Permian Resources Cements Elite Status with Investment Grade Ratings

MIDLAND, TX – March 17, 2026 – Permian Resources Corporation (NYSE: PR) has officially joined the ranks of the energy sector's most financially sound companies, securing coveted investment grade credit ratings from two major agencies. The milestone was capped today when S&P Global Ratings upgraded the company's corporate and issuer credit ratings to BBB- from BB+, assigning a stable outlook. This follows an initial investment grade rating of BBB- from Fitch Ratings in July 2025, solidifying the market's confidence in the Midland-based oil and gas producer.

The dual investment grade status marks a pivotal moment for the company, which has grown to become the second-largest pure-play exploration and production (E&P) firm in the prolific Permian Basin. The ratings are a strong external validation of the company's financial health and disciplined operational strategy, and are expected to unlock significant financial benefits, including lower borrowing costs and greater access to capital. For investors, the upgrade signals a de-risking of the company and reinforces its capacity for sustained shareholder returns.

A Decade-Long Journey to Financial Stability

The achievement was not an overnight success but the culmination of a long-term strategic vision. As Co-CEO James Walter noted in a statement, the company has operated with a deliberate "investment grade mindset" for the past decade. This philosophy has centered on pairing a high-quality, low-cost asset base in the core of the Delaware Basin with a fortress-like balance sheet designed to weather the inherent volatility of commodity markets.

"Over the past ten years, we have run our business with an investment grade mindset, pairing high-quality assets with a fortress balance sheet to create outsized shareholder value through commodity cycles," Walter stated.

The results of this discipline are evident in the company's recent performance metrics. In its latest earnings report, Permian Resources posted record operational figures, including its highest-ever oil production, its lowest drilling and completion cost per foot, and its lowest controllable cash costs in company history. This operational efficiency contributed to an impressive EBITDA margin of 72.86%, a figure that underscores its low-cost leadership.

It is this consistent execution and conservative financial policy that caught the attention of rating agencies. S&P's upgrade rationale highlighted the company's strong financial policies and robust cash flows, projecting that its funds from operations (FFO) to debt ratio will remain comfortably above 60% in the coming years. This disciplined approach, which includes a history of successful, accretive acquisitions like those of Earthstone and assets from APA Corp., has allowed Permian Resources to significantly expand its scale while simultaneously strengthening its financial footing.

The Tangible Benefits of a Sterling Rating

Achieving investment grade status is more than just a symbolic victory; it brings a cascade of tangible financial advantages that are expected to directly impact the company's bottom line and strategic flexibility. The most immediate benefit will be a reduction in interest expenses. By moving from the "high-yield" or "junk" category to "investment grade," Permian Resources can now access debt markets at significantly lower interest rates. Industry analysts estimate that companies making this transition can often reduce their cost of debt by 50 to 100 basis points, which could translate into millions of dollars in annual savings for a company of its scale.

Furthermore, the BBB- rating dramatically broadens the company's access to capital. A vast pool of institutional investors, such as pension funds, insurance companies, and certain mutual funds, are often mandated to invest only in investment-grade securities. This opens up a new, deeper, and more stable investor base for the company's debt, ensuring greater liquidity and more favorable terms on future financing.

The market has responded positively to this de-risking event. On the day of the S&P announcement, Permian Resources' stock (NYSE: PR) climbed over 2% in trading. This follows a pattern of positive investor sentiment, with analysts at firms like TD Cowen and Wells Fargo recently raising their price targets on the stock, citing the company's strong execution and improving financial profile.

Setting a New Standard in a Volatile Sector

In the notoriously cyclical E&P industry, financial stability is a powerful competitive advantage. Permian Resources' new investment grade status places it in an elite group of independent producers, alongside established financially disciplined peers like EOG Resources. This distinguishes it from many smaller or more highly leveraged competitors that remain vulnerable to swings in commodity prices.

This financial resilience allows the company to operate from a position of strength. During market downturns, when debt-laden rivals are forced to cut back on spending and sell assets, companies with strong balance sheets can pursue counter-cyclical opportunities, such as acquiring prime acreage at a discount.

The company's strategic "bolt-on" acquisition strategy, which focuses on acquiring smaller, adjacent parcels to lower average acreage costs and improve drilling efficiencies, is now further enhanced. With more favorable financing options, Permian Resources is well-positioned to continue consolidating its holdings in the core of the Delaware Basin, where it currently manages approximately 500,000 net acres and produces over 400,000 barrels of oil equivalent per day.

A Boon for Shareholders and Future Growth

Ultimately, the benefits of investment grade status are expected to flow directly to shareholders. The combination of lower interest payments and robust operational cash flow enhances the company's ability to fund its shareholder return program, which is a cornerstone of its corporate strategy. Permian Resources recently increased its quarterly base dividend to $0.15 per share, aiming to provide a leading dividend yield among its U.S. independent peers.

The newfound financial flexibility also provides more optionality for capital allocation. While continuing its disciplined investment in high-return drilling projects, the company now has greater capacity for strategic initiatives, including further dividend growth, opportunistic share buybacks, and value-accretive M&A.

"Achieving investment grade status further enhances our ability to continue our track record of driving free cash flow and shareholder returns going forward," Walter affirmed. This new chapter, marked by top-tier creditworthiness, solidifies Permian Resources' position not just as a leading operator in the Permian Basin, but as a benchmark for financial discipline and sustainable value creation in the modern energy sector.