Permian Resources (PR) AI Stock Analysis

• Market Cap: $8.64B
• Dividend Yield: 3.91%
• Average Volume (3M): 10.15M
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.09
• Revenue Growth: 60.23%
• EPS Growth: 19.57%
• Country: US
• Employees: 482
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.43
• Shares Outstanding: 703,899,100
• 10 Day Avg. Volume: 9,159,898
• 30 Day Avg. Volume: 10,152,663
• PEG Ratio: 0.38
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.21
• Price to Cash Flow (P/CF): 3.20
• P/FCF Ratio: 4.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.94
• Price Target Upside: 73.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

Permian Resources exhibits strong financial performance with robust revenue growth and profitability, supported by a stable balance sheet. The earnings call further reinforces the company's positive outlook due to operational efficiencies and strategic growth plans. However, technical analysis reflects a bearish trend, which could pose short-term challenges. Valuation metrics are favorable, enhancing the stock's attractiveness. Overall, the company is well-positioned for long-term growth, but investors should be cautious of the current technical indicators.

Positive Factors

Cost Management

PR continues to execute on operating costs, highlighted by cash opex guidance flat/slightly lower YoY (and ~6% better vs. our forecasts), which is differentiated among E&P peers.

Financial Performance

PR unveiled its 2025 outlook which was stronger than expected, with oil volume guidance ~3% above consensus for in-line capex.

Production Efficiency

Permian Resources Corporation is able to average 172.5 mbd of oil for 2025 for the same capex budget that was needed to produce 159 mbd last year.

Negative Factors

Capital Expenditure

The company is expected to achieve lower capital expenditure year-over-year while maintaining production levels.

Market Competition

Permian Resources is positioned well as a natural consolidator in the Delaware basin, with a peer-leading cost structure and low leverage, allowing for potential cash deals.

Permian Resources Business Overview & Revenue Model

Company Description

Permian Resources (PR) is an oil and gas company primarily engaged in the exploration, development, and production of oil and natural gas resources. The company operates in the energy sector, focusing on the prolific Permian Basin in the United States. Its core activities include the acquisition and development of oil and natural gas properties, leveraging advanced technologies to optimize extraction and maximize output.

How the Company Makes Money

Permian Resources generates revenue through the sale of crude oil, natural gas, and natural gas liquids produced from its operations. The company derives its earnings by exploring and developing hydrocarbon reserves and selling the extracted resources to refineries, utilities, and other energy companies. Key revenue streams include the sale of oil and gas produced from its operated wells, as well as through joint ventures and partnerships with other energy firms. Factors contributing to its earnings include fluctuations in commodity prices, production levels, and operational efficiencies. Additionally, strategic acquisitions and efficient resource management play a significant role in sustaining and enhancing its profitability.

Permian Resources Financial Statement Overview

Summary

Permian Resources shows strong revenue growth and profitability with notable increases in net income. The balance sheet is stable with low leverage, although the increase in total debt and negative free cash flow due to high capital expenditures are concerns.

Income Statement

Permian Resources shows strong revenue growth with a notable increase from $3.12 billion in 2023 to $3.70 billion in TTM (Trailing-Twelve-Months) 2024, reflecting a revenue growth rate of 18.68%. The company maintains solid profitability metrics with a Gross Profit Margin of 42.46% and a Net Profit Margin of 26.58% for TTM 2024. EBIT and EBITDA margins are also robust at 47.74% and 89.27% respectively, indicating efficient operations. The significant improvement in net income from 2023 to TTM 2024 highlights strong financial performance. However, the decrease in gross profit suggests some cost management challenges.

Balance Sheet

The company's balance sheet is stable with a healthy Equity Ratio of 54.08% in TTM 2024, suggesting a strong equity position. The Debt-to-Equity Ratio is low at 0.01, which indicates minimal leverage and reduced financial risk. Return on Equity is impressive at 10.78%, showcasing effective capital utilization. However, the large increase in total debt from previous years requires monitoring to ensure it remains manageable.

Cash Flow

Permian Resources displays strong Operating Cash Flow at $2.54 billion in TTM 2024, providing a solid basis for operations with an Operating Cash Flow to Net Income Ratio of 2.58. However, the Free Cash Flow is negative at -$39 million, reflecting high capital expenditures. The Free Cash Flow to Net Income Ratio is negative, indicating that the current capital spending exceeds operating cash generation, which could affect future liquidity if not addressed.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.00B	3.12B	2.13B	1.03B	580.46M
	Gross Profit
2.36B	1.65B	1.42B	548.46M	41.31M
	EBIT
1.74B	1.10B	1.01B	370.62M	-89.25M
	EBITDA
3.62B	2.22B	1.41B	489.15M	-335.96M
	Net Income Common Stockholders
984.70M	476.31M	749.84M	138.18M	-685.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
479.34M	73.29M	59.55M	9.38M	5.80M
	Total Assets
16.90B	14.97B	8.49B	3.80B	3.83B
	Total Debt
121.50M	3.91B	2.21B	842.98M	1.07B
	Net Debt
-357.84M	3.84B	2.15B	833.60M	1.07B
	Total Liabilities
6.38B	5.74B	2.84B	1.05B	1.22B
	Stockholders Equity
9.14B	6.34B	2.94B	2.75B	2.60B
Cash Flow		Free Cash Flow
291.33M	419.83M	587.67M	198.57M	-156.64M
	Operating Cash Flow
3.41B	2.21B	1.37B	525.62M	171.38M
	Investing Cash Flow
-3.10B	-1.58B	-1.21B	-226.48M	-326.32M
	Financing Cash Flow
97.71M	-631.19M	-106.63M	-297.55M	147.74M

Permian Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PR, the sentiment is Negative. The current price of 10.89 is below the 20-day moving average (MA) of 13.36, below the 50-day MA of 13.70, and below the 200-day MA of 14.23, indicating a bearish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 32.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PR.

Permian Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HESM	80 Outperform	$8.48B	14.84	51.23%	7.27%	10.89%	19.50%
PR	74 Outperform	$8.64B	7.43	12.79%	3.91%	60.23%	19.57%
OVV	74 Outperform	$8.58B	7.83	10.87%	3.64%	-15.82%	-46.85%
AR	70 Outperform	$10.41B	189.20	0.82%	―	-4.22%	-77.20%
APA	68 Neutral	$5.53B	6.66	20.26%	6.59%	17.61%	-75.78%
Sector *	57 Neutral	$7.71B	4.16	-3.52%	8.32%	0.35%	-64.68%
RRC	56 Neutral	$8.07B	30.63	6.88%	0.99%	-7.57%	-69.25%

Permian Resources Corporate Events

Permian Resources Reports Strong 2024 Results and 2025 Plan

Permian Resources announced strong financial and operational results for the fourth quarter and full year 2024, with significant increases in crude oil and total average production, and a robust balance sheet. The company also unveiled its 2025 operational plan, which aims to enhance capital efficiency and increase production by 8% while maintaining a similar capital budget, thereby maximizing shareholder value.