Permian Resources Corporation (NYSE: PR) has announced significant changes in its ownership structure and shareholder alignment. Since its formation, the company and its private equity stockholders have monetized approximately 200 million shares of common stock, reducing the combined sponsor ownership from over 50% in 2022 to approximately 16% today.
In conjunction with the amended and restated registration rights agreement, certain funds affiliated with Pearl Energy Investments will convert and distribute approximately 23 million shares of class A common stock of the company to certain of its equity holders, primarily large, accredited institutional investors. After this distribution, the private equity stockholders will own approximately 16% of the company’s total shares outstanding, with no party owning more than 7% and only Pearl holding a board seat.
The management team of Permian Resources also has a significant stake in the company, owning approximately 7% of the total shares outstanding, and receives 100% of the co-CEO’s compensation from long-term equity.
This announcement reflects Permian Resources' strategy to achieve private equity stockholders' monetization objectives in an orderly fashion, generating shareholder returns while reducing sponsor ownership over time. It highlights the company's ability to achieve these objectives while ensuring that any sales of common stock are conducted thoughtfully and in an organized manner.
The company's assets and operations are concentrated in the core of the Delaware Basin, making it the second-largest Permian Basin pure-play E&P. This development will continue to benefit Permian Resources, the private equity stockholders, and its public shareholders. The market has reacted to these announcements by moving the company's shares 1.4% to a price of $15.42. For more information, read the company's full 8-K submission here.
