11 Stocks That Will Go to the Moon According to Reddit

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5. Permian Resources Corp. (NYSE:PR)

Upside Potential as of March 3: 41.94%

Number of Hedge Fund Holders: 54

Permian Resources Corp. (NYSE:PR) is an independent oil and natural gas company. It specializes in developing crude oil and liquids-rich natural gas reserves within the Delaware Basin, which is a key part of the Permian Basin. It focuses on maximizing production from its extensive acreage.

The company’s Delaware Basin drilling program is driving its growth. In Q4 2024, its oil production was 171,000 barrels per day, and total production was 368,000 barrels of oil equivalent (BOE) per day. It drilled 275 wells in 2024. For 2025, the total production is expected to average 300,000 to 380,000 BOE per day, with oil production between 170,000 and 175,000 barrels per day. The 2025 capital program is ~$2 billion, with 85 wells planned.  The company also completed $1.2 billion in acquisitions in 2024, and added 50,000 net acres and 20,000 BOE per day.

Permian Resources Corp. (NYSE:PR) intends to keep pursuing acquisitions that increase its value. For 2025, it has locked in prices for roughly 25% of its oil production at $73 per barrel. It can still generate free cash flow after paying dividends even if oil prices drop to around $40 per barrel. Looking at its overall growth, the company anticipates that between 2023 and 2025, its production adjusted for debt will increase by about 50%, and its free cash flow per share will almost double.

Aristotle Small/Mid Cap Equity Strategy stated the following regarding Permian Resources Corp. (NYSE:PR) in its Q3 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.”

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