Reserve engineering is a process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data, and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

Should one or more of the risks or uncertainties described in this press release occur, or should any underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.

1) Adjusted Operating Cash Flow, Adjusted Free Cash Flow, Adjusted Diluted Weighted Average Shares Outstanding and Net Debt-to-LQA EBITDAX (also referred to as “leverage” in this press release) are non-GAAP financial measures. See “Non-GAAP Financial Measures” included within the Appendix of this press release for related disclosures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Details of our revised 2026 operational and financial guidance are presented below:

2026 FY Guidance

(Revised)

Net average daily production (Boe/d)

400,000

—

430,000

Net average daily oil production (Bbls/d)

190,000

—

195,000

Production costs

Total controllable cash costs

$7.15

—

$8.15

Lease operating expenses ($/Boe)

~$5.45

Gathering, processing and transportation expenses ($/Boe)

~$1.40

Cash general and administrative ($/Boe)(1)

~$0.80

Severance and ad valorem taxes (% of revenue)

6.5%

—

8.5%

Total cash capital expenditure program ($MM)

$1,750

—

$1,950

Operated drilling program

TILs (gross)

~250

Average working interest

75% - 80%

Average lateral length (feet)

~11,000

  (1) Excludes stock-based compensation.

Permian Resources Corporation

Operating Highlights

  Three Months Ended March 31,

2026

2025

Net revenues (in thousands):

Oil sales

$

1,227,594

$

1,109,771

NGL sales

154,393

185,022

Natural gas sales

(18,504

)

81,658

Purchased gas sales, net

24,663

—

Oil and gas sales

$

1,388,146

$

1,376,451

Net production:

Oil (MBbls)

17,311

15,747

NGL (MBbls)

9,300

7,741

Natural gas (MMcf)

63,268

60,605

Total (MBoe)(1)

37,156

33,589

Average daily net production:

Oil (Bbls/d)

192,349

174,967

NGL (Bbls/d)

103,338

86,010

Natural gas (Mcf/d)

702,979

673,388

Total (Boe/d)(1)

412,850

373,209

Average sales prices:

Oil (per Bbl)

$

70.91

$

70.48

Effect of derivative settlements on average price (per Bbl)

(2.81

)

0.97

Oil including the effects of hedging (per Bbl)

$

68.10

$

71.45

NGL (per Bbl)

$

16.60

$

23.90

Natural gas (per Mcf)

$

(0.29

)

$

1.35

Effect of derivative settlements on average price (per Mcf)

1.23

0.10

Effect of purchased gas sales on average price (per Mcf)

0.39

—

Natural gas including the effects of hedging (per Mcf)

$

1.33

$

1.45

Permian Resources Corporation

Operating Expenses

  Three Months Ended March 31,

2026

2025

Operating costs (in thousands):

Lease operating expenses

$

192,882

$

179,627

Severance and ad valorem taxes

101,312

107,993

Gathering, processing and transportation expenses

50,639

46,650

Operating cost metrics:

Lease operating expenses (per Boe)

$

5.19

$

5.35

Severance and ad valorem taxes (% of revenue)

7.3

%

7.8

%

Gathering, processing and transportation expenses (per Boe)

$

1.36

$

1.39

Permian Resources Corporation

Consolidated Statements of Operations (unaudited)

(in thousands, except per share data)

  Three Months Ended March 31,

2026

2025

Operating revenues

Oil and gas sales

$

1,388,146

$

1,376,451

Operating expenses

Lease operating expenses

192,882

179,627

Severance and ad valorem taxes

101,312

107,993

Gathering, processing and transportation expenses

50,639

46,650

Depreciation, depletion and amortization

526,288

474,203

General and administrative expenses

43,772

43,056

Impairment and abandonment expense

2,011

5,209

Exploration and other expenses

3,997

15,250

Total operating expenses

920,901

871,988

Income from operations

467,245

504,463

Other income (expense)

Interest expense

(67,020

)

(73,839

)

Loss on extinguishment of debt

—

(5,826

)

Net gain (loss) on derivative instruments

(339,924

)

57,731

Other income (expense)

3,579

8,368

Total other income (expense)

(403,365

)

(13,566

)

Income before income taxes

63,880

490,897

Income tax expense

(13,486

)

(100,334

)

Net income

50,394

390,563

Less: Net income attributable to noncontrolling interest

(6,774

)

(61,265

)

Net income attributable to Class A Common Stock

$

43,620

$

329,298

Income per share of Class A Common Stock:

Basic

$

0.05

$

0.47

Diluted

$

0.05

$

0.44

Weighted average Class A Common Stock outstanding:

Basic

812,208

704,035

Diluted

827,962

748,197

Permian Resources Corporation

Consolidated Balance Sheets (unaudited)

(in thousands, except share and per share amounts)

  March 31, 2026

December 31, 2025

ASSETS

Current assets

Cash and cash equivalents

$

170,780

$

153,690

Accounts receivable, net

932,874

840,653

Derivative instruments

46,226

279,725

Prepaid and other current assets

34,346

38,075

Total current assets

1,184,226

1,312,143

Property and Equipment

Oil and natural gas properties, successful efforts method

Unproved properties

2,005,782

1,933,409

Proved properties

22,089,152

21,484,903

Accumulated depreciation, depletion and amortization

(7,688,164

)

(7,168,925

)

Total oil and natural gas properties, net

16,406,770

16,249,387

Other property and equipment, net

57,164

57,051

Total property and equipment, net

16,463,934

16,306,438

Noncurrent assets

Operating lease right-of-use assets

139,458

132,764

Other noncurrent assets

206,832

160,840

TOTAL ASSETS

$

17,994,450

$

17,912,185

LIABILITIES AND EQUITY

Current liabilities

Accounts payable and accrued expenses

$

1,433,675

$

1,453,610

Operating lease liabilities

82,755

79,496

Derivative instruments

162,322

—

Other current liabilities

129,084

144,726

Total current liabilities

1,807,836

1,677,832

Noncurrent liabilities

Long-term debt, net

3,546,370

3,545,598

Asset retirement obligations

169,854

166,847

Deferred income taxes

1,043,265

893,463

Operating lease liabilities

58,473

55,102

Other noncurrent liabilities

39,835

39,460

Total liabilities

6,665,633

6,378,302

Shareholders’ equity

Common stock, $0.0001 par value, 1,500,000,000 shares authorized:

Class A: 842,372,948 shares issued and 837,194,265 shares outstanding at March 31, 2026 and 757,854,120 shares issued and 751,746,410 shares outstanding at December 31, 2025

84

76

Class C: No shares issued and outstanding at March 31, 2026 and 84,378,125 shares issued and outstanding at December 31, 2025

—

8

Additional paid-in capital

9,853,585

8,710,698

Retained earnings (accumulated deficit)

1,475,148

1,567,500

Total shareholders' equity

11,328,817

10,278,282

Noncontrolling interest

—

1,255,601

Total equity

11,328,817

11,533,883

TOTAL LIABILITIES AND EQUITY

$

17,994,450

$

17,912,185

Permian Resources Corporation

Consolidated Statements of Cash Flows (unaudited)

(in thousands)

  Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net income

$

50,394

$

390,563

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, depletion and amortization

526,288

474,203

Stock-based compensation expense

16,202

16,929

Impairment and abandonment expense

2,011

5,209

Deferred tax expense

13,019

97,594

Non-cash portion of derivative (gain) loss

369,297

(36,423

)

Amortization of debt issuance costs, discount and premium

1,746

2,139

Loss on extinguishment of debt

—

5,826

Changes in operating assets and liabilities:

(Increase) decrease in accounts receivable

(87,283

)

14,177

(Increase) decrease in prepaid and other assets

17,781

(8,853

)

Increase (decrease) in accounts payable and other liabilities

(94,379

)

(63,332

)

Net cash provided by operating activities

815,076

898,032

Cash flows from investing activities:

Acquisition of oil and natural gas properties, net

(204,865

)

(35,401

)

Drilling and development capital expenditures

(466,230

)

(500,732

)

Purchases of other property and equipment

(1,952

)

(1,672

)

Proceeds from sales of oil and natural gas properties

9,042

175,989

Net cash used in investing activities

(664,005

)

(361,816

)

Cash flows from financing activities:

Proceeds from borrowings under revolving credit facility

50,000

—

Repayment of borrowings under revolving credit facility

(50,000

)

—

Redemption of senior notes

—

(175,000

)

Debt issuance and redemption costs

(293

)

(17,334

)

Proceeds from exercise of stock options

1,227

21

Dividends paid

(134,915

)

(106,070

)

Distributions paid to noncontrolling interest owners

—

(14,940

)

Net cash used in financing activities

(133,981

)

(313,323

)

Net increase (decrease) in cash, cash equivalents and restricted cash

17,090

222,893

Cash, cash equivalents and restricted cash, beginning of period

153,690

479,343

Cash, cash equivalents and restricted cash, end of period

$

170,780

$

702,236

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), our earnings release contains non-GAAP financial measures as described below.

Adjusted EBITDAX

Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income attributable to Class A Common Stock before net income attributable to noncontrolling interest, interest expense, income taxes, depreciation, depletion and amortization, impairment and abandonment expense, loss on extinguishment of debt, non-cash gains or losses on derivatives, stock-based compensation, exploration and other expenses and other non-recurring items. Adjusted EBITDAX is not a measure of net income as determined by GAAP.

Our management believes Adjusted EBITDAX is useful as it allows them to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or nonrecurring items. Our computations of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.

The following table presents a reconciliation of Adjusted EBITDAX to net income, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:

Three Months Ended

(in thousands)

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Adjusted EBITDAX reconciliation to net income:

Net income attributable to Class A Common Stock

$

43,620

$

339,505

$

59,234

$

207,137

$

329,298

Net income attributable to noncontrolling interest

6,774

42,386

22,227

37,884

61,265

Interest expense

67,020

67,067

69,386

72,770

73,839

Income tax expense

13,486

33,965

87,394

62,486

100,334

Depreciation, depletion and amortization

526,288

524,979

526,915

506,410

474,203

Impairment and abandonment expense

2,011

379

2,251

146

5,209

Loss on extinguishment of debt

—

—

264,294

—

5,826

Non-cash derivative (gain) loss

369,297

(79,493

)

(35,307

)

(17,256

)

(36,423

)

Stock-based compensation expense(1)

15,163

14,031

17,435

19,293

16,199

Exploration and other expenses

3,997

6,799

4,933

5,060

15,250

Adjusted EBITDAX

$

1,047,656

$

949,618

$

1,018,762

$

893,930

$

1,045,000

Net Debt-to-LQA EBITDAX

Net debt-to-LQA EBITDAX, also referred to as leverage, is a non-GAAP financial measure. We define net debt as total debt, net, plus unamortized debt discount, premium and issuance costs on our senior notes minus cash and cash equivalents.

We define net debt-to-LQA EBITDAX as net debt (defined above) divided by Adjusted EBITDAX (defined and reconciled in the section above) for the three months ended March 31, 2026, on an annualized basis. We refer to this metric to show trends that investors may find useful in understanding our ability to service our debt. This metric is widely used by professional research analysts, including credit analysts, in the valuation and comparison of companies in the oil and gas exploration and production industry. The following table presents a reconciliation of net debt to total debt, net and the calculation of net debt-to-LQA EBITDAX for the period presented:

($ in thousands)

March 31, 2026

Total debt, net

$

3,546,370

Unamortized debt discount, premium and issuance costs on senior notes

28,630

Total debt

3,575,000

Less: cash and cash equivalents

(170,780

)

Net debt (Non-GAAP)

3,404,220

LQA EBITDAX(1)

$

4,190,624

Net debt-to-LQA EBITDAX

0.8 x

  (1) Represents adjusted EBITDAX (defined and reconciled in the section above) for the three months ended March 31, 2026, on an annualized basis.

Adjusted Shares

Adjusted basic and diluted weighted average shares outstanding (“Adjusted Basic and Diluted Shares”) are non-GAAP financial measures defined as basic and diluted weighted average shares outstanding adjusted to reflect the weighted average shares of our Class C Common Stock outstanding, which were fully converted to Class A Common Stock during the three months ended March 31, 2026.

Our Adjusted Basic and Diluted Shares provide a comparable per share measurement when presenting results such as adjusted free cash flow and adjusted net income that include the interests of both net income attributable to Class A Common Stock and the net income attributable to our noncontrolling interest that was fully eliminated during the three months ended March 31, 2026. Adjusted Basic and Diluted Shares are used in calculating several metrics that we use as supplemental financial measurements in the evaluation of our business.

The following table presents a reconciliation of Adjusted Basic and Diluted Shares to basic and diluted weighted average shares outstanding, which are the most directly comparable financial measures calculated and presented in accordance with GAAP:

Three Months Ended March 31,

(in thousands)

2026

2025

Basic weighted average shares of Class A Common Stock outstanding

812,208

704,035

Weighted average shares of Class C Common Stock outstanding

24,343

99,594

Adjusted basic weighted average shares outstanding

836,551

803,629

Basic weighted average shares of Class A Common Stock outstanding

812,208

704,035

Add: Dilutive effects of Convertible Senior Notes

—

29,753

Add: Dilutive effects of equity awards

15,754

14,409

Diluted weighted average shares of Class A Common Stock outstanding

827,962

748,197

Weighted average shares of Class C Common Stock

24,343

99,594

Adjusted diluted weighted average shares outstanding

852,305

847,791

Adjusted Operating Cash Flow and Adjusted Free Cash Flow

Adjusted operating cash flow and adjusted free cash flow are supplemental non-GAAP financial measures used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define adjusted operating cash flow as net cash provided by operating activities adjusted to remove changes in working capital, other non-recurring charges, and estimated tax distributions to our non-controlling interest owners prior to its elimination during the three months ended March 31, 2026. Adjusted operating cash flows is reduced by total cash capital expenditures to arrive at adjusted free cash flows.

Our management believes adjusted operating cash flow and adjusted free cash flow are useful indicators of the Company’s ability to internally fund its future exploration and development activities, to service its existing level of indebtedness or incur additional debt, without regard to the timing of settlement of either operating assets and liabilities, other non-recurring costs or estimated tax distributions to noncontrolling interest owners after funding its capital expenditures paid for the period. The Company believes that these measures, as so adjusted, present meaningful indicators of the Company’s actual sources and uses of capital associated with its operations conducted during the applicable period. Our computation of adjusted operating cash flow and adjusted free cash flow may not be comparable to other similarly titled measures of other companies. Adjusted operating cash flow and adjusted free cash flow should not be considered as alternatives to, or more meaningful than, net cash provided by operating activities as determined in accordance with GAAP or as indicators of our operating performance or liquidity.

Adjusted operating cash flow and adjusted free cash flow are not financial measures that are determined in accordance with GAAP. Accordingly, the following table presents a reconciliation of adjusted operating cash flow and adjusted free cash flow to net cash provided by operating activities, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:

Three Months Ended March 31,

(in thousands, except per share data)

2026

2025

Net cash provided by operating activities

$

815,076

$

898,032

Changes in working capital:

Accounts receivable

87,283

(14,177

)

Prepaid and other assets

(17,781

)

8,853

Accounts payable and other liabilities

94,379

63,332

Other non-recurring charges

—

4,749

Estimated tax distribution to noncontrolling interest owners(1)

—

(252

)

Adjusted operating cash flow

978,957

960,537

Less: total cash capital expenditures

(466,230

)

(500,732

)

Adjusted free cash flow

$

512,727

$

459,805

Adjusted diluted weighted average shares outstanding

852,305

847,791

Adjusted Net Income

Adjusted net income is a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define adjusted net income as net income attributable to Class A Common Stock plus net income attributable to noncontrolling interest adjusted for loss on extinguishment of debt, non-cash gains or losses on derivatives, other nonrecurring charges, impairment and abandonment expense, gain/loss from the sale of long-lived assets and the related income tax adjustments for these items. Adjusted net income is not a measure of net income as determined by GAAP.

Our management believes adjusted net income is useful as it allows them to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers by excluding certain non-cash items that can vary significantly. Adjusted net income should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Our presentation of adjusted net income should not be construed as an inference that our results will be unaffected by unusual or nonrecurring items. Our computations of adjusted net income may not be comparable to other similarly titled measures of other companies.

Adjusted net income is not a financial measure that is determined in accordance with GAAP. Accordingly, the following table presents a reconciliation of adjusted net income to net income, which is the most directly comparable financial measure calculated and presented in accordance with GAAP:

Three Months Ended March 31,

(in thousands, except per share data)

2026

2025

Net income attributable to Class A Common Stock

$

43,620

$

329,298

Net income attributable to noncontrolling interest

6,774

61,265

Loss on extinguishment of debt

—

5,826

Non-cash derivative (gain) loss

369,297

(36,423

)

Other non-recurring charges

—

4,749

Impairment and abandonment expense

2,011

5,209

Adjusted net income excluding above items

421,702

369,924

Income tax benefit (expense) attributable to the above items(1)

(85,068

)

(9,141

)

Adjusted net income

$

336,634

$

360,783

Interest on Convertible Senior Notes, net of tax

—

1,283

Adjusted Net Income - Diluted

336,634

362,066

Adjusted diluted weighted average shares outstanding (Non-GAAP)(2)

852,305

847,791

Adjusted net income per adjusted diluted share

$

0.39

$

0.43

The following table summarizes the approximate volumes and average contract prices of the hedge contracts the Company had in place as of April 30, 2026:

Period

Volume (Bbls)

Volume (Bbls/d)

Wtd. Avg. Crude Price

($/Bbl)

Crude oil swaps - NYMEX WTI

April 2026 - June 2026

         7,280,000

              80,000

$67.43

July 2026 - September 2026

         6,440,000

              70,000

68.68

October 2026 - December 2026

         6,440,000

              70,000

67.10

January 2027 - March 2027

            900,000

              10,000

74.25

April 2027 - June 2027

            910,000

              10,000

72.94

July 2027 - September 2027

            920,000

              10,000

72.06

October 2027 - December 2027

            920,000

              10,000

71.29

  Period

Volume (Bbls)

Volume (Bbls/d)

Wtd. Avg. Differential

($/Bbl)

Crude oil basis differential swaps - Mid-Cush(1)

April 2026 - June 2026

         6,980,000

              76,703

$0.94

July 2026 - September 2026

         6,440,000

              70,000

1.03

October 2026 - December 2026

         6,440,000

              70,000

1.03

January 2027 - March 2027

            900,000

              10,000

1.10

April 2027 - June 2027

            910,000

              10,000

1.10

July 2027 - September 2027

            920,000

              10,000

1.10

October 2027 - December 2027

            920,000

              10,000

1.10

  Period

Volume (Bbls)

Volume (Bbls/d)

Wtd. Avg. Differential

($/Bbl)

Crude oil roll differential swaps - NYMEX WTI

April 2026 - June 2026

         6,980,000

               76,703

$0.71

July 2026 - September 2026

         6,578,000

               71,500

1.24

October 2026 - December 2026

         6,578,000

               71,500

1.13

Period

Volume (MMBtu)

Volume (MMBtu/d)

Wtd. Avg. Gas Price

($/MMBtu)

Natural gas swaps - NYMEX Henry Hub

April 2026 - June 2026

12,467,000

137,000

$3.57

July 2026 - September 2026

12,604,000

137,000

3.83

October 2026 - December 2026

12,604,000

137,000

4.16

January 2027 - March 2027

12,600,000

140,000

4.24

April 2027 - June 2027

12,740,000

140,000

3.32

July 2027 - September 2027

12,880,000

140,000

3.58

October 2027 - December 2027

12,880,000

140,000

3.94

  Period

Volume (MMBtu)

Volume (MMBtu/d)

Wtd. Avg. Gas Price

($/MMBtu)

Natural gas swaps - Waha

April 2026 - June 2026

8,645,000

95,000

$0.43

July 2026 - September 2026

8,740,000

95,000

1.80

October 2026 - December 2026

15,145,000

164,620

2.73

January 2027 - March 2027

7,650,000

85,000

3.57

  Period

  Volume (MMBtu)

  Volume (MMBtu/d)

  Wtd. Avg. Gas Price

($/MMBtu)

Natural gas swaps - HSC

April 2026 - June 2026

  9,100,000

  100,000

  $3.63

July 2026 - September 2026

  9,200,000

  100,000

  3.95

October 2026 - December 2026

  9,200,000

  100,000

  4.24

  Period

Volume (MMBtu)

Volume (MMBtu/d)

Wtd. Avg. Differential

($/MMBtu)

Natural gas basis differential swaps - Waha(1)

April 2026 - June 2026

12,467,000

137,000

$(2.31)

July 2026 - September 2026

12,604,000

137,000

(1.42)

October 2026 - December 2026

12,604,000

137,000

(1.21)

January 2027 - March 2027

14,490,000

161,000

(0.47)

April 2027 - June 2027

14,651,000

161,000

(1.11)

July 2027 - September 2027

14,812,000

161,000

(0.65)

October 2027 - December 2027

14,812,000

161,000

(0.91)

  Period

  Volume (MMBtu)

  Volume (MMBtu/d)

  Wtd. Avg. Differential

($/MMBtu)

Natural gas basis differential swaps - HSC(2)

January 2027 - March 2027

  6,300,000

  70,000

  $(0.48)

April 2027 - June 2027

  6,370,000

  70,000

  (0.48)

July 2027 - September 2027

  6,440,000

  70,000

  (0.48)

October 2027 - December 2027

  6,440,000

  70,000

  (0.48)

January 2028 - March 2028

  9,100,000

  100,000

  (0.36)

April 2028 - June 2028

  9,100,000

  100,000

  (0.36)

July 2028 - September 2028

  9,200,000

  100,000

  (0.36)

October 2028 - December 2028

  9,200,000

  100,000

  (0.36)

For the quarter ended March 2026, Permian Resources (PR - Free Report) reported revenue of $1.39 billion, up 0.9% over the same period last year. EPS came in at $0.39, compared to $0.42 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.4 billion, representing a surprise of -0.83%. The company delivered an EPS surprise of +4%, with the consensus EPS estimate being $0.38.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Permian Resources performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Average daily net production - Natural gas: 702,979.00 Mcf/D versus 707,364.80 Mcf/D estimated by seven analysts on average.Average daily net production - Total: 412,850.00 BOE/D versus 411,665.30 BOE/D estimated by seven analysts on average.Average daily net production - Oil: 192,349.00 BBL/D versus 189,524.70 BBL/D estimated by seven analysts on average.Average daily net production - NGL: 103,338.00 BBL/D versus the six-analyst average estimate of 104,390.50 BBL/D.Average sales prices - Gas - Including Derivative Cash Settlements: $1.33 versus the five-analyst average estimate of $1.64.Average sales prices - Oil - Including Derivative Cash Settlements: $68.10 compared to the $68.99 average estimate based on four analysts.Average sales prices - NGL - Excluding the effects of GP&T: $16.60 versus the four-analyst average estimate of $17.35.Average sales prices - Natural gas - Excluding the effects of GP&T: $-0.29 versus $0.24 estimated by three analysts on average.Average sales prices - Oil - Excluding the effects of hedging: $70.91 versus $71.74 estimated by three analysts on average.Net Revenues- Oil sales: $1.23 billion compared to the $1.19 billion average estimate based on four analysts.Net Revenues- NGL sales: $154.39 million compared to the $161.37 million average estimate based on four analysts.Net Revenues- Natural gas sales: $-18.5 million compared to the $70.06 million average estimate based on four analysts.View all Key Company Metrics for Permian Resources here>>>

Shares of Permian Resources have returned +4.8% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

Key Takeaways PR beat Q1 earnings estimates as production climbed to 412.9 MBoe/d on strong well performance.Permian Resources raised its 2026 oil output guidance and expects capital spending near range highs.PR cut drilling costs 6% from 2025 levels and generated $513 million in adjusted free cash flow. Permian Resources Corporation (PR - Free Report) reported first-quarter 2026 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 38 cents by 3%. This outperformance was primarily driven by stronger production volumes, improved well performance, reduced downtime and continued drilling and completion efficiencies. However, the bottom line declined from the year-ago quarter’s adjusted earnings of 43 cents due to weaker NGL and natural gas realizations, along with higher operating expenses.

The company’s oil and gas sales of $1.39 billion missed the Zacks Consensus Estimate of $1.4 billion by 0.83%. However, revenues increased slightly from the year-ago quarter’s $1.38 billion, aided by a higher year-over-year contribution from oil sales (10.6%) and purchased gas sales during the quarter.

On May 6, 2026, the Midland, TX-based exploration and production company declared a quarterly base dividend of 16 cents per Class A common share, translating to an annualized dividend of 64 cents. The payout is scheduled for June 30, 2026, for its shareholders on record as of June 16. Management reiterated that the base dividend remains a top capital allocation priority. Beyond the base dividend, the company intends to focus on debt repayment, cash accumulation, accretive acquisitions and opportunistic share repurchases, depending on market conditions.

PR’s Production DetailsThe company reported total average production of 412.9 thousand barrels of oil equivalent per day (MBoe/d), comprising 47% oil and 72% liquids, in the first quarter, up from 373.2 MBoe/d in the year-ago period. The figure beat the Zacks Consensus Estimate of 411,665 Boe/d due to strong runtime, improved recent well performance and efforts to accelerate incremental oil volumes in March through increased workover activity. The company also accelerated oil production volumes during March.

Crude oil production averaged 192.3 thousand barrels per day (MBbls/d), up from 175 MBbls/d in the prior-year quarter. The figure beat the Zacks Consensus Estimate of 189.6 MBbls/d.

NGL production came in at 103.3 MBbls/d, up 20.1% year over year. However, it missed the Zacks Consensus Estimate by 1.01%. Meanwhile, natural gas production totaled 703 million cubic feet per day (MMcf/d), up 4.4% year over year, but missed the Zacks Consensus Estimate by 0.62%.

PR’s Price RealizationsPermian Resources’ average realized oil price was $70.91 per barrel in the first quarter, compared with $70.48 in the year-ago quarter. However, the figure missed the consensus mark of $72 per barrel.

The realized NGL price was $16.60 per barrel, down from $23.90 a year ago. Moreover, the figure missed the consensus mark of $17.35 per barrel. The company’s realized natural gas price was negative 29 cents per Mcf, in contrast to a positive $1.35 in the prior-year quarter. The figure also missed the consensus mark of 24 cents per Mcf. Including hedges and purchased gas sales, the realized natural gas price was $1.33 per Mcf, compared with $1.45 a year ago.

PR’s Costs & ExpensesTotal operating expenses in the quarter rose to $920.9 million from $872 million in the year-ago quarter. Lease operating expenses totaled $192.9 million, up from $179.6 million in the year-ago quarter. Depreciation, depletion and amortization expenses rose to $526.3 million from $474.2 million a year earlier. On a per-unit basis, Lease operating expenses increased to $5.19 per Boe from $5.35 a year ago. Gathering, processing and transportation expenses were $50.6 million, compared with $46.7 million in the prior-year period.

First-quarter drilling and completion costs were approximately $685 per lateral foot, representing a 2% reduction from the previous quarter and a 6% reduction compared with 2025 levels.

In its earnings presentation, the company highlighted record quarterly drilling and completion costs per foot, roughly 70% recycled water utilization in completion operations, and the installation of four microgrids that reduced generator counts by more than 25 and lowered electricity costs at associated well sites by roughly 30%.

PR’s Financial PositionPR generated $815.1 million of net cash provided by operating activities in the first quarter, compared with $898 million in the year-ago quarter. Adjusted operating cash flow totaled $979 million, while adjusted free cash flow came in at $513 million.

Cash capital expenditures were $466 million, down from the prior-year period’s drilling and development capital expenditures of $500.7 million. The company’s capital-efficient operating model supported strong free cash flow generation despite continued investment in development and bolt-on acquisitions.

PR’s Balance SheetAs of March 31, 2026, PR had $170.8 million in cash and cash equivalents. The company had a long-term debt of $3.5 billion, reflecting a debt-to-capitalization of 23.8%.

The company continued to improve its balance sheet strength. It received investment-grade credit ratings from S&P and Moody’s, adding to its existing Fitch rating. Subsequent to quarter-end, PR entered into a new $3 billion unsecured revolving credit facility and redeemed $550 million of legacy Earthstone 8.00% senior notes due 2027.

PR’s GuidanceThe company now expects 2026 net average daily oil production in the range of 190,000-195,000 barrels per day, reflecting an increase of roughly 2% from the previous outlook. Total net average daily production is projected in the band of 400,000-430,000 barrels of oil equivalent per day (Boe/d).

For 2026, the company anticipates total controllable cash costs in the band of $7.15-$8.15 per Boe, including lease operating expense of nearly $5.45, gathering, processing and transportation expense of around $1.40 and cash general and administrative expense of about 80 cents. Severance and ad valorem taxes are forecasted at 6.5-8.5% of revenues.

The company expects total cash capital expenditures for 2026 to be between $1.75 billion and $1.95 billion and indicated that spending will likely trend toward the upper half of the range under the current commodity-price environment. Drilling and completions spending is estimated at approximately $1.45 billion, while facilities, infrastructure, capital workover and non-operated expenditures are expected to total nearly $400 million.

Operationally, this Zacks Rank #1 (Strong Buy) company plans to run around 250 gross operated drilling rigs during the year, with average working interest projected at 75-80% and average lateral lengths of roughly 11,000 feet. Activity is expected to be concentrated primarily in New Mexico, Texas, Delaware and the Midland regions. You can see the complete list of today’s Zacks #1 Rank stocks here.

Management also expects strong pricing realizations in 2026, with realized oil prices forecast at 97-100% of West Texas Intermediate (WTI), natural gas prices anticipated at a premium of 25-75 cents per Mcf to Waha Hub pricing and NGL realizations projected at 23-25% of WTI pricing. Additionally, the company expects nearly $20 million in current income tax expense for 2026 at present strip prices, supported by stronger oil-price assumptions.

Important Earnings at a GlanceWhile we have discussed PR’s first-quarter results in detail, let us take a look at three other key reports in this space.

Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.

Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.

Houston, TX-based oil and gas storage and transportation company, Kinder Morgan Inc. (KMI - Free Report) , posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.

As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.

Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation (RRC - Free Report) , posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.

Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.

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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Permian Resources (PR - Free Report) Permian Resources Corporation, headquartered in Midland, TX, is an independent oil and gas company formed through the consolidation of Colgate Energy in 2022 and Earthstone Energy in 2023. These strategic mergers significantly expanded the company’s footprint in the Permian Basin, solidifying its presence as a major operator in one of the most productive oil regions in the United States. As of Dec. 31, 2025, Permian Resources holds about 480,000 net leasehold acres and 105,000 net royalty acres, with operations primarily spread across West Texas (67%) and New Mexico (33%). These mergers added scale and inventory depth, enhancing operational efficiency and shareholder value.

PR is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 10.25; value investors should take notice.

Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.83 to $1.97 per share. PR also boasts an average earnings surprise of +14.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, PR should be on investors' short list.

Permian Resources has fundamentally improved, with stronger production growth, cost control, and capital discipline supporting a continued Buy rating. PR's operational execution excels, with unit costs dropping from $725 to $685 per lateral foot, enhancing margins alongside production growth. Leverage declined to 0.8x and liquidity improved, while bolt-on acquisitions and disciplined balance sheet management strengthened PR's strategic positioning.

It has been about a month since the last earnings report for Permian Resources (PR - Free Report) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Permian Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Permian Resources Q1 Earnings Beat Estimates on Strong Output, Revenues MissPermian Resources reported first-quarter 2026 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 38 cents by 3%. This outperformance was primarily driven by stronger production volumes, improved well performance, reduced downtime and continued drilling and completion efficiencies. However, the bottom line declined from the year-ago quarter’s adjusted earnings of 43 cents due to weaker NGL and natural gas realizations, along with higher operating expenses.

The company’s oil and gas sales of $1.39 billion missed the Zacks Consensus Estimate of $1.4 billion by 0.83%. However, revenues increased slightly from the year-ago quarter’s $1.38 billion, aided by a higher year-over-year contribution from oil sales (10.6%) and purchased gas sales during the quarter.

On May 6, 2026, the Midland, TX-based exploration and production company declared a quarterly base dividend of 16 cents per Class A common share, translating to an annualized dividend of 64 cents. The payout is scheduled for June 30, 2026, for its shareholders on record as of June 16. Management reiterated that the base dividend remains a top capital allocation priority. Beyond the base dividend, the company intends to focus on debt repayment, cash accumulation, accretive acquisitions and opportunistic share repurchases, depending on market conditions.

Production DetailsThe company reported total average production of 412.9 thousand barrels of oil equivalent per day (MBoe/d), comprising 47% oil and 72% liquids, in the first quarter, up from 373.2 MBoe/d in the year-ago period. The figure beat the Zacks Consensus Estimate of 411,665 Boe/d due to strong runtime, improved recent well performance and efforts to accelerate incremental oil volumes in March through increased workover activity. The company also accelerated oil production volumes during March.

Crude oil production averaged 192.3 thousand barrels per day (MBbls/d), up from 175 MBbls/d in the prior-year quarter. The figure beat the Zacks Consensus Estimate of 189.6 MBbls/d.

NGL production came in at 103.3 MBbls/d, up 20.1% year over year. However, it missed the Zacks Consensus Estimate by 1.01%. Meanwhile, natural gas production totaled 703 million cubic feet per day (MMcf/d), up 4.4% year over year, but missed the Zacks Consensus Estimate by 0.62%.

Price RealizationsPermian Resources’ average realized oil price was $70.91 per barrel in the first quarter, compared with $70.48 in the year-ago quarter. However, the figure missed the consensus mark of $72 per barrel.

The realized NGL price was $16.60 per barrel, down from $23.90 a year ago. Moreover, the figure missed the consensus mark of $17.35 per barrel. The company’s realized natural gas price was negative 29 cents per Mcf, in contrast to a positive $1.35 in the prior-year quarter. The figure also missed the consensus mark of 24 cents per Mcf. Including hedges and purchased gas sales, the realized natural gas price was $1.33 per Mcf, compared with $1.45 a year ago.

Costs & ExpensesTotal operating expenses in the quarter rose to $920.9 million from $872 million in the year-ago quarter. Lease operating expenses totaled $192.9 million, up from $179.6 million in the year-ago quarter. Depreciation, depletion and amortization expenses rose to $526.3 million from $474.2 million a year earlier. On a per-unit basis, Lease operating expenses increased to $5.19 per Boe from $5.35 a year ago. Gathering, processing and transportation expenses were $50.6 million, compared with $46.7 million in the prior-year period.

First-quarter drilling and completion costs were approximately $685 per lateral foot, representing a 2% reduction from the previous quarter and a 6% reduction compared with 2025 levels.

In its earnings presentation, the company highlighted record quarterly drilling and completion costs per foot, roughly 70% recycled water utilization in completion operations, and the installation of four microgrids that reduced generator counts by more than 25 and lowered electricity costs at associated well sites by roughly 30%.

Financial PositionPR generated $815.1 million of net cash provided by operating activities in the first quarter, compared with $898 million in the year-ago quarter. Adjusted operating cash flow totaled $979 million, while adjusted free cash flow came in at $513 million.

Cash capital expenditures were $466 million, down from the prior-year period’s drilling and development capital expenditures of $500.7 million. The company’s capital-efficient operating model supported strong free cash flow generation despite continued investment in development and bolt-on acquisitions.

Balance SheetAs of March 31, 2026, PR had $170.8 million in cash and cash equivalents. The company had a long-term debt of $3.5 billion, reflecting a debt-to-capitalization of 23.8%.

The company continued to improve its balance sheet strength. It received investment-grade credit ratings from S&P and Moody’s, adding to its existing Fitch rating. Subsequent to quarter-end, PR entered into a new $3 billion unsecured revolving credit facility and redeemed $550 million of legacy Earthstone 8.00% senior notes due 2027.

Guidance for 2026The company now expects 2026 net average daily oil production in the range of 190,000-195,000 barrels per day, reflecting an increase of roughly 2% from the previous outlook. Total net average daily production is projected in the band of 400,000-430,000 barrels of oil equivalent per day (Boe/d).

For 2026, the company anticipates total controllable cash costs in the band of $7.15-$8.15 per Boe, including lease operating expense of nearly $5.45, gathering, processing and transportation expense of around $1.40 and cash general and administrative expense of about 80 cents. Severance and ad valorem taxes are forecasted at 6.5-8.5% of revenues.

The company expects total cash capital expenditures for 2026 to be between $1.75 billion and $1.95 billion and indicated that spending will likely trend toward the upper half of the range under the current commodity-price environment. Drilling and completions spending is estimated at approximately $1.45 billion, while facilities, infrastructure, capital workover and non-operated expenditures are expected to total nearly $400 million.

Operationally, this company plans to run around 250 gross operated drilling rigs during the year, with average working interest projected at 75-80% and average lateral lengths of roughly 11,000 feet. Activity is expected to be concentrated primarily in New Mexico, Texas, Delaware and the Midland regions.

Management also expects strong pricing realizations in 2026, with realized oil prices forecast at 97-100% of West Texas Intermediate (WTI), natural gas prices anticipated at a premium of 25-75 cents per Mcf to Waha Hub pricing and NGL realizations projected at 23-25% of WTI pricing. Additionally, the company expects nearly $20 million in current income tax expense for 2026 at present strip prices, supported by stronger oil-price assumptions.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 8.26% due to these changes.

VGM ScoresCurrently, Permian Resources has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Permian Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerPermian Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Chord Energy Corporation (CHRD - Free Report) , a stock from the same industry, has gained 1.7%. The company reported its results for the quarter ended March 2026 more than a month ago.

Chord Energy Corporation reported revenues of $1.15 billion in the last reported quarter, representing a year-over-year change of -5.3%. EPS of $4.56 for the same period compares with $4.04 a year ago.

Chord Energy Corporation is expected to post earnings of $6.12 per share for the current quarter, representing a year-over-year change of +241.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +14.4%.

Chord Energy Corporation has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

, /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, announced its new Bitcoin Volatility Index futures are now available for trading. First trades were executed as blocks between DV Chain and Monarq Asset Management.

"The early support we've seen for our new Bitcoin Volatility futures further demonstrates the growing client demand for more innovative tools to more efficiently protect against adverse market moves," said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group. "Our new 24/7 trading framework expands the utility of these contracts, allowing investors to isolate and precisely manage their portfolio's volatility risk and exposure at any hour of the day, any day of the week – unlocking a critical new layer of risk management."

"We are highly encouraged to see the market expanding with more regulated, institutional-grade futures contracts designed for expressing volatility on bitcoin," said Shiliang Tang, CEO of Monarq Asset Management. "As bitcoin continues to mature into a more mainstream institutional asset class, the demand for sophisticated risk management instruments grows alongside it. Robust tools like CME Group Bitcoin Volatility futures are exactly what investors need to accurately express their market viewpoints and efficiently hedge their portfolios within a secure, transparent framework."

"We are proud to support the launch of CME Group's Bitcoin Volatility futures," said Dave Vizsoly, CEO and Head Trader at DV Chain. "As institutions increasingly seek advanced strategies to navigate today's markets, the ability to trade pure volatility independent of price direction on a regulated platform is a critical evolution for both our clients and the broader marketplace."

CME Group's Cryptocurrency product suite continues to experience significant growth, including the successful launch of 24/7 trading on May 29. Additional year-to-date trading highlights include:

Average daily volume (ADV) of 266,900 contracts, up 38% year-over-year. Average daily open interest of 274,500 contracts, up 18% year-over-year. For more information on Bitcoin Volatility futures, please visit www.cmegroup.com/BVI.

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners. 

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SOURCE CME Group

Investors love low interest rates. When rates are low, companies can borrow money more cheaply to fund their expansion plans. Lower interest expenses help boost earnings. As earnings go, so do stock prices.

Presidents love low interest rates, too. The economy booms in low-rate environments. When the economy is strong, the president's political party tends to perform well in elections.

It's unsurprising, therefore, that President Trump wants the Federal Reserve to cut interest rates. And there's good reason to believe that he expects new Fed Chair Kevin Warsh to deliver what he wants. However, the reality is that Warsh could soon be on a collision course with Trump.

Image source: Official White House Photo by Daniel Torok.

The scenario that no one wants Warsh is unlikely to be able to deliver the rate cuts President Trump desires. Even worse, the Fed could be forced to increase rates in the not-too-distant future. This is the scenario no one wants -- certainly not Warsh -- but it could be unavoidable.

The Federal Reserve has a dual mandate. Its two priorities are to maximize employment and achieve price stability. The first goal isn't an issue for now. However, prices aren't stable. The latest Consumer Price Index (CPI) was 3.8%, significantly above the Fed's historical 2% target.

This situation could get worse as the Iran war drags on. In fact, professional economic forecasters expect the CPI to hit 6% in the second quarter of 2026, according to a survey conducted by the Federal Reserve Bank of Philadelphia.

The Fed has two primary levers to control inflation. It can increase the federal funds rate that banks charge each other for overnight loans. It can also sell U.S. Treasury bonds to drain cash from the economy. Both actions help drive interest rates higher. Higher rates slow the economy and curb inflation.

CME Group's (CME +2.80%) FedWatch analyzes 30-day Fed fund futures prices to estimate the probabilities of Fed rate cuts and increases. The highest probability for a rate cut for any scheduled Federal Open Markets Committee (FOMC) meeting throughout the rest of 2026 is 3.6%. But the probability of a rate increase by the end of the year is as high as 50.9%. The chances jump to 72% by mid-2027.

The bond market is also already pricing in a likely rate increase. Interest rates on 10-year U.S. Treasury notes have jumped in recent months.

President Trump repeatedly lambasted Warsh's predecessor, Jerome Powell, for not moving quickly to cut interest rates. He told Fox News in April 2026, "I've wanted to fire him, but I hate to be controversial." The U.S. Department of Justice also launched a criminal investigation of Powell related to the renovation of the Federal Reserve building, which was later halted.

Does Trump expect Warsh to cut rates? The president stated at Warsh's swearing-in ceremony, "I want Kevin to be totally independent." However, only hours after Warsh was sworn in as the new Fed chair, Trump told an audience at a community college in New York, "You watch what's going to happen. I had a rotten head of the Fed, and now I have a great head of the Fed." He added, "You get the interest rates down, everybody's going to be very, very happy."

If the next FOMC meeting on June 16 and 17 doesn't result in rate cuts, it won't be surprising if President Trump lashes out -- especially if Warsh doesn't vote in favor of lower rates. But the real fireworks could come if Warsh concludes that rate hikes are necessary to keep inflation in check.

Warsh only has one vote. There are 11 other FOMC members. He could vote for rate cuts to avoid alienating the president, knowing that there would be enough votes to move in a different direction. Doing so, though, would likely draw intense criticism that he is compromising the Fed's political independence. Warsh could be forced to choose between placating his political patron and preserving his (and the Fed's) reputation.

What should investors do? Investors shouldn't panic just because the possibility of a rate increase is increasing. The stock market has survived past rate hikes; it will do so again.

However, some stocks perform better than others in higher-rate environments. Investors should focus on companies with strong balance sheets. Big bank stocks often benefit from higher interest rates. Value stocks could also become more attractive to many investors. If oil prices remain elevated, energy stocks could continue outperforming.

Betting that Warsh will engineer a rate cut, though, probably isn't smart. If inflation keeps rising, the new Fed chair won't have to choose between what the president wants and what the right course of action is. The data will make the choice for him.

Investors in CME Group Inc. (CME - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the June 18, 2026 $175.00 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for CME Group share, but what is the fundamental picture for the company? Currently, CME Group is a Zacks Rank #3 (Hold) in the Securities and Exchanges Industry that ranks in the Top 20% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their estimates for the current quarter, while five have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from $3.02 per share to $3.01 per share in the same time period.

Given the way analysts feel about CME Group right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

, /PRNewswire/ -- CME Group Inc. will announce earnings for the second quarter of 2026 before the markets open on Wednesday, July 22, 2026. Written highlights for the quarter will be posted on the company's website at 6:00 a.m. Central Time, the same time it provides its earnings press release. The company will also hold an investor conference call that day at 7:30 a.m. Central Time, at which time company executives will take analysts' questions. 

A live audio Webcast of the conference call will be available on the Investor Relations section of the company's website. Following the conference call, an archived recording will be available at the same site. Those wishing to listen to the live conference via telephone should dial 877-918-3040 if calling from within the United States, or +1 312-470-7282 if calling from outside the United States, at least 10 minutes before the call begins. The participant passcode for both telephone numbers is 1944793.

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

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SOURCE CME Group

Key Takeaways BGC Group's Q1 2026 revenue hit a record $955.5M, up 43.8% year over year.Fenics posted a Q1 record $206.9M, up 19.8%, with Markets lifted by higher e-volumes and data.FMX: Treasury ADV hit $89.7B ( 51%), share rose to 41%, and SOFR futures ADV topped 39k contracts. BGC Group, Inc. (BGC - Free Report) is pushing harder into electronic execution and platform-led services while still leaning on its legacy brokerage engine. That mix shift is starting to show up in growth rates and key performance indicators, even if the revenue base remains dominated by transactions.

Two pillars stand out. Fenics is scaling as BGC Group’s technology-driven suite for fully electronic markets and related services. FMX is expanding its footprint across U.S. rates and foreign exchange, supported by major banks and market makers.

BGC Group Revenue Mix Is Still Broker-DrivenBGC Group operates as a wholesale markets intermediary, brokering and executing transactions across rates, foreign exchange, credit, equities, energy and commodities, and futures and options. Its platform spans voice, hybrid, and fully electronic execution, alongside market data and analytics, connectivity and network services, and post-trade solutions.

Even with growing electronic exposure, the revenue mix remains broker-driven. In 2025, total revenues were $2.94 billion, and brokerage revenues made up about 91.7% of the total. Data, software, and post-trade revenues were 4.7%, with the remainder coming from smaller lines such as interest and dividend income, fees from related parties, and other revenues.

Sales Estimates
 

Image Source: Zacks Investment Research

BGC Group’s Electronic Pivot Starts With FenicsFenics is the technology-driven suite that underpins fully electronic execution and also provides market data, network, and post-trade services. It is the clearest expression of BGC’s push toward a more electronic, higher-margin model.

Momentum has been consistent. Fenics revenues have expanded at a double-digit pace for four consecutive quarters, supported by steady market-share gains and broader product adoption. That pattern matters because it suggests the company is not relying on a single burst of volatility, but is seeing sustained adoption as clients deepen usage across electronic workflows.

BGC Platforms Show Scale Signals in Q1 2026The first quarter of 2026 offered a clean snapshot of what the mix shift looks like when trading conditions are supportive. BGC Group posted record quarterly revenues of $955.5 million, up 43.8% year over year, while adjusted earnings per share rose 41.4% to 41 cents. 

Electronic momentum was visible inside Fenics. Fenics revenues reached a first-quarter record of $206.9 million, up 19.8% year over year. Within that, Fenics Markets rose 20.3% to $176.7 million, tied to higher electronic volumes in Rates, Credit, and Foreign Exchange, plus increased market data revenues. Fenics Growth Platforms increased 17.4% to $30.2 million, led by FMX, PortfolioMatch, and Lucera.

For context, BGC Group’s competitive set includes other market-structure franchises such as CME Group Inc. (CME - Free Report) and Tradeweb Markets Inc. (TW - Free Report) . This shows how scale and liquidity can become durable advantages when electronic volumes compound.

BGC Group’s FMX Is Broadening Beyond TreasuriesFMX, created with leading banks and market makers, spans a U.S. interest rate futures exchange, a cash U.S. Treasuries platform, and a spot foreign exchange venue. The timeline highlights a deliberate build-out: FMX received Commodity Futures Trading Commission approval in January 2024, launched Secured Overnight Financing Rate (SOFR) futures in September 2024, and added U.S. Treasury futures in May 2025.

In the first quarter, FMX posted record key performance indicators across products. U.S. Treasuries' average daily volume (ADV) reached $89.7 billion, up 51% year over year, and first-quarter market share improved to 41%. Activity in foreign exchange also hit a first-quarter record, and the futures offering showed accelerating engagement, with SOFR futures ADV exceeding 39,000 contracts and quarter-end open interest around 143,000 contracts.

Broader product breadth matters because it can keep the platform relevant as market volumes normalize. With multiple venues and expanding connectivity, FMX’s adoption can be supported by more than one rate or volatility cycle.

BGC Group’s Key Tension: Scale Benefits vs. Mix RealityThe bullish case rests on operating leverage as the platforms scale. Management has also expanded its cost-reduction program to $35 million in annualized savings, targeting compensation and infrastructure, which can support margin expansion if growth holds.

The counterweight is that the revenue mix is still anchored in brokerage. In the first quarter of 2026, Data, Network and Post-trade revenues were only 3.6% of total revenues, compared with nearly 94% from total brokerage. Until higher-quality platform revenues become a larger share, results can remain sensitive to transaction volumes and market conditions.

Over the past six months, BGC shares have soared 22.4%, outperforming the industry’s gain of 1.8%. The stock has also fared better than CME Group and Tradeweb Markets in the same time frame.

Six-Month Price Performance
 

Image Source: Zacks Investment Research

BGC currently carries a Zacks Rank #3 (Hold), reflecting that investors are weighing real platform progress against the reality that the mix shift is still in its early innings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

, /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that it will launch financially-settled Micro E-mini S&P 500 and Nasdaq-100 options on June 29, pending regulatory review.

These new Micro options contracts will be one-tenth the size of their E-mini counterparts with short-dated Monday through Friday expiries. In addition,  the contracts will be financially settled, eliminating the additional operational processes tied to underlying futures delivery at expiration.

"The expansion of our deeply liquid equity index options suite directly answers client demand for more versatile, accessible risk management and market access tools," said Joe Hickey, Global Head of Equity Products at CME Group. "By combining a smaller contract size with the operational simplicity of financial settlement, we are providing traders with the capital-efficient and flexible toolset they need to manage benchmark U.S. equity index exposure with absolute precision."

Micro E-mini S&P 500 and Nasdaq-100 options build upon the success of CME Group's existing Micro E-mini Equity Index suite, which has surpassed more than 2.6 billion cumulative contracts traded since its inception, including over 1 billion contracts each for S&P 500 and Nasdaq-100 Micro E-mini products.

These products will be listed on and subject to the rules of CME. For more information, please visit www.cmegroup.com/microeminioptions.

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

CME-G

SOURCE CME Group

, /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced it will expand its benchmark suite of Equity Index futures with the launch of four new E-mini contracts, pending regulatory review.

Starting June 29, these new products will enable market participants to trade futures on broad market indices covering more than 90% of the entire U.S. investable market capitalization. New contracts include:

E-mini Morningstar U.S. Total Market Index futures E-mini Russell 3000® Index Futures E-mini S&P 1500 Composite Index Futures E-mini S&P Total Market Index Futures "These new E-mini futures contracts expand our benchmark equity index ecosystem to meet growing client demand for unified, all-cap risk management tools," said Joe Hickey, Global Head of Equity Products at CME Group. "In any market conditions, choosing the right index is essential, and these contracts will deliver the precision and capital efficiency investors need to seamlessly gain exposure to and hedge U.S. equity portfolios."

"We're so excited to see CME Group kick off our new multi-year index-based derivatives licensing agreement by offering futures contracts on the Morningstar US Total Market Index," said Amelia Furr, President of Morningstar Indexes. "With our acquisition of the CRSP Market Indexes earlier this year and our upcoming rebrand of this series to reflect the Morningstar name, we are proud to open our high-quality equity indexes to an entirely new segment of the global investment marketplace. CME Group clients will now have access to the most definitive and complete measure of the U.S. equity market and an index which currently underpins about $2 trillion in assets including the world's largest mutual fund."

"Transparent, broad market benchmarks play an important role in helping market participants measure and access the U.S. equity market," said Robby Ross, Chief Commercial Officer at S&P Dow Jones Indices. "We are pleased to work with CME Group as they prepare to introduce futures products in support of indices that underlie diversified, broad-market investment strategies, including contracts based on the S&P Composite 1500 and S&P Total Market Index. This collaboration underscores S&P DJI's continued commitment to supporting innovative, index-based solutions across the investment ecosystem."

"The launch of E-mini futures on the Russell 3000 builds on the strength of our broad market benchmarks, which are designed to reflect the depth and diversity of the U.S. equity landscape," said Shawn Creighton, Director of Index Derivatives Solutions at FTSE Russell. "Working with CME Group to extend these indices into the derivatives market supports investor demand for efficient, scalable tools to manage exposure across the full market spectrum and reinforces the role of transparent, rules-based indices in modern portfolio construction."

These products will be listed on and subject to the rules of CME. For more information, please visit www.cmegroup.com/eminiexpansion.

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

CME-G

SOURCE CME Group

(Kitco News) - Geopolitical uncertainty doesn’t take the weekend off, and neither will gold and oil futures as the CME prepares to launch 24/7 trading.

The world’s largest derivatives exchange announced Thursday evening that it would launch a smaller oil futures contract that will trade through the weekend, along with its relatively new one-ounce gold contract.

The shift to 24/7 trading comes as both gold and oil have seen extreme volatility during the Asian market open on Sundays. This is the first opportunity traders have as they react to events and news announced during the weekend. Specifically, the uncertainty surrounding peace agreements in the Iran War can create significant volatility at the market open.

Because futures markets are closed from Friday evening to Sunday evening, some traders have turned to cryptocurrency markets and the use of gold-backed tokens to hedge some of the weekend market risks.

"Traders are increasingly looking to diversify their portfolios across commodity markets in the face of geopolitical uncertainty," said Derek Sammann, CME Group Senior Managing Director and Global Head of Commodities Markets. "Our new WTI and Gold futures provide regulated products that are right-sized and available 24/7, ensuring traders can manage exposure whenever news breaks."

The new smaller WTI crude oil futures will be 1/10th the size of CME Group's existing Micro WTI futures. The CME added that the 10-Barrel WTI contract will be cash-settled.

The CME launched its one-ounce gold futures contract in January 2025, and the smaller size was specifically targeted toward retail traders. The exchange said that it has seen solid activity in its smallest gold contract so far this year, with a daily average volume of about 90,000 contracts.

The one-ounce contract is also cash-settled.

Gold futures will start trading through the weekend on July 26 and oil futures will start trading 24/7 on August 30.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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New solution delivers advanced fraud risk scoring, property data reports and automated condition clearing directly within the loan origination workflow

ATLANTA & NEW YORK--(BUSINESS WIRE)--Intercontinental Exchange, Inc. (NYSE: ICE), one of the world's leading providers of financial market technology and data powering global capital markets, today announced the launch of ICE Fraud Monitor, a robust mortgage fraud and property research solution designed to help lenders reduce risk and expedite underwriting.

Integrated directly with Encompass®, ICE’s loan origination system (LOS), Fraud Monitor centralizes fraud risk scoring and property risk data in a user-friendly dashboard, reducing the need for underwriters to navigate between multiple vendor portals. Underwriters can click on fraud categories to view underlying data sources and supporting reports, making it easier to investigate potential issues. The solution’s configurable, exception-based automation can clear conditions and update Encompass, helping to streamline the review process.

“Fraud reviews are often fragmented and highly manual, creating bottlenecks in the underwriting process and contributing to condition fatigue among lenders,” said Bob Hart, President of Mortgage Technology at ICE. “Fraud Monitor helps simplify that process by bringing fraud detection, condition management and supporting documentation into a unified workflow within Encompass. By automating portions of the review process and giving underwriters faster access to detailed reports, they can identify and resolve potential fraud risks more efficiently while keeping loans moving through the pipeline.”

Fraud Monitor incorporates configurable risk scoring and ongoing monitoring capabilities that allow lenders to tailor workflows based on their internal risk management and compliance policies. The solution integrates data from ICE SiteXPro property records, credit and employment validation sources, exclusionary lists and watchlists, and other third-party fraud and verification tools to provide lenders with a more comprehensive view of potential risk indicators. The solution also maintains a full audit trail with automated recordkeeping, user-level permissions, time-stamped condition clearances and compliance-ready reporting.

To learn more about Fraud Monitor, visit: https://mortgagetech.ice.com/products/fraud-monitor.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds, and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges -- including the New York Stock Exchange -- and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines, and automates industries to connect our customers to opportunity.

Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 5, 2026.

Source: Intercontinental Exchange

Category: Mortgage Technology

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Shares of major US exchange operators extended their decline on Tuesday as investors assessed the potential impact of newly approved cryptocurrency perpetual futures contracts.

Analysts say the move could reshape competition across derivatives markets and create new challenges for established exchange operators.

The selloff followed the Commodity Futures Trading Commission's decision to clear the way for regulated crypto platforms to offer Bitcoin perpetual futures in the United States.

The approval marks the first time US investors will have access to perpetual crypto futures through domestic, regulated exchanges.

Cboe Global Markets led the declines, falling about 9%, while CME Group and Intercontinental Exchange ICE each lost roughly 4%.

The move has sparked concerns that perpetual futures, commonly known as "perps," could eventually expand beyond cryptocurrencies into other asset classes, increasing competition for established exchange operators.

Perpetual futures are derivative contracts that do not have a traditional expiration date.

The products have historically been popular on offshore crypto exchanges and are widely used by retail traders seeking leveraged exposure.

Analysts said the approval of regulated crypto perps could create new competition within retail trading markets.

"The question will be how quickly perps get approved across other asset classes, such as equities and commodities," TD Cowen analyst Bill Katz said in a Reuters report.

The possibility that perpetual futures could eventually be introduced for stocks, commodities, or other markets has prompted investors to reassess the long-term competitive position of incumbent exchanges.

According to analysts, the emergence of new products and platforms could pressure valuation multiples across the exchange sector as investors evaluate changing market structures and future growth prospects.

TD Cowen maintained its Hold rating on Cboe despite highlighting the competitive risks.

The firm suggested investors should monitor whether new Bitcoin perpetual futures products affect Cboe's trading volumes and pricing power over time.

While investors reacted negatively to the approval, several analysts argued that perpetual futures are unlikely to meaningfully disrupt traditional futures markets in the near term.

"We believe competitive risk is manageable given fundamental product differences and structural advantages for both exchanges (Cboe, CME)," RBC analyst Ashish Sabadra said in a Reuters report.

Analysts noted that perpetual futures have primarily attracted retail traders because of their leverage and shorter holding periods. Institutional adoption remains limited.

"The contracts are not designed for hedging, but rather retail-oriented speculation. As such, it's hard to envision perpetual futures contracts displacing the existing liquidity and volumes at CME Group and ICE," Raymond James analyst Patrick O'Shaughnessy said.

As a result, analysts generally view the competitive threat as concentrated in retail trading rather than the institutional markets that generate much of the volume and liquidity on established exchanges.

For investors, the key question remains whether the approval of crypto perpetual futures represents a niche expansion within digital assets or the beginning of a broader shift in how derivatives products are offered across US financial markets.