Q2 2020TO ADD EVENT CLICK Earnings Presentation SEPTEMBER August 2020 25, 2018 INVESTOR PRESENTATION 3Q 2017 CLICK TO ADD DATE PARSLEYENERGY.COM
Parsley Energy Overview Parsley Energy Acreage(2) Recent Highlights GAINES DAWSON BORDEN Midland Net Leasehold Acreage: 248,000 (97% Operated) Reinforced balance sheet strength Midland Basin: 137,000 ANDREWS Basin Generated free…
Corporate Agility on Full Display In 2Q20, Parsley responded decisively on multiple fronts to adapt to rapidly changing market dynamics Curtailed more than 20% of oil production in May and restored vast majority of volumes in June…
Sustainability Dual Mandate Parsley focused on progressing sustainability on dual fronts: free cash flow(1) and ESG initiatives During a volatile 2Q20, Parsley prioritized free cash flow(1) and protected return of capital to…
Recalibrating to a Stabilized Activity Level in 2H20 Narrowed 2020 capital budget to 650-700 High-Grading Activity at Lower Oil Prices million (previously less than 700 million) Parsley Acreage 1H20 capex of 443 million comprises 65%…
Enduring with Relevance 2H20 activity plans firming up around stabilized activity levels, positioning Parsley to endure with relevance Targeting at least 350 million in free cash flow(1) in 2020 under stabilized activity model…
Capital Efficiency Credibility Looking Back and Looking Ahead Increased transparency from operators is needed to justify near-term capital deployment Parsley believes it is among a select few operators with the asset quality, cost…
Sustaining Capital Efficiency Lower Well Costs Cost improvements in 1H20 driven by cohesive Defending and Extending Efficiency Gains(2) integration efforts and sustained efficiency gains 1,600 Operational Day(1) per Rig /…
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…
Operational Spotlight ESG Leadership Parsley focused on progressing sustainability on dual fronts: free cash flow and ESG initiatives Flaring mitigation comprises an integral part of Parsleys environmental stewardship efforts…
Strong, Flexible Financial Position Maintains Healthy Leverage Profile with Ample Borrowing Capacity Large cash flow base and ample liquidity in a prolonged downturn scenario Reaffirmed 2.7 billion borrowing base in April 2020…
Revised 2020 Guidance Summary Initial 2020 Guidance Revised 2020 Guidance 2020 Guidance Highlights(3) Capital Program Budgeting at 35 oil for the remainder of 2020 Total Development Expenditures (MM) 1,600 - 1,800 650 - 700…
Supplementary Slides CLICK TO ADD TEXT
Successfully Navigating Through 2020 Action Plan Parsley made significant headway on its key 2020 goals despite a challenging macro backdrop Guiding Principles 2020 Action Plan Accountability Progress through 2Q20 Apply Rate of…
Committed to ESG Leadership Published inaugural Corporate Responsibility Report in Total Fluid Spill Rate(1) December 2019 Conducted materiality assessment following the Global 0.200 Total Bbls Fluid Spilled/MBbls Reporting…
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…
Hedge Position Open Crude Oil Derivatives Position Hedging Strategy 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 CUSHING More swaps, fewer three-way (1) Swaps - Cushing (MBbls/d) 11.0 11.0 Swap Price (/Bbl) 57.87 57.87 MIDLAND collars…
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…
JAG Synergy Capture Timeline Accelerated 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…
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…
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…
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…
Free Cash Flow Unaudited, in thousands Three Months Ended Three Months Ended Three Months Ended Three Months Ended Septem ber 30, 2019 Decem ber 31, 2019 March 31, 2020 June 30, 2020 Net cash provided by operating activities 325,418…
Net Debt Reconciliation Unaudited, in thousands June 30, 2020 Revolving Credit Agreement due October 2023 430,000 5.375% senior unsecured notes due 2025 650,000 5.250% senior unsecured notes due 2025 450,000 5.875% senior…
Loading...
