Permian Resources Corporation (NYSE: PR) has announced a corporate reorganization to strengthen its shareholder alignment and simplify its corporate structure. As a part of this reorganization, the management team and long-term holders exchanged their Class C shares for Class A shares, ensuring management ownership is in line with public investors. The company's management team now owns over 6% of the total shares outstanding.
The co-CEOs of Permian Resources, James Walter and Will Hickey, will continue to receive 100% of their compensation in the form of performance stock units (PSUs), which vest over 3-5 years and are subject to both absolute and relative return thresholds. The board of directors receives all of its compensation in equity, and the majority of the company's management team receives a significant portion of their compensation in equity. All employees also receive equity as part of their annual compensation.
This focus on shareholder alignment has been a significant factor in Permian Resources' achievement of the highest total shareholder return of its peer group since its inception, with an annualized total return of 27% versus the peer average of (5)% as of December 19, 2025.
The reorganization involved certain Class C shareholders, including the co-CEOs, surrendering Class C shares for cancellation and contributing units representing limited liability company interests in Permian Resources Operating, LLC to a new public holding company in exchange for newly issued shares of its Class A common stock. Following these changes, the aggregate amount of Class A shares and Class C shares will remain the same, with 793,840,363 Class A shares and 35,461,371 Class C shares on a pro forma basis as of November 30, 2025.
Additionally, the reorganization advances the company towards the elimination of its current up-C structure and moving to a single share class structure. This transition is expected to reduce administrative burden and overhead expenses and further improve shareholder alignment. Permian Resources anticipates potentially being in a position to eliminate the up-C structure by year-end 2027.
Further details regarding the reorganization can be found in the company's current report on Form 8-K, which is expected to be filed with the U.S. Securities and Exchange Commission on December 22, 2025.
Permian Resources is an independent oil and natural gas company headquartered in Midland, Texas, with a focus on driving peer-leading returns through the acquisition, optimization, and development of high-return oil and natural gas properties in the Permian Basin. The company's assets are primarily located in the core of the Delaware Basin, with a position of approximately 475,000 net acres in West Texas and Southeast New Mexico, making it the second-largest Permian Basin pure-play E&P company. As a result of these announcements, the company's shares have moved -0.11% on the market, and are now trading at a price of $13.755. If you want to know more, read the company's complete 8-K report here.
