Permian Resources (PR) is poised to report a solid Q1 with production seen topping expectations, RBC Capital Markets said Sunday in a report.

RBC boosted its Q1 estimates to $0.42 a share for earnings and $1.15 for cash flow, similar to the Wall Street consensus.

Production may be 373,000 barrels of oil equivalent a day, exceeding the 368,000 consensus, RBC said.

"Strong base performance and consistency in new well productivity should underpin stronger volumes that sequentially increase slightly," the report said.

The "strong" balance sheet and low breakeven production costs "provide better resiliency to recent oil price weakness," the report said.

RBC cut its price target on Permian Resources stock to $16 from $18 and reiterated its outperform rating.

Q1 results are expected May 7.

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