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Permian Resources Corporation PR stock has had a rough ride over the past year, falling 32% from its earlier highs. That slump compares with a 37% slide for Ovintiv Inc. OVV and a 10% drop for Range Resources RRC, both of which are similarly exposed to the volatile energy space. PR recently touched a new 52-week low of $10.01, hurt by macro headwinds like recession worries, global trade tensions and falling oil prices. Yet, for investors looking beyond the headlines, the company’s core fundamentals reveal both strengths and risks.
PR, OVV, RRC One-Year Stock Performance
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Strength in Scale and Operational Execution
Permian Resources has transformed significantly since its merger with Earthstone Energy, becoming the largest pure-play operator in the Delaware Basin. With 450,000 net leasehold acres and 88,000 net royalty acres across New Mexico and Texas, the company has over 15 years of high-quality drilling inventory. In 2024, average daily production was 343.5 thousand barrels of oil equivalent (Boe), and guidance for 2025 points to continued growth of 8%, with expected output ranging between 360 and 380 thousand Boe per day.
Permian Resources has executed a series of accretive bolt-on deals, including the acquisition of Barilla Draw assets, which collectively added 50,000 net acres and 20 thousand Boe/d of production. The company’s cost-cutting efforts are equally noteworthy — in 2024, drilling and completion (D&C) costs fell 14% per foot while lease operating expenses fell by $3 per Boe. In 2025, PR expects another 8% decline in D&C costs and continued gains in drilling efficiency.
PR’s Solid Balance Sheet and Shareholder Returns
Permian Resources enters 2025 with ample liquidity, including $3 billion in available funds and $500 million in cash. Leverage is currently at 1.0x EBITDA and is projected to fall to 0.5x by year-end, demonstrating a strong focus on financial discipline. The company is also rewarding its shareholders with a 15-cent dividend (over 5% yield) and aims to increase payouts as free cash flow per share doubles by 2025.
Notably, PR has outpaced Zacks Consensus Estimate in four straight quarters, delivering an average positive surprise of 10.1%. This trend of consistent execution strengthens confidence in its near-term outlook.
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(Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Caution Flags Remain
Still, risks shouldn’t be ignored. PR’s entire asset base is concentrated in the Permian Basin, exposing it to geographic and regulatory risk. Federal oversight in New Mexico, in particular, adds a layer of uncertainty that more diversified peers like Ovintiv is better positioned to manage. Moreover, Permian Resources’ hedge coverage for 2025 is relatively light at 25%, making the company more vulnerable to sharp oil price drops.
Leverage is another concern. The company’s $4 billion debt load, a result of recent M&A, raises eyebrows. While the balance sheet appears manageable for now, any sustained oil price weakness could strain financial flexibility. And while PR has slashed D&C costs, capital spending remains high, with 20% of 2025’s budget allocated to non-drilling initiatives like infrastructure upgrades. This may limit short-term cash returns despite longer-term benefits.
The growing shift to renewables and electric vehicles is another structural challenge for oil-focused producers. Countries like China are accelerating the transition, which could suppress oil demand growth and weigh on global prices. In such a scenario, companies like Range Resources — with a larger focus on natural gas — could be better positioned than Permian Resources over time.