James Walter on merger vs IPO
From Permian Resources co-CEOs: We can grow and return meaningful capital to shareholders · · CNBC Television
“This transaction was way better than an IPO. The assets, the Centennial transaction, the people that brought this really builds a bigger, better company than we ever could have done on our own.”
On , James Walter, Co-Chief Executive Officer & Director at PERMIAN RESOURCES CORP, spoke about merger vs IPO during Permian Resources co-CEOs: We can grow and return meaningful capital to shareholders on CNBC Television.
About James Walter
In a September 2022 CNBC interview, James Walter discussed Permian Resources' strategy following its merger. He stated that the company can "grow and return meaningful capital to shareholders," adding that "returning capital is in our DNA." Walter estimated an "all in return of capital yield" of 14% or 15% with a dividend yield approaching 2.5%, which he described as "really competitive" with other exploration and production companies. He expressed confidence in the company's assets in the Delaware Basin, calling them "some of the best assets in that basin," and said that at $75 to $80 oil prices the company can "sustain this indefinitely." Walter characterized the merger as "way better than an IPO," saying it "builds a bigger, better company than we ever could have done on our own." He noted that the company is "cutting a lot of costs out of the business" through operational synergies, and that combining best practices has revealed "a lot of extra fat we can cut." Walter attributed the success of the co-CEO structure to his transactional and legal background complementing co-CEO Will Hickey's technical background, stating it "works really well." He also said that being in "the lowest break-even basin in the U.S." gives the company confidence it will be "one of the best positioned for the next ten years."