MIDLAND, Texas - Permian Resources Corporation (NYSE: PR), an independent oil and natural gas company, has priced an underwritten public offering of 26.5 million shares of its Class A Common Stock at $15.30 each. This equity offering is concurrent with a private placement of $750 million in senior unsecured notes due 2033 by its subsidiary, Permian Resources Operating, LLC, subject to market conditions.
The equity offering is set to close on July 30, 2024, with Goldman Sachs & Co. LLC and Morgan Stanley acting as the underwriters. While the offerings are concurrent, neither is contingent upon the completion of the other.
Funds raised from the equity offering, alongside a portion of the proceeds from the notes offering, are intended to finance a part of the purchase price for the acquisition of oil and gas properties from Occidental Petroleum Corporation (NYSE:OXY).
This acquisition is expected to close in the third quarter of 2024. If the acquisition does not proceed, or if surplus funds remain post-acquisition, the company plans to allocate the proceeds for general corporate purposes, including potential future acquisitions.
The equity offering is pursuant to a registration statement that became effective on May 24, 2024. Prospective investors can obtain copies of the prospectus and prospectus supplement from the underwriters or the SEC's website.
This announcement serves as a notification and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Sales of securities will not occur in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful without registration or qualification under the securities laws of any such state or jurisdiction.
Permian Resources, headquartered in Midland, Texas, is primarily engaged in the acquisition, optimization, and development of oil and natural gas properties in the Delaware Basin, positioning it as a significant player in the Permian Basin E&P sector.
Permian Resources Corp has experienced several notable developments. BMO Capital upgraded the company's stock from Market Perform to Outperform, citing its successful operational execution and strategic mergers and acquisitions.
Permian Resources' major private equity stakeholders revised their registration rights agreement, facilitating future stock monetization. The company's private equity stakeholders have reduced their combined ownership from over 50% to around 16% since the company's inception.
Citi reaffirmed its Buy rating on Permian Resources, maintaining a price target of $20.00 per share. The firm anticipates that Permian Resources will focus on larger acquisitions that complement its existing operations. RBC Capital also increased its price target from $17.00 to $20.00, reflecting a positive view of the company's performance and potential.
InvestingPro Insights
As Permian Resources Corporation (NYSE: PR) navigates its public equity offering and private placement of senior unsecured notes, investors are keenly observing the company's financial health and market performance. According to InvestingPro data, Permian Resources has a market capitalization of $12.35 billion and a P/E ratio of 12.14, which adjusts to 16.24 when looking at the last twelve months as of Q1 2024. This reflects a company with a solid footing in the market, supported by a significant revenue growth of 56.13% over the last twelve months leading up to Q1 2024.
InvestingPro Tips suggest that analysts are optimistic about the company's sales growth in the current year, which aligns with the company's strategic acquisition plans. However, it is important to note that 9 analysts have revised their earnings estimates downwards for the upcoming period. This could reflect a note of caution amidst the company's expansion efforts.
With regards to stock performance, Permian Resources has experienced low price volatility historically, but recent metrics indicate more fluctuation, with a 1-month price total return of -5.2% as of the date provided. This could be a point of consideration for investors looking for stability in their investments.
For those interested in further insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/PR, which could guide investment decisions. To access these insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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