Parsley Energy (PE) Update - Mar 14

[dan_s]

AUSTIN, Texas, March 13, 2020 /PRNewswire/ -- Parsley Energy, Inc. (NYSE: PE) ("Parsley," "Parsley Energy," or the "Company") today provided an update to its oil hedge position for 2020 and 2021. Parsley's baseline capital budget assumes $30-$35 WTI oil price for the remainder of 2020.

Hedging Update

Parsley continues to actively manage its hedge position and has continued to restructure some of its existing 2020 hedge positions to provide additional protection against lower oil prices by reducing certain short put prices. Additionally, Parsley has also moved aggressively to protect its 2021 cash flow by adding swap positions. The Company would now expect net settlement gains of approximately $400 million and $300 million during 2020 and 2021, respectively, under a go forward $30 WTI oil price and current basis differentials(1). This represents an increase of nearly $400 million in aggregate downside protection from the Company's hedge position on March 4, 2020.

"In a world of uncertainty, we are taking decisive actions to light a path that allows us to deliver an advantaged free cash generating model, support our current dividend, and preserve long-term shareholder value in a $30-$35 WTI oil environment," commented Matt Gallagher, Parsley's President and CEO. "We will continue to be adaptive and responsive in these challenging times – demonstrating the resilience of our assets and our team."
-------------------------------------
I am updating the individual company forecast/valuation models for all of the Sweet 16 and Small-Cap Growth Portfolio stocks. They will all be updated by Sunday afternoon.
My forecasts are based on WTI averaging:
$45 in Q1 2020
$30 in Q2 2020
$40 in Q3 2020
$50 in Q4 2020 and all of 2021. < Once we get past the FEAR of COVID-19 the global economy and demand for oil will increase rapidly.