Permian Resources (PR) AI Stock Analysis

• Market Cap: $10.86B
• Dividend Yield: 4.91%
• Average Volume (3M): 9.97M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.89
• Revenue Growth: 16.37%
• EPS Growth: 21.22%
• Country: US
• Employees: 482
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.28
• Shares Outstanding: 700,818,700
• 10 Day Avg. Volume: 11,346,546
• 30 Day Avg. Volume: 9,972,238
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 3.94
• Enterprise Value/Gross Profit: 8.56
• Enterprise Value/Ebitda: 4.27
• 1Y Price Target: $18.13
• Price Target Upside: 34.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 78 Outperform
• Price Target: $15.00 ▲(11.61% Upside)

Permian Resources demonstrates strong financial performance and positive earnings call sentiment, which are the primary drivers of the overall score. The company's valuation is attractive, with a low P/E ratio and high dividend yield. Technical analysis indicates some bearish trends, but the stock's fundamentals and strategic initiatives provide a positive outlook.

Positive Factors

Earnings

Reported adjusted EBITDA of $1.045B surpassed expectations, marking one of the larger earnings beats this quarter.

Financial Performance

The company generated a record $460 million in free cash flow, enabling debt reduction and cash balance growth.

Share Buybacks

Permian Resources successfully made money on buybacks, purchasing shares at a favorable price when many other companies did not.

Negative Factors

Commodity Prices

Lower commodity price realizations and higher operating expenses are assumed.

Operating Expenses

Higher operating expenses are assumed, impacting overall cost structure.

Permian Resources Business Overview & Revenue Model

Company Description

Permian Resources Corporation, an independent oil and natural gas company, focuses on the development of crude oil and related liquids-rich natural gas reserves in the United States. Its assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. The company's properties consist of acreage blocks primarily in Reeves County, West Texas and Lea County, New Mexico. As of December 31, 2021, it leased or acquired approximately 73,675 net acres; and owned 991 net mineral acres in the Delaware Basin. The company was formerly known as Centennial Resource Development, Inc. and changed its name to Permian Resources Corporation in September 2022. Permian Resources Corporation was incorporated in 2015 and is headquartered in Midland, Texas.

How the Company Makes Money

Permian Resources generates revenue primarily through the exploration, production, and sale of crude oil, natural gas liquids, and natural gas. The company operates a portfolio of assets in the Permian Basin, which is one of the most prolific oil-producing regions in the country. Key revenue streams include the direct sale of produced hydrocarbons to refiners, marketers, and other customers, as well as potential revenue from midstream services such as transportation and storage. The company may also engage in hedging activities to manage price volatility and secure more stable cash flows. Additionally, strategic partnerships with other operators and service providers in the region can enhance operational efficiencies and reduce costs, further contributing to profitability.

Permian Resources Financial Statement Overview

Summary

Permian Resources exhibits strong financial health across its income statement, balance sheet, and cash flow statement. The company has shown impressive growth in revenue and profitability, supported by a solid balance sheet and robust cash flow generation. While leverage is manageable, attention should be given to maintaining a balanced capital structure.

Income Statement

Permian Resources has demonstrated strong revenue growth, with total revenue increasing significantly over the past few years. The gross profit margin and net profit margin have both shown positive trends, indicating efficient cost management and strong profitability. EBIT and EBITDA margins are solid, reflecting robust operational performance. Overall, the income statement highlights a strong growth trajectory and profitability for the company.

Balance Sheet

The balance sheet shows a healthy financial position with a strong equity base. The debt-to-equity ratio is reasonable, indicating manageable leverage levels. The equity ratio is solid, reflecting a strong capital structure. Return on equity is impressive, showcasing effective use of shareholder funds. However, the company should remain cautious about increasing debt levels to maintain financial stability.

Cash Flow

The cash flow statement reveals strong operating cash flow generation, supporting the company's financial health. Free cash flow growth has been robust, underscoring effective cash management. The operating cash flow to net income ratio is favorable, indicating efficient conversion of earnings into cash. The company is well-positioned to fund its capital investments and manage financial obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.89B	5.00B	3.12B	2.13B	1.03B	580.46M
Gross Profit	1.79B	2.36B	1.65B	1.42B	548.46M	41.31M
EBITDA	3.58B	3.63B	2.22B	1.41B	489.15M	-335.96M
Net Income	1.14B	984.70M	476.31M	749.84M	138.18M	-685.20M
Balance Sheet
Total Assets	17.49B	16.90B	14.97B	8.49B	3.80B	3.83B
Cash, Cash Equivalents and Short-Term Investments	451.00M	479.34M	73.29M	59.55M	9.38M	5.80M
Total Debt	4.15B	4.31B	3.91B	2.21B	842.98M	1.07B
Total Liabilities	6.59B	6.38B	5.74B	2.84B	1.05B	1.22B
Stockholders Equity	9.46B	9.14B	6.34B	2.94B	2.75B	2.60B
Cash Flow
Free Cash Flow	283.24M	291.33M	419.83M	587.67M	198.57M	-156.64M
Operating Cash Flow	3.76B	3.41B	2.21B	1.37B	525.62M	171.38M
Investing Cash Flow	-3.29B	-3.10B	-1.58B	-1.21B	-226.48M	-326.32M
Financing Cash Flow	-65.72M	97.71M	-631.19M	-106.63M	-297.55M	147.74M

Permian Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 13.44 is below the 20-day moving average (MA) of 13.64, below the 50-day MA of 13.85, and below the 200-day MA of 13.65, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 46.55 is Neutral, neither overbought nor oversold. The STOCH value of 50.08 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
PR	78 Outperform	$10.86B	8.82	12.86%	4.91%	16.37%	21.22%
OVV	75 Outperform	$10.24B	17.63	5.75%	3.05%	-12.92%	-68.16%
RRC	72 Outperform	$8.16B	17.24	11.99%	0.99%	19.95%	0.94%
APA	71 Outperform	$7.33B	6.88	19.09%	4.88%	12.13%	-67.53%
AR	67 Neutral	$9.99B	22.53	6.31%	―	11.65%	415.90%
Sector *	45 Neutral	AU$1.35B	-9.97	-2.14%	8.50%	2.33%	-32.99%
CRK	42 Neutral	$4.67B	―	-3.18%	0.66%	17.60%	-385.47%

Permian Resources Corporate Events

Permian Resources Reports Strong Q2 2025 Results

Permian Resources announced strong financial and operational results for the second quarter of 2025, with a reported total average production of 385.1 MBoe/d. The company increased its full-year production guidance and maintained a strong financial position, closing a bolt-on acquisition in New Mexico and achieving an investment-grade credit rating from Fitch. The company also executed a share repurchase program and entered into new transportation and marketing agreements to enhance netbacks, positioning itself well for future growth and shareholder returns.

The most recent analyst rating on (PR) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Permian Resources stock, see the PR Stock Forecast page.

Permian Resources Holds Annual Shareholders Meeting

On May 21, 2025, Permian Resources Corporation held its Annual Meeting of Shareholders where several key proposals were voted on. Shareholders elected eleven directors to the board, approved the compensation of named executive officers through a non-binding advisory vote, and ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to influence the company’s governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (PR) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Permian Resources stock, see the PR Stock Forecast page.