10 Best Undervalued Energy Stocks To Buy According to Hedge Funds

6. Permian Resources Corporation (NYSE:PR)

Number of Hedge Fund Investors: 56

Forward P/E Ratio as of December 16: 10.60

Permian Resources Corporation (NYSE:PR) specializes in oil and gas exploration and production in the Permian Basin, one of the most productive energy regions in the United States. The company’s customer base includes refiners, industrial users, and utility companies. Permian Resources Corporation (NYSE:PR) focuses on horizontal drilling and advanced completion techniques to maximize well performance.

Permian Resources Corporation (NYSE:PR) continues to drive operational efficiencies and cost reductions, which are central to its growth strategy. In Q3, the company achieved record drilling times and increased pumping hours per day, which led to a 15% reduction in cost per foot, translating to over $1 million in savings per well. Permian Resources Corporation (NYSE:PR) has also been proactive in expanding its asset base through strategic acquisitions. In Q3, the company successfully closed the Barilla Draw acquisition, which will add 9,900 net royalty acres to the company’s footprint in the Permian Basin and is expected to increase production by about 15,000 barrels of oil equivalent per day.

Permian Resources Corporation (NYSE:PR) is also one of the largest natural gas producers in the Permian Basin, producing approximately 600 million cubic feet of residue gas per day. The company is actively exploring ways to maximize the value of its natural gas production, including increasing the volume of gas sold at the Gulf Coast, which currently stands at about 50% of total gas sales. The company is also exploring the use of natural gas for power operations, recognizing the potential demand implications of increasing power demand, particularly in the Permian Basin.