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Permian Resources Corporation (PR)

Company Dividend Discount ModelIndustry: Oil & Gas Exploration & ProductionSector: Energy

Valuation Snapshot

Stable Growth$25.86 - $69.05$39.63
Multi-Stage$18.26 - $19.92$19.07
Blended Fair Value$29.35
Current Price$12.80
Upside129.30%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%65.38%0.630.190.020.000.000.000.000.000.000.00
YoY Growth--228.94%883.97%0.00%0.00%0.00%0.00%0.00%0.00%0.00%-100.00%
Dividend Yield--4.55%1.08%0.19%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)812.32
(-) Cash Dividends Paid (M)429.71
(=) Cash Retained (M)382.61
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)162.46101.5460.92
Cash Retained (M)382.61382.61382.61
(-) Cash Required (M)-162.46-101.54-60.92
(=) Excess Retained (M)220.14281.07321.68
(/) Shares Outstanding (M)740.41740.41740.41
(=) Excess Retained per Share0.300.380.43
LTM Dividend per Share0.580.580.58
(+) Excess Retained per Share0.300.380.43
(=) Adjusted Dividend0.880.961.01
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$25.86$39.63$69.05
Upside / Downside102.07%209.59%439.43%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)812.32865.12921.35981.241,045.021,112.951,146.34
Payout Ratio52.90%60.32%67.74%75.16%82.58%90.00%92.50%
Projected Dividends (M)429.71521.84624.12737.50862.981,001.651,060.36

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)473.91478.40482.89
Year 2 PV (M)514.74524.54534.44
Year 3 PV (M)552.38568.23584.39
Year 4 PV (M)586.99609.56632.78
Year 5 PV (M)618.74648.62679.65
PV of Terminal Value (M)10,773.0511,293.3911,833.65
Equity Value (M)13,519.8014,122.7514,747.80
Shares Outstanding (M)740.41740.41740.41
Fair Value$18.26$19.07$19.92
Upside / Downside42.65%49.02%55.61%

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