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Investing.com -- Moody’s Ratings has changed Permian Resources Operating, LLC’s rating outlook to positive from stable while affirming the company’s Ba1 Corporate Family Rating, Ba1-PD Probability of Default Rating, and Ba2 backed senior unsecured notes rating.
The rating agency maintained the company’s Speculative Grade Liquidity Rating at SGL-1.
"The positive outlook reflects our expectation that Permian Resources will continue to follow its conservative financial policies, generate significant free cash flow and further reduce debt in 2026," said Thomas Le Guay, a Moody’s Ratings Vice President.
Moody’s noted that Permian Resources’ Ba1 CFR reflects its large production scale from high-quality acreage primarily in the Delaware basin and the company’s continued commitment to prudent financial policies and free cash flow generation.
The company targets net leverage between 0.5x and 1.0x (1.0x as of June 30, 2025). Its change to a lower fixed dividend allows it to retain more cash flow for debt repayment or potential acquisitions.
This enables Permian Resources to continue improving its leverage metrics, with Retained Cash Flow to debt trending towards 80% in 2026 and Debt/Production declining towards $8,000/boe, under Moody’s current $55 WTI base case oil price assumption.
The Ba1 CFR also incorporates the company’s still relatively limited track record of executing its current strategy of more measured organic growth supplemented with bolt-on acquisitions.
Permian Resources maintains a very good liquidity position, supported by its free cash flow generation and a $2.5 billion committed senior secured revolving credit facility ($4.0 billion borrowing base) maturing in February 2028, which was undrawn as of June 30, 2025.
The company’s next debt maturity is $550 million of notes due April 2027.
Permian Resources Operating, LLC is an independent oil and gas exploration and production company in the Permian basin, operating across West Texas and New Mexico. The company owns around 470,000 net acres with production averaging 385 Mboe/d in the second quarter of 2025 (46% oil).
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