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Parsley Completes Acquisition of Jagged Peak; Details Board Changes

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   |    Friday,January 10,2020

Parsley Energy has closed its acquisition of Jagged Peak Energy Inc. The all-stock transaction is valued at $2.27 billion ($1.67 billion + $625 million in debt).

This deal significantly augmented Parsley's position in the Delaware Basin, adding the following to its existing portfolio:

• Location: Delaware Basin - Ward, Pecos, Reeves counties, TX

• Acreage: 78,000 net acres

• Production: 38,300 boe/d (76% oil)

• 1P Reserves: 118.9 MMBOE

• Drilling Locations: 1,800 gross un-risked

Parsley President & CEO Matt Gallagher said: "We first publicly announced our proposed combination with Jagged Peak less than ninety days ago. This collective expediency to closing allows our team to hit the ground running on these complementary, high margin assets and start capturing tangible synergies that will enhance value for our combined shareholder base. Execution will continue to speak louder than words, and our integration efforts will retain the sense of urgency and accountability that defined our successful 2019 action plan. Ultimately, we expect that the culmination of this hard work will be a more capital efficient enterprise with more free cash flow.

"Finally, I am excited to formally welcome Wil and Jim to our Board. I believe the Company and our shareholders will be well served by their sound financial acumen, considerable experience, and extensive network of industry contacts."

Board Appointments

In connection with the closing of the transaction, Parsley announced the appointment of S. Wil VanLoh, Jr. and Jim Kleckner to its Board of Directors. Mr. VanLoh is the Founder and Chief Executive Officer of Quantum Energy Partners and formerly served as a Jagged Peak director.

Mr. Kleckner was formerly President and Chief Executive Officer of Jagged Peak and also served as a Jagged Peak director.