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Permian Resources (PR)
NYSE:PR
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Permian Resources
(NYSE:PR)
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Rating:81Outperform
Price Target:
$17.00
▲(23.01% Upside)
Permian Resources receives a strong overall score due to its robust financial performance, positive technical indicators, and a favorable earnings call. The company's strategic flexibility and successful cost management enhance its outlook, although valuation concerns and potential commodity price impacts warrant attention.
Positive Factors
Cash Flow Generation
Robust cash flow generation indicates strong operational efficiency and financial flexibility, supporting future investments and debt reduction.
Cost Management
Effective cost management enhances margin sustainability, allowing the company to remain competitive even in a volatile pricing environment.
Debt Reduction
Lower debt levels and improved credit ratings strengthen the balance sheet, enhancing long-term financial stability and reducing interest expenses.
Negative Factors
Potential for Lower Commodity Prices
Falling commodity prices could pressure revenue and profitability, affecting cash flow and dividend payouts, challenging financial resilience.
Delayed Guidance
Delayed guidance creates uncertainty about future operational and financial plans, potentially impacting investor confidence and strategic planning.
Earnings Volatility
Negative earnings growth indicates potential operational challenges or market pressures, which could affect long-term profitability and investment attractiveness.
Permian Resources (PR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.47B
Dividend Yield4.34%
Average Volume (3M)10.07M
Price to Earnings (P/E)12.6
Beta (1Y)0.91
Revenue Growth7.55%
EPS Growth-34.40%
CountryUS
Employees482
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.08
Shares Outstanding744,919,500
10 Day Avg. Volume9,467,243
30 Day Avg. Volume10,072,214
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.01
Price to Sales (P/S)1.84
P/FCF Ratio31.62
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue2.73
Enterprise Value/Gross Profit6.61
Enterprise Value/Ebitda3.97
Forecast
1Y Price Target
$18.33Price Target Upside32.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)1.16
Revenue Forecast (FY)$5.28B
Permian Resources Business Overview & Revenue Model
Company DescriptionPermian 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 MoneyPermian Resources generates revenue primarily through the sale of crude oil and natural gas produced from its exploration and production activities. The company earns money by selling these commodities at market prices, which can fluctuate based on global supply and demand dynamics. Key revenue streams include direct sales to refineries, gas processing plants, and other energy companies. Additionally, Permian Resources may engage in hedging strategies to stabilize revenue against price volatility. Strategic partnerships with logistics and transportation companies also enhance its operational efficiency, enabling timely delivery of products to market and optimizing profit margins.
Permian Resources Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call was generally positive, with significant achievements in free cash flow, production outperformance, cost reductions, and successful acquisition strategies. However, there were some uncertainties about future guidance and potential impacts of lower commodity prices.Q3-2025 Updates
Positive Updates
Record Free Cash Flow
Highest quarterly free cash flow per share since inception, despite a suppressed commodity environment, with adjusted operating cash flow of $949 million and record adjusted free cash flow of $469 million.
Production Outperformance
Oil production exceeded expectations with 187,000 barrels per day, up 6% from Q2, and total production of 410,000 barrels of oil equivalent per day.
Cost Reductions
Reduced controllable cash costs by 6% quarter-over-quarter, with LOE reduced to $5.07 per Boe and D&C costs averaging $7.25 per foot.
Debt Reduction and Credit Upgrade
Reduced outstanding debt by over $450 million and received a positive credit outlook upgrade from Moody's, along with an investment-grade credit rating from Fitch.
Successful Acquisition Strategy
Closed 250 deals primarily in New Mexico, adding 5,500 net leasehold acres and 2,400 net royalty acres for approximately $180 million.
Gas Marketing Agreements
Agreements to sell approximately 330 million cubic feet per day out of the basin in 2026, increasing to 700 million cubic feet per day in 2028, expected to realize $1 per Mcf higher pricing.
Negative Updates
Delayed 2026 Guidance
Decision to wait until February to provide 2026 guidance, leaving investors uncertain about future production and CapEx plans.
Potential for Lower Commodity Prices
Acknowledgment of potential for oil prices to fall to $40, impacting dividend sustainability and capital allocation strategies.
Company Guidance
During the Permian Resources third-quarter 2025 earnings call, the company reported its highest quarterly free cash flow per share since inception, driven by strong operational performance, including oil production of 187,000 barrels per day, a 6% increase from the previous quarter, and total production of 410,000 barrels of oil equivalent per day. The company achieved a 6% reduction in controllable cash costs, lowering LOE to $5.07 per Boe and D&C costs by 3% to $7.25 per foot. Adjusted operating cash flow reached $949 million, with a record adjusted free cash flow of $469 million and cash CapEx of $480 million. The company reduced outstanding debt by over $450 million, supported by improved credit ratings, and increased its full-year production guidance to 181,500 barrels of oil per day while maintaining CapEx guidance. Permian Resources also emphasized its strategic flexibility in capital allocation and successful acquisition strategy, completing 250 deals in Q3 and adding significant leasehold and royalty acreage. The company plans to continue leveraging its technical expertise and cost structure to drive long-term value and expects 2026 to be a capital-efficient year with improved gas marketing agreements enhancing netbacks.Permian Resources Financial Statement Overview
Summary
Permian Resources shows strong revenue growth with a TTM increase of 2.09% and consistent profitability, evidenced by a solid net profit margin of 15.65% and an impressive EBITDA margin of 68.68%. However, the gross profit margin has decreased from previous years, indicating potential cost pressures. The company maintains a low debt-to-equity ratio of 0.014, reflecting strong financial stability. Robust cash flow performance with a significant free cash flow growth rate of 970.95% TTM enhances financial flexibility.Income Statement
Permian Resources shows strong revenue growth with a TTM increase of 2.09% and consistent profitability, evidenced by a solid net profit margin of 15.65% and an impressive EBITDA margin of 68.68%. However, the gross profit margin has decreased from previous years, indicating potential cost pressures.78
Positive
Balance Sheet
The company maintains a low debt-to-equity ratio of 0.014, reflecting strong financial stability. Return on equity is moderate at 8.55%, suggesting efficient use of equity. However, the equity ratio is not provided, limiting a full assessment of asset financing.72
Positive
Cash Flow
Permian Resources demonstrates robust cash flow performance with a significant free cash flow growth rate of 970.95% TTM. The operating cash flow to net income ratio of 2.61 indicates strong cash generation relative to earnings, enhancing financial flexibility.85
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.19B | 5.00B | 3.12B | 2.13B | 1.03B | 580.46M |
| Gross Profit | 2.14B | 2.36B | 1.65B | 1.42B | 548.46M | 41.31M |
| EBITDA | 3.57B | 3.62B | 2.20B | 1.41B | 489.15M | -342.58M |
| Net Income | 812.32M | 984.70M | 476.31M | 515.04M | 138.18M | -682.84M |
Balance Sheet | ||||||
| Total Assets | 17.33B | 16.90B | 14.97B | 8.49B | 3.80B | 3.83B |
| Cash, Cash Equivalents and Short-Term Investments | 111.81M | 479.34M | 73.29M | 59.55M | 9.38M | 5.80M |
| Total Debt | 3.71B | 4.31B | 3.91B | 2.21B | 842.98M | 1.07B |
| Total Liabilities | 6.05B | 6.38B | 5.74B | 2.84B | 1.05B | 1.22B |
| Stockholders Equity | 10.03B | 9.14B | 6.34B | 2.94B | 2.75B | 2.60B |
Cash Flow | ||||||
| Free Cash Flow | 3.03B | 291.33M | 419.83M | 587.67M | 198.57M | -156.64M |
| Operating Cash Flow | 3.57B | 3.41B | 2.21B | 1.37B | 525.62M | 171.38M |
| Investing Cash Flow | -2.69B | -3.10B | -1.58B | -1.21B | -226.48M | -326.32M |
| Financing Cash Flow | -1.05B | 97.71M | -631.19M | -106.63M | -297.55M | 147.74M |
Permian Resources Technical Analysis
Neutral
13.82
Price Trends
13.32
Positive
13.29
Positive
13.05
Positive
Market Momentum
0.17
Positive
47.24
Neutral
19.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PR, the sentiment is Neutral. The current price of 13.82 is below the 20-day moving average (MA) of 14.29, above the 50-day MA of 13.32, and above the 200-day MA of 13.05, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 19.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PR.
Permian Resources Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $11.47B | 12.63 | 8.58% | 4.34% | 7.55% | -34.40% | |
78 Outperform | $8.18B | 14.49 | 14.18% | 1.04% | 23.88% | 20.55% | |
73 Outperform | $8.55B | 5.80 | 27.24% | 3.80% | 4.88% | -41.34% | |
67 Neutral | $10.49B | 19.48 | 7.65% | ― | 17.05% | 1028.81% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
60 Neutral | $9.47B | 40.97 | 2.26% | 3.21% | -8.07% | -87.88% | |
59 Neutral | $6.32B | 96.72 | 2.86% | ― | 35.41% | ― |
* Energy Sector Average
PR
Permian Resources
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0.64
4.86%
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Permian Resources Corporate Events
Business Operations and StrategyFinancial Disclosures
Permian Resources Reports Strong Q3 2025 Results
Positive
Nov 5, 2025
Permian Resources announced strong financial and operational results for the third quarter of 2025, with significant increases in production and reductions in costs. The company reported a total average production of 410.2 MBoe/d and reduced drilling and completion costs by 11% compared to 2024. It also strengthened its balance sheet by reducing debt and increasing liquidity, while enhancing its acquisition strategy with the addition of 5,500 net acres. The company raised its full-year production guidance and improved its natural gas marketing portfolio, positioning itself for better pricing and increased cash flow.
Private Placements and FinancingBusiness Operations and Strategy
Permian Resources Amends Credit Agreement in October 2025
Neutral
Oct 30, 2025
Permian Resources Corporation announced a significant amendment to its credit agreement on October 24, 2025. This move is likely to impact the company’s financial operations and could influence its market positioning.
Private Placements and FinancingBusiness Operations and Strategy
Permian Resources Announces Public Offering of Shares
Neutral
Sep 16, 2025
On September 15, 2025, Permian Resources Corporation announced the commencement of an underwritten public offering of 46,112,899 shares of its Class A Common Stock by certain affiliates of Pearl Energy Investments and Riverstone Investment Group LLC. The company will not receive any proceeds from this offering. The offering is expected to close around September 16, 2025, and is subject to customary closing conditions. Concurrently, Permian Resources plans to purchase 2,000,000 common units from the selling stockholders, which is conditioned upon the completion of the offering. This move is part of the company’s strategy to optimize its operations and strengthen its market position in the oil and natural gas industry.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.