Permian Resources (PR) Update - Mar 8

[dan_s]

This does not impact my current valuation of $16.25/share.

MIDLAND, Texas, March 07, 2023--(BUSINESS WIRE)--Permian Resources Corporation ("Permian Resources" or the "Company") (NYSE: PR) today announced the commencement of an underwritten public offering of an aggregate 27,500,000 shares of its Class A common stock, par value $0.0001 per share ("Class A common stock") by certain affiliates of NGP Energy Capital (the "NGP Stockholders") and certain affiliates of Riverstone Investment Group LLC. Permian Resources will not sell any shares of Class A common stock in the offering and will not receive any proceeds therefrom. The selling stockholders expect to grant the underwriters a 30-day option to purchase up to an additional aggregate 4,125,000 shares of Class A common stock at the public offering price, less the underwriting discounts and commissions.

Concurrently with the closing of the offering, the Company intends to purchase (the "Concurrent OpCo Unit Purchase") from the NGP Stockholders 2,750,000 common units representing limited liability company interests ("OpCo Units") in Permian Resources Operating, LLC, a Delaware limited liability company and a subsidiary of Permian Resources ("OpCo"), at a price per OpCo Unit equal to the price per share at which the underwriters purchase shares of Class A common stock in the offering and to cancel a corresponding number of shares of the Company’s Class C common stock. The offering of Class A common stock is not conditioned upon the completion of the Concurrent OpCo Unit Purchase, but the Concurrent OpCo Unit Purchase is conditioned upon the completion of the offering.

[Cliff_N]

Seems that this is a fairly big dilution. What is the rationale for not affecting the price target of $16+ I am getting ready to buy more REI to replace.

Thanks!

Cliff

[ChuckGeb]

No new shares. These are shares of Riverstone so there is no dilution.

[Fraser921]

Why doesn't Riverstone hold on for 16?

[ChuckGeb]

They're not an EPG subscriber.