William Blair Initiates Coverage on Permian Resources (PR) Stock With a Buy

Permian Resources Corporation (NYSE:PR) is one of the Best Oil and Gas Stocks to Buy According to Analysts. On August 25, William Blair initiated coverage on the company’s stock with a “Buy” rating. The firm’s rating is backed by a combination of factors that showcase Permian Resources Corporation (NYSE:PR) as a high-quality mid-cap exploration and production company. It has exhibited efficient operations with a healthy balance sheet and has been successful in strategically growing the assets, added the firm analyst.

Furthermore, the firm believes that Permian Resources Corporation (NYSE:PR) possesses a low breakeven cost and high FCF per barrel, indicating its operational efficiency and financial health. Permian Resources Corporation (NYSE:PR) maintains a healthy FCF position, helping a sustainable dividend and stock repurchase program. With several potential growth catalysts and valuation suggesting room for upside, the firm sees the company as a compelling investment opportunity. In Q2 2025, the company declared a base dividend of $0.15 per share and announced cash capital expenditures of $505 million.

Artisan Partners, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“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.”

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