Form 4: Pearl Energy Investments Sells 22.5 Million Shares of Permian Resources Corp (PR) in Public Offering

William J. Quinn, a director and 10% owner of Permian Resources Corp, reports the sale of 22.5 million shares of Class A Common Stock through Pearl Energy Investments in an underwritten public offering.

Summary

• On May 15, 2024, Pearl Energy Investments sold 22,500,000 shares of Permian Resources Corp Class A Common Stock in an underwritten public offering.
• The shares were sold at a price of $16.42 per share to the underwriters.
• Prior to the sale, Pearl Energy Investments held 48,556,620 shares of Class C Common Stock and Common Units.
• The transaction involved the exchange of Common Units for Class A Common Stock before the sale.
• The reporting person, William J. Quinn, disclaims beneficial ownership of the reported securities except to the extent of their pecuniary interest.

Sentiment

Score: 5

Explanation: The sentiment is neutral as it primarily reports a transaction (sale of shares) without expressing any explicit positive or negative views about the company's future prospects. It's a factual disclosure.

Risks

• The underwriter may offer the shares of Class A Common Stock from time to time in one or more transactions on the NYSE, in the over-the-counter market or through negotiated transactions at market prices or at negotiated prices, which could lead to price volatility.

Future Outlook

The underwriter may offer the shares of Class A Common Stock from time to time in one or more transactions on the NYSE, in the over-the-counter market or through negotiated transactions at market prices or at negotiated prices.

Management Comments

• The Reporting Person and each of the Pearl Entities disclaim beneficial ownership except to the extent of their pecuniary interest therein, and the filing of this Form 4 shall not be construed as an admission of beneficial ownership of any or all of the reported securities for the purposes of Section 16 or for any other purpose.

Industry Context

This announcement reflects activity in the oil and gas sector, specifically involving a significant shareholder reducing their stake in an energy company through a public offering. This type of transaction is common in the industry as investment firms manage their portfolios and capitalize on market conditions.

Comparison to Industry Standards

• Similar transactions occur regularly in the oil and gas industry, where large shareholders, often private equity firms like Pearl Energy Investments, monetize their investments through secondary offerings.
• For example, Riverstone Holdings, another energy-focused private equity firm, has executed similar sales in companies like Centennial Resource Development.
• The size of the offering (22.5 million shares) is substantial but not uncommon for companies of Permian Resources Corp's size and market capitalization.
• Pricing the offering at $16.42 per share reflects prevailing market conditions and the company's valuation at the time of the transaction.

Stakeholder Impact

• The sale of shares may have a short-term impact on the stock price of Permian Resources Corp.
• Existing shareholders may experience dilution of their ownership.

Key Dates