The U.S. oil and gas exploration and production industry has faced headwinds related to falling natural gas prices and political uncertainty so far in 2024. Cash from operations across three dozen leading U.S. firms fell in real terms from the first quarter of 2023 to the first quarter of this year due to lower gas prices. The November election is also likely to play a significant role in shaping the industry's future.
At the same time, production cuts by OPEC+ have supported increased crude oil production among some U.S. firms, with companies like Antero Resources Corp. (NYSE: AR) and Pembina Pipeline Corp. (NYSE: PBA) benefiting from the shift. One area that has not experienced a wholesale production increase, though, is the Permian Basin of the southwestern U.S. West Texas' Waha hub experienced negative trading for much of the summer, prompting some producers in the area to curtail production.
Permian Resources Corp. (NYSE: PR) shares have slid by more than 22% in the last six months. Over the last year, the company's stock has significantly underperformed competitors like Antero and Pembina.
Nonetheless, Permian Resources has a history of cost management, successful M&A activity, and strong earnings performance that ...
