Midland-based Permian Resources said last week it plans to increase production in 2025 by 8 percent to 360,000 to 380,000 boed and reduce well costs to $775 per lateral foot (compared to $800 in previous three months and $950 at yearend 2023). Co-CEO James Walter said Feb. 25 he expects no change to the capital budget of about $2 billion from 2024. He added, “This improved year-over-year capital efficiency is driven by our consistent development approach and significantly lower cost structure.”
Permian Resources expects to turn in line about 285 wells this year – up from 275 last year. Average lateral lengths in 2025 are forecast at 10,000 feet (9,300 in 2024). Permian Resources said 65 percent of 2025 operating activity will be focused in New Mexico and 30 percent in Texas in Delaware Basin and the remaining activity in Midland Basin. Fourth quarter production was 171,300 barrels of oil per day (368,400 boed).
The company also announced the divestiture of its Barilla Draw natural gas and oil gathering systems for $180 million. Fullyear 2024 production was 159,200 b/d of oil and 343,500 boed – both significant increases over 2023.