Private equity stockholders of Permian Resources Corporation have adjusted their collective registration rights agreement, allowing the company to generate revenue from future stock. EnCap Investments L.P., Pearl Energy Investments, and Riverstone Investment Group LLC agreed to the revision.
"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," said James Walter, co-CEO of Permian Resources. "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."
Walter added, "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."
According to a news release from Permian Resources, the company and its private equity stockholders have monetized approximately 200 million shares of common stock since its establishment. The total sponsor ownership has been reduced from over 50% in 2022 to nearly 16% today as the company continues to deliver value to shareholders.
The news release also stated that a portion of Pearl Energy Investments funds are expected to be converted into 23 million shares of Class A common stock of the company for certain equity holders through what it calls "member distribution." Private equity stockholders now own roughly 16% of the company’s total shares, with no entity owning more than 7%. Leaders of Permian Resources own roughly 7% of total shares, with all co-CEO compensation stemming from long-term equity.