Permian Resources Corporation (PR)
NYSE:PR
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Permian Resources
(NYSE:PR)
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Rating:73Outperform
Price Target:
$21.50
▲(10.71% Upside)
Action:Upgraded
Date:06/01/26
The score is driven primarily by solid financial fundamentals (strong margins, sharply improved leverage, good operating cash flow) and a bullish earnings call highlighting record free cash flow and improved balance sheet standing. These positives are tempered by weak near-term price momentum and a valuation that looks less compelling given the recent TTM revenue/earnings decline.
Positive Factors
Balance sheet strength & liquidity
Substantially lower leverage and a materially larger equity base reduce financial risk and increase strategic optionality. Investment-grade ratings and stronger liquidity improve the firm's ability to fund capital, prioritize dividends or M&A, and withstand commodity cycles over the next 2–6 months.
Negative Factors
Top-line contraction
A marked decline in trailing revenue reduces visibility into sustainable scale and weakens revenue-driven economies. If top-line weakness persists it can compress reinvestment capacity, limit margin leverage opportunities, and pressure long-term growth plans and returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength & liquidity
Substantially lower leverage and a materially larger equity base reduce financial risk and increase strategic optionality. Investment-grade ratings and stronger liquidity improve the firm's ability to fund capital, prioritize dividends or M&A, and withstand commodity cycles over the next 2–6 months.
Read all positive factors
Permian Resources (PR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.90B
Dividend Yield4.27%
Average Volume (3M)12.28M
Price to Earnings (P/E)25.2
Beta (1Y)0.56
Revenue Growth-1.12%
EPS Growth-48.40%
CountryUS
Employees482
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.90
Shares Outstanding837,288,150
10 Day Avg. Volume9,132,537
30 Day Avg. Volume12,284,969
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 Cap1.02
Enterprise Value/Revenue3.40
Enterprise Value/Gross Profit9.48
Enterprise Value/Ebitda5.22
Forecast
1Y Price Target
$24.76Price Target Upside27.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)1.66
Revenue Forecast (FY)$6.32B
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The earnings call was strongly positive: management reported record free cash flow and free cash flow per share, meaningful production outperformance, continued D&C cost declines (to ~$685/ft with a >10% annual D&C cost reduction trend), operational records (fastest drilling, longest laterals), high recycled water usage (~70%), 30% site electricity savings from microgrids at affected sites, investment-grade ratings from all three agencies, and $1.2 billion of debt reduction since early 2025. Near-term challenges include weak Waha pricing leading to some curtailments, low absolute realized gas prices despite hedges ($1.33/Mcf), diesel-driven inflationary pressure (diesel up ~50–70% recently), and normalization of LOE toward guidance. Management emphasized flexibility, selective M&A, and confidence in generating higher free cash flow in 2026 versus prior guidance. Overall, positive operational execution and balance sheet strength outweigh transitory commodity and input cost headwinds.Positive Updates
Record Free Cash Flow and Free Cash Flow Per Share
Q1 free cash flow exceeded $500 million and free cash flow per share was $0.60, the highest in company history. The company has delivered a 30% CAGR in free cash flow per share over the past 3 years (2023: $1.13; 2024: $1.64, ~+50% YoY; 2025: $1.94, ~+20% YoY).
Negative Updates
Weak Waha Gas Pricing and Curtailments
Material weakness in Waha gas pricing in Q1 forced selective curtailments and shut-ins of high-GOR / uneconomic gas wells (negative Waha seen recently, cited as low as negative $5 to negative $10), constraining some gas-driven production upside in the near term.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Free Cash Flow and Free Cash Flow Per Share
Q1 free cash flow exceeded $500 million and free cash flow per share was $0.60, the highest in company history. The company has delivered a 30% CAGR in free cash flow per share over the past 3 years (2023: $1.13; 2024: $1.64, ~+50% YoY; 2025: $1.94, ~+20% YoY).
Read all positive updates
Company Guidance
Guidance from the call stressed continued flexibility and upside to 2026 results: Q2 production and CapEx are expected to be modestly higher than Q1 (Q1 was 192,000 bbl/d oil and 413,000 BOE/d) as elevated workovers (roughly doubled to ~70–90/month versus ~30–40) and accelerated TILs push volumes, and the company said any scenario this year should generate higher free cash flow than original guidance (Q1 FCF >$500M, $0.60/share). Controllable cash costs remain within ’26 guidance (Q1 LOE $5.19/BOE with a midpoint guide of ~$5.45/BOE, GP&T ~$1.36/BOE, cash G&A $0.77/BOE), D&C cost was ~$685/lateral foot in Q1 with a $675/ft year target, recycled water was ~70%, and the business expects to add modestly (~5%+) more TILs with existing equipment; firm gas transport is ~400 MMcf/d growing to >700 MMcf/d in 2027 (realized gas $1.33/Mcf, +$2.44 vs Waha), debt has been cut ~$1.2B since early 2025, and the company now holds three‑agency investment‑grade ratings.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
20.60
Negative
18.87
Positive
16.07
Positive
Market Momentum
-0.21
Positive
49.26
Neutral
53.88
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 20.13, below the 50-day MA of 20.60, and above the 200-day MA of 16.07, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 53.88 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 | $9.38B | 10.54 | 20.93% | 1.00% | 23.03% | 239.04% | |
73 Outperform | $16.90B | 25.21 | 6.32% | 4.27% | -1.12% | -48.40% | |
71 Outperform | $13.55B | 8.83 | 25.11% | 3.80% | -17.38% | 54.99% | |
71 Outperform | $11.32B | 11.92 | 12.71% | ― | 24.26% | 323.40% | |
68 Neutral | $16.65B | 20.62 | 7.11% | 3.16% | -0.59% | 32.83% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
60 Neutral | $3.89B | 6.17 | 26.11% | ― | 44.84% | ― |
* Energy Sector Average
PR
Permian Resources
20.16
7.57
60.15%
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Permian Resources Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Permian Resources Shareholders Expand Equity Plan, Elect Directors
Neutral
May 19, 2026
At its 2026 Annual Meeting of Shareholders held on May 19, 2026, Permian Resources investors approved an amendment to the company’s 2023 Long Term Incentive Plan, raising the maximum number of Class A shares issuable under the plan from 71,7...
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...
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.