Permian Resources (PR) is an Oil & Gas name that has screened as a high-potential M&A target for a while and seeing options flow pick back up in the name with action 5/22 buying 4500 August $14 calls and the July $13 calls still have 8250 in open interest from 3/13 buys. PR also has some size June $14 and $13 short puts in open interest and a 4/11 buyer of 2000 November $11 calls is profitable while 1500 Oct. $14 calls bought on 5/15. Oil & Gas has been a miserable sector but starting to build some momentum off lows. PR also saw a large insider buy back on 3/5 as a director bought 250,000 shares at $12.10. PR focuses on the development of crude oil and related liquids-rich natural gas reserves with assets primarily focused on the Delaware Basin, a sub-basin of the Permian Basin. PR has a market cap of $10.2B and trades 9.25X Earnings, 3.7X EBITDA, 0.96X Book and 16.8X FCF with a 4.75% dividend yield. Permian’s Q1 EBITDA beat Street estimates by 3%, driven by strong oil volumes. PR has strong returns of capital, including dividends and buybacks, slightly higher production growth vs. peers, and discounted valuation vs. larger Permian peers. PR recently acquired Northern Delaware Basin assets for $608M. PR plans to allocate 65% of 2025 activity to New Mexico Delaware, ~30% to Texas Delaware and ~5% to Midland. PR’s strategy of growing production and free cash flow per share, while maintaining a conservative balance sheet, has delivered best-in-class shareholder returns. Permian Resources has maintained a conservative leverage profile, with less than 1x leverage, as it has executed its M&A strategy. PR is a Permian Basin pure-play, with a focus on the Delaware Basin, which allows them to be a cost leader in the region.