1. Permian Resources Corporation (NYSE:PR)
5-Year Revenue CAGR: 39.60%
Number of Hedge Fund Holders: 56
Permian Resources Corporation (NYSE:PR) is a leading independent oil and natural gas company based in Midland, Texas, primarily focused on the acquisition and development of oil and liquids-rich natural gas assets in the Permian Basin. As the second-largest pure-play exploration and production company in this region, Permian Resources Corporation (NYSE:PR) has established a strong foothold in the lucrative Delaware Basin.
In the third quarter of 2024, the company showcased impressive operational efficiency, reducing drilling and completion costs to $800 per lateral foot, a 16% decrease from the previous year. This reduction, coupled with a 16% decrease in drilling cycle times and a 19% increase in completion crew pump hours per day, reflects the Permian Resources Corporation’s (NYSE:PR) commitment to optimizing its operations. Such efficiencies not only lower costs but also enhance profitability, making it an attractive investment option.
On September 17, 2024, Permian Resources Corporation (NYSE:PR) completed the acquisition of the Barilla Draw assets, which added around 29,500 net acres to its portfolio. This strategic move is expected to contribute significantly to production, with the acquired properties already yielding approximately 2 MBoe/d during the third quarter. Additionally, the company has been actively pursuing smaller grassroots acquisitions, adding about 460 net acres during the third quarter.
On December 10, Permian Resources Corporation (NYSE:PR) announced that it has agreed to sell its natural gas and oil gathering systems in Reeves County, Texas, to Kinetik Holdings for $180 million. This divestiture of a non-core asset, expected to close in the first quarter of 2025, aims to streamline operations and drive value for investors. With its strong operational improvements and strategic acquisitions, Permian Resources Corporation (NYSE:PR) presents a compelling case.
Aristotle Capital Boston, LLC stated the following regarding Permian Resources Corporation (NYSE:PR) in its “Small/Mid Cap Equity Strategy” third quarter 2024 investor letter:
“Permian Resources Corporation (NYSE:PR) is a Texas-based oil & gas exploration & production company with a large acreage position and deep inventory of high return potential drilling locations in the core of the Permian Basin. We expect management to continue to execute on its strategy of optimizing returns, diligently allocating capital to new opportunities, and returning excess capital to shareholders.”
Overall, PR ranks first among the 10 high-growth energy stocks to invest in. While we acknowledge the potential of energy companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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