Analyst Noah Hungness from Bank of America Securities maintained a Buy rating on Permian Resources (PR – Research Report) and keeping the price target at $19.00.
Noah Hungness has given his Buy rating due to a combination of factors that highlight Permian Resources’ strong operational performance and financial outlook. The company has provided a robust 2025 guidance, projecting oil production between 170 and 175 thousand barrels per day, surpassing market expectations. This is supported by their efficient capital expenditure plan of $2 billion, which remains consistent with previous estimates.
Furthermore, Permian Resources has demonstrated significant cost reductions, with drilling and completion costs per foot expected to decrease by 13% compared to the previous year. Operating cash costs are also projected to be lower than both the company’s initial 2024 guidance and market consensus. Additionally, the company has shown strong quarterly execution, with higher-than-expected production levels contributing to a 4% beat on adjusted EBITDA for the fourth quarter of 2024. These factors, combined with a peer-leading dividend yield and low leverage, position Permian Resources as a compelling investment opportunity.
According to TipRanks, Hungness is an analyst with an average return of -1.3% and a 31.25% success rate. Hungness covers the Energy sector, focusing on stocks such as Northern Oil And Gas, Gulfport Energy, and Vital Energy.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $18.00 price target.