Permian Resources Corporation Announces Pricing Of $512.4M Secondary Public Offering Of 39,414,415 Shares Of Class A Common Stock
Portfolio Pulse from Benzinga Newsdesk
Permian Resources Corporation (NYSE:PR) has announced the pricing of a secondary public offering of 39,414,415 shares of Class A Common Stock at approximately $512.4 million by affiliates of NGP Energy Capital Management L.L.C., Riverstone Investment Group LLC, and EnCap Investments L.P. The company will not receive any proceeds from the offering. Concurrently, Permian Resources will purchase and cancel a corresponding number of Class C Common Stock from the Selling Stockholders. The offering is expected to close on December 21, 2023, with J.P. Morgan Securities LLC as the underwriter.
December 19, 2023 | 2:31 pm
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NEUTRAL IMPACT
Permian Resources Corporation's secondary offering may lead to dilution of existing shares, but the company's purchase and cancellation of Class C stock could offset some dilutive effects.
The secondary offering of shares typically leads to dilution of existing shares, which can negatively impact the stock price. However, since Permian Resources is not selling any new shares and will not receive proceeds, the direct financial impact on the company is neutral. The concurrent purchase and cancellation of Class C stock indicate a neutral to slightly positive impact as it may show confidence by the company in managing its capital structure effectively.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100