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Permian Resources (PR)
NYSE:PR
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Permian Resources
(NYSE:PR)
Rating:82Outperform
Price Target:
$15.50
▲(12.48%Upside)
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.
Operational Performance
Volumes were 3% higher than expectations, driven mainly by gas, indicating strong operational performance.
Negative Factors
Capital Expenditures
PR retains flexibility to implement further activity reductions depending on the commodity price and service cost environment.
Market Volatility
The company takes a disciplined, flexible approach to managing macro volatility, actively modeling downside scenarios.
Oil Price Environment
In a sub $60/bbl WTI environment without service cost deflation, Permian Resources Corporation would likely reduce capital expenditures.
Permian Resources (PR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.87B
Dividend Yield3.09%
Average Volume (3M)9.80M
Price to Earnings (P/E)8.4
Beta (1Y)0.95
Revenue Growth37.00%
EPS Growth44.18%
CountryUS
Employees482
SectorEnergy
Sector Strength42
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.44
Shares Outstanding700,818,700
10 Day Avg. Volume8,859,633
30 Day Avg. Volume9,798,002
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)0.94
Price to Sales (P/S)0.00
P/FCF Ratio8.32
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit5.68
Enterprise Value/Ebitda0.93
Forecast
1Y Price Target
$17.93Price Target Upside30.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Permian Resources Business Overview & Revenue Model
Company DescriptionPermian Resources (PR) is an independent oil and natural gas company primarily engaged in the exploration, development, and production of oil and natural gas properties. Headquartered in the United States, PR focuses its operations in the Permian Basin, one of the most prolific oil and natural gas producing regions in North America. The company aims to maximize shareholder value through efficient resource extraction and strategic asset management.
How the Company Makes MoneyPermian Resources makes money by extracting and selling oil and natural gas from its properties in the Permian Basin. The company's revenue model is primarily driven by the sale of crude oil, natural gas, and natural gas liquids (NGLs) to various customers, including refineries, utilities, and other energy companies. Key revenue streams include the production and sale of these hydrocarbons, as well as potential income from joint ventures or partnerships with other energy firms to optimize resource development. Market factors such as commodity prices, production volumes, and operational efficiencies significantly impact the company's earnings.
Permian Resources Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 15.90%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong financial performance, strategic acquisitions, and effective cost management. Despite some concerns about market volatility and lower oil prices, the company is well-positioned to capitalize on future opportunities.Q1-2025 Updates
Positive Updates
Record Free Cash Flow Per Share
Permian Resources achieved the highest free cash flow per share in its history at $0.54 per share, driven by lower per unit cost and strong production performance.
Strong Liquidity and Reduced Leverage
The company increased cash on the balance sheet from $479 million at year-end to approximately $700 million by March 31, reducing leverage from 1x to 0.8x.
New Mexico Bolt-On Acquisition
Announced a $608 million acquisition in New Mexico, adding 13,300 net acres and 8,700 net royalty acres with high return investments and low declines.
Production Exceeds Expectations
Oil production reached 175,000 barrels per day and total production was 373,000 barrels of oil equivalent per day, exceeding expectations.
Cost Reductions Achieved
Reduced controllable cash cost by 4% and D&C cost by 3%, achieving $750 per foot for the quarter.
Opportunistic Share Buyback
Executed a share buyback of 4.1 million shares at an average price of $10.52 during early April.
Negative Updates
Uncertain Market Conditions
The company is preparing for potential downturns in the market, suggesting a less favorable future economic environment.
Pressure on Oil Prices
The company highlighted that the current oil price environment is significantly lower compared to the previous year, affecting returns.
Company Guidance
During the Permian Resources Q1 2025 earnings call, the company provided robust guidance, highlighting a record free cash flow per share of $0.54, driven by lower per-unit costs and strong production performance. The company reported oil production of 175,000 barrels per day and total production of 373,000 barrels of oil equivalent per day. They achieved an adjusted operating cash flow of $900 million and adjusted free cash flow of $460 million with $500 million in cash CapEx. The balance sheet was strengthened with liquidity reaching $3.2 billion and leverage reducing to 0.8x. Permian Resources redeemed $175 million in high-interest notes, saving approximately $17 million annually in interest expenses, and improved credit ratings with Moody's at BA1 and S&P at BB+. The company also announced a $608 million bolt-on acquisition in New Mexico, likely to deliver over 5% free cash flow per share accretion, and executed a share buyback of 4.1 million shares at an average price of $10.52. They forecast reduced capital expenditure by $50 million while maintaining production at the high end of their guidance, amidst an opportunistic hedging strategy with 25% of 2025 oil production hedged at over $73 per barrel.Permian Resources Financial Statement Overview
Summary
Permian Resources exhibits strong financial health with impressive growth in revenue and profitability. The company's balance sheet is solid, with manageable leverage, and cash flow generation is robust, indicating effective financial management.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.85
Very Positive
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.78
Positive
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.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.13B | 5.00B | 3.12B | 2.13B | 1.03B | 580.46M | Gross Profit |
| 2.31B | 2.36B | 1.65B | 1.42B | 548.46M | 41.31M | EBIT |
| 1.79B | 1.74B | 1.10B | 1.01B | 370.62M | -89.25M | EBITDA |
| 3.90B | 3.63B | 2.22B | 1.41B | 489.15M | -335.96M | Net Income Common Stockholders |
| 1.17B | 984.70M | 476.31M | 749.84M | 138.18M | -685.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 89.48M | 479.34M | 73.29M | 59.55M | 9.38M | 5.80M | Total Assets |
| 4.48B | 16.90B | 14.97B | 8.49B | 3.80B | 3.83B | Total Debt |
| 910.13M | 4.31B | 3.91B | 2.21B | 842.98M | 1.07B | Net Debt |
| 820.65M | 3.83B | 3.84B | 2.15B | 833.60M | 1.07B | Total Liabilities |
| 1.24B | 6.38B | 5.74B | 2.84B | 1.05B | 1.22B | Stockholders Equity |
| 3.10B | 9.14B | 6.34B | 2.94B | 2.75B | 2.60B |
| Cash Flow | Free Cash Flow | ||||
| 1.16B | 291.33M | 419.83M | 587.67M | 198.57M | -156.64M | Operating Cash Flow |
| 3.66B | 3.41B | 2.21B | 1.37B | 525.62M | 171.38M | Investing Cash Flow |
| -2.85B | -3.10B | -1.58B | -1.21B | -226.48M | -326.32M | Financing Cash Flow |
| -126.78M | 97.71M | -631.19M | -106.63M | -297.55M | 147.74M |
Permian Resources Technical Analysis
Positive
13.78
Price Trends
12.51
Positive
13.29
Positive
13.70
Positive
Market Momentum
0.20
Negative
62.75
Neutral
80.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PR, the sentiment is Positive. The current price of 13.78 is above the 20-day moving average (MA) of 13.21, above the 50-day MA of 12.51, and above the 200-day MA of 13.70, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 62.75 is Neutral, neither overbought nor oversold. The STOCH value of 80.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PR.
Permian Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $10.87B | 8.39 | 14.35% | 3.09% | 37.00% | 44.18% | |
80 Outperform | $8.19B | 15.33 | 49.74% | 7.09% | 8.77% | 15.22% | |
75 Outperform | $6.68B | 6.69 | 25.34% | 5.41% | 26.76% | -69.10% | |
74 Outperform | $9.92B | 16.26 | 6.17% | 3.14% | -14.46% | -67.20% | |
68 Neutral | $9.17B | 34.42 | 6.96% | 0.86% | 11.88% | -43.44% | |
67 Neutral | $12.00B | 53.74 | 3.21% | ― | 6.67% | 240.70% | |
57 Neutral | $7.22B | 3.15 | -4.49% | 5.63% | 0.82% | -49.15% |
* Energy Sector Average
Performance Comparison
PR
Permian Resources
13.78
-1.40
-9.22%
APA
APA
18.63
-9.76
-34.38%
OVV
Ovintiv
38.81
-8.39
-17.78%
RRC
Range Resources
38.81
1.45
3.88%
AR
Antero Resources
38.92
3.55
10.04%
HESM
Hess Midstream Partners
38.82
6.45
19.93%
Permian Resources Corporate Events
Executive/Board ChangesShareholder Meetings
Permian Resources Holds Annual Shareholders Meeting
Neutral
May 21, 2025
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.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Permian Resources Reports Strong Q1 2025 Results
Positive
May 7, 2025
Permian Resources announced strong financial and operational results for the first quarter of 2025, including record adjusted free cash flow and a strategic acquisition in the Northern Delaware Basin. The company reported significant production levels and maintained a strong balance sheet, with a focus on cost reduction and strategic investments. The acquisition of assets from APA Corporation is expected to enhance Permian’s inventory and provide substantial returns, positioning the company well for future growth and value creation.
Private Placements and FinancingBusiness Operations and Strategy
Permian Resources Updates Credit Agreement for Financial Flexibility
Positive
May 6, 2025
Permian Resources Corporation announced a significant update with the Ninth Amendment to their Third Amended and Restated Credit Agreement, dated April 30, 2025. This amendment reflects the company’s ongoing efforts to optimize its financial structure, potentially impacting its operational flexibility and financial health positively.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.