12 Most Promising Energy Stocks According to Analysts

3) Permian Resources Corporation (NYSE:PR)

Average Upside Potential: 37.6%

Number of Hedge Fund Holders: 56

Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company, which is focused on the development of crude oil and related liquids-rich natural gas reserves. Wells Fargo analyst Hanwen Chang maintained a bullish stance on the company’s stock, providing a “Buy” rating. This rating stems from Permian Resources Corporation (NYSE:PR)’s healthy operational performance and efficiency improvements. It is anticipated to post strong financial results in Q4 2024, with a strong emphasis on improved capital efficiency and potential M&As.

The analyst’s modeling adjustments for Permian Resources Corporation (NYSE:PR) demonstrate increased commodity price realizations and reduced operating expenses, favourably affecting its estimated FCF generation for 2025. The company’s ability to sustain its production levels and reduce capex plays a critical role, together with acquisition opportunities in the broader market. Permian Resources Corporation (NYSE:PR) has entered into a definitive agreement to sell natural gas and oil gathering systems mainly located in Reeves County, Texas to Kinetik Holdings Inc.

The divestiture has been done at a price that is accretive over the short and long term, streamlining its business and driving value. TimesSquare Capital Management, an equity investment management company, released its Q3 investor letter. Here is what the fund said:

“We often see the ebb and flow of the Energy sector tied to underlying commodity prices. In this area, we seek low-cost exploration & production companies with high-yielding acreage or specialized service providers. Permian Resources Corporation (NYSE:PR), an exploration and production company with operations in the Delaware Basin of West Texas, slipped by -15%. While second quarter profits and free cash flow were above sell-side projection, oil production and capital expenditures were only in line. Of note, oil prices fell by roughly -16% during the third quarter. Management continues to drive drilling and completion efficiencies, the bulk of which are associated with faster drilling and completion times.”