Permian Resources ($PR): Love Letter to Midland

By Paul Sankey Published on January 16, 2024 at 4:48 PM

The hottest company in the Permian right now, and our TOP PICK for 2023 in US Exploration and Production (E&P), is barely known on Wall Street, nay, barely known outside their home city of Midland, West Texas. PERMIAN RESOURCES ($PR) is a $10B market capitalization, $14B enterprise value (EV) company producing some 300 thousand barrels of oil equivalent per day (kboe/d) of which just under half is oil. Management has an excellent reputation among those …

Thematic: What Happens in Gas Vegas Stays in Golden Pass (US Natgas 2024)

By Paul Sankey Published on December 16, 2023 at 9:43 AM

We have argued for several years that Saudi/OPEC oil production cuts are bearish for US natgas prices, as they encourage US Permian players to grow oil supply, with attendant associated “free” natgas and natural gas liquids (NGL) production. With oil price economics at $70/bbl still justifying aggressive activity/growth in major US oil basins, vast quantities of natural gas are produced as a by-product. Excess gas supply in the Permian has led to the start up …