![EOC 2023 James Walter](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/06/eoc-2023-james-walter.jpg?itok=9EF8ch1R)
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
Permian Surface-owner LandBridge to Raise up to $367MM in IPO
2024-06-17 - Houston-based LandBridge holds some 220,000 surface acres in the Delaware Basin.
Scott Sheffield Among Investors in Australian Shale Gas IPO
2024-06-27 - The operator who sold Pioneer Natural Resources Co. to Exxon Mobil in May for $59.5 billion joins his son Bryan Sheffield in shale gas investment Down Under.
Solaris Stock Jumps 40% On $200MM Acquisition of Distributed Power Provider
2024-07-11 - With the acquisition of distributed power provider Mobile Energy Rentals, oilfield services player Solaris sees opportunity to grow in industries outside of the oil patch—data centers, in particular.
Archrock Offers Common Stock to Help Pay for TOPS Transaction
2024-07-23 - Archrock, which agreed to buy Total Operations and Production Services (TOPS) in a cash-and-stock transaction, said it will offer 11 million shares of its common stock at $21 per share.
The ABCs of ABS: Financing Technique Shows Flexibility and Promise
2024-07-29 - As the number of ABS deals has grown, so have investors’ confidence with the asset and the types of deals they are willing to underwrite.