Latest news with #PermianResourcesCorporation
Yahoo
17-05-2025
- Business
- Yahoo
Permian Resources Corporation (PR) Just Got Upgraded by RBC Capital
The global investment bank, RBC Capital, just raised its price target for Permian Resources Corporation (NYSE:PR). Here is why. Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company with operations focused in the Permian Basin, with assets concentrated in the core of the Delaware Basin. On May 16th, RBC Capital adjusted its outlook on Permian Resources Corporation (NYSE:PR), raising the stock's price target from $16 to $17, while reaffirming its Outperform rating. The analyst highlighted that PR's success hinges on enhancing operational efficiencies and engaging in accretive consolidation. Despite the intense market volatility, the oil and gas producer recently announced that it is growing its footprint in the northern Delaware Basin through a $608 million acquisition of assets from Apache parent APA Corp. Hence, Permian's activity remains 'steady-as-she-goes' despite oil price weakness relative to the original budgeted levels. Permian Resources Corporation (NYSE:PR) recently revealed very strong results for its Q1 2025, highlighted by strong operational performance and lower costs. The company beat profit, revenue, and output expectations and even managed to achieve the highest free cash flow per share in its history of $0.54 per share, driven by lower per unit cost and solid production performance. Moreover, the oil and gas firm has approximately 25% of its 2025 oil production hedged at a price just above $73 per barrel, allowing it to be more opportunistic during a downturn when investments can earn the highest return. While we acknowledge the potential of PR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PR and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None.
Yahoo
05-05-2025
- Business
- Yahoo
Permian Resources Corporation (PR): Among the Most Undervalued Energy Stocks to Buy According to Hedge Funds
We recently published a list of the 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Permian Resources Corporation (NYSE:PR) stands against other undervalued energy stocks. As of the close of May 2, 2025, the overall energy sector is undervalued by 13.1%, as compared to the general market's undervaluation of 5.3%. The current downturn in the energy sector is primarily attributed to the current trade war sparked by President Trump's tariffs and its resultant forecasted global economic slowdown. Moreover, global crude oil prices have plunged heavily since last month, with the West Texas Intermediate (WTI) crude price currently hovering around the $56 mark – a level it last hit during the Covid-19 pandemic in 2021. READ ALSO: Top 15 Energy Companies With the Highest Upside Potential Crude oil took a fresh hit this weekend after OPEC+ stunned the market by announcing a larger-than-expected output increase for June. This follows a similar surge announced for May and signals a sharp reversal from the group's efforts to defend crude prices. It seems like Saudi Arabia has adopted a low-price strategy, aiming to discipline overproducing members like Kazakhstan and Iraq. This could also be a part of Riyadh's efforts to build good relations with Donald Trump, who has recently been calling on the Kingdom to increase production in order to bring prices down. Given the high volatility in the market, it comes as no surprise that short-sellers marginally increased their bets against oil and gas stocks in March, with short interest in the energy sector reaching 2.58% compared to 2.52% in February. That said, while oil may be presenting a bleak outlook, there are other sectors within the energy business that look very promising right now. A significant growth driver for the global energy industry is the ongoing AI boom and its accompanying power-hungry data centers. According to the International Energy Agency, the global electricity demand from data centers is set to more than double by 2030 to around 945 terawatt-hours (TWh), slightly more than the entire electricity consumption of Japan today. The rise of AI is also reshaping US power markets, as according to BNEF, the country's data center demand is projected to rise from 3.5% of total electricity demand today to 8.6% by 2035. Big Tech seems to have jumped headfirst into the AI boom, with commitments to invest hundreds of billions of dollars to build data centers and ensure their energy supply. In fact, this strategic move has injected new life into sectors such as nuclear, which has regained the spotlight after several tech giants met on the sidelines of the CERAWeek conference in March and signed a pledge to support the goal of at least tripling the world's nuclear energy capacity by 2050. That said, there have been concerns lately that the power demand required by the ballooning data center industry may have been overestimated, which led to several energy stocks posting significant declines not so long ago. However, the recently reported better-than-expected results from the cloud and AI businesses of some American tech giants suggest that these fears may have been overblown. Commercial real estate executives have stated that while there has been a 'pause' in some data center capex, it is likely to be temporary, with hundreds of billions of dollars still to be spent. A close-up of a wellhead, showing off the company's production of oil and natural gas. To collect data for this article, we looked for companies operating in the energy sector with forward P/E ratios of below 15 as of the close of May 2, 2025. Then, we identified companies that have delivered substantial returns over the last five years, in order to steer clear of potential value traps. In the end, we selected companies with the highest number of hedge fund holders in the Insider Monkey database, as of Q4 2024. The following are the Most Undervalued Energy Stocks According to Hedge Funds. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). No. of Hedge Fund Holders: 54 Forward P/E Ratio as of May 2: 9.45 Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company with operations focused in the Permian Basin, with assets concentrated in the core of the Delaware Basin. Permian Resources Corporation (NYSE:PR) had a strong Q4 2024 with a revenue of $1.3 billion in Q4 2024, up 15.44% YoY and in line with market expectations. The company also posted an adjusted EPS of $0.36, against expectations of $0.34. PR also generated $3.4 billion in cash from operations in FY 2024, while its adjusted free cash flow came in at $1.4 billion. As a result, the firm ended the year with total liquidity of $3 billion, up $1 billion from 2023. PR also remains committed to its shareholders and increased its quarterly base dividend from $0.05 to $0.15 per share in February. Permian Resources Corporation (NYSE:PR) was able to significantly bolster its portfolio with approximately $1.2 billion of acquisitions in 2024, adding 50,000 net acres and about 20,000 boe/d across its acreage position. As a result, the company's oil production in FY 2024 shot up by almost 64% YoY, while its overall output surged by a hefty 77.1%. PR intends to pump these numbers up even further, announcing 8% higher annual production in FY 2025 as compared to last year. Overall, PR ranks 10th on our list of the most undervalued energy stocks to buy according to hedge funds. While we acknowledge the potential of PR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
03-05-2025
- Business
- Yahoo
Permian Resources (PR): Among Billionaire Jim Simons' RenTech's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Permian Resources Corporation (NYSE:PR) stands against Billionaire Jim Simons' RenTech's other small-cap stock picks with huge upside potential. Jim Simons was (and still is even after his death in May 2024) one of the biggest names – if not the biggest – in the hedge fund space. He was a gifted mathematician and had a successful career in academia before making a bold pivot to finance in the late 70s. In 1978, he founded Monemetrics (a currency trading firm) and Limroy (a hedge fund), which were collapsed into one entity in 1982 and renamed Renaissance Technologies Corporation. This entity had one major objective: to use quantitative, computer-driven models to exploit market inefficiencies. In other words, Simons and his team were committed to making investment decisions based on sophisticated algorithms. (RenTech) began as a hedge fund but later morphed into something bigger. It is now an investment management firm that operates several hedge funds. Its flagship offering is the Medallion Fund. The Medallion Fund is known for extraordinary returns. During the crash (early 2000s) and the financial crisis (2007-2011), Medallion's returns were 56.6% and 74.6%, respectively. Following the first two years of operation, the lowest annual return was 31.5%. READ ALSO: Billionaire Seth Klarman's 10 Stock Picks with Huge Upside Potential and Billionaire Andreas Halvorsen's 10 Stock Picks With Huge Upside Potential. The Medallion Fund's track record in the market, and by extension RenTech's, made Simons a lot of money. At death, he was worth $31.4 billion and ranked among the top 100 richest people in the world. And, as Simons often said, all of the success he had in the market comes down to the love of mathematics. Accordingly, the Medallion Fund has been capable of extraordinary returns mostly because the investment team – led by Simons – leveraged mathematics. The fund utilizes algorithm-based methods to identify patterns and leverage past data for investing decisions. That is why RenTech invested (and continues to invest) billions in intellectuals and professionals from fields like Mathematics, Computer Science, and Physics. In one of his last interviews, he said: 'We hired statisticians, physicists, astronomers, mathematicians — the important thing was that they were very smart.' Jim Simons was a generational talent when it came to investing. He started an investment business and led to heights that others can only dream of. And because his legacy lives in RenTech, it makes sense to want to know what companies they're invested in. We sifted through Renaissance Technologies' Q4 2024 SEC 13F filings to compile this list. We focused only on shares in companies and excluded interests in ETFs and options. Then, we picked the stocks with a market capitalization of $10 billion or less. From the result, we ranked the stocks based on analyst price targets and selected the top 10 companies with the highest upside potential (as of April 30). Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a wellhead, showing off the company's production of oil and natural gas. Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas producer. It explores for, extracts, and develops crude oil, natural gas, and natural gas liquids. Its products serve the energy sector, supplying fuel to refineries and other industrial buyers in both domestic and global markets. In Q4 2024, Permian Resources (NYSE:PR) reported solid operational performance. The quarter's crude oil production averaged 171,274 barrels per day (Bbls/d), and total production reached 368,414 barrels of oil equivalent per day (Boe/d). On the financial front, the company generated $872 million in cash from operating activities and $400 million in adjusted free cash flow during the quarter. Notably, the corporation has achieved commendable operational efficiency gains; it reduced drilling and completion costs to approximately $775 per lateral foot, a 3% reduction from the previous quarter and a 14% reduction year-over-year. For 2025, Permian Resources (NYSE:PR) has outlined a capital-efficient operational plan focused on delivering approximately 8% higher annual production compared to 2024. It also aims to maintain a similar capital budget of between $1.9 billion and $2.1 billion. The company expects to average 170-175 mega barrels per day (MBbls/d) of oil production and 360-380 mega barrels of oil equivalent per day (MBoe/d) of total production. On April 29, 2025, Bank of America (BofA) lowered its price target for Permian Resources (NYSE:PR) from $17 to $15, while maintaining a Buy rating. This adjustment reflects BofA's updated oil market projections, which predict lower WTI oil prices for the second to fourth quarters of 2025. Overall, PR ranks 7th on our list of Billionaire Jim Simons' RenTech's small-cap stock picks with huge upside potential. While we acknowledge the potential of PR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PR but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Permian Resources Corporation (PR): One of the Top Energy Companies with the Highest Upside Potential
We recently published a list of the Top 15 Energy Companies with the Highest Upside Potential. In this article, we are going to take a look at where Permian Resources Corporation (NYSE:PR) stands against other top energy companies. After posting notable gains in the first three months of 2025, the energy sector witnessed significant declines in April, primarily due to the ongoing global trade war sparked by President Trump's tariffs and the prospects of an economic slowdown. The overall energy sector has now slid by around 3.8% since the beginning of the year, against a decline of about 5.8% by the wider market. Unsurprisingly, the downturn is led by the oil and gas sector, which has fallen by over 15% YTD. READ ALSO: 11 Best Solar Energy Stocks to Buy According to Hedge Funds The primary reason behind this fall is the declining global price of crude oil, caused by the continued uncertainty surrounding global trade, demand fears, and the recent decision by OPEC+ to increase supply. The West Texas Intermediate crude price is currently hovering at a multi-year low level of just under $62, down by over 25% YoY. To make matters worse, the International Energy Agency recently cut its 2025 oil demand growth forecast by 300,000 barrels per day compared to last month, warning the world to 'buckle up' amid the escalating trade tensions. That said, there are sectors in the energy industry that are still significantly bullish, with liquified natural gas being a prime example. The United States of America is already the largest LNG exporter in the world, with exports growing consistently over the last decade. Still, the industry continues to boom after it received significant support from the Trump administration, which has made boosting America's fossil fuel sector its primary agenda. According to Wood Mackenzie, 15.5 million tons per annum (MTPA) of long-term LNG offtake contracts were signed in the first quarter of 2025, following a record 81 MTPA last year. These numbers are expected to spike in the coming months after more and more countries are looking to export American LNG to narrow their trade gap with the US, following a tariff threat by the White House. Another important growth driver for the energy sector is the ongoing AI boom and its accompanying power-hungry data centers. According to a study by the American Clean Power Association, electricity demand in the US is expected to surge by 35-50% by 2040, driven by domestic manufacturing growth, data centers, and mass electrification. A primary candidate to satisfy this huge demand is natural gas, which is clean, reliable, and abundant. According to energy data provider Enverus, a total of 80 new gas power plants could be constructed in America by the end of the decade. That said, natural gas is not as cheap as it was a year ago, as prices have surged by around 36.6% over the last 52 weeks. Another important candidate is nuclear energy, which has emerged as a hot topic these days, especially after several tech giants met on the sidelines of the CERAWeek conference in Houston and signed a pledge to support the goal of at least tripling the world's nuclear energy capacity by 2050. A number of these companies have already signed contracts with nuclear energy providers to power their data centers, with Jeff Bezos' online retail giant being a primary example. A close-up of a wellhead, showing off the company's production of oil and natural gas. To collect data for this article, we examined companies operating in the energy sector and then compiled a list of the stocks with the highest upside potential according to Wall Street analysts, as of April 28, 2025. To keep our list relevant, we have only included companies with a market cap of $10 billion and above. The following are the Energy Companies with the Highest Upside Potential. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here). Upside Potential as of April 28: 44.29% Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company with operations focused in the Permian Basin. The company's assets are concentrated in the core of the Delaware Basin. Permian Resources Corporation (NYSE:PR) successfully closed its $818 million acquisition of Barilla Draw last year, adding about 24,000 boe/d to its output. The deal also expanded the company's footprint by about 27,500 net acres in the Permian Basin, which is the largest shale oil belt in the world. As a result, PR's oil production in FY 2024 shot up by almost 64% YoY, while its overall production surged by a hefty 77.1%. Permian Resources Corporation (NYSE:PR) reported an adjusted EPS of $0.36 in Q4 2024, beating expectations by $0.02. However, the company's revenue of $1.3 billion slightly fell short of estimates by $1.83 million, despite growing by 15.44% YoY. PR's cash flow from operations stood at $3.4 billion during the quarter, while its adjusted free cash flow came in at $1.4 billion. As a result, the company ended the year with total liquidity of $3 billion, up $1 billion from 2023. It also declared a quarterly dividend of $0.15 per share and currently maintains a strong dividend yield of 5.73%. Overall, PR ranks 6th on our list of the top energy companies with the highest upside potential. While we acknowledge the potential of PR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Permian Resources Corporation (PR): Among Stocks with Consistent Growth to Buy Now
We recently published a list of . In this article, we are going to take a look at where Permian Resources Corporation (NYSE:PR) stands against stocks with consistent growth to buy now. The market is clouded by friction between trading partners. But even at these uncertain times, one investment strategy remains remarkably consistent: betting on growth. Investors are consistently drawn toward companies that have demonstrated a solid long-term expansion in revenue and earnings. The mechanism behind this is simple: stocks with stable growth offer the potential for compounding returns over time in low-rate environments. Lately, however, the stocks have done more than just show potential. They are leading the market. READ ALSO: and . On April 22, 2025, the market indices surged by 2.5%, contributed by renewed confidence in the ability of high-growth equities to endure the market uncertainty. As per a report from CNBC, confidence emerged after the de-escalation of tensions in U.S. monetary policy. Recent political developments have detoured the market sentiment towards further interest rate cuts by the Federal Reserve. President Trump has backed off from his threats towards the Fed Chair Jerome Powell. However, he firmly believes that the Fed should be more aggressive in lowering interest rates. When this belief was put in words, an immediate surge was noticed in the equity index futures, suggesting the high sensitivity of the market policy cues, particularly when it comes to growth potential. Investors took the cue seriously, pricing in three interest rate cuts by the end of 2025. For growth-oriented companies, the lower borrowing costs can be favorable, specifically if they are in their early to mid-stages of expansion, since capital costs can be reduced and earnings multiples can be improved. Also, with inflationary pressures still in check and the global economic activity indicating resilience, the macroeconomic environment favors growth investing. It shows that the current climate supports equities positioned for sustained performance instead of short-term valuation plays. Not just today, but growth stocks have historically proven their worth in the market for over three decades. These stocks have surpassed their value counterparts in performance, even after considering the major downturns. During economic volatility or even political flux, investors seek clarity. And the provider of such clarity or edge is the growth equities. These companies often reinvest profits and innovate rapidly to achieve more market share. Though they may not always deliver dividends, they reward investors through capital appreciation. During the recovery phases, investors desire such appreciation, which comes in addition to the safety of the investment. As CNBC's recent coverage notes, recoveries are initiated in the form of bear market rallies, and the investors capable of identifying early movers in such cycles typically come out ahead. That said, selectivity is the key. Investors must understand that not all growth is created equal. Every rally does not signal a lasting trend. And it is here that our article gains its value. We have identified 11 stocks that have consistently delivered. It is not just the quarterly earnings or media buzz we focused on, but also the years of disciplined execution and strategic expansion. So, if you are looking for clarity amid the noise, you are in the right place. We followed a few criteria when compiling our list of 11 stocks with consistent growth that investors may want to buy. Primarily, we looked into the growth of each stock for the past five years. We did not include any stock with negative growth. Additionally, we narrowed our picks by selecting only those stocks that have been consistently growing throughout the past 5 years. This ensures that all our picks have solid historical data to support capital appreciation further into the future. Finally, we ranked our picks using the stocks' average growth rate in returns in the past five years. All the data used in this article were taken from financial news, databases, and analyst reports, with all information updated as of April 23, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a wellhead, showing off the company's production of oil and natural gas. An independent upstream energy company, Permian Resources Corporation (NYSE:PR), is focused on exploring, developing, and producing oil and natural gas assets within the Delaware Basin. The Texas-based company emerged from the merger of Centennial Resource Development and Colgate Energy. This leading pure-play operator competes with players like Diamondback Energy and accumulates market share by achieving differentiation through low-cost operations, contiguous acreage, and strong free cash flow generation in core zones. With an astonishing 388.65% growth average, Permian Resources Corporation (NYSE:PR) tops our list of best stocks with consistent growth. The fourth quarter of 2024 saw production rise to 171,000 barrels of oil daily. Additionally, the company has managed to increase the free cash flow per share by 50% compared to the previous year of 2023. Approximately $1.2 billion worth of acquisitions carried out in 2024 have helped replace drilled inventory with high-return assets, which is expected to increase the revenue flow in 2025. The anticipated production flow for the same year is between 170,000 and 175,000 barrels of crude oil per day (bpd) and between 360,000 and 380,000 barrels of oil equivalent per day. Held by 54 hedge funds, institutional confidence in NVIDIA Corporation (NASDAQ:NVDA)'s value, prompted by operational efficiency in the U.S.'s richest basin, remains strong. With dependable upward movement, the consistent stock growth is a magnet for energy-focused investors. Overall, PR ranks 1st on our list of stocks with consistent growth to buy now. While we acknowledge the potential of PR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PR but trades at less than 5 times its earnings check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
