Oil and gas producer Permian Resources (NYSE: PR) will be reporting earnings this Wednesday afternoon. Here’s what investors should know.
Permian Resources missed analysts’ revenue expectations last quarter, reporting revenues of $1.17 billion, down 9.8% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates.
Is Permian Resources a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Permian Resources’s revenue to grow 1.5% year on year, slowing from the 10.7% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Permian Resources has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Permian Resources’s peers in the u.s. shale e&p segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Crescent Energy delivered year-on-year revenue growth of 24.5%, meeting analysts’ expectations, and Diamondback Energy reported revenues up 4.7%, topping estimates by 10.5%.
Read our full analysis of Crescent Energy’s results here and Diamondback Energy’s results here.
There has been positive sentiment among investors in the u.s. shale e&p segment, with share prices up 5.1% on average over the last month. Permian Resources is up 6.9% during the same time and is heading into earnings with an average analyst price target of $25.50 (compared to the current share price of $22.60).
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