In-Depth Analysis Report on Insider Trading of Permian Resources (PR)

Based on comprehensive collection and professional analysis of public information, below is an in-depth interpretation of the CFO’s large-scale stock sale event and a comprehensive assessment of its investment value.

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Chief Financial Officer Guy M. Oliphint sold the company’s stock in batches on January 5 and 6, 2026, totaling 301,741 Class A common shares, with a transaction price range of $13.63 to $13.76 per share, and a total amount of approximately $4.13 million [1]. From the time window and price distribution of the transaction execution, the transaction exhibits typical ‘Sell-to-Cover’ characteristics, rather than an active sell-off.

Based on analysis of public disclosure documents, this sale by CFO Oliphint is a mandatory transaction to fulfill the withholding tax obligation related to the vesting of Restricted Stock Units (RSU), rather than an active reduction based on independent judgment [1]. Specifically, when executives receive RSU vesting, they are required to pay income tax on the value of the vested shares, and selling a portion of the shares is precisely to raise funds for tax payments. This type of transaction is extremely common in corporate executive compensation plans and should not typically be interpreted as a signal that executives are bearish on the company’s prospects. It is worth noting that after the transaction was completed, Oliphint still directly held 616,683 shares of the company [1], indicating that he retained a substantial equity position.

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Expanding the view to the full period from November to December 2025, insider trading showed a significant

trend. The two co-Chief Executives James Walter and Will Hickey received RSU vesting on November 15, 2025, and December 31, 2025, respectively, totaling 1,525,750 shares and 1,787,841 shares, with a combined valuation of approximately $44.73 million based on the stock price of $13.50 at that time [2]. Meanwhile, executives including CFO Oliphint ($4.13 million), Chairman Steven Gray ($1.37 million), EVP Robert Regan ($1.02 million), and VP Investor Relations Shannon Mabry ($0.41 million) conducted stock sales, with a total sale amount of approximately $6.94 million.

The comprehensive calculation of insider trading net flow during the period is approximately +$37.8 million, showing a

trend. This data indicates that although individual executives conducted sales, the management as a whole continues to accumulate company equity through compensation incentive plans, maintaining a high degree of alignment with the interests of public shareholders. The large-scale RSU vesting of the two co-CEOs is particularly noteworthy — as the company’s top decision-makers, they chose to hold all their compensation in the form of restricted stock units and held them until vesting, demonstrating firm confidence in the company’s long-term value [2].

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As an independent energy company focused on oil and gas exploration and development in the Permian Basin, Permian Resources currently maintains a stable fundamental position. According to the latest financial data, the company’s market capitalization is $9.52 billion, and the current stock price corresponds to a trailing twelve months (TTM) P/E ratio of 11.73x, significantly lower than the industry average of approximately 14.5x; the price-to-book ratio is only 0.95x, close to the book value, indicating that the valuation has a strong margin of safety [3]. From the perspective of profitability indicators, the company maintains a high gross profit margin. The tax withholding behavior related to RSU vesting precisely reflects the characteristic of a high proportion of equity incentives in executive compensation, which is generally regarded as a positive signal that management interests are well-aligned with shareholders.

Based on DCF valuation model analysis, under three scenario assumptions (conservative, baseline, optimistic), the company’s reasonable valuation range is $974 to $1,972 (the corresponding per-share valuation after stock split adjustment is for reference only) [3]. The current stock price of $13.50 has an upside potential of approximately 55.6% compared to the analyst consensus target price of $21.00 [3], showing a significant valuation discount. In addition, the company offers a dividend yield of 4.44%, which is at a relatively high level in the energy sector, providing investors with stable cash returns.

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The energy sector has been under pressure recently, with the overall energy sector falling 2.70% on January 8, 2026, performing the worst among all sectors [4]. Factors such as oil and gas price fluctuations, geopolitical factors, and OPEC+ production policies continue to affect industry sentiment. However, as the most efficient shale oil producing region in the US, the Permian Basin allows Permian Resources to have significant competitive advantages in cost structure and drilling efficiency with its core asset reserve of approximately 475,000 net acres. The company is the second-largest pure shale oil and gas producer in the Permian Basin, and its scale effect helps to dilute unit operating costs [2].

On December 22, 2025, the company announced the completion of corporate reorganization, where management members converted their Class C shares to Class A shares, fully aligning with the shareholding structure of public investors [2]. This reorganization eliminates the complexity brought by the original Up-C structure, simplifies the capital structure, improves corporate governance, and is expected to fully eliminate the Up-C structure by the end of 2027. Management clearly stated that this move aims to ‘further strengthen the alignment of interests with shareholders’, and after the reorganization, management still holds more than 6% of the company’s shares [2]. In addition, the company is expected to release its fourth quarter 2024 financial report on February 24, 2026, with the market expecting earnings per share of $0.28. It is worth noting that the company’s actual earnings per share in the third quarter of 2024 was $0.37, exceeding market expectations by 20.25% [3], demonstrating strong earnings execution capabilities.

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From a technical analysis perspective, the stock price of Permian Resources is currently in a sideways consolidation pattern, showing no clear upward or downward trend. Key technical levels include: support level at $13.29, resistance level at $14.13 [5]. The MACD indicator shows no crossover signal, leaning bearish; the KDJ indicator has a K value of 28.4 and a D value of 38.1, also showing a bearish bias. The current stock price is between the 50-day moving average ($13.79) and the 200-day moving average ($13.37), indicating that the short-term trend direction is unclear. The Beta coefficient of 0.64 indicates that the company’s stock price volatility is lower than the overall market, belonging to a relatively stable style in the energy sector.

Investors need to pay attention to the following risks: continued low crude oil prices may affect the company’s revenue and profitability; a rising interest rate environment may pressure the financing costs of shale oil and gas development; despite stable management shareholding, the inherent cyclical volatility of the energy industry is still a risk factor to consider. In addition, although the stock sales by the CFO and other executives are routine operations, if large-scale active reductions occur in the future, it may trigger market concerns about the company’s prospects.

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Evaluation Dimension	Specific Performance	Signal Interpretation
CFO’s Transaction Nature	RSU tax withholding, not active sell-off	Neutral to Positive
Overall Insider Net Flow	Net inflow of $37.8 million	Positive
Co-CEO Behavior	Large-scale RSU vesting, continued shareholding	Positive
Valuation Level	P/E 11.73x, lower than industry average	Positive
Analyst Consensus	94.4% recommend buy, target price $21	Positive
Technical Outlook	Sideways consolidation, waiting for a breakout	Neutral

In essence, the $4.1 million stock sale by CFO Oliphint is a routine tax arrangement in the execution of executive compensation plans, rather than an active sell-off reflecting a bearish view on the company’s prospects. Comprehensive analysis of all insider trading during the period shows a clear net inflow trend. The two co-CEOs received a total of approximately 3.3 million shares through RSU vesting, with a valuation of over $44.7 million based on the current stock price, demonstrating the management’s firm confidence in the company’s long-term value.

From a valuation perspective, the current P/E ratio of 11.73x is significantly discounted compared to the industry average. The analyst consensus target price of $21 implies a 55.6% upside potential, and the company provides a 4.44% dividend yield, combining both value and income attributes. Combined with the recent corporate reorganization that simplified the governance structure and improved the alignment of shareholder interests, as well as the competitive advantages of core assets in the Permian Basin, we believe that

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For investors seeking exposure to the US shale oil and gas sector, Permian Resources has a favorable risk-reward ratio at the current valuation level. It is recommended to buy on dips within the $13.00-$13.50 range, with a stop-loss level set below the 50-day moving average of $13.79.

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[1] Investing.com - “Oliphint, Permian Resources CFO, sells $4.1m in stock” (https://www.investing.com/news/insider-trading-news/oliphint-permian-resources-cfo-sells-41m-in-stock-93CH-4436152)

[2] SEC Form 8-K - Permian Resources Corporate Reorganization Announcement (https://www.sec.gov/Archives/edgar/data/1658566/000119312525328893/d13537d8k.htm)

[3] Jinling API Market Data - Company Overview and Financial Analysis of Permian Resources (PR)

[4] Jinling API Market Data - Industry Sector Performance (2026-01-08)

[5] Jinling API Technical Analysis - Technical Indicators of Permian Resources (PR)