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Parsley Energy (PE) Update

Posted: Tue Nov 21, 2017 12:46 pm
by dan_s
In the last 3 months, 10 ranked analysts set 12-month price targets for PE. The average price target among the analysts is $37.00.
Six Wall Street firms have updated their forecast since the company released Q3 results and all of them rate it a BUY.

One of the attendees at our Dallas luncheon on November 14 got in my face after the luncheon and told me that Parsley was "a piece of crap". When I ask him why he has that opinion, he said it was because the share price was down since he bought the stock. How do you respond to a comment like that?

Parsley is an "Aggressive Growth" company.
Yes, it is outspending cash flow operations. That is what young companies do in all industries during the growth phase.
Parsley grew production 73.9% in 2016, is on-track to grow production 77% in 2017 and my forecast of 55% production growth in 2018 is probably too low. It is going to have a very impressive year-end reserve report and it has many years of running room in high quality Permian Basin leasehold.

Is Tom Brady "a piece of crap" quarterback after a loss?

As we move deeper into the Rebound Phase of this oil price cycle, Parsley Energy is going to look very good the Wall Street Gang. Apparently six Wall Street firms are already starting to appreciate it.

Re: Parsley Energy (PE) Update

Posted: Tue Nov 21, 2017 1:46 pm
by dan_s
Since going public, Parsleys compounded quarterly production growth rate is 16%. That is incredible and BTW they have a very strong balance sheet. Cash on hand at 9/30 plus cash flow from operations should be able to cover all drilling and completion costs through 2018.