Permian Resources Corporation Announces Secondary Public Offering of Class A Common Stock
- None.
- None.
Insights
The public offering of 39,414,415 shares by Permian Resources Corporation represents a significant liquidity event for the selling shareholders, which include affiliates of notable private equity firms in the energy sector. The concurrent purchase of OpCo Units by the Company, while cancelling an equivalent amount of Class C Common Stock, suggests a strategic move to consolidate ownership and potentially streamline the corporate structure.
Market Impact: The sale of such a substantial number of shares could lead to dilution of existing shareholders' equity, although the company itself is not issuing new shares or receiving proceeds. Investors should monitor the stock's performance for potential volatility in response to the increased market supply of shares. Additionally, the transaction's success could influence the company's future financing strategies and market perception.
Strategic Relevance: The transaction could be interpreted as a positive signal that the selling shareholders consider the current market price favorable, or conversely, as a need for liquidity on their part. The cancellation of Class C Common Stock in exchange for OpCo Units may also indicate an effort to simplify the ownership structure, which could have governance implications and affect investor sentiment.
As the offering involves significant players in the energy investment space, namely NGP Energy Capital Management, Riverstone Investment Group and EnCap Investments, this move is indicative of a reshaping of investment strategies within the sector. The transaction highlights the dynamic nature of equity holdings in energy companies, particularly in the context of the Permian Basin, a key area for U.S. oil production.
Industry Implications: The offering and subsequent unit purchase by Permian Resources may signal a broader trend of energy companies adjusting their capital structures in response to market conditions and strategic priorities. It could also reflect the current valuation environment in the oil and gas industry, which has been subject to fluctuations due to external factors such as oil prices, regulatory changes and shifts in energy demand.
Long-term Effects: For stakeholders, the long-term effects may include changes in the company's leverage and potential for future growth investments. The offering could affect how Permian Resources is positioned for operational expansion or acquisitions, particularly in the competitive landscape of the Permian Basin.
The underwriter intends to offer the shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices. Permian Resources will not sell any shares of Class A common stock in the offering and will not receive any proceeds therefrom.
Concurrently with the closing of the offering, the Company intends to purchase (the “Concurrent OpCo Unit Purchase”) from certain of the Selling Stockholders an aggregate 2,252,252 common units representing limited liability company interests (“OpCo Units”) in Permian Resources Operating, LLC, a
J.P. Morgan Securities LLC is serving as the underwriter for the offering. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
The proposed offering is being made pursuant to a registration statement previously filed by the Company with the
The proposed offering will be made only by means of a prospectus and prospectus supplement that meet the requirements under the Securities Act of 1933, as amended (the “Securities Act”). Copies of the preliminary prospectus supplement and accompanying base prospectus and final prospectus supplement, when available, may be obtained from: J.P. Morgan, c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
This press release shall not constitute an offer to sell or a solicitation of an offer to buy shares of Class A common stock or any other securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful without registration or qualification under the securities laws of any such state or jurisdiction.
About Permian Resources
Headquartered in
Cautionary Note Regarding Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding the completion of the offering and the Concurrent OpCo Unit Purchase, the Company’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Be cautioned that these forward-looking statements are subject to all of the risk and uncertainties, most of which are difficult to predict and many of which are beyond Permian Resources’ control, incident to the development, production, gathering and sale of oil and natural gas. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, risks relating to the Company’s ability to realize the anticipated benefits and synergies of its merger with Earthstone Energy, Inc. Actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including, but not limited to, those set forth in the Company’s filings with the SEC, including the prospectus relating to the offering, the Registration Statement (as defined below), its Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and its subsequent Quarterly Reports on Form 10-Q, under the caption “Risk Factors,” as may be updated from time to time in the Company’s periodic filings with the SEC. Any forward-looking statement in this press release speaks only as of the date of this release. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231218941897/en/
Hays Mabry – Sr. Director, Investor Relations
Mae Herrington – Engineering Advisor, Investor Relations
(832) 240-3265
ir@permianres.com
Source: Permian Resources Corporation
FAQ
What is Permian Resources Corporation's ticker symbol?
How many shares of Class A Common Stock are being offered in the public offering?
Will Permian Resources Corporation receive any proceeds from the public offering?
What is the Concurrent OpCo Unit Purchase?
Who is serving as the underwriter for the offering?
