Parsley Energy (PE) Update - Oct 16
Posted: Fri Oct 16, 2020 10:14 am
Neal Dingmann at Truist on 10-16-2020
Parsley Energy, Inc. (PE, $10.02, Hold) - Striving to Ensure FCF
and Stability Cohesion - After resuming activity in 3Q20, PE will
continue to ramp activity through YE while working to balance
limiting production declines & generating sustainable FCF. While
a strong DUC backlog will provide a capital efficiency boost into
late 2020/2021, we believe 2020 guidance/2021 maintenance
capex will hinge heavily on further well cost reductions. We
believe PE would be a favorable target for large independents/
majors or a merger-of-equals w/a Permian pure-play given the
continued balance challenge, quality assets, large production
base, & meaningful minerals/infrastructure holdings. -
Parsley Energy, Inc. (PE, $10.02, Hold) - Striving to Ensure FCF
and Stability Cohesion - After resuming activity in 3Q20, PE will
continue to ramp activity through YE while working to balance
limiting production declines & generating sustainable FCF. While
a strong DUC backlog will provide a capital efficiency boost into
late 2020/2021, we believe 2020 guidance/2021 maintenance
capex will hinge heavily on further well cost reductions. We
believe PE would be a favorable target for large independents/
majors or a merger-of-equals w/a Permian pure-play given the
continued balance challenge, quality assets, large production
base, & meaningful minerals/infrastructure holdings. -