Parsley Energy (PE) Q1 Results - May 1

[dan_s]

AUSTIN, Texas, May 1, 2019 /PRNewswire/ -- Parsley Energy, Inc. (NYSE: PE) ("Parsley," "Parsley Energy," or the "Company") today announced financial and operating results for the quarter ended March 31, 2019. The Company has posted a presentation to its website that supplements the information in this release.

First Quarter 2019 Highlights

Net oil production increased 2% quarter-over-quarter and 33% year-over-year to 78.9 MBo per day. Total net production averaged 125.4 MBoe per day. < Compares to my Q1 production forecast of 121.7 MBoe per day and 78.0 MBOPD.

During 1Q19, the Company recorded net loss attributable to its stockholders of $24.1 million, or $0.09 per share. Excluding, on a tax-adjusted basis, certain items that the Company does not view as indicative of its ongoing financial performance, adjusted net income for 1Q19 was $62.3 million, or $0.22 per share. < Adjusted Net Income compares to my forecast of $55.8 million, $0.20 per share.

The Company registered favorable overall trends in operating costs during the first quarter of 2019.
> Both general and administrative expense ("G&A") per Boe and cash based G&A per Boe(1), which excludes stock-based compensation expense, decreased quarter-over-quarter and year-over-year to $3.37 and $2.90, respectively, representing Company-record levels in each case.
> Parsley reported lease operating expense ("LOE") per Boe of $3.65, up only 1% versus 4Q18 expense levels.

Parsley delivered encouraging operational results spread across the Company's acreage footprint in the Delaware Basin, as detailed below.

The Company entered into an amendment to its revolving credit facility on April 23, 2019, which increased its borrowing base from $2.3 billion to $2.7 billion while maintaining an elected commitment amount of $1.0 billion.

Summary Comment and Outlook
"With our 2019 development plan, we set a course that prioritized a progression to sustainable free cash flow generation and an improvement in capital efficiency in a $50 oil world. Parsley Energy is on track to deliver on this action plan," said Matt Gallagher, Parsley's President and CEO. "The recent rise in oil prices provides an opportunity to compress our timeline to self-funded growth, but does not alter the Company's activity plans or returns-focused mindset."

I will update my forecast/valuation model for PE on Thursday.