AUSTIN, Texas, Oct. 28, 2020 /PRNewswire/ -- Parsley Energy,
Inc. (NYSE: PE) ("Parsley," "Parsley Energy," or the "Company")
today announced financial and operating results for the quarter
ended September 30, 2020.
Recent Highlights
- Generated positive free cash flow(1) in 3Q20.
- Paid 3Q20 quarterly dividend of $0.05 per share on September 18, 2020 and declared 4Q20 quarterly
dividend of $0.05 per
share(2) payable on December 18,
2020.
- 3Q20 net oil production decreased 1% quarter-over-quarter and
increased 21% year-over-year to 111.0 MBo per day. Total 3Q20 net
production averaged 183.2 MBoe per day.
- Recently announced a definitive merger agreement to be acquired
by Pioneer Natural Resources Company ("Pioneer") in an all-stock
transaction valued at approximately $7.6
billion, inclusive of assumed debt, expected to close in
1Q21.
Operational Update
During the third quarter of 2020, the Company placed on
production 26 gross operated horizontal wells. Parsley's average
working interest on wells placed on production was approximately
88%, with an average completed lateral length of approximately
9,700 feet. The Company placed on production 15 gross operated
horizontal wells in the Midland Basin, with the remainder placed on
production in the Delaware
Basin.
After reactivating development activity in July, Parsley
delivered steady improvements in drilling and completion
efficiency(3) within each basin. Notably, in the
Delaware Basin, Parsley drilled
its first two three-mile lateral wells in under 29 days each, which
helped drive a new Company-record for Delaware drilling efficiency in 3Q20. Parsley
attributes these recent drilling efficiency gains to enhancements
made to the Company's remote operational command center during the
activity shutdown in May and June. As operational efficiency gains
take hold, the Company is delivering leading edge well costs below
$850 per foot in the Delaware Basin.
In line with prior Company commentary, Parsley deployed two
additional rigs in late October, bringing the current number of
active operated rigs to four. The Company expects to continue
operating four rigs and one-to-two frac spreads for the remainder
of 2020.
Financial Update
Profitability
During 3Q20, the Company recorded net income attributable to its
stockholders of $22.6 million, or
$0.06 per share. Excluding, on a
tax-adjusted basis, certain items that the Company does not view as
indicative of its ongoing financial performance, adjusted net
income for 3Q20 was $82.6 million, or
$0.22 per share.(1)
Adjusted earnings before interest, income taxes, depreciation,
depletion, amortization, and exploration expense ("Adjusted
EBITDAX") for 3Q20 was $290.2
million.(1)
Realized Pricing
During 3Q20, Parsley reported an average unhedged oil price
realization of $37.19 per Bbl net of
transportation costs, representing a discount of $3.73 to the average WTI Cushing
price(4) for the quarter.
Operating Costs
During the third quarter of 2020, the Company reported lease
operating expense ("LOE") per Boe of $3.19, down 14% versus 2Q20 expense levels
despite stable production volumes. Favorable LOE unit cost trends
were driven by supplier price reductions and continued utilization
of the Company's integrated water handling system.
Both general and administrative expense ("G&A") per Boe and
cash based G&A per Boe(1), which excludes
stock-based compensation expense, decreased quarter-over-quarter to
$1.97 and $1.59, respectively. Encouraging G&A cost
trends are a function of ongoing corporate cost savings
initiatives.
Capital Expenditures
Parsley reported capital expenditures of $85 million during the third quarter of 2020,
comprised of $84 million for operated
drilling, completion, and equipment activity, and $1 million associated with water infrastructure
and non-operated development activity.
Return of Capital Program
Today, Parsley Energy's board of directors declared a quarterly
dividend of $0.05 per
share.(2) The dividend is payable on December 18, 2020, to shareholders of record on
December 8, 2020.
Liquidity and Hedging
The Company entered into an amendment to its revolving credit
agreement on October 19, 2020, which
reaffirmed its borrowing base at $2.7
billion and increased the elected commitment amount from
$1.075 billion to $1.1 billion.
As of September 30, 2020, Parsley had approximately
$767.7 million of liquidity,
consisting of $4.7 million of cash
and cash equivalents and an availability of $763.0 million on the Company's
revolver.(5)
For details on Parsley's hedge position, please see the tables
below under Supplemental Information and/or, upon availability, the
Company's Quarterly Report on Form 10-Q for the three months ended
September 30, 2020.
Guidance
In light of Parsley's recent entry into a definitive merger
agreement with Pioneer, Parsley has discontinued providing guidance
and long-term outlook information regarding its results of
operations. Further, Parsley does not intend to update previously
issued guidance and long-term outlook information, including the
guidance provided in the Company's presentation posted to its
website on September 8, 2020.
Accordingly, investors are cautioned not to rely on historical
forward-looking statements regarding guidance and long-term outlook
information, as those forward-looking statements were the estimates
of management only as of the date provided, have not and will not
be updated and were subject to the specific risks and uncertainties
that accompanied such forward-looking statements.
Conference Call Information
Parsley Energy will host a brief conference call and webcast to
discuss its results for the third quarter of 2020 on Thursday, October 29, 2020 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). This conference call and
webcast will not include a question and answer session.
Participants should call 877-709-8150 (United States/Canada) or 201-689-8354 (International) 10
minutes before the scheduled time and request the Parsley Energy
earnings conference call. A telephone replay will be available
through November 5, 2020 by dialing
877-660-6853 (United
States/Canada) or
201-612-7415 (International). Conference ID: 13710926. A live
broadcast will also be available on the Internet at
www.parsleyenergy.com under the "Investors-Events &
Presentations" section of the website.
About Parsley Energy, Inc.
Parsley Energy, Inc. is an independent oil and natural gas
company focused on the acquisition, development, exploration, and
production of unconventional oil and natural gas properties in the
Permian Basin. For more information, visit the Company's website at
www.parsleyenergy.com.
Forward Looking Statements
Certain statements contained in this news release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements represent Parsley Energy's expectations or beliefs
concerning future events, and it is possible that the results
described in this news release will not be achieved. These
forward-looking statements are subject to risks, uncertainties and
other factors, many of which are outside of Parsley Energy's
control, which could cause actual results to differ materially from
the results discussed in the forward-looking statements. Any
forward-looking statement speaks only as of the date on which it is
made, and, except as required by law, Parsley Energy does not
undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise. New factors emerge from time to time, and it is not
possible for Parsley Energy to predict all such factors. When
considering these forward-looking statements, you should keep in
mind the risk factors and other cautionary statements found in the
Company's filings with the Securities and Exchange Commission
("SEC"), including its most recent Annual Report on Form 10-K and
any subsequently filed Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K. The risk factors and other factors noted in
the Company's SEC filings could cause its actual results to differ
materially from those contained in any forward-looking
statement.
Investor Contacts:
Kyle Rhodes
Vice President - Investor Relations
or
Dan Guill
Investor Relations Analyst
ir@parsleyenergy.com
(512) 505-5199
Media and Public Affairs Contacts:
Kate Zaykowski
Manager - Public Affairs and Corporate Communications
media@parsleyenergy.com
(512) 220-7100
- Tables to Follow -
|
|
|
|
|
|
|
|
|
(1)
|
"Cash based G&A
per Boe", "Adjusted EBITDAX", "free cash flow", and "adjusted net
income" are not presented in accordance with generally accepted
accounting principles in the United States ("GAAP"). For
definitions and reconciliations of the non-GAAP financial measures
of Adjusted EBITDAX, free cash flow, and adjusted net income to
GAAP financial measures, please see the tables and associated
commentary below under Reconciliation of Non-GAAP Financial
Measures.
|
|
(2)
|
Dividend to be paid
to all Company equity holders, including shareholders of Class A
common stock and holders of Parsley Energy, LLC units/Class B
common stock.
|
|
(3)
|
"Drilling efficiency"
is measured based on drilled feet per operational day. "Completion
efficiency" is measured based on stimulated lateral length per
operational day. "Operational days" are measured as days equipment
is active and do not include mobilization or other idle
time.
|
|
(4)
|
Represents
Bloomberg-sourced 3Q20 average WTI Cushing price.
|
|
(5)
|
Revolver availability
is net of letters of credit.
|
|
Parsley Energy,
Inc. and Subsidiaries
|
|
Selected Operating
Data
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
September 30,
2020
|
|
June 30,
2020
|
|
September 30,
2019
|
|
Net production
volumes:
|
|
|
|
|
|
|
Oil (MBbls)
|
10,213
|
|
|
10,242
|
|
|
8,440
|
|
|
Natural gas
(MMcf)
|
18,371
|
|
|
16,949
|
|
|
14,475
|
|
|
Natural gas liquids
(MBbls)
|
3,581
|
|
|
3,600
|
|
|
2,983
|
|
|
Total
(MBoe)
|
16,856
|
|
|
16,667
|
|
|
13,836
|
|
|
Average daily net
production (Boe/d)
|
183,217
|
|
|
183,154
|
|
|
150,391
|
|
|
Average sales
prices(1) :
|
|
|
|
|
|
|
Oil, without realized
derivatives (per Bbl)
|
$
|
37.19
|
|
|
$
|
18.30
|
|
|
$
|
55.16
|
|
|
Oil, with realized
derivatives (per Bbl)
|
$
|
35.73
|
|
|
$
|
31.47
|
|
|
$
|
54.12
|
|
|
Natural gas, without
realized derivatives (per Mcf)
|
$
|
1.02
|
|
|
$
|
0.71
|
|
|
$
|
0.59
|
|
|
Natural gas, with
realized derivatives (per Mcf)
|
$
|
0.92
|
|
|
$
|
0.65
|
|
|
$
|
0.64
|
|
|
Natural gas liquids
(per Bbl)
|
$
|
12.87
|
|
|
$
|
5.10
|
|
|
$
|
11.08
|
|
|
Average price per Boe,
without realized derivatives
|
$
|
26.38
|
|
|
$
|
13.07
|
|
|
$
|
36.65
|
|
|
Average price per Boe,
with realized derivatives
|
$
|
25.38
|
|
|
$
|
21.10
|
|
|
$
|
36.07
|
|
|
Average costs (per
Boe):
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
3.19
|
|
|
$
|
3.69
|
|
|
$
|
3.30
|
|
|
Transportation and
processing costs
|
$
|
1.32
|
|
|
$
|
0.87
|
|
|
$
|
0.87
|
|
|
Production and ad
valorem taxes
|
$
|
1.88
|
|
|
$
|
1.40
|
|
|
$
|
2.76
|
|
|
Depreciation,
depletion and amortization
|
$
|
7.60
|
|
|
$
|
7.65
|
|
|
$
|
15.30
|
|
|
General and
administrative expenses (including stock-based
compensation)
|
$
|
1.97
|
|
|
$
|
2.21
|
|
|
$
|
2.65
|
|
|
General and
administrative expenses (cash based)
|
$
|
1.59
|
|
|
$
|
1.81
|
|
|
$
|
2.28
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Average prices shown
in the table reflect prices both before and after the effects of
the Company's realized commodity hedging transactions. The
Company's calculations of such effects include both realized gains
and losses on cash settlements for commodity derivative
transactions and premiums paid or received on options that settled
during the period. Realized oil prices are net of transportation
costs.
|
|
Parsley Energy,
Inc. and Subsidiaries
|
|
Condensed
Consolidated Statements of Operations
|
|
(Unaudited, in
thousands, except for per share data)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Oil sales
|
$
|
379,804
|
|
|
$
|
465,549
|
|
|
$
|
1,089,423
|
|
|
$
|
1,292,563
|
|
|
Natural gas
sales
|
18,729
|
|
|
8,566
|
|
|
35,966
|
|
|
23,159
|
|
|
Natural gas liquids
sales
|
46,095
|
|
|
33,041
|
|
|
96,894
|
|
|
115,138
|
|
|
Other
|
2,761
|
|
|
2,995
|
|
|
10,119
|
|
|
5,503
|
|
|
Total
revenues
|
447,389
|
|
|
510,151
|
|
|
1,232,402
|
|
|
1,436,363
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
53,696
|
|
|
45,719
|
|
|
188,853
|
|
|
129,587
|
|
|
Transportation and
processing costs
|
22,182
|
|
|
12,052
|
|
|
50,942
|
|
|
26,917
|
|
|
Production and ad
valorem taxes
|
31,709
|
|
|
38,235
|
|
|
92,254
|
|
|
96,386
|
|
|
Depreciation,
depletion and amortization
|
128,045
|
|
|
211,737
|
|
|
530,190
|
|
|
584,023
|
|
|
General and
administrative expenses (including stock-based
compensation)
|
33,282
|
|
|
36,718
|
|
|
106,052
|
|
|
109,662
|
|
|
Exploration and
abandonment costs
|
7,983
|
|
|
11,988
|
|
|
571,616
|
|
|
35,054
|
|
|
Impairment
|
—
|
|
|
—
|
|
|
4,374,253
|
|
|
—
|
|
|
Acquisition
costs
|
278
|
|
|
—
|
|
|
15,296
|
|
|
—
|
|
|
Accretion of asset
retirement obligations
|
497
|
|
|
373
|
|
|
1,414
|
|
|
1,071
|
|
|
Rig termination
costs
|
(202)
|
|
|
—
|
|
|
14,904
|
|
|
—
|
|
|
Loss (gain) on sale of
property
|
357
|
|
|
(1,887)
|
|
|
332
|
|
|
(1,887)
|
|
|
Restructuring and
other termination costs
|
8,134
|
|
|
—
|
|
|
45,431
|
|
|
1,562
|
|
|
Other operating
expenses
|
5,202
|
|
|
2,175
|
|
|
16,802
|
|
|
3,563
|
|
|
Total operating
expenses
|
291,163
|
|
|
357,110
|
|
|
6,008,339
|
|
|
985,938
|
|
|
OPERATING
INCOME (LOSS)
|
156,226
|
|
|
153,041
|
|
|
(4,775,937)
|
|
|
450,425
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(40,456)
|
|
|
(33,578)
|
|
|
(122,589)
|
|
|
(100,177)
|
|
|
Gain (loss) on early
extinguishment of debt
|
56
|
|
|
—
|
|
|
(21,037)
|
|
|
—
|
|
|
(Loss) gain on
derivatives
|
(87,021)
|
|
|
56,552
|
|
|
178,665
|
|
|
(43,574)
|
|
|
Change in TRA
liability
|
—
|
|
|
—
|
|
|
70,529
|
|
|
—
|
|
|
Interest
income
|
16
|
|
|
216
|
|
|
285
|
|
|
610
|
|
|
Other
expense
|
(928)
|
|
|
(1,678)
|
|
|
(4,794)
|
|
|
(905)
|
|
|
Total other (expense)
income, net
|
(128,333)
|
|
|
21,512
|
|
|
101,059
|
|
|
(144,046)
|
|
|
INCOME (LOSS)
BEFORE INCOME TAXES
|
27,893
|
|
|
174,553
|
|
|
(4,674,878)
|
|
|
306,379
|
|
|
INCOME TAX
(EXPENSE) BENEFIT
|
(3,129)
|
|
|
(34,953)
|
|
|
574,017
|
|
|
(59,788)
|
|
|
NET INCOME
(LOSS)
|
24,764
|
|
|
139,600
|
|
|
(4,100,861)
|
|
|
246,591
|
|
|
LESS: NET (INCOME)
LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
(2,125)
|
|
|
(19,890)
|
|
|
400,684
|
|
|
(35,010)
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO PARSLEY ENERGY, INC. STOCKHOLDERS
|
$
|
22,639
|
|
|
$
|
119,710
|
|
|
$
|
(3,700,177)
|
|
|
$
|
211,581
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.06
|
|
|
$
|
0.43
|
|
|
$
|
(9.91)
|
|
|
$
|
0.76
|
|
|
Diluted
|
$
|
0.06
|
|
|
$
|
0.43
|
|
|
$
|
(9.91)
|
|
|
$
|
0.76
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
377,452
|
|
|
279,961
|
|
|
373,503
|
|
|
279,491
|
|
|
Diluted
|
378,160
|
|
|
280,547
|
|
|
373,503
|
|
|
279,954
|
|
|
Parsley Energy,
Inc. and Subsidiaries
|
|
Condensed
Consolidated Balance Sheets
|
|
(Unaudited, in
thousands)
|
|
|
September 30,
2020
|
|
December 31,
2019
|
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
|
4,662
|
|
|
$
|
20,739
|
|
|
Accounts receivable,
net of allowance for doubtful accounts:
|
|
|
|
|
Joint interest owners
and other
|
30,582
|
|
|
48,785
|
|
|
Oil, natural gas and
natural gas liquids
|
141,720
|
|
|
192,216
|
|
|
Related
parties
|
188
|
|
|
183
|
|
|
Short-term derivative
instruments, net
|
81,280
|
|
|
127,632
|
|
|
Other current
assets
|
11,461
|
|
|
8,818
|
|
|
Total current
assets
|
269,893
|
|
|
398,373
|
|
|
PROPERTY, PLANT
AND EQUIPMENT
|
|
|
|
|
Oil and natural gas
properties, successful efforts method
|
7,533,203
|
|
|
11,272,124
|
|
|
Accumulated
depreciation and depletion
|
(249,704)
|
|
|
(2,117,963)
|
|
|
Total oil and natural
gas properties, net
|
7,283,499
|
|
|
9,154,161
|
|
|
Other property, plant
and equipment, net
|
195,449
|
|
|
170,306
|
|
|
Total property, plant
and equipment, net
|
7,478,948
|
|
|
9,324,467
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Operating lease
assets, net of accumulated depreciation
|
85,867
|
|
|
128,529
|
|
|
Long-term derivative
instruments, net
|
3,239
|
|
|
—
|
|
|
Other noncurrent
assets
|
6,989
|
|
|
4,845
|
|
|
Total noncurrent
assets
|
96,095
|
|
|
133,374
|
|
|
TOTAL
ASSETS
|
$
|
7,844,936
|
|
|
$
|
9,856,214
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
280,055
|
|
|
$
|
416,346
|
|
|
Revenue and severance
taxes payable
|
176,618
|
|
|
154,556
|
|
|
Short-term derivative
instruments, net
|
107,725
|
|
|
158,522
|
|
|
Current operating
lease liabilities
|
40,029
|
|
|
61,198
|
|
|
Other current
liabilities
|
3,886
|
|
|
5,002
|
|
|
Total current
liabilities
|
608,313
|
|
|
795,624
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
Long-term
debt
|
2,996,015
|
|
|
2,182,832
|
|
|
Deferred tax
liabilities
|
8,581
|
|
|
193,409
|
|
|
Operating lease
liabilities
|
50,259
|
|
|
69,195
|
|
|
Payable pursuant to
tax receivable agreement
|
—
|
|
|
70,529
|
|
|
Long-term derivative
instruments, net
|
24,621
|
|
|
—
|
|
|
Asset retirement
obligations
|
27,622
|
|
|
20,538
|
|
|
Financing lease
liabilities
|
1,670
|
|
|
1,320
|
|
|
Other noncurrent
liabilities
|
428
|
|
|
119
|
|
|
Total noncurrent
liabilities
|
3,109,196
|
|
|
2,537,942
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
Preferred stock, $0.01
par value, 50,000,000 shares authorized, none issued and
outstanding
|
—
|
|
|
—
|
|
|
Common
stock
|
|
|
|
|
Class A, $0.01 par
value, 600,000,000 shares authorized, 379,339,004 shares issued and
378,610,172 shares outstanding at September 30, 2020 and
282,260,133 shares issued and 281,241,443 shares outstanding at
December 31, 2019
|
3,793
|
|
|
2,822
|
|
|
Class B, $0.01 par
value, 125,000,000 shares authorized, 34,201,316 and 35,420,258
shares issued and outstanding at September 30, 2020 and December
31, 2019
|
342
|
|
|
355
|
|
|
Additional paid in
capital
|
6,971,249
|
|
|
5,200,795
|
|
|
(Accumulated deficit)
retained earnings
|
(3,148,317)
|
|
|
570,889
|
|
|
Treasury stock, at
cost, 728,832 shares and 1,018,690 shares at September 30, 2020 and
December 31, 2019
|
(11,165)
|
|
|
(17,428)
|
|
|
Total stockholders'
equity
|
3,815,902
|
|
|
5,757,433
|
|
|
Noncontrolling
interests
|
311,525
|
|
|
765,215
|
|
|
Total
equity
|
4,127,427
|
|
|
6,522,648
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
|
7,844,936
|
|
|
$
|
9,856,214
|
|
|
Parsley Energy,
Inc. and Subsidiaries
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(Unaudited, in
thousands)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
24,764
|
|
|
$
|
139,600
|
|
|
$
|
(4,100,861)
|
|
|
$
|
246,591
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
128,045
|
|
|
211,737
|
|
|
530,190
|
|
|
584,023
|
|
|
Leasehold abandonments
and impairments
|
7,933
|
|
|
11,885
|
|
|
564,445
|
|
|
34,074
|
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
4,374,253
|
|
|
—
|
|
|
Accretion of asset
retirement obligations
|
497
|
|
|
373
|
|
|
1,414
|
|
|
1,071
|
|
|
Loss (gain) on sale of
property
|
357
|
|
|
(1,887)
|
|
|
332
|
|
|
(1,887)
|
|
|
(Gain) loss on early
extinguishment of debt
|
(56)
|
|
|
—
|
|
|
21,037
|
|
|
—
|
|
|
Stock-based
compensation
|
6,564
|
|
|
5,175
|
|
|
24,342
|
|
|
15,473
|
|
|
Deferred income tax
expense (benefit)
|
3,129
|
|
|
34,953
|
|
|
(574,017)
|
|
|
59,788
|
|
|
Change in TRA
liability
|
—
|
|
|
—
|
|
|
(70,529)
|
|
|
—
|
|
|
Loss (gain) on
derivatives
|
87,021
|
|
|
(56,552)
|
|
|
(178,665)
|
|
|
43,574
|
|
|
Net cash (paid)
received for derivative settlements
|
(10,780)
|
|
|
2,023
|
|
|
132,816
|
|
|
(13,088)
|
|
|
Net cash (paid)
received for option premiums
|
(6,128)
|
|
|
(11,712)
|
|
|
42,758
|
|
|
(35,321)
|
|
|
Other
|
699
|
|
|
3,517
|
|
|
2,940
|
|
|
5,140
|
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(21,386)
|
|
|
(30,727)
|
|
|
145,238
|
|
|
(44,144)
|
|
|
Accounts
receivable—related parties
|
4,076
|
|
|
511
|
|
|
(5)
|
|
|
(287)
|
|
|
Other current
assets
|
(5,067)
|
|
|
(2,183)
|
|
|
(4,097)
|
|
|
5,062
|
|
|
Other noncurrent
assets
|
820
|
|
|
531
|
|
|
2,632
|
|
|
(274)
|
|
|
Accounts payable and
accrued expenses
|
823
|
|
|
14,838
|
|
|
(175,528)
|
|
|
33,303
|
|
|
Revenue and severance
taxes payable
|
5,957
|
|
|
3,277
|
|
|
22,062
|
|
|
8,143
|
|
|
Other noncurrent
liabilities
|
118
|
|
|
59
|
|
|
309
|
|
|
59
|
|
|
Net cash provided by
operating activities
|
227,386
|
|
|
325,418
|
|
|
761,066
|
|
|
941,300
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Development of oil and
natural gas properties
|
(65,532)
|
|
|
(343,988)
|
|
|
(630,853)
|
|
|
(1,081,182)
|
|
|
Acquisitions of oil
and natural gas properties
|
(2,400)
|
|
|
(9,250)
|
|
|
(14,344)
|
|
|
(33,841)
|
|
|
Cash acquired from the
Jagged Peak acquisition
|
—
|
|
|
—
|
|
|
53,347
|
|
|
—
|
|
|
Additions to other
property and equipment
|
(8,976)
|
|
|
(244)
|
|
|
(12,138)
|
|
|
(28,155)
|
|
|
Proceeds from sales of
property, plant and equipment
|
308
|
|
|
3,074
|
|
|
2,689
|
|
|
40,967
|
|
|
Other
|
6
|
|
|
732
|
|
|
(2,482)
|
|
|
5,221
|
|
|
Net cash used in
investing activities
|
(76,594)
|
|
|
(349,676)
|
|
|
(603,781)
|
|
|
(1,096,990)
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Borrowings under
long-term debt
|
136,000
|
|
|
175,000
|
|
|
1,421,000
|
|
|
462,000
|
|
|
Payments on long-term
debt
|
(262,934)
|
|
|
(200,000)
|
|
|
(1,507,534)
|
|
|
(447,000)
|
|
|
Payments on financing
lease obligations
|
(642)
|
|
|
(696)
|
|
|
(1,941)
|
|
|
(2,126)
|
|
|
Debt issuance
costs
|
(120)
|
|
|
—
|
|
|
(11,897)
|
|
|
—
|
|
|
Repurchase of common
stock
|
(89)
|
|
|
(20)
|
|
|
(11,165)
|
|
|
(5,672)
|
|
|
Dividends and
distributions paid
|
(20,610)
|
|
|
(9,465)
|
|
|
(61,825)
|
|
|
(9,465)
|
|
|
Distributions to
owners from consolidated subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
(603)
|
|
|
Net cash used in
financing activities
|
(148,395)
|
|
|
(35,181)
|
|
|
(173,362)
|
|
|
(2,866)
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
2,397
|
|
|
(59,439)
|
|
|
(16,077)
|
|
|
(158,556)
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
2,265
|
|
|
64,099
|
|
|
20,739
|
|
|
163,216
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
4,662
|
|
|
$
|
4,660
|
|
|
$
|
4,662
|
|
|
$
|
4,660
|
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
$
|
(41,600)
|
|
|
$
|
(13,610)
|
|
|
$
|
(118,009)
|
|
|
$
|
(71,774)
|
|
|
Cash received for
income taxes
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
240
|
|
|
SUPPLEMENTAL
DISCLOSURE OF NON-CASH ACTIVITIES:
|
|
|
|
|
|
|
|
|
Asset retirement
obligations incurred, including changes in estimate
|
$
|
532
|
|
|
$
|
411
|
|
|
$
|
4,448
|
|
|
$
|
1,619
|
|
|
Additions to oil and
natural gas properties - change in capital accruals
|
$
|
19,367
|
|
|
$
|
(25,695)
|
|
|
$
|
(102,872)
|
|
|
$
|
15,429
|
|
|
Common stock issued
for oil and natural gas properties
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,776,199
|
|
|
$
|
—
|
|
|
Net premiums on
options that settled during the period
|
$
|
7,156
|
|
|
$
|
(11,765)
|
|
|
$
|
5,922
|
|
|
$
|
(31,513)
|
|
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is not a measure of net income (loss) as
determined by GAAP. Adjusted EBITDAX is a supplemental non-GAAP
financial measure that is used by the Company's management and
external users of the Company's consolidated financial statements,
such as industry analysts, investors, lenders and rating agencies.
The Company defines Adjusted EBITDAX as net income (loss) before
depreciation, depletion and amortization, exploration and
abandonment costs, net interest expense, interest income, income
tax expense, change in Tax Receivable Agreement ("TRA") liability,
stock-based compensation, acquisition costs, impairment on
long-lived assets, (gain) loss on early extinguishment of debt,
gain on sale of property, rig termination costs, restructuring and
other termination costs, accretion of asset retirement obligations,
loss (gain) on derivatives, net settlements on derivative
instruments, net premiums on options that settled during the period
and other.
Management believes Adjusted EBITDAX is useful because it allows
the Company to more effectively evaluate its operating performance
and compare the results of its operations from period to period
without regard to its financing methods or capital structure. The
Company excludes the items listed above from net loss in arriving
at Adjusted EBITDAX because these amounts can vary substantially
from company to company within its industry depending upon
accounting methods and book values of assets, capital structure,
and the method by which the assets were acquired. Adjusted EBITDAX
should not be considered as an alternative to, or more meaningful
than, net loss as determined in accordance with GAAP or as an
indicator of the Company's operating performance. Certain items
excluded from Adjusted EBITDAX are significant components in
understanding and assessing a company's financial performance, such
as a company's cost of capital and tax structure, as well as the
historic costs of depreciable assets, none of which are components
of Adjusted EBITDAX. The Company's computations of Adjusted EBITDAX
may not be comparable to other similarly titled measures of other
companies. The Company believes that Adjusted EBITDAX is useful to
investors as a widely followed measure of operating
performance.
The following table presents a reconciliation of Adjusted
EBITDAX to the GAAP financial measure of net income (loss)
attributable to Parsley Energy, Inc. stockholders for each of the
periods indicated.
|
Parsley Energy,
Inc. and Subsidiaries
|
|
Adjusted
EBITDAX
|
|
(Unaudited, in
thousands)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Adjusted EBITDAX
reconciliation to net income (loss) attributable to Parsley Energy,
Inc. stockholders:
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Parsley Energy, Inc. stockholders
|
$
|
22,639
|
|
|
$
|
119,710
|
|
|
$
|
(3,700,177)
|
|
|
$
|
211,581
|
|
|
Net income (loss)
attributable to noncontrolling interests
|
2,125
|
|
|
19,890
|
|
|
(400,684)
|
|
|
35,010
|
|
|
Depreciation,
depletion and amortization
|
128,045
|
|
|
211,737
|
|
|
530,190
|
|
|
584,023
|
|
|
Exploration and
abandonment costs
|
7,983
|
|
|
11,988
|
|
|
571,616
|
|
|
35,054
|
|
|
Interest expense,
net
|
40,456
|
|
|
33,578
|
|
|
122,589
|
|
|
100,177
|
|
|
Interest
income
|
(16)
|
|
|
(216)
|
|
|
(285)
|
|
|
(610)
|
|
|
Income tax
expense
|
3,129
|
|
|
34,953
|
|
|
(574,017)
|
|
|
59,788
|
|
|
EBITDAX
|
204,361
|
|
|
431,640
|
|
|
(3,450,768)
|
|
|
1,025,023
|
|
|
Change in TRA
liability
|
—
|
|
|
—
|
|
|
(70,529)
|
|
|
—
|
|
|
Stock-based
compensation
|
6,564
|
|
|
5,175
|
|
|
19,592
|
|
|
15,473
|
|
|
Acquisition
costs
|
278
|
|
|
—
|
|
|
15,296
|
|
|
—
|
|
|
Impairment on
long-lived assets
|
—
|
|
|
—
|
|
|
4,374,253
|
|
|
—
|
|
|
(Gain) loss on early
extinguishment of debt
|
(56)
|
|
|
—
|
|
|
21,037
|
|
|
—
|
|
|
Gain on sale of
property
|
357
|
|
|
(1,887)
|
|
|
332
|
|
|
(1,887)
|
|
|
Rig termination
costs
|
(202)
|
|
|
—
|
|
|
14,904
|
|
|
—
|
|
|
Restructuring and
other termination costs
|
8,134
|
|
|
—
|
|
|
45,431
|
|
|
1,562
|
|
|
Accretion of asset
retirement obligations
|
497
|
|
|
373
|
|
|
1,414
|
|
|
1,071
|
|
|
Loss (gain) on
derivatives
|
87,021
|
|
|
(56,552)
|
|
|
(178,665)
|
|
|
43,574
|
|
|
Net settlements on
derivative instruments
|
(23,900)
|
|
|
3,686
|
|
|
158,628
|
|
|
(13,108)
|
|
|
Net premiums on
options that settled during the period
|
7,156
|
|
|
(11,765)
|
|
|
5,922
|
|
|
(31,513)
|
|
|
Other
|
—
|
|
|
—
|
|
|
2,142
|
|
|
—
|
|
|
Adjusted
EBITDAX
|
$
|
290,210
|
|
|
$
|
370,670
|
|
|
$
|
958,989
|
|
|
$
|
1,040,195
|
|
Free Cash Flow
Free cash flow is not a measure of net cash provided by
operating activities as determined by GAAP. Free cash flow is a
supplemental non-GAAP financial measure that is used by the
Company, analysts and investors as an indicator of the Company's
ability to manage its operating cash flow, internally fund its
exploration and development activities, pay dividends, and to
service or incur additional debt, without regard to the timing of
settlement of either operating assets and liabilities or accounts
payable related to capital expenditures. The Company believes that
this measure, as so adjusted, presents a meaningful indicator of
the Company's actual sources and uses of capital associated with
its operations conducted during the applicable period. The Company
defines free cash flow as net cash provided by operating activities
before changes in operating assets and liabilities, net of
acquisitions and acquisition and cash restructuring costs related
to the acquisition of Jagged Peak, less accrual-based development
capital expenditures. The amounts included in the calculation of
free cash flow were computed in accordance with GAAP.
Free cash flow is provided in addition to, and not as an
alternative for, and should be read in conjunction with, the
information contained in the Company's condensed consolidated
financial statements prepared in accordance with GAAP (including
the notes), included in its SEC filings and posted on its website.
The following table provides a reconciliation of free cash flow to
the GAAP financial measure of net cash provided by operating
activities.
|
Parsley Energy,
Inc. and Subsidiaries
|
|
Free Cash
Flow
|
|
(Unaudited, in
thousands)
|
|
|
Three Months Ended
September 30,
|
|
2020
|
|
2019
|
|
Net cash provided by
operating activities
|
$
|
227,386
|
|
|
$
|
325,418
|
|
|
Net change in operating
assets and liabilities, net of acquisitions
|
14,659
|
|
|
13,694
|
|
|
Acquisition costs
related to the acquisition of Jagged Peak
|
278
|
|
|
—
|
|
|
Restructuring costs
related to the acquisition of Jagged Peak (excluding
non-cash)
|
58
|
|
|
—
|
|
|
Total discretionary
cash flow
|
242,381
|
|
|
339,112
|
|
|
|
|
|
|
Development of oil and
natural gas properties
|
(65,532)
|
|
|
(343,988)
|
|
|
Additions to oil and
natural gas properties - (increase) decrease in capital
accruals
|
(19,367)
|
|
|
25,695
|
|
|
Total accrual-based
development capital expenditures
|
(84,899)
|
|
|
(318,293)
|
|
|
Free cash
flow
|
$
|
157,482
|
|
|
$
|
20,819
|
|
Adjusted Net Income
Adjusted net income is not a measure of net income (loss)
determined in accordance with GAAP. Adjusted net income is a
supplemental non-GAAP performance measure used by the Company's
management to evaluate financial performance, prior to loss (gain)
on derivatives, net settlements on derivative instruments, net
premiums on options that settled during the period, loss (gain) on
sale of property, rig termination costs, restructuring and other
termination costs, exploration and abandonment costs, impairment of
long-lived assets, acquisition costs, change in TRA liability,
(gain) loss on early extinguishment of debt, and other, while
adjusting for changes in noncontrolling interests, the associated
changes in estimated income tax and changes to deferred tax asset
valuation allowance. Management believes adjusted net income is
useful because it may enhance investors' ability to assess
Parsley's historical and future financial performance. Adjusted net
income should not be considered an alternative to, or more
meaningful than, consolidated net income (loss), operating income
(loss), or any other measure of financial performance presented in
accordance with GAAP. The following table presents a reconciliation
of the non-GAAP financial measure of adjusted net income to the
GAAP financial measure of net income (loss) attributable to Parsley
Energy, Inc. stockholders.
|
Parsley Energy,
Inc. and Subsidiaries
|
|
Adjusted Net
Income and Net Income Per Share
|
|
(Unaudited, in
thousands, except per share data)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net income (loss)
attributable to Parsley Energy, Inc. stockholders
|
$
|
22,639
|
|
|
$
|
119,710
|
|
|
$
|
(3,700,177)
|
|
|
$
|
211,581
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss (gain) on
derivatives
|
87,021
|
|
|
(56,552)
|
|
|
(178,665)
|
|
|
43,574
|
|
|
Net settlements on
derivative instruments
|
(23,900)
|
|
|
3,686
|
|
|
158,628
|
|
|
(13,108)
|
|
|
Net premiums on
options that settled during the period
|
7,156
|
|
|
(11,765)
|
|
|
5,923
|
|
|
(31,513)
|
|
|
Loss (gain) on sale of
property
|
357
|
|
|
(1,887)
|
|
|
332
|
|
|
(1,887)
|
|
|
Rig termination
costs
|
(202)
|
|
|
—
|
|
|
14,904
|
|
|
—
|
|
|
Restructuring and
other termination costs
|
8,134
|
|
|
—
|
|
|
45,431
|
|
|
1,562
|
|
|
Exploration and
abandonment costs
|
7,983
|
|
|
11,988
|
|
|
571,616
|
|
|
35,054
|
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
4,374,253
|
|
|
—
|
|
|
Acquisition
costs
|
278
|
|
|
—
|
|
|
15,296
|
|
|
—
|
|
|
Change in TRA
liability
|
—
|
|
|
—
|
|
|
(70,529)
|
|
|
—
|
|
|
(Gain) loss on early
extinguishment of debt
|
(56)
|
|
|
—
|
|
|
21,037
|
|
|
—
|
|
|
Other
|
—
|
|
|
—
|
|
|
2,142
|
|
|
—
|
|
|
Change in
noncontrolling interests
|
(7,473)
|
|
|
6,106
|
|
|
(425,398)
|
|
|
(4,113)
|
|
|
Income taxes on above
adjustments(1)
|
(19,336)
|
|
|
10,675
|
|
|
(351,629)
|
|
|
(6,565)
|
|
|
Adjustment to deferred
tax asset valuation allowance(2)
|
—
|
|
|
—
|
|
|
(284,727)
|
|
|
—
|
|
|
Adjusted net
income
|
$
|
82,601
|
|
|
$
|
81,961
|
|
|
$
|
198,437
|
|
|
$
|
234,585
|
|
|
Net income (loss)
per diluted share - as reported(1)
|
$
|
0.06
|
|
|
$
|
0.43
|
|
|
$
|
(9.91)
|
|
|
$
|
0.76
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss (gain) on
derivatives
|
$
|
0.23
|
|
|
$
|
(0.20)
|
|
|
$
|
(0.48)
|
|
|
$
|
0.16
|
|
|
Net settlements on
derivative instruments
|
(0.06)
|
|
|
0.01
|
|
|
0.42
|
|
|
(0.05)
|
|
|
Net premiums on
options that settled during the period
|
0.02
|
|
|
(0.04)
|
|
|
0.02
|
|
|
(0.11)
|
|
|
Loss (gain) on sale of
property
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(0.01)
|
|
|
Rig termination
costs
|
—
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
Restructuring and
other termination costs
|
0.02
|
|
|
—
|
|
|
0.12
|
|
|
0.01
|
|
|
Exploration and
abandonment costs
|
0.02
|
|
|
0.04
|
|
|
1.53
|
|
|
0.13
|
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
11.70
|
|
|
—
|
|
|
Acquisition
costs
|
—
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
Change in TRA
liability
|
—
|
|
|
—
|
|
|
(0.19)
|
|
|
—
|
|
|
Loss on early
extinguishment of debt
|
—
|
|
|
—
|
|
|
0.06
|
|
|
—
|
|
|
Other
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
Change in
noncontrolling interests
|
(0.02)
|
|
|
0.02
|
|
|
(1.14)
|
|
|
(0.01)
|
|
|
Income taxes on above
adjustments
|
(0.05)
|
|
|
0.04
|
|
|
(0.93)
|
|
|
(0.04)
|
|
|
Adjustment to deferred
tax asset valuation allowance
|
—
|
|
|
—
|
|
|
(0.76)
|
|
|
—
|
|
|
Adjusted net
income per diluted share(4)
|
$
|
0.22
|
|
|
$
|
0.29
|
|
|
$
|
0.53
|
|
|
$
|
0.84
|
|
|
Basic weighted
average shares outstanding - as reported(3)
|
377,452
|
|
|
279,961
|
|
|
373,503
|
|
|
279,491
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
Class B Common
Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Restricted Stock and
Restricted Stock Units
|
708
|
|
|
586
|
|
|
—
|
|
|
463
|
|
|
Diluted weighted
average shares outstanding - as reported(3)
|
378,160
|
|
|
280,547
|
|
|
373,503
|
|
|
279,954
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
Class B Common
Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Restricted Stock and
Restricted Stock Units
|
—
|
|
|
—
|
|
|
304
|
|
|
—
|
|
|
Diluted weighted
average shares outstanding for adjusted net
income(4)
|
378,160
|
|
|
280,547
|
|
|
373,807
|
|
|
279,954
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The assumed income
tax rate is 22% and 20% for the three and nine months ended
September 30, 2020 and 2019, respectively.
|
|
(2)
|
Deferred tax
valuation allowance has been adjusted to reflect the assumed income
tax rate of 22%.
|
|
(3)
|
For the three and
nine months ended September 30, 2020 and the nine months ended
September 30, 2019, the number of weighted average diluted shares
used to calculate actual net income (loss) per share is based on
the fact that, under the "if converted" and "treasury stock"
methods, Class B Common Stock and shares of restricted stock and
restricted stock units, respectively, were not recognized because
the effect would have been antidilutive. For the nine months ended
September 30, 2019, the number of weighted average diluted
shares used to calculate actual net income (loss) per share is
based on the fact that, under the "if converted" method, Class B
Common Stock was not recognized because the effect would have been
antidilutive.
|
|
(4)
|
For purposes of
calculating adjusted net income per diluted share for the three and
nine months ended September 30, 2020 and 2019, Class B Common Stock
was not recognized because the shares would have been antidilutive
using the "if converted" method.
|
|
Open Derivatives
Position
|
|
|
Parsley Energy,
Inc. and Subsidiaries
|
|
Open Crude Oil
Derivatives Positions(1)
|
|
|
4Q20
|
|
1Q21
|
|
2Q21
|
|
3Q21
|
|
4Q21
|
|
1Q22
|
|
CUSHING
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps - Cushing
(MBbls/d)(2)
|
11.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Swap Price
($/Bbl)
|
$
|
57.87
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDLAND
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Way Collars -
Midland (MBbls/d)(3)
|
13.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Short Call Price
($/Bbl)
|
$
|
51.65
|
|
|
|
|
|
|
|
|
|
|
|
|
Long Put Price
($/Bbl)
|
$
|
35.66
|
|
|
|
|
|
|
|
|
|
|
|
|
Short Put Price
($/Bbl)
|
$
|
25.66
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Way Collars -
Midland (MBbls/d)(4)
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Short Call Price
($/Bbl)
|
$
|
48.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Long Put Price
($/Bbl)
|
$
|
43.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps - Midland
(MBbls/d)(2)
|
3.3
|
|
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
|
|
|
Swap Price
($/Bbl)
|
$
|
32.60
|
|
|
$
|
40.50
|
|
|
$
|
40.50
|
|
|
$
|
40.50
|
|
|
$
|
40.50
|
|
|
|
|
MAGELLAN EAST
HOUSTON ("MEH")
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Way Collars -
MEH (MBbls/d)(3)
|
24.1
|
|
|
20.3
|
|
|
20.2
|
|
|
9.4
|
|
|
9.4
|
|
|
|
|
Short Call Price
($/Bbl)
|
$
|
51.22
|
|
|
$
|
59.43
|
|
|
$
|
59.39
|
|
|
$
|
51.29
|
|
|
$
|
51.29
|
|
|
|
|
Long Put Price
($/Bbl)
|
$
|
37.23
|
|
|
$
|
49.32
|
|
|
$
|
49.30
|
|
|
$
|
41.55
|
|
|
$
|
41.55
|
|
|
|
|
Short Put Price
($/Bbl)
|
$
|
27.23
|
|
|
$
|
39.32
|
|
|
$
|
39.30
|
|
|
$
|
31.55
|
|
|
$
|
31.55
|
|
|
|
|
Put Spreads - MEH
(MBbls/d)(5)
|
17.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Long Put Price
($/Bbl)
|
$
|
40.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Short Put Price
($/Bbl)
|
$
|
30.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps - MEH
(MBbls/d)(2)
|
15.7
|
|
|
45.0
|
|
|
45.0
|
|
|
45.0
|
|
|
45.0
|
|
|
20.0
|
|
|
Swap Price
($/Bbl)
|
$
|
39.28
|
|
|
$
|
40.54
|
|
|
$
|
40.54
|
|
|
$
|
40.54
|
|
|
$
|
40.54
|
|
|
$
|
43.81
|
|
|
BRENT
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Way Collars -
Brent (MBbls/d)(4)
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Short Call Price
($/Bbl)
|
$
|
52.30
|
|
|
|
|
|
|
|
|
|
|
|
|
Long Put Price
($/Bbl)
|
$
|
47.30
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps - Brent
(MBbls/d)(2)
|
6.3
|
|
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
|
22.0
|
|
|
|
|
Swap Price
($/Bbl)
|
$
|
47.40
|
|
|
$
|
44.46
|
|
|
$
|
44.46
|
|
|
$
|
44.46
|
|
|
$
|
44.46
|
|
|
|
|
Total Hedged
Volumes (MBbls/d)
|
105.1
|
|
|
92.3
|
|
|
92.2
|
|
|
81.4
|
|
|
81.4
|
|
|
20.0
|
|
|
Premium Realization
($MM)(6)
|
$
|
7.2
|
|
|
$
|
(2.6)
|
|
|
$
|
(2.6)
|
|
|
$
|
(1.4)
|
|
|
$
|
(1.4)
|
|
|
|
|
Midland-Cushing
Basis Swaps (MBbls/d)(7)
|
14.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Basis
Differential ($/Bbl)
|
$
|
(1.44)
|
|
|
|
|
|
|
|
|
|
|
|
|
Rollfactor Swaps
(MBbls/d)(8)
|
52.2
|
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
Swap Price
($/Bbl)
|
$
|
(2.09)
|
|
|
$
|
(0.45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parsley Energy,
Inc. and Subsidiaries
|
|
Open Natural Gas
Derivatives Positions(1)
|
|
|
4Q20
|
|
1Q21
|
|
2Q21
|
|
3Q21
|
|
4Q21
|
|
1Q22
|
|
WAHA
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps - Waha
(MMBtu/d)(2)
|
78,152
|
|
|
116,667
|
|
|
116,484
|
|
|
116,304
|
|
|
116,304
|
|
|
20,000
|
|
|
Swap Price
($/MMBtu)
|
$
|
1.40
|
|
|
$
|
2.36
|
|
|
$
|
2.36
|
|
|
$
|
2.36
|
|
|
$
|
2.36
|
|
|
$
|
2.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Hedge position as of
10/27/2020. Prices represent the weighted average price of
contracts scheduled for settlement during the period.
|
|
(2)
|
Parsley receives the
swap price.
|
|
(3)
|
When the reference
price (Midland, MEH, or Brent) is at or above the short call price,
Parsley receives the short call price. When the reference price is
between the long put price and the short put price, Parsley
receives the long put price. When the reference price is below the
short put price, Parsley receives the reference price plus the
difference between the short put price and the long put
price.
|
|
(4)
|
When the reference
price is above the short call price, Parsley receives the short
call price. When the reference price is between the short call
price and the put price, Parsley receives the reference price. When
the reference price is below the put price, Parsley receives the
put price.
|
|
(5)
|
When the reference
price is above the long put price, Parsley receives the reference
price. When the reference price is between the long put price and
the short put price, Parsley receives the long put price. When the
reference price is below the short put price, Parsley receives the
reference price plus the difference between the short put price and
the long put price.
|
|
(6)
|
Premium realizations
represent net premiums paid (including deferred premiums), which
are recognized as income or loss in the period of
settlement.
|
|
(7)
|
Swaps that fix the
basis differentials representing the index prices at which the
Company sells its oil and gas produced in the Permian Basin less
the WTI Cushing price and Henry Hub price, respectively.
|
|
(8)
|
These positions hedge
the timing risk associated with Parsley's physical sales. Parsley
generally sells crude oil for the delivery month at a sales price
based on the average NYMEX price during that month, plus an
adjustment calculated as a spread between the weighted average
prices of the delivery month, the next month, and the following
month during the period when the delivery month is the first
month.
|
|
Weighted Average
Shares Outstanding
|
|
|
Parsley Energy,
Inc. and Subsidiaries
|
|
Weighted Average
Shares Outstanding
|
|
(Unaudited, in
thousands)
|
|
|
Three Months Ended
September 30,
|
|
2020
|
|
2019
|
|
|
|
|
|
Weighted average
common shares outstanding, class A
|
377,452
|
|
|
279,961
|
|
|
Weighted average
common shares outstanding, class B
|
34,681
|
|
|
35,519
|
|
|
Adjusted weighted
average common shares outstanding(1)
|
412,133
|
|
|
315,480
|
|
|
|
|
|
|
|
|
|
|
(1)
|
PE Units (and a
corresponding number of shares of Class B common stock) can be
exchanged for Class A common stock at an exchange ratio of one
share of Class A common stock for each PE Unit (and corresponding
share of Class B common stock) exchanged. As such, assumes the
exchange of all outstanding PE Units (and corresponding shares of
Class B common stock) for shares of Class A common stock. Excludes
potentially dilutive restricted stock and restricted stock units of
approximately 0.7 million and 0.6 million shares for the three
months ended September 30, 2020 and 2019, respectively.
|
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SOURCE Parsley Energy, Inc.
