# Permian Resources (PR.US)

Canonical: https://gigainvestors.com/s/PR

Analysis as of: 2026-10-16T07:31:18.120Z. Financial observations: FY2016–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $23.61 per share; close as of 2026-10-15.

Estimated value: low $11.45 per share, central $13.02 per share, high $15.12 per share. Buy at or below the central value $13.02 per share. Valuation as of 2026-10-16T07:31:18.120Z; scenarios are not confidence intervals.

Expected annual return: 6.8% at the stated quote. About 6.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 3.33×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.27×

- FY2018: 0.32×

- FY2019: 0.08×

- FY2020: -1.34×

- FY2021: 0.36×

- FY2022: 0.47×

- FY2023: 0.35×

- FY2024: 0.35×

- FY2025: 0.29×

- LTM to Jun 2026: 0.38×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 13.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 7.2%

- ROIC, second-lowest year: -7.6%

- Typical minus recent gross margin: 13.2 pp

- Typical gross margin (annual median): 46.0%

- Recent gross margin (lower of latest and 3-year median): 32.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 61.3%

- ROIC including acquisitions, ten-year median: 3.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -7.6%

- FY2017: 2.7%

- FY2018: 5.9%

- FY2019: 1.4%

- FY2020: -16.8%

- FY2021: 10.3%

- FY2022: 17.1%

- FY2023: 9.2%

- FY2024: 10.8%

- FY2025: 8.5%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.78×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.4B

- Net income, five-year total: $3.0B

- Return on incremental invested capital: 20.5%

- Working capital / revenue, annual change: 1.2 pp

- Working capital / revenue, change between three-year averages: 8.2 pp

- Working capital / revenue, final three-year average: 12.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 0.29×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 2.7% vs 9.2%

- Per-share earnings: 0.32 to 1.28 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 21.4%

- Market cap gain: $7.3B

- Cumulative retained earnings: $1.6B

- Diluted shares, 5-year annual growth: 21.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 22.2%

- Per-share value change: $0.96

- Per-share value, starting three-year median: $0.32

- Per-share value, ending three-year median: $1.28

- Buybacks concentrated in cheaper years (correlation): 0.45

- Average buyback yield: 0.6%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $537M

- Cumulative net income, 10 years: $2.4B

- ROIC, first three-year median: 2.7%

- ROIC, last three-year median: 9.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$1.37

- FY2017: $0.32

- FY2018: $0.75

- FY2019: $0.06

- FY2020: -$2.46

- FY2021: $0.45

- FY2022: $1.60

- FY2023: $1.22

- FY2024: $1.44

- FY2025: $1.28

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -14.7%

- Receivables to sales index (DSRI): 1.56×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 2.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.86×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.9%

- FY2017: -5.1%

- FY2018: -11.0%

- FY2019: -11.7%

- FY2020: -22.3%

- FY2021: -10.2%

- FY2022: -10.1%

- FY2023: -11.6%

- FY2024: -14.4%

- FY2025: -14.7%

## Holders

- [Arnold Van Den Berg](https://gigainvestors.com/VAN): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 8.4% a year for ten years · sales +13.3%

Story as of 2026-10-16T09:59:25.995Z; price observation 2026-10-15.

Price needs cash profits to grow 8.4% a year for ten years

- 2025-08-11: Permian Resources Q2 Earnings Decline Y/Y on Increased Expenses ([finance.yahoo.com](https://finance.yahoo.com/news/permian-resources-q2-earnings-decline-121900698.html))

- 2025-11-05: Permian Resources Announces Strong Third Quarter 2025 Results and Increased Full Year Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/permian-resources-announces-strong-third-210600428.html))

- 2026-08-12: Permian Resources Beats Q2 Earnings on Strong Price Realizations ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/permian-resources-beats-q2-earnings-155400675.html))

### Sales · FY2025–2026

sales +13.3%; source https://www.sec.gov/Archives/edgar/data/1658566/000165856626000035/pr-20251231.htm; observed 2026-02-26.

- FY2017: $430M 

- FY2018: $891M 

- FY2019: $944M 

- FY2020: $580M 

- FY2021: $1.0B 

- FY2022: $2.1B 

- FY2023: $3.1B 

- FY2024: $5.0B 

- FY2025: $5.1B 

- FY2026: $5.7B 

### Gross margin · FY2025

gross margin 32.7%; source https://www.sec.gov/Archives/edgar/data/1658566/000165856626000035/pr-20251231.htm; observed 2026-02-26.

- FY2017: 44.8% 

- FY2018: 47.5% 

- FY2019: 29.8% 

- FY2020: 7.1% 

- FY2021: 53.3% 

- FY2022: 66.5% 

- FY2023: 52.9% 

- FY2024: 47.1% 

- FY2025: 32.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas e&p; annual sales are USD 5.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1658566/000165856626000035/pr-20251231.htm (filed 2026-02-26); FY2025: revenue 5065211000; grossProfit 1657185000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 32.7% to 52.9% during 2023–25; it earns 7.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 52.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 47.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1658566/000165856626000035/pr-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 32.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,-0.07603361279461734],[2017,0.027026686982099993],[2018,0.05865532665896238],[2019,0.013594262382922991],[2020,-0.1679111760638324],[2021,0.10297575734952778],[2022,0.17064293515613443],[2023,0.09155690475938622],[2024,0.10849913530305169],[2025,0.08454729069378267]]; median 0.07160130867637252. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 87.3% of cash earnings; earns 20.5% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 845267000; upkeep 161628000; owner earnings 75568000. Growth capex / owner earnings = 11.185515032818124.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 890351000; upkeep 326462000; owner earnings 199899000. Growth capex / owner earnings = 4.454004272157439.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 523476000; upkeep 444243000; owner earnings 15798000. Growth capex / owner earnings = 33.13558678313711.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 37929000; upkeep 289122000; cash acquisitions 0; owner earnings 138175000. Growth capex plus acquisitions / owner earnings = 0.27449972860502986.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 339320000; upkeep 444678000; cash acquisitions 496671000; owner earnings 515037000. Growth capex plus acquisitions / owner earnings = 1.6231668792727514.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 786094000; upkeep 1007576000; cash acquisitions 39832000; owner earnings 476306000. Growth capex plus acquisitions / owner earnings = 1.734023925795602.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 1343967000; upkeep 1776673000; cash acquisitions 0; owner earnings 984701000. Growth capex plus acquisitions / owner earnings = 1.3648478065930674.

- Source: https://www.sec.gov/Archives/edgar/data/1658566/000165856626000035/pr-20251231.htm (filed 2026-02-26); FY2025: growth capex 234967822.80065536; upkeep 2815187177.1993446; cash acquisitions 0; owner earnings 269127795.27814186. Growth capex plus acquisitions / owner earnings = 0.8730715553100623.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Incremental return on capital 0.20511484875792585, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,14426000],[2020,14426000],[2021,132000],[2022,14426000],[2023,141947000],[2024,466915000],[2025,447714000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1658566/000165856626000035/pr-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 73700000 USD.

### Are managers owners

Insiders own 4.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PR.US SharesStats.PercentInsiders = 4.6080000000000005 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.10733632677476368. Price 23.61; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $14.85 per share

- 2016-11: $18.20 per share

- 2016-12: $19.72 per share

- 2017-01: $18.27 per share

- 2017-02: $18.81 per share

- 2017-03: $18.23 per share

- 2017-04: $16.49 per share

- 2017-05: $15.59 per share

- 2017-06: $15.82 per share

- 2017-07: $16.78 per share

- 2017-08: $17.29 per share

- 2017-09: $17.97 per share

- 2017-10: $19.43 per share

- 2017-11: $20.29 per share

- 2017-12: $19.80 per share

- 2018-01: $20.41 per share

- 2018-02: $19.08 per share

- 2018-03: $18.35 per share

- 2018-04: $18.50 per share

- 2018-05: $17.60 per share

- 2018-06: $18.06 per share

- 2018-07: $17.96 per share

- 2018-08: $19.27 per share

- 2018-09: $21.85 per share

- 2018-10: $19.16 per share

- 2018-11: $15.52 per share

- 2018-12: $11.02 per share

- 2019-01: $13.17 per share

- 2019-02: $9.07 per share

- 2019-03: $8.79 per share

- 2019-04: $10.53 per share

- 2019-05: $7.90 per share

- 2019-06: $7.59 per share

- 2019-07: $5.95 per share

- 2019-08: $4.82 per share

- 2019-09: $4.52 per share

- 2019-10: $3.40 per share

- 2019-11: $3.09 per share

- 2019-12: $4.62 per share

- 2020-01: $3.26 per share

- 2020-02: $2.37 per share

- 2020-03: $0.26 per share

- 2020-04: $1.18 per share

- 2020-05: $1.01 per share

- 2020-06: $0.89 per share

- 2020-07: $0.79 per share

- 2020-08: $0.73 per share

- 2020-09: $0.60 per share

- 2020-10: $0.62 per share

- 2020-11: $1.18 per share

- 2020-12: $1.50 per share

- 2021-01: $2.34 per share

- 2021-02: $3.96 per share

- 2021-03: $4.20 per share

- 2021-04: $4.24 per share

- 2021-05: $5.29 per share

- 2021-06: $6.78 per share

- 2021-07: $5.21 per share

- 2021-08: $5.10 per share

- 2021-09: $6.70 per share

- 2021-10: $7.20 per share

- 2021-11: $6.23 per share

- 2021-12: $5.98 per share

- 2022-01: $7.81 per share

- 2022-02: $8.78 per share

- 2022-03: $8.07 per share

- 2022-04: $7.74 per share

- 2022-05: $7.94 per share

- 2022-06: $5.98 per share

- 2022-07: $6.66 per share

- 2022-08: $8.23 per share

- 2022-09: $6.80 per share

- 2022-10: $9.77 per share

- 2022-11: $10.16 per share

- 2022-12: $9.40 per share

- 2023-01: $10.87 per share

- 2023-02: $10.81 per share

- 2023-03: $10.50 per share

- 2023-04: $10.45 per share

- 2023-05: $9.33 per share

- 2023-06: $10.96 per share

- 2023-07: $11.69 per share

- 2023-08: $14.18 per share

- 2023-09: $13.96 per share

- 2023-10: $14.57 per share

- 2023-11: $13.14 per share

- 2023-12: $13.60 per share

- 2024-01: $13.48 per share

- 2024-02: $15.56 per share

- 2024-03: $17.66 per share

- 2024-04: $16.75 per share

- 2024-05: $16.39 per share

- 2024-06: $16.15 per share

- 2024-07: $15.34 per share

- 2024-08: $14.24 per share

- 2024-09: $13.61 per share

- 2024-10: $13.63 per share

- 2024-11: $15.66 per share

- 2024-12: $14.38 per share

- 2025-01: $14.65 per share

- 2025-02: $14.09 per share

- 2025-03: $13.85 per share

- 2025-04: $11.80 per share

- 2025-05: $12.61 per share

- 2025-06: $13.62 per share

- 2025-07: $14.16 per share

- 2025-08: $14.29 per share

- 2025-09: $12.80 per share

- 2025-10: $12.56 per share

- 2025-11: $14.49 per share

- 2025-12: $14.03 per share

- 2026-01: $16.13 per share

- 2026-02: $18.29 per share

- 2026-03: $21.32 per share

- 2026-04: $21.62 per share

- 2026-05: $19.23 per share

- 2026-06: $18.41 per share

- 2026-07: $21.31 per share

- 2026-08: $23.29 per share

- 2026-09: $21.12 per share

- 2026-10: $23.61 per share

## Annual estimated value (USD per share)

- FY2020: low $0.38 per share, central $0.44 per share, high $0.51 per share

- FY2021: low $4.87 per share, central $5.54 per share, high $6.43 per share

- FY2022: low $9.72 per share, central $11.05 per share, high $12.83 per share

- FY2023: low $11.78 per share, central $13.40 per share, high $15.56 per share

- FY2024: low $12.62 per share, central $14.30 per share, high $16.54 per share

- FY2025: low $11.62 per share, central $13.21 per share, high $15.34 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1658566/000165856626000035/pr-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.