Goldman Sachs maintains a Buy rating on Permian Resources (PR) with a $23 price target, highlighting strong 1Q26 execution and a forecast 15% FCF yield.
Key Takeaways
- 1.PR raised its 2026 oil production guidance to 192.5 Mbo/d following strong 1Q26 performance and lower downtime.
- 2.The company maintains an active 'ground game' acquisition strategy, closing ~$205 million in bolt-on assets during 1Q26.
- 3.Operational efficiency is improving, with D&C costs falling to $685/ft in 1Q26 with a target of $675/ft by year-end.
Table of Contents
- Key Takeaways
- Operations and Macro Outlook
- Outlook for M&A
- Uses of Free Cash Flow
- Valuation and Key Risks
- Disclosure Appendix
- GS Factor Profile
- M&A Rank
- Quantum
- Disclosures
- Company-specific regulatory disclosures
- Distribution of ratings/investment banking relationships
- Price target and rating history chart(s)
- Target price history table(s)
- Regulatory disclosures
- Global product; distributing entities
- General disclosures
- Ratings, coverage universe and related definitions
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Authors
Neil MehtaGreta DrefkeJack CavanaghJerry Speicher
Securities
PR
Themes
Operational EfficiencyAccretive M&AFree Cash Flow Generation
Regions
North AmericaUnited States