Permian Resources continues to demonstrate how operational efficiency can drive stronger financial performance in the Delaware Basin. During its Q1 2026 earnings call, the company highlighted several major operational milestones that helped deliver record free cash flow and lower drilling and completion costs.
One of the biggest achievements was setting a company record for drilling speed. Permian Resources reported its fastest well ever, averaging more than 2,500 feet drilled per day. The company also achieved its longest quarterly average lateral lengths in history, with approximately 25% of wells extending beyond 2.5 miles. Longer laterals help improve economics by spreading fixed costs over greater production intervals.
On the completion side, the company increased recycled water utilization to approximately 70%, reducing both completion costs and lease operating expenses. Management emphasized that water recycling remains a key focus area as the company continues improving operational sustainability and efficiency across its acreage.
Permian Resources also deployed four new microgrids during the quarter, eliminating more than 25 generators and reducing electricity costs at associated well sites by roughly 30%. These infrastructure upgrades are part of a broader effort to streamline field operations and lower controllable costs.
The operational improvements helped reduce drilling and completion costs to approximately $685 per lateral foot, a new company record and a significant step toward management’s full-year target of $675 per foot.
As operators across the Permian Basin continue focusing on capital discipline and free cash flow generation, operational efficiency remains one of the most important competitive advantages in the industry.
Permian Resources Wells Drilled YTD Summary
Total Well Record Count
- Total Records: 103
Record Count by Basin
| Basin | Record Count |
|---|---|
| Delaware Basin | 93 |
| Midland Basin | 9 |
| Other | 1 |
Basin grouping based on county classification.
Counties by Record Count — Delaware Basin
| County | Record Count |
|---|---|
| EDDY, NM | 45 |
| REEVES, TX | 31 |
| LEA, NM | 17 |
Delaware Basin Total
- 93 wells
Counties by Record Count — Midland Basin
| County | Record Count |
|---|---|
| REAGAN, TX | 9 |
Midland Basin Total
- 9 wells
Other Counties
| County | Record Count |
|---|---|
| STONEWALL, TX | 1 |
Contractor & Rig Activity by Basin
Delaware Basin
| Contractor & Rig | Record Count |
|---|---|
| H&P 510 | 29 |
| H&P 602 | 13 |
| H&P 496 | 11 |
| H&P 257 | 10 |
| H&P 281 | 8 |
| H&P 348 | 8 |
| H&P 261 | 5 |
| H&P 276 | 5 |
| H&P 261 WALKING | 2 |
| H&P 521 | 2 |
Delaware Basin Highlights
- H&P dominates drilling activity.
- H&P 510 is the most active rig in the Delaware Basin YTD.
Midland Basin
| Contractor & Rig | Record Count |
|---|---|
| H&P 485 | 9 |
Midland Basin Highlights
- All Midland Basin activity occurred in Reagan County.
- H&P 485 handled all identified Midland Basin drilling records.
Key Takeaways
- The overwhelming majority of Permian Resources drilling activity remains concentrated in the Delaware Basin (90%+ of records).
- Eddy County, NM is currently the company’s most active drilling area.
- H&P rigs dominate the drilling fleet, particularly:
- H&P 510
- H&P 602
- H&P 496
- Midland Basin activity appears limited and concentrated entirely in Reagan County.
Author: phinds
