Permian Resources (PR) AI Stock Analysis

• Market Cap: $11.22B
• Dividend Yield: 4.28%
• Average Volume (3M): 10.10M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.95
• Revenue Growth: 37.00%
• EPS Growth: 44.18%
• Country: US
• Employees: 482
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.44
• Shares Outstanding: 700,818,700
• 10 Day Avg. Volume: 10,525,033
• 30 Day Avg. Volume: 10,102,493
• PEG Ratio: <0.01
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.58
• Enterprise Value/Market Cap: 0.20
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 1.00
• Enterprise Value/Ebitda: 0.16
• 1Y Price Target: $17.93
• Price Target Upside: 25.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 82 Outperform
• Price Target: $15.50 ▲(8.24%Upside)

Permian Resources' strong financial performance and positive earnings call are the main drivers of its high score. The company's attractive valuation adds further appeal. Technical analysis suggests potential stability, though it plays a lesser role. Overall, the stock is well-positioned for growth within its industry.

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 Business Overview & Revenue Model

Company Description

Permian 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 Money

Permian 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 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.

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
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
702.24M	479.34M	73.29M	59.55M	9.38M	5.80M
	Total Assets
17.08B	16.90B	14.97B	8.49B	3.80B	3.83B
	Total Debt
4.15B	4.31B	3.91B	2.21B	842.98M	1.07B
	Net Debt
3.45B	3.83B	3.84B	2.15B	833.60M	1.07B
	Total Liabilities
6.27B	6.38B	5.74B	2.84B	1.05B	1.22B
	Stockholders Equity
9.38B	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

• Technical Analysis Sentiment: Positive
• Last Price: 14.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 14.32 is above the 20-day moving average (MA) of 13.25, above the 50-day MA of 12.52, and above the 200-day MA of 13.70, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 68.38 is Neutral, neither overbought nor oversold. The STOCH value of 89.37 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PR	82 Outperform	$11.22B	8.66	14.35%	4.28%	37.00%	44.18%
HESM	80 Outperform	$8.15B	15.26	49.74%	7.32%	8.77%	15.22%
APA	75 Outperform	$6.96B	6.97	25.34%	5.19%	26.76%	-69.10%
OVV	74 Outperform	$10.23B	16.77	6.17%	3.05%	-14.46%	-67.20%
RRC	68 Neutral	$9.26B	34.72	6.96%	0.93%	11.88%	-43.44%
AR	67 Neutral	$11.92B	54.16	3.21%	―	6.67%	240.70%
Sector *	58 Neutral	$7.37B	3.39	-4.49%	10.01%	0.82%	-49.15%

Permian Resources Corporate Events

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.

Permian Resources Reports Strong Q1 2025 Results

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.

Permian Resources Updates Credit Agreement for Financial Flexibility

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.