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Video: What is a Stock Split?
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Permian Resources is an independent oil and natural gas company focused on the development of unconventional oil and associated natural gas reserves in the Permian Basin. Co.'s assets are concentrated in the Delaware Basin, a sub-basin of the Permian Basin, and its properties consist of contiguous acreage blocks in West Texas and New Mexico. Co. has established commercial production on its acreage using horizontal drilling from several main zones: the Avalon Shale, 1st Bone Spring Sand, 2nd Bone Spring Sand, 2nd Bone Spring Shale, 3rd Bone Spring Sand, 3rd Bone Spring Shale, Upper Wolfcamp A, Lower Wolfcamp A, Wolfcamp B and Wolfcamp C. According to our PR split history records, Permian Resources has had 9 splits. | |
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Permian Resources (PR) has 9 splits in our PR split history database. The first split for PR took place on January 21, 1993. This was a 1 for 20
reverse split, meaning for each 20
shares of PR owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 50 share position following the split. PR's second split took place on December 23, 1997. This was a 5 for 4
split, meaning for each 4
shares of PR owned pre-split, the shareholder now owned 5 shares. For example, a 50 share position pre-split, became a 62.5 share position following the split. PR's third split took place on April 02, 1998. This was a 5 for 4
split, meaning for each 4
shares of PR owned pre-split, the shareholder now owned 5 shares. For example, a 62.5 share position pre-split, became a 78.125 share position following the split. PR's 4th split took place on May 01, 1998. This was a 5 for 4
split, meaning for each 4
shares of PR owned pre-split, the shareholder now owned 5 shares. For example, a 78.125 share position pre-split, became a 97.65625 share position following the split. PR's 5th split took place on September 01, 1998. This was a 2 for 1
split, meaning for each share of PR owned pre-split, the shareholder now owned 2 shares. For example, a 97.65625 share position pre-split, became a 195.3125 share position following the split. PR's 6th split took place on January 26, 1999. This was a 5 for 4
split, meaning for each 4
shares of PR owned pre-split, the shareholder now owned 5 shares. For example, a 195.3125 share position pre-split, became a 244.140625 share position following the split. PR's 7th split took place on May 05, 1999. This was a 5 for 4
split, meaning for each 4
shares of PR owned pre-split, the shareholder now owned 5 shares. For example, a 244.140625 share position pre-split, became a 305.17578125 share position following the split. PR's 8th split took place on August 10, 1999. This was a 105 for 100
split, meaning for each 100
shares of PR owned pre-split, the shareholder now owned 105 shares. For example, a 305.17578125 share position pre-split, became a 320.4345703125 share position following the split. PR's 9th split took place on May 13, 2004. This was a 105 for 100 split, meaning for each 100 shares of PR owned pre-split, the shareholder now owned 105 shares. For example, a 320.4345703125 share position pre-split, became a 336.456298828125 share position following the split.
When a company such as Permian Resources splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business. When a company such as Permian Resources conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.
Looking at the PR split history from start to finish, an original position size of 1000 shares would have turned into 336.456298828125 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Permian Resources shares, starting with a $10,000 purchase of PR, presented on a split-history-adjusted basis factoring in the complete PR split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
04/18/2016 |
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End date: |
04/18/2024 |
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Start price/share: |
$10.00 |
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End price/share: |
$17.18 |
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Starting shares: |
1,000.00 |
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Ending shares: |
1,046.89 |
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Dividends reinvested/share: |
$0.57 |
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Total return: |
79.86% |
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Average Annual Total Return: |
7.61% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$17,988.53 |
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Years: |
8.01 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/18/2016 |
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End date: |
04/18/2024 |
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Start price/share: |
$10.00 |
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End price/share: |
$17.18 |
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Dividends collected/share: |
$0.57 |
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Total return: |
77.50% |
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Average Annual Total Return: |
7.43% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$17,749.05 |
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Years: |
8.01 |
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Date |
Ratio |
01/21/1993 | 1 for 20
| 12/23/1997 | 5 for 4
| 04/02/1998 | 5 for 4
| 05/01/1998 | 5 for 4
| 09/01/1998 | 2 for 1
| 01/26/1999 | 5 for 4
| 05/05/1999 | 5 for 4
| 08/10/1999 | 105 for 100
| 05/13/2004 | 105 for 100 |
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