Permian Resources Corporation (NYSE:PR) is one of the 12 Best Natural Gas Stocks to Buy According to Analysts.
Permian Resources Corporation (NYSE:PR) recently announced that it has completed the acquisition of Delaware Basin leasehold and royalty interests from APA Corporation. The $608 million deal, which was first announced earlier this year, includes approximately 12 Boe a day, 13,320 net acres, and 8,700 net royalty acres in Eddy and Lea counties, New Mexico.
A close-up of a wellhead, showing off the company’s production of oil and natural gas.
Moreover, due to the strong well productivity combined with high NRIs and low development costs, these acquired locations have a breakeven price of as low as $30 per barrel. Permian Resources expects the deal to generate in excess of 5% free cash flow per share accretion in the near-term, midterm, and long-term.
With approximately 450,000 net acres following this strategic acquisition, Permian Resources Corporation (NYSE:PR) is one of the largest pure-play exploration and production companies in the Permian Basin.
The share price of Permian Resources Corporation (NYSE:PR) has surged by an eye-watering 1,500% over the last five years.
Artisan Partners stated the following regarding Permian Resources Corporation (NYSE:PR) in its Q1 2025 investor letter:
“We made one new purchase this quarter, adding Permian Resources Corporation (NYSE:PR), an independent oil and gas company. PR is focused solely on the Delaware Basin of West Texas and southwestern New Mexico—the most prolific oil-producing region in the US. The founders and co CEOs, who also have large ownership interests in the business, have sought to build a business that can produce substantial free cash flow, return capital to shareholders and generate attractive equity returns across varied commodities price environments. To achieve these goals, PR has pursued best-in-class operations and responsible capital stewardship by thoughtfully acquiring assets it believes are undervalued and divesting acreage it believes would be better in someone else’s hands, while meaningfully returning capital to shareholders in the form of dividends. We always seek to align ourselves with shareholder-oriented management teams, but this is even more critical when investing in mid-sized energy companies given their dependence on the underlying commodity prices and minimal diversification by business and geography as well as the sector’s general predilection for reinvesting capital for growth rather than returns. Shares were rangebound for much of 2024 as macro fears have weighed on oil prices and energy sector stocks, giving us an opportunity to purchase a strong operator at a favorable price.”
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.
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