JP Morgan Energy Conference June 2019 INVESTOR PRESENTATION 3Q 2017
Parsley Energy Overview ParsleyBasin Permian Energy Net Acreage Net Leasehold Acreage: 190,000(1) Premier Permian Pure-Play Midland HOWARD (96% Operated) Basin Midland Basin: 148,500 ANDREWS MARTIN Delaware LEA Basin:…
Establishing a Competitive Advantage Among Independent E&Ps Outpacing top quartile operators in key value drivers highlights Parsleys competitive advantage Sustained by low-cost, durable asset base and top-tier operational ability…
Setting the Course for 2019 & Beyond Guiding Principles For an optimal And Accountability Compelling provided foundation 2019 Action Plan will help achieve goals and Long-Term Targets Rate of Return (ROR)-driven Improve capital…
Organic Path to Self-Funded Growth Accelerating Free Cash Flow by Prioritizing ROR Boosting Capital Efficiency Inventory depth enables shift in development approach 2019 Action Plan targets 8-10%+ YoY increase ROR focus pulls forward…
Long Reinvestment Runway Provides Development Optionality Parsley Drill Spacing Unit (DSU)(1) Other Parsley Acreage 2019 Action Plan (167,000 net acres)(2) (23,000 net acres)(2) ANDREWS Development Inventory DSU Development…
Permian Scale Sweet Spot Efficient allocation of capital within the Permian requires sufficient scale Parsley believes optimal scale both retains corporate agility and ensures a voice in service market Measuring Permian Scale by Rig…
Defend and Extend Efficiency Gains Maintaining Operational Momentum 1Q19 Efficiency Highlights 1,400 Tracking well ahead of Drilling legacy efficiency levels 1,300 Improved drilling efficiency for both Midland and Delaware Basins…
2019 Action Plan: On Track & On Budget Guiding Principles 2019 Action Plan Accountability 2019 Progress Rate of Return (ROR)-driven approach to well selection Improve capital efficiency by 8-10%+ YoY(1) On track Discipline…
Supplementary Slides CLICK TO ADD TEXT SUPPLEMENTARY SUPPLEMENTARY SLIDES SLIDES
Guidance Summary 2019E 2019 Development Plan on Track Production Continuing to budget at 50 WTI Net Oil Production (MBo/d) 80.0 - 85.0 Net Production (MBoe/d) 124.0 - 134.0 Reaffirming commitment to 2019 capital budget…
Strong, Flexible Financial Position Ample Borrowing Capacity Favorable debt maturity schedule 3.0 with earliest notes maturity in 2024 2.5 Borrowing base has more than Weighted average cost of debt has quadrupled in last four years…
Hedge Position Open Crude Oil Derivatives Positions 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 OPTION CONTRACTS Hedging Strategy CUSHING Put Spreads Cushing (MBbls/d)(1) Long Put Price (/Bbl) 11.5 51.43 19.6 59.79 19.6 59.79…
Operational Spotlight Delaware Basin Strong 1Q19 execution in Delaware Basin on multiple fronts 1Q19 Delaware POPs Robust Well Performance Across Acreage Footprint Successful execution of nine two-mile laterals across Delaware asset…
Optimizing the 2019 Plan Transformational 2017 Simplified 2018 2019 Action Plan NPV-Focused ROR-Focused Boost capital efficiency by 8-10%+ and Agenda Achieve scale Recapture operational efficiency accelerate progress to self-funded…
Operational Spotlight Water Assets Proactive build-out of water infrastructure network with 156 million of cumulative capital investment Saved 12 million on water sourcing, handling, and disposal costs in 1Q19 Permitted disposal…
Consistently Efficient Reserve Growth YE18 total proved reserves up 25% YoY (oil up 18% YoY) Proved Reserves Summary(5) YE18 PD reserves up 49% YoY (oil up 43% YoY) Oil Gas NGL Total YE 2018 (MMBo) (Bcf) (MMBoe) (MMBoe) Three-year…
Adjusted EBITDAX & Net Leverage Ratio Reconciliations Unaudited, in thousands 2Q18 3Q18 4Q18 1Q19 Adjusted EBITDAX reconciliation to net income: Net income (loss) attributable to Parsley Energy, Inc. stockholders 119,155 113,309…
Operating Cash Margin Reconciliation Unaudited, in thousands Three Months Ended March 31, 2019 2018 Net (loss) income attributable to Parsley Energy, Inc. stockholders (24,064) 82,890 Net (loss) income attributable to noncontrolling…
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