Barclays CEO Energy- Power Conference September 2019 SEPTEMBER 25, 2018 INVESTOR PRESENTATION 3Q 2017
Delivering on 2019 Action Plan Guiding Principles 2019 Action Plan Accountability 2019 Progress Tracking ahead of plan; targeting Rate of Return (ROR)-driven approach to well selection Improve capital efficiency by 8-10%+ YoY(1)…
Timeline to Sustainable Free Cash Flow Gained Technical and Shifted to Horizontal Achieved Scale Inflecting to Sustainable Operational Expertise Development Free Cash Flow Pre-IPO: Management May 2014: August 2019: invested…
2019 Action Plan Two Key Objectives 2019 Action Plan designed to compress timeline to sustainable free cash flow and improve capital efficiency Sustainability is driven by Parsleys competitive advantages Competitive Advantages for…
Building to Sustainable Free Cash Flow 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…
Building to Sustainable Free Cash Flow Long Reinvestment Runway Parsley Drill Spacing Unit (DSU)(1) Other Parsley Acreage 2019 Action Plan (167,000 net acres)(2) (22,000 net acres)(2) Development Inventory DSU Development…
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 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…
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 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…
2019 Action Plan Two Key Objectives 2019 Action Plan designed to compress timeline to sustainable free cash flow and improve capital efficiency Parsley is delivering a measurable step-change in capital efficiency Generating More…
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…
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 an 11% improvement versus 2018 Upton wells Improving Upton Well…
Guidance Summary Original 2019 Guidance Revised 2019 Guidance Delivering on 2019 Development Plan (Feb '19) (Aug '19) Production Continuing to budget at 50 WTI Net Oil Production (MBo/d) 80.0 - 85.0 85.0 - 86.5 Tightened 2019…
Parsley Energy Overview Premier Permian Pure-Play HOWARD Economies of scale and core inventory depth MARTIN Elite return profile Efficient and sustainable growth Advantaged production flow and pricing GLASSCOCK Margins…
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Hedge Position Open Crude Oil Derivatives Positions OPTION CONTRACTS 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Hedging Strategy CUSHING Put Spreads Cushing (MBbls/d)(1) 19.6 19.6 Long Put Price (/Bbl) 57.29 57.29 Methodical, consistent…
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…
Setting the Course for 2019 & Beyond Unveiled February 2019 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…
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…
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…
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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