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.
RELATED
Recommended Reading
Post Oak Backs New Permian Team, But PE Faces Uphill Fundraising Battle
2024-10-11 - As private equity begins the process of recycling inventory, likely to be divested from large-scale mergers, executives acknowledged that raising funds has become increasingly difficult.
Analyst: Is Jerry Jones Making a Run to Take Comstock Private?
2024-09-20 - After buying more than 13.4 million Comstock shares in August, analysts wonder if Dallas Cowboys owner Jerry Jones might split the tackles and run downhill toward a go-private buyout of the Haynesville Shale gas producer.
Post Oak-backed Quantent Closes Haynesville Deal in North Louisiana
2024-09-09 - Quantent Energy Partners’ initial Haynesville Shale acquisition comes as Post Oak Energy Capital closes an equity commitment for the E&P.
Five Point Closes Infrastructure Fund with $1.4B in Commitments
2024-09-09 - Five Point Energy, which created newly public Permian Basin company LandBridge, said its Five Point Energy Fund IV was oversubscribed from a target of $1.25 billion.
Sheffield: E&Ps’ Capital Starvation Not All Bad, But M&A Needs Work
2024-10-04 - Bryan Sheffield, managing partner of Formentera Partners and founder of Parsley Energy, discussed E&P capital, M&A barriers and how longer laterals could spur a “growth mode” at Hart Energy’s Energy Capital Conference.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.