BMO Capital remains confident in Permian Resources Corporation (NYSE: PR), maintaining its Outperform rating while assigning a price objective of $21.00. This target marks an anticipated increase of roughly 44% relative to the prevailing trading price of $14.61. Currently, the stock hovers near its 52-week peak of $15.89, indicating robust investor interest.
In a recent update, BMO Capital slightly elevated its anticipated earnings per share (EPS) for the fourth quarter to $0.30, up from an earlier estimate of $0.29 presented in its sector preview. This revision followed a detailed review of company guidance and direct communication with Permian Resources’ management. Reflecting broader consensus, the corporation has demonstrated sustained profitability with a diluted EPS of $1.12 over the past twelve months.
The analyst firm also revised upward its forecast for Permian Resources’ EBITDAX, now pegged at $921 million from a prior $916 million, outpacing the market consensus estimate of $889 million. Importantly, this adjustment accompanies unchanged projections for oil production volumes. For context, Permian Resources achieved EBITDA of $3.82 billion in the last year.
BMO Capital anticipates that the upcoming operational update will underscore this positive trajectory, forecasting that the oil production exit rate for fourth quarter 2025 will hold steady into 2026, supported by flat capital expenditures. This scenario is expected to drive an annualized oil output growth of approximately 4%, consolidating the company’s leadership in drilling, completion efficiencies, and managing controllable cash costs.
In addition to financial performance, Permian Resources recently completed a strategic corporate restructuring aimed at unifying management ownership stakes with those of public shareholders. The transaction involved exchanging Class C shares for Class A shares, a resolution sanctioned by the company’s Board of Directors and Audit Committee, designed to simplify corporate structure and align interests more effectively.
Meanwhile, Bank of America Securities adjusted its rating perspective on Permian Resources to Neutral from Buy, lowering its price target slightly to $16.00 from $17.00. This modification reflects observations on the company’s recent oil production strength and the implications of its APA bolt-on acquisition.