Permian Resources backers make final exit
Riverstone Investments and Pearl Energy cashed out a US$623.9m stake in Permian Resources via a block sale ahead of the US market open on Monday that saw the energy-focused PE firms exit stakes inherited from a merger in 2022.
Morgan Stanley, Citigroup and Goldman Sachs offloaded their joint purchase of 46.1m secondary shares at US$13.53, the bottom of the US$13.53–$13.70 marketing range and a thin 1.2% discount to the US$13.70 close on Friday.
The Permian Basin-focused oil explorer’s shares closed Monday’s session at US$13.24 or well below offer.
The selloff came despite Permian Resources buying back an additional 2m shares from the selling shareholders at the same US$13.46 price the banks paid on the block purchase. The company bought back some stock in the offer.
Permian Resources has frequently sold stock via block sales, either on behalf of itself or selling shareholders. In July 2024, the company raised US$405.5m from a primary block sale of 26.5m shares priced at US$15.30 to partially fund an acquisition, a financing that was also launched and executed ahead of the US market open Monday.
Riverstone disposed of its remaining 40.4m Permian Resources’ shares on the block sale. Pearl Energy sold its remaining stake by selling 5.8m shares on the public block sale, 2m shares through the concurrent buyback, and by distributing 9m shares to its limited partners.
Pearl Energy founder William Quinn will continue to own 3.9m shares.
Riverstone and Pearl Energy inherited their stakes through a merger between Colgate Energy and Centennial Resources Development in 2022, with the combined entity subsequently renamed Permian Resources.