What Does KeyBanc Think About Permian Resources (PR) After Initiating at Overweight?

Permian Resources Corporation (NYSE:PR) is one of the must-buy US stocks to buy right now. On April 7, KeyBanc analyst Tim Rezvan initiated coverage on Permian Resources Corporation (NYSE:PR) with an Overweight rating and a $25 price target. The analyst expressed confidence in the company’s outlook as oil prices stay elevated.

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A big part of Rezvan’s conviction rests on management’s track record since the 2022 merger of Centennial and Colgate that created the current Permian Resources. He acknowledged that early skepticism about the company’s two young co-CEOs turned out to be unwarranted. In fact, he credited them with rolling out an effective growth strategy while keeping debt levels low.

On the balance sheet, Rezvan highlighted that Permian Resources has kept leverage below 1x since mid-2024. He noted that the company is in the process of transitioning to investment-grade debt, which is a move that positions it to improve natural gas realizations and lower its cost of debt capital going forward.

The analyst also noted that Permian Resources has also been actively building its asset base through acquisitions. Rezvan backs this strategy and expects 2026 to be another active year for deal-making. He noted that growing inventory scarcity across the Permian Basin makes ground-game acquisitions increasingly important for sustaining long-term production growth.

Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company. It focuses on the exploration and production of hydrocarbons. It develops and produces crude oil, natural gas liquids, and natural gas from its acreage positions primarily in the Delaware Basin, part of the Permian Basin in West Texas and New Mexico.

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