Permian Resources Corp Announces Secondary Public Offering of 51.8M Shares, Pricing Details Undisclosed
Portfolio Pulse from Benzinga Newsdesk
Permian Resources Corp (NYSE:PR) announced a secondary public offering of 51.8 million shares of Class A common stock by affiliates of EnCap Investments, NGP Energy Capital, Pearl Energy Investments, Riverstone Investment Group, and a board member. The company will not sell any shares or receive proceeds from this offering. Concurrently, Permian plans to purchase 1.8 million OpCo Units from some sellers, with the purchase conditioned on the offering's completion.
May 13, 2024 | 10:39 am
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NEUTRAL IMPACT
Permian Resources Corp's secondary offering of 51.8M shares may dilute existing shareholders' equity but does not directly impact the company's financials as it receives no proceeds. The concurrent purchase of OpCo Units could signal confidence in its operational subsidiary.
The secondary offering introduces potential dilution for current shareholders, which could be perceived negatively. However, the company's decision to purchase OpCo Units concurrently might offset concerns by demonstrating a reinvestment into its operational subsidiary. The lack of direct financial benefit from the offering to Permian Resources limits the immediate financial impact.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100