Permian Resources Corporation (PR) Income Statement

The 55.1% year-over-year revenue growth in 2026Q2 is a standout, but it follows a period of negative growth in 2025Q2 and 2025Q4, indicating that the company's top line is highly sensitive to oil and gas price fluctuations. The sequential jump from $1.4B in 2026Q1 to $1.9B in 2026Q2 suggests a possible volume ramp or price spike, but the lack of consistent growth across quarters implies that this is not a durable trend. Investors should monitor whether this acceleration is driven by production increases or favorable pricing, as the latter is less sustainable.

The dramatic fluctuation in gross margin, from 80.1% in 2026Q2 to 26.8% in 2025Q4, is not typical of a stable E&P operator. The COGS in 2025Q4 ($855.5M) is more than double the level seen in 2024Q1 ($617.9M), suggesting possible write-downs, higher production costs, or hedging losses. The 2026Q2 margin of 80.1% appears anomalous and may be driven by one-time items or a favorable price environment. This volatility suggests that the company's cost structure is not well-controlled, and investors should question the sustainability of the recent margin expansion.

SG&A expenses have remained remarkably stable, ranging from $37.4M to $50.0M over the ten quarters, while operating income has fluctuated between $270M and $928M. This indicates that the company has minimal fixed overhead, so any change in revenue or gross profit directly impacts operating income. The operating margin in 2026Q2 (50.0%) is nearly double the 2025Q4 level (23.1%), highlighting the high operating leverage. However, this also means that a downturn in commodity prices could lead to significant margin compression, as seen in 2025Q4.

The COGS line has been highly volatile, with a low of $370.2M in 2026Q2 and a high of $878.6M in 2025Q3. This variability is not typical of a well-managed E&P company and could be due to changes in production volumes, commodity prices, or one-time charges. In contrast, SG&A has been tightly controlled, suggesting that management is disciplined on overhead but may have less control over production costs. The lack of a clear trend in COGS makes it difficult to forecast future margins, and investors should monitor whether the company can stabilize its cost structure.