UBS analyst Josh Silverstein has updated the firm's price target for Permian Resources (PR, Financial), elevating it from $14 to $16. Alongside this adjustment, Silverstein maintains a Buy rating for the company's shares, signaling continued confidence in its prospects. The decision reflects a positive outlook for Permian Resources, suggesting potential growth and value for investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Permian Resources Corp (PR, Financial) is $17.63 with a high estimate of $23.00 and a low estimate of $14.00. The average target implies an upside of 35.52% from the current price of $13.01. More detailed estimate data can be found on the Permian Resources Corp (PR) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Permian Resources Corp's (PR, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Permian Resources Corp (PR, Financial) in one year is $12.62, suggesting a downside of 3% from the current price of $13.01. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Permian Resources Corp (PR) Summary page.
PR Key Business Developments
Release Date: May 08, 2025
- Free Cash Flow Per Share: $0.54 per share, the highest in PR history.
- Oil Production: 175,000 barrels of oil per day.
- Total Production: 373,000 barrels of oil equivalent per day.
- Controllable Cash Cost Reduction: 4% reduction compared to Q4.
- D&C Cost Reduction: 3% reduction, landing at $750 per foot for the quarter.
- Adjusted Operating Cash Flow: $900 million.
- Adjusted Free Cash Flow: $460 million.
- Cash CapEx: $500 million.
- Cash on Balance Sheet: Increased from $479 million at year-end to approximately $700 million on March 31.
- Leverage: Reduced from 1 times at year-end to 0.8 times at the end of Q1.
- Liquidity: Increased to $3.2 billion.
- New Mexico Acquisition: $608 million for 12,000 BOE a day, 13,300 net acres, and 8,700 net royalty acres.
- Share Buyback: 4.1 million shares at an average price of $10.52.
- Revised CapEx Plan: Reduced capital budget by $50 million while maintaining production at the high end of guidance range.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Permian Resources Corp (PR, Financial) achieved the highest free cash flow per share in its history at $0.54, driven by lower per unit costs and strong production performance.
- The company strengthened its balance sheet, achieving the highest liquidity, most cash, and lowest leverage in its history.
- Production exceeded expectations with oil production of 175,000 barrels per day and total production of 373,000 barrels of oil equivalent per day.
- The company successfully reduced controllable cash costs by 4% and drilling and completion costs by 3% compared to the previous quarter.
- Permian Resources Corp (PR) announced a $608 million bolt-on acquisition in New Mexico, adding high-quality inventory with low breakeven costs, enhancing long-term shareholder value.
Negative Points
- The company faces risks and uncertainties that could affect actual results, as highlighted in their forward-looking statements.
- Despite strong performance, the oil and gas industry remains volatile, which could impact future operations and financial outcomes.
- The acquisition in New Mexico, while strategic, involves a significant financial commitment of $608 million.
- There is a reliance on maintaining a strong balance sheet to execute opportunistic investments during downturns, which may not always be feasible.
- Service cost reductions are just beginning to materialize, and the extent of these reductions remains uncertain.
