Parsley Energy (PE)

Post Reply
dan_s
Posts: 37329
Joined: Fri Apr 23, 2010 8:22 am

Parsley Energy (PE)

Post by dan_s »

Parsley is the next Diamondback Energy. It is a well funded pure play on the Permian Basin. It has strong production growth locked in. More than 100% of their 2016 oil production is hedged, so it has very predictable cash flows locked in.

I have updated my forecast model and it will be posted to the EPG website this evening.

My valuation is $23.50, compared to First Call's price target of $22.21.

If oil prices do rebound by year-end, there is a lot of upside in PE's share price.
Dan Steffens
Energy Prospectus Group
Post Reply