What Makes Permian Resources Corporation (PR) an Investment Bet?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The growth stock trade that had driven U.S. stocks higher since late 2022 came undone in the first quarter of 2025. In the quarter, the fund’s Investor Class fund ARTQX returned -1.03%, Advisor Class fund APDQX posted a return of – 0.97%, and Institutional Class fund APHQX returned -0.97%, compared to a -2.11% return for the Russell Midcap Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Artisan Mid Cap Value Fund highlighted stocks such as Permian Resources Corporation (NYSE:PR). Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company. The one-month return of Permian Resources Corporation (NYSE:PR) was 11.86%, and its shares lost 13.30% of their value over the last 52 weeks. On June 3, 2025, Permian Resources Corporation (NYSE:PR) stock closed at $13.30 per share with a market capitalization of $10.64 billion.

Artisan Mid Cap Value Fund 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.”

A worker inspecting a state-of-the-art rig in the Permian Basin region.

Permian Resources Corporation (NYSE:PR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Permian Resources Corporation (NYSE:PR) at the end of the first quarter, which was 54 in the previous quarter. While we acknowledge the potential of Permian Resources Corporation (NYSE: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 timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Permian Resources Corporation (NYSE:PR) and shared the list of cheap energy stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.