PE makes another BIG acquisition

[dan_s]

This is the time of year when new information is coming at me like water from a fire hose.

AUSTIN, Texas, Feb. 7, 2017 /PRNewswire/ -- Parsley Energy, Inc. (PE) ("Parsley," "Parsley Energy," or the "Company") today announced that it has entered into an agreement to acquire certain undeveloped acreage and producing oil and gas properties in the core of the Midland Basin from Double Eagle Energy Permian, LLC ("Double Eagle") for an aggregate purchase price of approximately $2.8 billion, subject to purchase price adjustments and customary closing conditions. Upon completion, the pending acquisition will add approximately 71,000 net acres to the Company's Midland Basin acreage portfolio, bringing total Permian Basin net acreage to approximately 227,000 acres.

Parsley intends to increase drilling and completion activity on the Company's expanded asset base and, as a result, is updating 2017 capital plans and operating guidance to reflect increased capital investment and associated production growth. Herein Parsley also provides updates on preliminary 4Q16 and full-year 2016 operational results, year-end 2016 reserves, and recent hedging activity.

Increased 2017 production guidance to ~70% YOY growth.

BIG INCREASE in proven reserves.

Parsley posted strong reserve growth in 2016. The Company's proved reserves as of December 31, 2016 were 222.3 MMBoe and consist of 136.5 million barrels of oil, 223.6 billion cubic feet of natural gas, and 48.5 million barrels of natural gas liquids.

Proved Reserve Highlights

Proved reserves increased 80% from 123.8MMBoe to 222.3 MMBoe, while proved developed reserves increased 106% to 106.1 MMBoe from year-end 2015 reserves
Total reserves increased by 98.5 MMBoe as compared to 2016 production volumes of 14.0 MMBoe
Proved developed reserves at year-end 2016 represent 48% of total proved reserves