Permian Resources Corp

XMUN:YZ8

Business Description

Sector

Energy

Industry

Energy

Headquarters

United States of America US

Employees

515

IPO date

Mar 2, 2016

Permian Resources Corp is an oil and gas producer focused on the Permian Basin, especially the Delaware Basin in West Texas and southeastern New Mexico. The company drills and produces crude oil, natural gas, and natural gas liquids from its own acreage, then sells those commodities into the energy market through third-party pipelines and buyers. Its customers are refiners, gas processors, and other energy-market counterparties that purchase the hydrocarbons it produces.

The business makes money by finding and producing oil and gas more cheaply than the market price it receives for those barrels and molecules. Most of its value comes from owning mineral rights and operating wells on those properties, rather than from refining, retail fuel sales, or large-scale pipeline ownership. That means Permian Resources is mainly exposed to commodity prices and to how efficiently it can drill, complete, and operate wells.

What makes the company distinct is its focus on one of the most productive oil regions in the United States and its emphasis on being a pure upstream producer. Instead of spreading itself across many energy businesses, it concentrates on turning a specific land position into cash flow through drilling, production, and acreage development. For investors, that makes it a straightforward way to understand the economics of a shale oil and gas producer.