Parsley Energy (PE) Update - May 2
Posted: Thu May 02, 2019 12:08 pm
Michael S. Scialla at Stifel: Parsley Energy, Inc. (PE, $19.08, Buy; Target $39.00)
Further Operational Efficiency Gains as 1Q Beats
"We view the release as slightly positive. The positives include: i) a 1Q19 beat on production and costs; ii) operational efficiencies continued to improve; iii) early production rates from the company's eastern most Delaware Basin wells in Pecos County, TX are beating our type curve by 25%; iv) Delaware wells testing regional sand are performing in line with offsets and could save > $0.5MM per well; v) the 2019 budget remained unchanged. The negatives include: i) 1Q19 capex was 4% above consensus"
Further Operational Efficiency Gains as 1Q Beats
"We view the release as slightly positive. The positives include: i) a 1Q19 beat on production and costs; ii) operational efficiencies continued to improve; iii) early production rates from the company's eastern most Delaware Basin wells in Pecos County, TX are beating our type curve by 25%; iv) Delaware wells testing regional sand are performing in line with offsets and could save > $0.5MM per well; v) the 2019 budget remained unchanged. The negatives include: i) 1Q19 capex was 4% above consensus"