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RBC Global Energy Power Executive Conference – Parsley Energy Inc.

Parsley Energy Inc. · Jun 2, 2020 · 22 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 1
    RBC Global CLICK TO ADD Energy EVENT and Power Executive Conference June 2020 INVESTOR PRESENTATION 3Q 2017 CLICK TO ADD DATE PARSLEYENERGY.COM
  2. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 2
    Parsley Energy Overview Parsley Energy Acreage(1) Recent Highlights GAINES DAWSON BORDEN Midland Net Leasehold Acreage: 250,000 (96% Operated) Reinforced balance sheet strength Midland Basin: 142,000 ANDREWS Basin Delaware…
  3. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 3
    Early Action Amplifies Long-Term Optionality Simultaneous supply and demand shocks struck the oil market in 1Q20 April global oil demand destruction from COVID-19 estimated at 30%(1) Significant production increases from Saudi Arabia,…
  4. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 4
    Reducing Capital Spend Activity Reductions Lowered 2020 capital budget to less than 700 High-Grading Drilling Activity at Lower Oil Prices million Parsley Acreage 1Q20 capex of 379 million comprises 50% of Initial Rigs at 50 WTI…
  5. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 5
    Enduring with Relevance 2020 activity plans remain flexible pending market dynamics, but expect to endure with relevance in any scenario Targeting at least 300 million in free cash flow(1) in 2020 via Stabilized Activity model…
  6. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 6
    Enhancing Free Cash Flow Visibility Reducing Maintenance Capital Maintenance capital commonly refers to the capex required to hold oil production flat for one year Capital efficiency and base decline rate are key determinants Free…
  7. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 7
    Activity Reductions Voluntary Production Curtailment Curtailed 26 net MBo/d in May 2020 Voluntary decision driven by free cash flow analysis, shape of curve, and ESG initiatives Adjusted hedge volumes to align with curtailed…
  8. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 8
    Reducing Capital Spend Lower Well Costs Organic cost improvements in 1Q20 driven by Defending and Extending Efficiency Gains(2) cohesive integration efforts and sustained operational 1,600 Operational Day(1) per Rig / Crew…
  9. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 9
    Margin Defense Flowing Low Cost Barrels Low cost operators offer differentiation in a lower commodity price environment LOE Maintaining a vigilant focus on costs to support margins: Comprehensive supply chain management outreach…
  10. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 10
    Margin Defense Advantaged Marketing Position Marketing strategy centered around two guiding principles: dependability and diversification Parsley aims to insulate cash flow from regional oil Permian API Gravity Sweet Spot(1) price…
  11. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 11
    Balance Sheet Defense Bolstering Hedge Position Proactively managed hedge position during 2Q20-4Q21 Net Hedge Settlements (MM)(1) March and April, providing added protection against a prolonged downturn in oil prices 1,200…
  12. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 12
    Strong, Flexible Financial Position Maintains Healthy Leverage Profile with Ample Borrowing Capacity Large cash flow base and ample liquidity in a prolonged downturn scenario Recently reaffirmed 2.7 billion borrowing base Increased…
  13. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 13
    Revised 2020 Guidance Summary Prior 2020 Guidance Revised 2020 Guidance 2020 Guidance Highlights(3) Capital Program Budgeting at 20-30 for the remainder of 2020 Total Development Expenditures (MM) 1,600 -…
  14. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 14
    Supplementary Slides CLICK TO ADD TEXT
  15. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 15
    Hedge Position Open Crude Oil Derivatives Positions Hedging Strategy 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 CUSHING Swaps - Cushing (MBbls/d)(1) 3.6 11.0 11.0 Swap Price (/Bbl) 57.87 57.87 57.87 More swaps, fewer three-way MIDLAND…
  16. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 16
    Committed to ESG Leadership Conducted materiality assessment following the Global Total Fluid Spill Rate(1) Reporting Initiative (GRI) framework of topic identification, stakeholder feedback, prioritization, and senior leader 0.200…
  17. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 17
    Committed to ESG Leadership Attacking overhead costs from multiple angles EVPs and more senior officers elected to reduce respective 2020 cash compensation by at least 50% YoY Significant insider ownership aligns incentives with…
  18. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 18
    JAG Synergy Scorecard Update Stock-for-stock, low-premium transaction ensured synergies accrue to all shareholders Modest premium was materially below present value of estimated G&A synergies(1) Integration success aligns with…
  19. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 19
    Margin Defense Parsley Water Company Dedicated Internal Water Team Water Assets Overview Robust Water Infrastructure Network(1) PWC PWC continues to aid in capital and Active Saltwater Disposal Wells (SWDs) 50+ operating cost…
  20. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 20
    Margin Defense Minerals Ownership Minerals ownership enhances Parsleys sustainable free cash flow profile(1) Adds high margin production without any associated capex or operating expenses and limited exposure with reduced…
  21. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 21
    Free Cash Flow (Outspend) & Discretionary CFPS Reconciliations Free Cash Flow (Outspend): Unaudited, in thousands Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Net cash provided by operating activities 385,943…
  22. RBC Global Energy Power Executive Conference – Parsley Energy Inc. – slide 22
    Net Debt Reconciliation Unaudited, in thousands Three Months Ended March 31, 2020 Revolving Credit Agreement due October 2023 300,000 5.375% senior unsecured notes due 2025 650,000 5.250% senior unsecured notes due 2025 450,000…

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