Q2 2019 Earnings Presentation SEPTEMBER 25, 2018 August 6, 2019 INVESTOR PRESENTATION 3Q 2017
Parsley Energy Overview ParsleyBasin Permian Energy Net Acreage Midland HOWARD Net Leasehold Acreage: 189,000(1) Premier Permian Pure-Play (96% Operated) Midland Basin: 147,000 ANDREWS Basin MARTIN Delaware LEA Basin:…
Delivering on 2019 Action Plan Guiding Principles 2019 Action Plan Accountability Progress through 2Q19 Tracking ahead of plan; targeting Rate of Return (ROR)-driven approach to well selection Improve capital efficiency by 8-10%+…
Boosting Capital Efficiency Target 2019 Action Plan designed to improve capital efficiency and compress timeline to sustainable free cash flow Expected 8-10%+ YoY improvement driven by lower well costs, high-graded activity, and…
Building to Sustainable Free Cash Flow Maturing Asset Base 2019 Action Plan designed to improve capital efficiency and compress timeline to sustainable free cash flow Targeting free cash flow in 2H19(1) despite younger asset base than…
Defend and Extend Efficiency Gains Maintaining Operational Momentum 2Q19 Efficiency Highlights 1H19 Drilling: +13% from 2018 average 1H19 Completions: +15% from 2018 average Drilling 1,400 Sustained drilling efficiency gains with…
Operational Spotlight Upton County Recent Upton County well results highlight early success from ROR-focused development program Completion design changes facilitating a 9% improvement versus 2018 Upton wells Improving Upton Well…
Building to Sustainable Free Cash Flow Advantaged Marketing Position Marketing strategy centered around two guiding principles: dependability and diversification Parsley aims to insulate cash flow from regional oil Permian API…
Building to Sustainable Free Cash Flow Compressing Costs to Expand Margins Extracting more value per barrel of production through stringent cost control and scale benefits Delivered company-record LOE per Boe and cash G&A per Boe…
Building to Sustainable Free Cash Flow Minerals Ownership Minerals ownership enhances Parsleys sustainable free cash flow profile Adds high margin production without any associated capex or operating expenses Surface ownership can…
Strong, Flexible Financial Position Ample Borrowing Capacity Favorable debt maturity schedule with 3.0 earliest notes maturity in 2024 Weighted average cost of debt has dropped 2.5 Borrowing base has more than quadrupled in last…
Guidance Summary Prior 2019 Updated 2019 Guidance Guidance Delivering on 2019 Development Plan Production Continuing to budget at 50 WTI Net Oil Production (MBo/d) 80.0 - 85.0 85.0 - 86.5 Tightening 2019 capital budget range Net…
Supplementary Slides CLICK TO ADD TEXT SUPPLEMENTARY SUPPLEMENTARY SLIDES SLIDES
Hedge Position Open Crude Oil Derivatives Positions 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Hedging Strategy OPTION CONTRACTS CUSHING Put Spreads Cushing (MBbls/d)(1) 19.6 19.6 Long Put Price (/Bbl) 57.29 57.29 Methodical, consistent…
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…
Water Asset Overview Proactive build-out of water infrastructure network with 165 million of cumulative capital investment Permitted disposal capacity provides ample running room for future growth Robust Water Infrastructure…
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…
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 12-14%+ YoY increase ROR focus pulls…
Long Reinvestment Runway Provides Development Optionality Parsley Drill Spacing Unit (DSU)(1) Other Parsley Acreage 2019 Action Plan (167,000 net acres)(2) Development Inventory (22,000 net acres)(2) DrilledDrilled (1) DSU…
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…
Optimizing the 2019 Plan Transformational 2017 Simplified 2018 2019 Action Plan NPV-Focused ROR-Focused Boost capital efficiency by 12-14%+ and Agenda Achieve scale Recapture operational efficiency accelerate progress to self-funded…
Adjusted EBITDAX & Net Leverage Ratio Reconciliations Unaudited, in thousands 3Q18 4Q18 1Q19 2Q19 Adjusted EBITDAX reconciliation to net income: Net income (loss) attributable to Parsley Energy, Inc. stockholders 113,309 53,773…
Operating Cash Margin Reconciliation Unaudited, in thousands Three Months Ended June 30, 2019 2018 Net income attributable to Parsley Energy, Inc. stockholders 115,935 119,155 Net income attributable to noncontrolling interests…
Free Cash Flow Reconciliation Free Cash Flow (Outspend) Free cash flow (outspend) is a non-GAAP financial measure and is defined as cash flow from operations before changes in operating assets and liabilities less accrual-based…
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