Permian Resources Extends Registration Rights Agreement with its Private Equity Stockholders and Announces Further Reduction in its Sponsor Ownership

Permian Resources Corporation, a Midland, Texas-based independent oil and natural gas company focused on the Delaware Basin, announced on June 18, 2024 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 among them, the company and other parties. According to the company's Business Wire release, the agreement is designed to support continued partnership as the Private Equity Stockholders monetize common stock over time.

The company said the Private Equity Stockholders and Permian Resources have monetized approximately 200 million shares since the company's formation. Combined sponsor ownership has fallen from over 50% in 2022 to approximately 16% currently, and the company states this was accomplished while delivering leading total shareholder return relative to its peers. Co-CEO James Walter said the effort over the last two years had allowed the company to pursue peer-leading shareholder returns while reducing sponsor ownership in an orderly and organized manner.

In connection with the amended and restated agreement, certain Pearl Energy Investments-affiliated funds will convert and distribute approximately 23 million shares of Class A common stock to certain equity holders, including limited partners. The company described these recipients as primarily large, accredited institutional investors who have been invested in Permian Resources and its predecessors since 2015 and whom it expects to remain long-term holders. No other Private Equity Stockholder elected to distribute shares at this time.

Following the Member Distribution, the Private Equity Stockholders will collectively own approximately 16% of total shares outstanding, with no single party above 7%. Only Pearl retains a Board seat. The company reports management owns approximately 7% of total shares, a figure that includes unvested shares, and that the Co-CEO's compensation is entirely long-term equity.