Permian Resources (PR) Update - June 19

[dan_s]

This does not impact my valuation of PR, which is currently $24/share. TipRanks' current price target is $20.86.

Permian Resources Corporation ("Permian Resources" or the "Company") (NYSE: PR) today announced that funds affiliated with EnCap Investments L.P., Pearl Energy Investments and Riverstone Investment Group LLC (collectively, the "Private Equity Stockholders") have amended and extended the existing registration rights agreement between them, the Company and other parties thereto, to provide for continued partnership with Permian Resources as its Private Equity Stockholders monetize common stock in the future.

Since the Company’s formation, Permian Resources 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 while delivering leading total shareholder return relative to its peers.

"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. 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," said James Walter, Co-CEO of Permian Resources. "Today’s announcement is a continuation of our strategy which has proven successful and will continue to strongly benefit Permian Resources, the Private Equity Stockholders and our public shareholders."

In conjunction with the amended and restated registration rights agreement, certain funds affiliated with Pearl Energy Investments ("Pearl") will convert and distribute approximately 23 million shares of Class A common stock of the Company to certain of its equity holders, including limited partners of such funds (the "Member Distribution"). These equity holders and limited partners are primarily large, accredited institutional investors that the Company expects to remain long-term investors in Permian Resources and who have been investors in Permian Resources and its predecessors since 2015. No other Private Equity Stockholder elected to distribute their common stock at this time.

After giving effect to the Member 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. Permian Resources continues to have industry leading shareholder alignment, with its management team owning approximately 7%1 of total shares outstanding and 100% of the Co-CEO’s compensation coming from long-term equity.

About Permian Resources

Headquartered in Midland, Texas, Permian Resources is an independent oil and natural gas company focused on the responsible acquisition, optimization and development of high-return oil and natural gas properties. 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. For more information, please visit www.permianres.com.

[Fraser921]

This name is one of Paul Sankey's main recommendation for 2024.

He does a weekly Youtube

Latest one here

https://youtu.be/47fgtzoihQs?si=ciVbs9rMrYb5ihrM

[Cliff_N]

Frasier thanks for the post on Sankey Research, interesting take, especially on the event of a Trump victory and the impact on Iran with renewed sanctions and the hit of 2M barrels per day on supply.