Permian Resources Corporation (PR)
NYSE:PR
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Permian Resources
(NYSE:PR)
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Rating:69Neutral
Price Target:
$21.50
▲(10.71% Upside)
Action:Downgraded
Date:05/09/26
PR scores well on financial durability (strong margins, very low leverage, solid operating cash generation) and a constructive earnings outlook emphasizing capital efficiency and improved gas marketing. The overall score is held back by deteriorating recent growth/free-cash-flow trends, weak near-term technical positioning (below short-term moving averages), and a very high P/E that makes the valuation less forgiving.
Positive Factors
Strong free cash flow generation
Sustained, multi-year free cash flow growth demonstrates durable cash-generating capacity from operations. That cash supports dividends, debt reduction, opportunistic M&A, and capital spending without reliance on frequent external financing, improving long-term flexibility and shareholder optionality.
Negative Factors
Commodity and takeaway volatility
Permian Resources’ earnings and cash flow remain exposed to oil/gas price swings and regional basis differentials. Even with marketing improvements, Permian gas takeaway and basis volatility can materially compress realizations and cash flow for multiple quarters, complicating planning and returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained, multi-year free cash flow growth demonstrates durable cash-generating capacity from operations. That cash supports dividends, debt reduction, opportunistic M&A, and capital spending without reliance on frequent external financing, improving long-term flexibility and shareholder optionality.
Read all positive factors
Permian Resources (PR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.60B
Dividend Yield4.27%
Average Volume (3M)13.09M
Price to Earnings (P/E)99.2
Beta (1Y)0.57
Revenue Growth-1.12%
EPS Growth-48.40%
CountryUS
Employees482
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.90
Shares Outstanding842,365,400
10 Day Avg. Volume13,844,191
30 Day Avg. Volume13,085,407
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)0.98
Price to Sales (P/S)1.98
P/FCF Ratio18.02
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue3.64
Enterprise Value/Gross Profit10.13
Enterprise Value/Ebitda5.57
Forecast
1Y Price Target
$24.09Price Target Upside24.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)1.68
Revenue Forecast (FY)$6.24B
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...
How the Company Makes Money
Permian Resources makes money primarily by producing and selling hydrocarbons—crude oil, natural gas, and NGLs—extracted from its Permian Basin wells. Revenue is recognized based on volumes sold and realized commodity prices, which are influenced ...
Permian Resources Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: the company reported record operational metrics, meaningful cost reductions, strong cash generation (adjusted operating cash flow $884M; adjusted free cash flow $403M), an 18% YoY increase in free cash flow per share to $1.94, a 7% dividend increase, and significant progress on gas marketing and inventory replenishment through M&A. Management is intentionally cautious on near-term growth due to macro and commodity uncertainties, and highlighted some areas of continued cost pressure (non-D&C CapEx, modest AR growth) and competitive dynamics in leases/M&A. Overall the operational and financial momentum and balance-sheet improvements outweigh the near-term macro and cost caveats.Positive Updates
Record Q4 Operational Performance
Q4 oil production reached a record 188,600 barrels per day and total production was 401,500 BOE/day. Q4 drilling & completion (D&C) cost per foot improved to $700, supporting $481,000,000 of cash CapEx in the quarter and $1,970,000,000 for the full year 2025.
Negative Updates
Macroeconomic and Gas Market Volatility
Management flagged a potentially bumpy 2026 driven by macro and commodity volatility, including near-term gas weakness. While company has materially reduced Waha exposure, the broader Permian gas takeaway and pricing environment could remain uncertain through 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Q4 Operational Performance
Q4 oil production reached a record 188,600 barrels per day and total production was 401,500 BOE/day. Q4 drilling & completion (D&C) cost per foot improved to $700, supporting $481,000,000 of cash CapEx in the quarter and $1,970,000,000 for the full year 2025.
Read all positive updates
Company Guidance
The company guided 2026 production of ~415,000 BOE/d (189,000 bbl/d of oil) on $1.85B of total CapEx (≈$400M non‑D&C), with D&C costs of about $675/ft (≈20% below 2024) and a plan that yields ~5% higher production on $120M less CapEx versus 2025; activity will be ~65% New Mexico and ~30% Texas Delaware, average lateral length ~11,000 ft, and average well productivity expected flat-to-slightly-better versus 2024–25. They expect to sell ~400 MMcf/d out of the basin in 2026 (rising to ~700 MMcf/d in 2027), reduce Waha exposure to ~10% of gas volumes in 2026, and now expect ~$0.50 premium to Waha (vs ~$0.40 discount in 2025); hedge targets remain ~30%/20%/10% year 1/2/3. Prior-year context: Q4 oil 188,600 bbl/d, total 401,500 BOE/d, Q4 D&C $700/ft, Q4 CapEx $481M, 2025 CapEx $1.97B, adjusted operating cash flow $884M, adjusted free cash flow $403M and FCF/sh $1.94 (up 18% YoY); quarterly base dividend was raised to $0.16/sh (7% increase) and cash taxes are not expected to be material until 2028 or beyond.Permian Resources Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.08B | 5.07B | 5.00B | 3.12B | 2.13B | 1.03B |
| Gross Profit | 1.82B | 1.66B | 2.36B | 1.65B | 1.42B | 548.46M |
| EBITDA | 3.31B | 3.70B | 3.62B | 2.20B | 1.41B | 489.15M |
| Net Income | 649.50M | 935.17M | 984.70M | 476.31M | 515.04M | 138.18M |
Balance Sheet | ||||||
| Total Assets | 17.99B | 18.24B | 16.90B | 14.97B | 8.49B | 3.80B |
| Cash, Cash Equivalents and Short-Term Investments | 170.78M | 153.69M | 479.34M | 73.29M | 59.55M | 9.38M |
| Total Debt | 3.69B | 3.70B | 4.31B | 3.91B | 2.21B | 842.98M |
| Total Liabilities | 6.67B | 6.70B | 6.38B | 5.74B | 2.84B | 1.05B |
| Stockholders Equity | 11.33B | 10.28B | 9.14B | 6.34B | 2.94B | 2.75B |
Cash Flow | ||||||
| Free Cash Flow | 339.19M | 557.39M | 291.33M | 419.83M | 587.67M | 198.57M |
| Operating Cash Flow | 3.52B | 3.61B | 3.41B | 2.21B | 1.37B | 525.62M |
| Investing Cash Flow | -3.18B | -2.87B | -3.10B | -1.58B | -1.21B | -226.48M |
| Financing Cash Flow | -880.40M | -1.06B | 97.71M | -631.19M | -106.63M | -297.55M |
Permian Resources Technical Analysis
Positive
19.42
Price Trends
20.56
Positive
18.27
Positive
15.73
Positive
Market Momentum
0.09
Positive
52.38
Neutral
73.95
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 19.42 is below the 20-day moving average (MA) of 20.94, below the 50-day MA of 20.56, and above the 200-day MA of 15.73, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 73.95 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.91B | 7.77 | 20.93% | 1.00% | 23.03% | 239.04% | |
72 Outperform | $11.77B | 6.12 | 12.71% | ― | 24.26% | 323.40% | |
71 Outperform | $13.90B | 8.42 | 25.11% | 3.80% | -17.38% | 54.99% | |
69 Neutral | $17.60B | 99.25 | 6.32% | 4.27% | -1.12% | -48.40% | |
68 Neutral | $16.73B | -6.32 | 7.11% | 3.16% | -0.59% | 32.83% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
57 Neutral | $4.21B | 11.25 | 26.11% | ― | 44.84% | ― |
* Energy Sector Average
PR
Permian Resources
20.89
8.44
67.75%
APA
APA
39.32
23.28
145.12%
CRK
Comstock Resources
14.34
-9.05
-38.69%
OVV
Ovintiv
59.53
24.59
70.36%
RRC
Range Resources
42.08
3.14
8.06%
AR
Antero Resources
37.98
-1.13
-2.89%
Permian Resources Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Permian Resources Secures New Unsecured Credit Facility
Positive
May 6, 2026
On April 30, 2026, Permian Resources Operating, LLC entered into a new $3.0 billion senior unsecured credit facility led by JPMorgan Chase Bank, replacing its prior bank facility and extending its primary source of revolving liquidity to April 30,...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Permian Resources Posts Strong Q1 2026 Results, Raises Guidance
Positive
May 6, 2026
Permian Resources reported strong first quarter 2026 results on May 6, with average total production of 412,850 Boe/d, including 192,349 Bbls/d of oil, and adjusted free cash flow of $513 million on cash capital expenditures of $466 million. The c...
Business Operations and StrategyDividendsFinancial Disclosures
Permian Resources Posts Strong 2025 Results, Lifts Dividend
Positive
Feb 25, 2026
Permian Resources, a Delaware Basin-focused oil and gas producer, reported strong fourth-quarter and full-year 2025 results, highlighted by average production of 401,500 Boe/d in the quarter and 392,600 Boe/d for the year, alongside a 14% year-ove...
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.