Permian Resources (PR) AI Stock Analysis

• Market Cap: $11.49B
• Dividend Yield: 4.76%
• Average Volume (3M): 10.35M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.89
• Revenue Growth: 16.37%
• EPS Growth: 21.22%
• Country: US
• Employees: 482
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.28
• Shares Outstanding: 702,730,200
• 10 Day Avg. Volume: 9,540,788
• 30 Day Avg. Volume: 10,349,460
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 3.01
• Enterprise Value/Gross Profit: 6.85
• Enterprise Value/Ebitda: 3.94
• 1Y Price Target: $18.44
• Price Target Upside: 32.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 79 Outperform
• Price Target: $16.50 ▲(18.88% Upside)

Permian Resources scores well due to strong operational execution and strategic initiatives highlighted in the earnings call. The stock's attractive valuation and positive technical indicators further support its potential. However, challenges in revenue growth and free cash flow conversion slightly temper the overall score.

Positive Factors

Acquisitions

Permian Resources has completed at least four accretive acquisitions since the merger, replacing more than 100% of drilled inventory with high-return assets.

Financial Performance

Permian Resources generated a record $460 million in free cash flow, enabling debt reduction and cash balance growth.

Operational Efficiency

Permian Resources has among the lowest breakeven and highest free cash flow per barrel.

Negative Factors

Commodity Prices

Lower commodity price realizations and higher operating expenses are assumed.

Market Conditions

Management acknowledged uncertainty around the oil commodity price due to potential incremental OPEC+ supply additions and unclear demand outlook.

Valuation Concerns

Permian Resources shares trade at a notable premium multiple versus similarly sized peers due to its stature as a smidcap exploration and production leader with industry-high margins.

Permian Resources Business Overview & Revenue Model

Company Description

Permian Resources (PR) is an independent oil and natural gas exploration and production company focused primarily on the Permian Basin in the United States. The company operates in the energy sector, specializing in the extraction and production of hydrocarbons, leveraging advanced technologies and operational efficiencies to optimize resource recovery. Permian Resources is committed to responsible energy development and aims to meet the growing global energy demands while maintaining environmental stewardship.

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	283.24M	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	-65.72M	97.71M	-631.19M	-106.63M	-297.55M	147.74M

Permian Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.88
• 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 13.88 is above the 20-day moving average (MA) of 13.71, above the 50-day MA of 13.77, and above the 200-day MA of 13.65, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 55.16 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
PR	79 Outperform	$11.49B	8.99	12.86%	4.76%	16.37%	21.22%
APA	78 Outperform	$8.39B	7.61	19.09%	4.40%	12.13%	-67.53%
RRC	72 Outperform	$8.32B	17.29	11.99%	0.97%	19.95%	0.94%
OVV	70 Outperform	$10.95B	18.85	5.75%	2.92%	-12.92%	-68.16%
AR	67 Neutral	$10.03B	22.73	6.31%	―	11.65%	415.90%
Sector *	65 Neutral	$15.28B	7.48	3.19%	5.33%	4.10%	-60.58%
CRK	44 Neutral	$4.69B	―	-3.18%	0.66%	17.60%	-385.47%

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.

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.

Permian Resources Reports Strong Q2 2025 Results

Permian Resources announced strong financial and operational results for the second quarter of 2025, with a reported total average production of 385.1 MBoe/d. The company increased its full-year production guidance and maintained a strong financial position, closing a bolt-on acquisition in New Mexico and achieving an investment-grade credit rating from Fitch. The company also executed a share repurchase program and entered into new transportation and marketing agreements to enhance netbacks, positioning itself well for future growth and shareholder returns.