Permian Resources co-CEO James Walter and Hart Energy's Nissa Darbonne on stage at the 2023 Executive Oil Conference and Exhibition in Midland, Texas. (Source: Hart Energy)
Permian Resources Corp. is further reducing its stock ownership by a group of private equity backers.
Midland, Texas-based Permian Resources and its private equity stockholders—EnCap Investments LP, Pearl Energy Investments and Riverstone Investment Group LLC—have monetized around 200 million shares of common stock since Permian Resources was formed in 2022.
Permian Resources was created through a merger between Centennial Resource Development and Colgate Energy Partners II LLC. Since then, the combined sponsor ownership has reduced from over 50% to approximately 16% today, Permian Resources said in a June 18 release.
Certain funds affiliated with Pearl Energy Investments will convert and distribute approximately 23 million shares of Permian Resources Class A common stock to certain equity holders and limited partners who have invested in the company and its predecessors since 2015.
Permian Resources expects these parties to remain long-term investors in the company.
At a closing price of $15.42 per share on June 18, the share distribution would imply a value of approximately $355 million.
Following Pearl’s distribution, the private equity stockholders will own 16% of Permian Resources’ total outstanding shares. Only Pearl will hold a Permian Resources board seat.
No party will own more than 7% of Permian Resources’ outstanding shares following the distribution.
“We are proud of our relationship with our private equity stockholders and our ability to achieve their monetization objectives in an orderly fashion while ensuring any sales of common stock are done in a thoughtful and organized manner,” said James Walter, co-CEO of Permian Resources.
“This effort over the last two years has allowed us to simultaneously accomplish our goal of generating peer-leading shareholder returns while reducing sponsor ownership over time,” he said.
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