7 Best Cheap Energy Stocks to Invest in Now

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1. Permian Resources Corporation (NYSE:PR)

Number of Hedge Fund Holders: 54

P/E Ratio: 8.48

Permian Resources Corporation (NYSE:PR) stands as a top independent oil and natural gas producer focused on developing premium assets in the Delaware Basin. For the quarter ending December 31, 2024, the company achieved record production levels, averaging 368,000 barrels of oil equivalent per day. This strong output, paired with a sharp focus on cutting costs, led to an adjusted operating cash flow of $904 million and an adjusted free cash flow of $400 million.

Permian Resources Corporation (NYSE:PR) also declared a quarterly base dividend of $0.15 per share, showing its commitment to returning value to shareholders. Permian Resources also completed mergers throughout 2024, worth $1.2 billion, adding 50,000 net acres and about 20,000 BOE/d of output across its Delaware Basin holdings. Remarkably, the company cut well costs by 20% in comparison to 2023, with over half the savings coming from structural efficiency gains.

Looking toward 2025, Permian Resources Corporation (NYSE:PR) expects total production to range from 300,000 to 380,000 BOE/d, with oil output expected to reach between 170,000 and 175,000 barrels per day. The company plans to spend roughly $2 billion in capital investment while keeping a solid balance sheet, aiming for a leverage ratio of 0.5x by year-end.

By focusing on cost leadership, smart acquisitions, and careful capital use, Permian Resources keeps generating strong free cash flow and driving long-term shareholder value, making it one of the most appealing and low-cost energy stocks to buy.

Overall Permian Resources Corporation (NYSE:PR) ranks first on our list of the Best Cheap Energy Stocks to Invest in Now. While we acknowledge the potential of PR, our conviction lies in the belief that certain 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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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