Permian Resources Corporation (PR)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	1,550,850	1,035,650	870,132	138,744	-770,323
Revenue	US$ in thousands	5,000,730	3,120,890	2,131,260	1,029,890	580,456
Pretax margin		31.01%	33.18%	40.83%	13.47%	-132.71%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $1,550,850K ÷ $5,000,730K
= 31.01%

Permian Resources Corporation's pretax margin has shown significant improvement over the past few years. In December 2020, the company reported a negative pretax margin of -132.71%, indicating that its expenses exceeded its revenues before accounting for taxes. However, by December 2021, the pretax margin had turned positive at 13.47%, suggesting a notable turnaround in profitability.

The positive trend continued in the following years, with pretax margins of 40.83% in 2022, 33.18% in 2023, and 31.01% in 2024. These increasing pretax margins indicate that Permian Resources Corporation has successfully managed its costs and increased its operating efficiency, leading to improved profitability before taxes.

Overall, the consistent improvement in pretax margin reflects the company's ability to generate higher profits relative to its revenue, which could be a positive indicator of its financial health and operational performance. However, it's essential for Permian Resources Corporation to sustain this positive trend and continue to enhance its efficiency to ensure long-term profitability and sustainability.