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1. Company Snapshot

1.a. 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 the Permian Basin.The company's properties consist of acreage blocks primarily in Reeves County, West Texas and Lea County, New Mexico.


As of December 31, 2021, it leased or acquired approximately 73,675 net acres; and owned 991 net mineral acres in the Delaware Basin.The company was formerly known as Centennial Resource Development, Inc.and changed its name to Permian Resources Corporation in September 2022.


Permian Resources Corporation was incorporated in 2015 and is headquartered in Midland, Texas.

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1.b. Last Insights on PR

Permian Resources Corporation's recent performance has been positively driven by strong Q3 earnings, beating estimates with $0.37 per share, up from $0.35 a year ago. The company's impressive production growth, with a 6% quarter-over-quarter increase in oil production, primarily from organic growth, has been a key driver. Additionally, Permian Resources increased its full-year production guidance by 2% and reduced controllable cash costs per BOE. Notably, Boston Partners invested $134.12 million in the company, acquiring a 1.23% stake, while AXQ Capital LP increased its holdings by 79.3%. Analysts have a "Moderate Buy" consensus rating on the stock.

1.c. Company Highlights

2. Permian Resources' Q3 Earnings: Strong Operational Performance and Strategic Acquisitions

Permian Resources reported a strong third quarter, with revenues likely driven by its production outperformance, which saw oil production reach 187,000 barrels per day, up 6% from the previous quarter. The company's EPS came in at $0.37, beating analyst estimates of $0.3. The company's ability to deliver strong execution in the field, progress its accretive acquisition strategy, and improve its balance sheet was evident in its financial performance. With a P/E Ratio of 11.84 and a Dividend Yield of 3.3%, the company's valuation metrics suggest a relatively stable outlook.

Publication Date: Nov -16

📋 Highlights
  • Record Production: Q3 oil output reached 187,000 barrels/day (+6% QoQ) and 410,000 Boe/day.
  • Cost Efficiency: Cash costs fell 6% QoQ to $5.07/Boe (LOE) and $7.25/foot (D&C).
  • Acquisition Growth: Closed 250 deals in New Mexico for $180M, adding 5,500 net leasehold acres.
  • Balance Sheet Strength: Moody’s reaffirmed investment-grade trajectory with $10–$11/share buyback trigger.
  • Dividend Resilience: Dividend breakeven improves as capex efficiency targets $1.8B maintenance costs in 2026.

Operational Highlights

The company's operational performance was driven by its continued strong execution, particularly from a large-scale Texas development that was brought online in the quarter. The operations team continues to set the standard in the Delaware Basin, with controllable cash costs reduced by 6% quarter-over-quarter, primarily driven by reducing LOE to $5.07 per Boe and D&C cost by 3%, averaging $7.25 per foot in the quarter. As James Walter noted, the company's acquisition pipeline remains robust, and they feel good about PR's ability to continue to do accretive deals that increase their inventory life and drive long-term value for investors.

Acquisition Strategy and Land Position

The company closed 250 deals primarily in New Mexico, adding 5,500 net leasehold acres and 2,400 net royalty acres for approximately $180 million. The acreage acquired in Q3 fits well with the company's existing position, and the locations will compete for capital in their high-quality portfolio from day one. The company's land position allows it to focus on 2- to 3-mile straight wells, setting it up for long laterals and potential cost savings.

Capital Efficiency and Dividend Growth

The company's capital efficiency is expected to continue, with well productivity remaining consistent and well costs at an all-time low. William Hickey mentioned that they have room to reduce well costs further and that 2026 will be a capital-efficient year due to better realizations and lower well costs. The company prioritizes a sustainable and growing base dividend as a core part of its strategy, and with a strong capital efficiency, it expects to continue growing the dividend.

Valuation and Outlook

With a P/S Ratio of 1.85 and an EV/EBITDA of 3.7, the company's valuation metrics suggest a relatively attractive outlook. Analysts estimate next year's revenue growth at 0.9%, indicating a stable growth trajectory. The company's high-quality asset base and strong balance sheet position it to continue executing and creating value, regardless of commodity prices.

3. NewsRoom

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The Next 3 Years Could Make Or Break Portfolios - Here's My Plan

Dec -02

Source: seekingalpha.com

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Boston Partners Invests $134.12 Million in Permian Resources Corporation $PR

Nov -27

Source: defenseworld.net

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AXQ Capital LP Acquires 10,614 Shares of Permian Resources Corporation $PR

Nov -25

Source: defenseworld.net

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Permian Resources: Excellent Cost And Production Performance Continues In Q3 2025

Nov -20

Source: seekingalpha.com

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My Most Contrarian Call Yet: Energy Is About To Rewrite Wall Street's Playbook

Nov -17

Source: seekingalpha.com

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Top Wall Street analysts are bullish on these 3 dividend stocks

Nov -16

Source: cnbc.com

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Permian Resources: The Acquisition Program Continues

Nov -10

Source: seekingalpha.com

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Permian Resources Q3 Earnings Beat Estimates, Increase Y/Y

Nov -07

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.56%)

6. Segments

Oil

Expected Growth: 5.5%

Permian Resources Corporation's 5.5% growth is driven by increasing oil production, improved operational efficiency, and strategic acquisitions. The company's focus on horizontal drilling and enhanced oil recovery techniques has led to higher yields. Additionally, favorable oil prices and decreasing production costs have contributed to the growth. The company's strong balance sheet and disciplined capital allocation have also enabled it to invest in high-return projects, further driving growth.

Natural Gas Liquids

Expected Growth: 5.8%

Permian Resources Corporation's 5.8% growth in Natural Gas Liquids (NGLs) is driven by increasing demand from petrochemicals and refining, coupled with the company's strategic expansion into the Permian Basin, a region with high NGL reserves. Additionally, improved operational efficiencies and cost savings from horizontal drilling and hydraulic fracturing contribute to the growth.

Natural Gas

Expected Growth: 6.2%

Permian Resources Corporation's 6.2% natural gas growth is driven by increasing demand from power generation and industrial sectors, coupled with improved drilling efficiencies, enhanced oil recovery techniques, and strategic acquisitions in the Permian Basin, a region with low production costs and high resource potential.

7. Detailed Products

Crude Oil

Permian Resources Corporation is a leading producer of high-quality crude oil, extracted from its vast reserves in the Permian Basin.

Natural Gas

The company produces natural gas, a clean-burning fuel, which is used to generate electricity, heat homes, and power industrial processes.

Natural Gas Liquids (NGLs)

Permian Resources Corporation extracts NGLs, a group of hydrocarbons, which are used as a feedstock for the production of plastics, fertilizers, and other petrochemicals.

Crude Oil Marketing and Logistics

The company provides crude oil marketing and logistics services, connecting producers with refineries and other customers.

Midstream Services

Permian Resources Corporation offers midstream services, including gathering, processing, and transporting oil and natural gas.

8. Permian Resources Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Permian Resources Corporation operates in the oil and gas industry, which has limited substitutes. However, the increasing focus on renewable energy sources and electric vehicles could pose a threat to the company's operations.

Bargaining Power Of Customers

Permian Resources Corporation's customers are primarily large oil and gas companies, which have limited bargaining power due to the company's strong market position and limited alternatives.

Bargaining Power Of Suppliers

Permian Resources Corporation relies on a few key suppliers for its operations, which gives them some bargaining power. However, the company's strong financial position and diversified supply chain mitigate this risk.

Threat Of New Entrants

The oil and gas industry has high barriers to entry, including significant capital requirements and regulatory hurdles, which limits the threat of new entrants.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with many established players competing for market share. Permian Resources Corporation faces intense rivalry from other companies in the industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.99%
Debt Cost 5.57%
Equity Weight 62.01%
Equity Cost 25.53%
WACC 17.95%
Leverage 61.26%

11. Quality Control: Permian Resources Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Matador Resources

A-Score: 6.0/10

Value: 8.4

Growth: 8.8

Quality: 7.4

Yield: 4.0

Momentum: 3.0

Volatility: 4.7

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Permian Resources

A-Score: 6.0/10

Value: 6.6

Growth: 7.8

Quality: 6.6

Yield: 6.0

Momentum: 3.5

Volatility: 5.3

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Magnolia Oil & Gas

A-Score: 5.8/10

Value: 6.0

Growth: 6.6

Quality: 7.1

Yield: 5.0

Momentum: 3.5

Volatility: 6.7

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SM Energy

A-Score: 5.3/10

Value: 9.4

Growth: 5.7

Quality: 6.8

Yield: 5.0

Momentum: 1.5

Volatility: 3.7

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Chesapeake Energy

A-Score: 4.9/10

Value: 5.1

Growth: 1.6

Quality: 6.1

Yield: 8.0

Momentum: 5.0

Volatility: 3.3

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Crescent Energy

A-Score: 4.7/10

Value: 6.9

Growth: 4.3

Quality: 4.2

Yield: 8.0

Momentum: 1.0

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.92$

Current Price

14.92$

Potential

-0.00%

Expected Cash-Flows