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MIDLAND, Texas - Permian Resources Corporation (NYSE:PR), a $10.9 billion market cap energy company trading at an attractive P/E ratio of 8.95, announced Monday the commencement of an underwritten public offering of 46,112,899 shares of its Class A common stock by certain affiliates of Pearl Energy Investments and Riverstone Investment Group LLC. According to InvestingPro analysis, the company maintains a "GREAT" overall financial health score.
The company will not sell any shares in the offering nor receive any proceeds from the transaction, according to a press release statement. The company has demonstrated solid operational performance with a 16.37% revenue growth and impressive 74.06% gross profit margin in the last twelve months.
Concurrent with the offering’s closing, Permian Resources intends to purchase 2 million common units representing limited liability company interests in Permian Resources Operating, LLC from certain selling stockholders. The purchase price per unit will equal the price at which underwriters purchase shares in the offering. The company will also cancel a corresponding number of Class C common stock shares held by these stockholders.
Morgan Stanley, Citigroup and Goldman Sachs & Co. LLC are serving as underwriters for the offering, which is subject to market conditions. The company noted there can be no assurance regarding the completion or terms of the offering.
The offering is being made pursuant to a registration statement that became automatically effective upon filing with the SEC on November 8, 2023.
Permian Resources is an independent oil and natural gas company headquartered in Midland, Texas, with assets located in the Permian Basin, focusing on the core of the Delaware Basin. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US equities.
In other recent news, Permian Resources Corp reported strong second-quarter results, with both EBITDAX and total production surpassing forecasts. UBS reiterated its Buy rating and maintained a $16.00 price target, noting improved capital efficiency and favorable tax conditions contributing to increased near-term free cash flow. Meanwhile, Wells Fargo raised its price target for the company to $21.00, citing the company’s performance meeting high expectations and its robust inventory depth. William Blair initiated coverage with an Outperform rating, emphasizing Permian Resources’ efficient operations and solid balance sheet.
Additionally, Raymond James lowered its price target to $22.00, attributing the decision to a weaker commodity price environment, despite production figures exceeding estimates. On the corporate side, Permian Resources registered shares for a potential exchange of its 3.25% exchangeable senior notes due 2028. These shares are part of a registration statement filed with the SEC, supported by a prospectus supplement. These developments reflect ongoing investor interest and analyst activity surrounding the company’s financial and operational performance.
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