Parsley Energy (PE) Q1 Results - May 3

[dan_s]

AUSTIN, Texas, May 3, 2018 /PRNewswire/ -- Parsley Energy, Inc. (PE) ("Parsley," "Parsley Energy," or the "Company") today announced financial and operating results for the quarter ended March 31, 2018. The Company has posted to its website a presentation that supplements the information in this release.

During 1Q18, the Company recorded net income attributable to its stockholders of $82.9 million, or $0.32 per share, compared to net income of $49.9 million, or $0.16 per share, during 4Q17. Excluding, on a tax-adjusted basis, certain items that the Company does not view as indicative of its ongoing financial performance, and adding back the non-controlling interest allocated to Class B stockholders, adjusted net income for 1Q18 was $81.1 million, or $0.31 per share, compared to $95.9 million, or $0.30 per share, in 4Q17. < "Adjusted Net Income" compares to my forecast of $0.25 EPS.

First Quarter 2018 Highlights
> Net oil production increased 15% quarter-over-quarter and 57% year-over-year to 59.3 MBo per day. Total net production averaged 93.4 MBoe per day. < This compares to my forecast of 87.5 MBoe per day.
> Parsley placed 21 gross operated horizontal wells on production in the Delaware Basin during 1Q18 at an average completed lateral length of approximately 9,600 feet, representing more lateral footage than the Company completed in the Delaware Basin during all of 2017.
> Parsley registered Company-record initial production rates for wells completed in Glasscock and Pecos Counties.
> The Company demonstrated strong cost control during the first quarter of 2018. Parsley reported lease operating expense ("LOE") per Boe of $3.43, which was below the Company-provided guidance range for full-year average LOE per Boe.
> Both general and administrative expense ("G&A") per Boe and cash based G&A per Boe, which excludes stock-based compensation expense, decreased quarter-over-quarter and year-over-year to $4.16 and $3.56, respectively.
> The Company amended its revolving credit agreement on April 30, 2018, thereby increasing its borrowing base from $1.8 billion to $2.3 billion while maintaining the Company's elected commitment amount of $1.0 billion.

"Parsley Energy made a confident first step toward executing our simplified 2018 development program," said Bryan Sheffield, Parsley's Chairman and CEO. "Accelerated development last year not only gave Parsley a head start on securing high quality services and equipment, the corresponding production uplift also means we are benefiting disproportionately from currently higher oil prices. While Parsley is well positioned to benefit from ongoing oil price strength, operational continuity at a steady development pace remains our highest priority this year."

[dan_s]

This is VERY IMPORTANT:

By virtue of proactive steps taken to bolster the Company's firm transportation capacity and diversify its regional pricing exposure, Parsley now enjoys certain advantages with respect to its takeaway and marketing arrangements. Parsley currently has firm transport agreements covering 95,000 Bo per day of gross operated oil production. Additionally, the Company has diversified pricing agreements with large scale oil purchasers that price a portion of Parsley's barrels relative to Magellan East Houston, Cushing, and Midland benchmarks. During 2017, Parsley also layered on Midland-Cushing basis swaps that provide additional regional price protection during 2018.

"Our proactive marketing strategy has put us in a position of strength from both a flow assurance and realized pricing standpoint," said Matt Gallagher, Parsley's President and COO. "Given the interconnect flexibility, oil quality, scale, and growth visibility we can provide, our crude production is attractive to premier purchasers."