Parsley Energy (PE) Update - March 27

[dan_s]

Parsley Energy projects total production in the range of 124,000-134,000 barrels of oil equivalent per day (Boe/d) in 2019, much higher than 109,416 Boe/d recorded in 2018. Of the total output, it is expected to produce 80,000-85,000 barrels of oil per day (BPD), which is also higher than 2018 oil production of 69,500 BPD, assuming the effects of the recent divestments. The company’s extensive inventory of premium drilling locations, both in the Midland and Delaware sides of the Permian Basin, will aid in top-tier production growth.

For first-quarter 2019, the company expects oil production in the range of 75,500-78,000 BPD, surging from the year-ago period’s 59,344 BPD.

May forecast/valuation model is based on the midpoint of the production guidance above. If WTI goes over $60, PE is going to have a VERY GOOD year.