Permian Resources (PR) AI Stock Analysis

• Market Cap: $11.39B
• Dividend Yield: 4.39%
• Average Volume (3M): 12.58M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.86
• Revenue Growth: 16.37%
• EPS Growth: 21.22%
• Country: US
• Employees: 482
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.28
• Shares Outstanding: 733,776,250
• 10 Day Avg. Volume: 20,611,402
• 30 Day Avg. Volume: 12,580,312
• PEG Ratio: 0.71
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 31.62
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 3.01
• Enterprise Value/Gross Profit: 6.85
• Enterprise Value/Ebitda: 3.94
• 1Y Price Target: $18.56
• Price Target Upside: 35.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 74 Outperform
• Price Target: $15.00 ▲(9.65% Upside)

Permian Resources receives a strong overall score due to its solid financial performance and positive earnings call highlights. The company's attractive valuation and strategic initiatives further bolster its position, although technical indicators suggest caution.

Positive Factors

Operational Efficiency

Record operational execution indicates strong efficiency and cost management, enhancing long-term production capabilities and profitability.

Strategic Acquisitions

Strategic acquisitions at favorable prices can enhance asset base and production capacity, supporting long-term growth and market position.

Financial Strength

An investment-grade rating reflects strong financial health and creditworthiness, improving access to capital and reducing borrowing costs.

Negative Factors

Negative Revenue Growth

Declining revenue growth can signal challenges in market demand or competitive pressures, potentially impacting long-term profitability.

Free Cash Flow Challenges

Negative free cash flow growth indicates difficulties in converting profits into cash, potentially limiting reinvestment and financial flexibility.

Cost Pressures

Decreasing gross profit margins suggest rising costs or pricing pressures, which could erode profitability if not managed effectively.

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 demonstrates solid profitability with high EBIT and EBITDA margins. However, challenges include negative revenue growth and declining free cash flow, indicating potential issues in sales and cash conversion.

Income Statement

Permian Resources shows strong profitability with a high EBIT margin of 38.77% and a robust EBITDA margin of 76.51% in the TTM. However, the revenue growth rate is negative at -0.94%, indicating a decline in sales compared to the previous period. The gross profit margin has decreased from 47.10% in 2024 to 42.03% in the TTM, which may suggest increasing cost pressures.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.44, indicating a balanced approach to leveraging. Return on equity is healthy at 12.33%, reflecting efficient use of equity capital. However, the equity ratio stands at 54.05%, suggesting a moderate level of financial stability with room for improvement in asset management.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 2.06, indicating good cash generation relative to net income. However, free cash flow growth is negative at -54.56%, and the free cash flow to net income ratio is low at 7.53%, highlighting potential challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.09B	5.00B	3.12B	2.13B	1.03B	580.46M
Gross Profit	2.24B	2.36B	1.65B	1.42B	548.46M	41.31M
EBITDA	3.89B	3.62B	2.20B	1.41B	489.15M	-342.58M
Net Income	1.14B	984.70M	476.31M	515.04M	138.18M	-682.84M
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	283.26M	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	-65.74M	97.71M	-631.19M	-106.63M	-297.55M	147.74M

Permian Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 13.68 is above the 20-day moving average (MA) of 13.68, above the 50-day MA of 13.57, and above the 200-day MA of 13.39, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 68.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PR.

Permian Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APA	78 Outperform	$8.83B	8.28	9.64%	4.05%	12.13%	-67.53%
PR	74 Outperform	$11.39B	8.88	12.86%	4.39%	16.37%	21.22%
RRC	74 Outperform	$8.97B	18.95	11.63%	0.93%	19.95%	0.94%
OVV	70 Outperform	$11.10B	19.10	5.73%	2.78%	-12.92%	-68.16%
AR	67 Neutral	$10.54B	23.76	―	―	11.65%	415.90%
CRK	55 Neutral	$5.78B	-77.05	-3.23%	―	17.60%	-385.47%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Permian Resources Corporate Events

Permian Resources Registers Shares for Exchangeable Notes

On March 19, 2021, Permian Resources Operating, LLC issued 3.25% exchangeable senior notes due 2028, which can be exchanged for shares of the company’s Class A Common Stock. These shares have been registered with the SEC, with relevant documentation filed in 2024 and 2025, indicating a strategic financial move to potentially enhance liquidity and shareholder value.

The most recent analyst rating on (PR) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Permian Resources stock, see the PR Stock Forecast page.

Permian Resources Announces Redemption of Senior Notes

On August 28, 2025, Permian Resources Operating, LLC, a subsidiary of Permian Resources Corporation, announced the redemption of its 3.25% Exchangeable Senior Notes due 2028. The redemption process allows noteholders to exchange their notes for shares of the company’s common stock at an increased exchange rate until September 10, 2025, before the notes are repurchased for cash on September 12, 2025. This move is part of the company’s financial strategy to manage its debt obligations and could impact stakeholders by altering the company’s capital structure and potentially affecting stock value.

The most recent analyst rating on (PR) stock is a Buy with a $15.50 price target. To see the full list of analyst forecasts on Permian Resources stock, see the PR Stock Forecast page.