Top 12 Oil and Gas Stocks To Invest In According to Hedge Funds

7. Permian Resources Corporation (NYSE:PR) 

Number of Hedge Fund Holders: 56

Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company focused on the development of unconventional oil and associated liquid-rich natural gas reserves in the Permian basin.

Permian Resources Corporation (NYSE:PR) reported a strong Q3 2024 with a revenue of $1.22 billion, up by a staggering 60% YoY and even beating the analysts’ estimates by over $937,000. The Texas-based company also posted an adjusted operating cash flow of $823 million and an adjusted free cash flow of $303 million. Moreover, it ended the quarter with over $272 million available in cash and cash equivalents, significantly up from $73.3 million at the end of 2023. The strong cash reserves have enabled Permian Resources to announce a quarterly base dividend of $0.15 per share, a 150% increase compared to the prior quarter. Thanks to these encouraging results, the company has increased its full year production guidance for the third consecutive quarter.

During the quarter, Permian Resources Corporation (NYSE:PR) successfully closed its Barilla Draw bolt on acquisition and continued driving operational efficiencies, which translates into improved capital efficiency and strong free cash flow generation. It was also announced in December that Permian Resources has agreed to sell its natural gas and oil gathering systems in the Permian’s Delaware sub-basin of West Texas to Kinetik Holdings Inc. for a hefty sum of $180 million. The deal is expected to lead to more sales tied to Gulf Coast prices.

Following an impressive Q3, Aristotle Capital Boston, LLC, stated the following about Permian Resources Corporation (NYSE:PR) in its Q3 investment 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.”

56 hedge funds tracked by IM held positions in Permian Resources Corporation (NYSE:PR) at the end of Q3 2024, up from 51 in the previous quarter.