PR Earnings Prediction
The chart below shows how PR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PR sees a +2.94% change in stock price 10 days leading up to the earnings, and a +3.85% change 10 days following the report. On the earnings day itself, the stock moves by -1.26%. This data can give you a slight idea of what to expect for the next quarter's release.
PR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.30B
15.44%
6.62%
Gross Margin
40.82%
-15.21%
-0.20%
Operating Margin
32.98%
-20.43%
1.20%
Net Margin
19.71%
-46.37%
-47.52%
EPS
0.29
-43.14%
-45.28%
No Data Available
PR Earnings Analysis
Permian Resources Corp Corporation (PR.N) Earnings Conference Call
Positive
Record Production and Cash Flow: Record quarter in both production and free cash flow per share in Q4 2024, demonstrating strong business performance.
Free Cash Flow Surge: Nearly 50% increase in free cash flow per share compared to 2023, achieved without increasing leverage.
Production Exceeds Expectations: Q4 production exceeded expectations with oil production of 171,000 barrels per day and total production of 368,000 barrels of oil equivalent per day.
High-Level Drilling Performance: D&C team executed at a high level, leading to 275 wells drilled in 2024, with CapEx remaining within original guidance of $1.9 billion to $2.1 billion.
Cost Management Efficiency: Leading cash costs with Q4 LOE of $5.42 per BOE, cash G&A of $0.93 per BOE, and GP&T of $1.49 per BOE, supporting strong margins.
Liquidity Improvement: Increased liquidity by approximately $1 billion during 2024, maintaining a strong financial position with no change in leverage.
Strategic Acquisitions and Growth: Executed approximately $1.2 billion in acquisitions, adding 50,000 net acres and 20,000 barrels of oil equivalent per day, enhancing inventory.
Cost Reduction Efficiency: Reduced costs by over $300 per lateral foot compared to prior operators, showcasing operational efficiency.
Production Forecast 2025: Expecting total production to average between 360,000 and 380,000 BOE per day in 2025, with an 8% increase in annual oil production compared to 2024.
Leverage Management Strategy: Maintained leverage at 1 times through 2024 while executing significant acquisitions, with expectations to exit 2025 at approximately 0.5 times leverage.
Dividend Yield Achievement: Achieved a base dividend yield of over 4%, highlighting the value of Permian Resources stock.
Free Cash Flow Sustainability: Post-dividend free cash flow breakeven down to approximately $40, indicating sustainability of the business plan.
Negative
Lowered Production Guidance: Production guidance for 2025 is lower than expected, with total production averaging between 360,000 and 380,000 BOE per day, which is only an 8% increase compared to 2024.
Rising Controllable Cash Costs: Controllable cash costs are expected to rise to approximately $7.75 per BOE, which may impact margins despite being competitive in the industry.
Acquisition Strategy and Risks: The company executed $1.2 billion in acquisitions, which, while beneficial, could lead to integration challenges and potential financial strain if not managed effectively.
Commodity Price Vulnerability: Despite a strong financial position, the company is still heavily reliant on commodity prices, with approximately 25% of crude oil hedged at $73, indicating vulnerability to price fluctuations.
Leverage Ratio Impact on Growth: The focus on maintaining a low leverage ratio, while prudent, may limit the company's ability to invest aggressively in growth opportunities compared to competitors with higher leverage.
M&A Growth Risks: The company’s reliance on M&A for growth could pose risks if future acquisitions do not yield expected returns or if market conditions change unfavorably.
PR FAQs
How does PR typically perform around its earnings report dates?
Is Permian Resources Corp (PR) Q4 2024 Earnings Call Summary positive or negative?
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PR Earning Call Sentiment
Permian Resources Corporation (PR) Q4 2024 Earnings Call Transcript
PR.N
5.41%Positive
The earnings call summary shows strong financial performance, including increased oil production guidance, cost optimization, and a significant dividend increase. The Q&A section highlighted confidence in operational efficiencies and strategic M&A focus, despite some unclear responses. The positive sentiment is bolstered by an enhanced capital return program and strong liquidity. However, the lack of clarity on larger M&A could be a minor concern. Overall, the company's strategic initiatives and financial health suggest a positive stock price movement in the short term.
