Bank of America Merrill Lynch Global Energy Conference SEPTEMBER 25, 2018 November 2019 INVESTOR PRESENTATION 3Q 2017
Parsley Energy Overview Pro Forma 3Q19 Highlights Parsley Energy Acreage(2) Midland HOWARD Net Leasehold Acreage: 266,000 (96% Operated) Basin Generated free cash flow(1) Midland Basin: 146,000 ANDREWS MARTIN Delaware Basin:…
Delivering on 2019 Action Plan Guiding Principles 2019 Action Plan Accountability Progress through 3Q19 Tracking ahead of plan; targeting Rate of Return (ROR)-driven approach to well selection Improve capital efficiency by 8-10%+…
Enhancing a Competitive Advantage Among Independent E&Ps Outpacing top quartile operators in key value drivers highlights Parsleys competitive advantage Pending Jagged Peak acquisition enhances Parsleys standings and sustains this…
Jagged Peak Transaction Synergy Scorecard Stock-for-stock, low-premium transaction ensures synergies accrue to all shareholders Modest premium paid is materially below present value of G&A synergies(1) Integration success aligns with…
Jagged Peak Transaction Revamped Delaware Cost Structure Parsley significantly reduced Delaware well costs over the past 12 months Applying Parsleys scale advantage expected to help lower Jagged Peaks well costs Expect capital…
Jagged Peak Transaction Delaware Productivity Jagged Peak wells outperforming comparable Parsley Delaware Basin wells by 15% Familiar geology with more productive reservoir Thicker Wolfcamp and 3rd Bone Spring targets moving northwest…
Defend & Extend Capital Efficiency Gains 2019 Action Plan designed to improve capital efficiency and compress timeline to sustainable free cash flow(1) Expected 8-10%+ YoY improvement driven by lower well costs, high-graded activity,…
Jagged Peak Transaction Straight Forward Path to Value Creation Jagged Peak Transaction - Conviction in Value Creation Increases Free Cash Flow Enhances Top-Tier Corporate Returns Sustains Capital Efficiency Gains Enhances free cash…
Strong, Flexible Financial Position Maintains Healthy Leverage Profile with Ample Borrowing Capacity Pro forma Parsley leverage remains healthy at 1.6x(1), consistent with that of standalone Parsley Larger cash flow base and ample…
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) 85.0 - 86.5 86.4 - 87.4 Generated free cash flow(2) in 3Q19 Net…
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Parsley Acquisition of Jagged Peak A Natural Extension in the Permian Complementary and Contiguous Oil-Weighted Production and Inventory with Industry-Leading Margins Low-Premium Transaction is Accretive to Cash Flow per Share,…
Maintaining Returns-Focused Development Approach Preliminary Pro Forma 2020 Outlook(1) Continuing to budget at 50 WTI Enhanced free cash flow profile(2) 2020E Capex Breakdown Sustained capital efficiency(3) Midland Delaware TOTAL…
Dialed in to 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…
Long Reinvestment Runway Provides Development Optionality Parsley Drill Spacing Unit (DSU)(1) Other Parsley Acreage 2019 Action Plan Publication Date: February 2019 (167,000 net acres)(2) (22,000 net acres)(2) Development Inventory…
JAG Transaction - Widening Reinvestment Runway with High-Return Projects Parsley Drill Spacing Unit (DSU)(1) Other Parsley Acreage Delivering on 2019 Action Plan Publication Date: November 2019 (246,000 net acres)(2) (20,000 net…
Prioritizing Sustainable Free Cash Flow Margin Insulation Combines teams that have prioritized cost vigilance and have delivered robust operating margins Corporate cost optimization facilitates further margin expansion…
Jagged Peak Transaction Acreage Overlap and Water Assets Adjoining Positions Increase Returns Expands Company-Owned Water Business Parsley Jagged Peak JAG SWD JAG Source Water Wells JAG Pit Locations JAG SWD Pipeline JAG…
Pro Forma 2020 Hedge Position Open Crude Oil Derivatives Positions 1Q20 2Q20 3Q20 4Q20 OPTION CONTRACTS Hedging Strategy CUSHING Swaps Cushing (MBbls/d)(1) 20.0 20.0 20.0 20.0 Swap Price (/Bbl) 58.25 58.25 58.25 58.25 MIDLAND…
Parsley Energy Standalone Adj. EBITDAX and Net Leverage Ratio Reconciliations Unaudited, in thousands 4Q18 1Q19 2Q19 3Q19 Adjusted EBITDAX reconciliation to net income: Net income (loss) attributable to Parsley Energy, Inc.…
Pro Forma Adj. EBITDAX and Net Leverage Ratio Reconciliations Unaudited, in thousands 4Q18 1Q19 2Q19 3Q19 Adjusted EBITDAX reconciliation to net income: Net income (loss) attributable to stockholders 240,119 (118,952) 157,842 150,268…
Operating Cash Margin Reconciliation Unaudited, in thousands Three Months Ended September 30, 2019 2018 Net income attributable to Parsley Energy, Inc. stockholders 119,710 113,309 Net income attributable to noncontrolling interests…
Free Cash Flow (Outspend) Reconciliation Unaudited, in thousands Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Net cash provided by operating activities 325,418 941,300 Net change in operating assets…
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