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Permian Resources (PR)
NYSE:PR
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Permian Resources
(NYSE:PR)
74Outperform
Positive Factors
Cost Management
Management noted that the company is already realizing lower drilling and completion costs, with potential for further reductions.
Financial Performance
Permian Resources reported higher-than-expected production in oil, natural gas, and total daily production, outperforming consensus estimates.
Shareholder Returns
The company declared a base dividend increase, demonstrating strong financial performance and shareholder value.
Negative Factors
Permian Resources (PR) vs. S&P 500 (SPY)
Market Cap
$10.18B
Dividend Yield2.52%
Average Volume (3M)8.88M
Price to Earnings (P/E)8.8
Beta (1Y)0.92
Revenue Growth60.23%
EPS Growth19.57%
CountryUS
Employees461
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)1.43
Shares Outstanding703,899,100
10 Day Avg. Volume12,084,228
30 Day Avg. Volume8,877,248
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)N/A
Price to Sales (P/S)2.04
Price to Cash Flow (P/CF)2.90
P/FCF Ratio3.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.38Price Target Upside57.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
Permian Resources Business Overview & Revenue Model
Company DescriptionPermian Resources (PR) is an oil and gas company primarily engaged in the exploration, development, and production of oil and natural gas resources. The company operates in the energy sector, focusing on the prolific Permian Basin in the United States. Its core activities include the acquisition and development of oil and natural gas properties, leveraging advanced technologies to optimize extraction and maximize output.
How the Company Makes MoneyPermian Resources generates revenue through the sale of crude oil, natural gas, and natural gas liquids produced from its operations. The company derives its earnings by exploring and developing hydrocarbon reserves and selling the extracted resources to refineries, utilities, and other energy companies. Key revenue streams include the sale of oil and gas produced from its operated wells, as well as through joint ventures and partnerships with other energy firms. Factors contributing to its earnings include fluctuations in commodity prices, production levels, and operational efficiencies. Additionally, strategic acquisitions and efficient resource management play a significant role in sustaining and enhancing its profitability.
Permian Resources Financial Statement Overview
Summary
Permian Resources shows strong revenue growth and profitability with notable increases in net income. The balance sheet is stable with low leverage, although the increase in total debt and negative free cash flow due to high capital expenditures are concerns.Income Statement
Permian Resources shows strong revenue growth with a notable increase from $3.12 billion in 2023 to $3.70 billion in TTM (Trailing-Twelve-Months) 2024, reflecting a revenue growth rate of 18.68%. The company maintains solid profitability metrics with a Gross Profit Margin of 42.46% and a Net Profit Margin of 26.58% for TTM 2024. EBIT and EBITDA margins are also robust at 47.74% and 89.27% respectively, indicating efficient operations. The significant improvement in net income from 2023 to TTM 2024 highlights strong financial performance. However, the decrease in gross profit suggests some cost management challenges.88
Very Positive
Balance Sheet
The company's balance sheet is stable with a healthy Equity Ratio of 54.08% in TTM 2024, suggesting a strong equity position. The Debt-to-Equity Ratio is low at 0.01, which indicates minimal leverage and reduced financial risk. Return on Equity is impressive at 10.78%, showcasing effective capital utilization. However, the large increase in total debt from previous years requires monitoring to ensure it remains manageable.75
Positive
Cash Flow
Permian Resources displays strong Operating Cash Flow at $2.54 billion in TTM 2024, providing a solid basis for operations with an Operating Cash Flow to Net Income Ratio of 2.58. However, the Free Cash Flow is negative at -$39 million, reflecting high capital expenditures. The Free Cash Flow to Net Income Ratio is negative, indicating that the current capital spending exceeds operating cash generation, which could affect future liquidity if not addressed.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.00B | 3.12B | 2.13B | 1.03B | 580.46M | Gross Profit |
| 2.36B | 1.65B | 1.42B | 548.46M | 41.31M | EBIT |
| 1.74B | 1.10B | 1.01B | 370.62M | -89.25M | EBITDA |
| 3.62B | 2.22B | 1.41B | 489.15M | -335.96M | Net Income Common Stockholders |
| 984.70M | 476.31M | 749.84M | 138.18M | -685.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 479.34M | 73.29M | 59.55M | 9.38M | 5.80M | Total Assets |
| 16.90B | 14.97B | 8.49B | 3.80B | 3.83B | Total Debt |
| 121.50M | 3.91B | 2.21B | 842.98M | 1.07B | Net Debt |
| -357.84M | 3.84B | 2.15B | 833.60M | 1.07B | Total Liabilities |
| 6.38B | 5.74B | 2.84B | 1.05B | 1.22B | Stockholders Equity |
| 9.14B | 6.34B | 2.94B | 2.75B | 2.60B |
| Cash Flow | Free Cash Flow | |||
| 291.33M | 419.83M | 587.67M | 198.57M | -156.64M | Operating Cash Flow |
| 3.41B | 2.21B | 1.37B | 525.62M | 171.38M | Investing Cash Flow |
| -3.10B | -1.58B | -1.21B | -226.48M | -326.32M | Financing Cash Flow |
| 97.71M | -631.19M | -106.63M | -297.55M | 147.74M |
Permian Resources Technical Analysis
Negative
12.33
Price Trends
14.47
Negative
14.48
Negative
14.56
Negative
Market Momentum
-0.60
Positive
28.96
Positive
22.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PR, the sentiment is Negative. The current price of 12.33 is below the 20-day moving average (MA) of 13.77, below the 50-day MA of 14.47, and below the 200-day MA of 14.56, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 28.96 is Positive, neither overbought nor oversold. The STOCH value of 22.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PR.
Permian Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $69.73B | 11.13 | 22.29% | 2.96% | 0.88% | -13.66% | |
74 Outperform | $10.18B | 8.76 | 12.79% | 2.52% | 60.23% | 19.57% | |
72 Outperform | $44.48B | 19.33 | 8.88% | 1.86% | -4.35% | -37.69% | |
68 Neutral | $6.92B | 8.27 | 20.26% | 5.31% | 17.61% | -75.78% | |
64 Neutral | $40.69B | 9.02 | 12.20% | 5.92% | 31.55% | -9.00% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
PR
Permian Resources
12.33
-3.13
-20.25%
APA
APA
19.02
-11.30
-37.27%
EOG
EOG Resources
125.89
8.38
7.13%
OXY
Occidental Petroleum
47.36
-12.72
-21.17%
FANG
Diamondback
140.58
-37.80
-21.19%
Permian Resources Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -9.80% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance by Permian Resources in 2024, marked by record production and free cash flow, significant cost reductions, and effective M&A activity. The company has laid out a promising growth plan for 2025, with increased production and improved capital efficiency. However, there are challenges related to future cash tax obligations and gas realizations, which the company aims to address in the coming years.Highlights
Record Production and Free Cash Flow in Q4 2024
Permian Resources reported record production and free cash flow per share in Q4 2024, with oil production of 171,000 barrels per day and total production of 368,000 barrels of oil equivalent per day. Adjusted free cash flow for the quarter was $400 million.
Significant Cost Reductions Achieved
The company reported a nearly 50% increase in performance compared to 2023 without increasing leverage. Well costs were almost 20% lower than 2023, with over half of this reduction attributed to structural efficiency improvements.
Strong 2024 M&A Performance
Permian Resources executed approximately $1.2 billion of acquisitions for 50,000 net acres, replacing inventory drilled in 2024 with high rate of return inventory.
2025 Growth Plan
The company expects to deliver 8% higher annual oil production in 2025 compared to 2024, with a capital program of approximately $2 billion, showing improved capital efficiency year over year.
Increased Liquidity and Strong Financial Position
Permian Resources increased liquidity by approximately $1 billion in 2024, maintaining a strong financial position with no change in leverage while executing $1.2 billion of accretive M&A.
Lowlights
Minimal Cash Taxes in 2025
The company expects minimal cash taxes in 2025, but anticipates more meaningful cash taxes in 2026, and closer to being a full cash taxpayer by 2027.
Gas Realization Challenges
Permian Resources is focusing on optimizing gas netbacks, but significant improvements are not expected until 2026 and beyond, with the current strategy largely unchanged from 2024.
Company Guidance
During the recent Permian Resources Corporation conference call, the company discussed its strong financial and operational performance for the fourth quarter and full year 2024, along with its guidance for 2025. For Q4 2024, Permian Resources reported oil production of 171,000 barrels per day and total production of 368,000 barrels of oil equivalent per day, exceeding expectations. The company maintained CapEx within its guidance range of $1.9 to $2.1 billion and achieved lower costs with Q4 LOE at $5.42 per BOE, cash G&A at $0.93 per BOE, and GPT at $1.49 per BOE. This resulted in an adjusted operating cash flow of $904 million and adjusted free cash flow of $400 million for the quarter. Looking ahead to 2025, Permian Resources plans to maintain production between 300,000 and 380,000 BOE per day, with oil production averaging 170,000 to 175,000 barrels per day. The capital program is set at approximately $2 billion, a reduction from 2024, with 80% allocated to drilling and completion operations. The company expects an 8% increase in annual oil production compared to 2024, supported by continued cost efficiencies and strategic M&A activities.Permian Resources Corporate Events
Business Operations and StrategyFinancial Disclosures
Permian Resources Reports Strong 2024 Results and 2025 Plan
Positive
Feb 25, 2025
Permian Resources announced strong financial and operational results for the fourth quarter and full year 2024, with significant increases in crude oil and total average production, and a robust balance sheet. The company also unveiled its 2025 operational plan, which aims to enhance capital efficiency and increase production by 8% while maintaining a similar capital budget, thereby maximizing shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.