AUSTIN, Texas, Feb. 23,
2017 /PRNewswire/ -- Parsley Energy, Inc. (NYSE: PE) ("Parsley,"
"Parsley Energy," or the "Company") today announced financial and
operating results for the quarter ended December 31, 2016. The
Company has posted to its website a presentation that supplements
the information in this release.
Fourth Quarter 2016 Highlights
- Net production averaged 45.1 MBoe/d, up 5% versus 3Q16 and 79%
year-over-year. Oil production increased 5% quarter-over-quarter
and 92% year-over-year, representing 68% of total production in
4Q16.
- Parsley expects to generate production growth of 62-78% in 2017
versus 2016, with production increasing throughout the year to an
average of 75-85 MBoe per day in 4Q17.
- Lease operating expense ("LOE") per Boe decreased 14% versus
3Q16 to $3.56.
- Proved reserves of 222 MMBoe as of December 31, 2016 represent an 80% increase
versus proved reserves as of December 31,
2015. Proved developed reserves of 103 MMBoe as of
December 31, 2016 represent a 101%
increase versus proved developed reserves as of December 31, 2015, reflecting proved developed
finding and development costs of $8.04 per Boe.
- Subsequent to the end of the fourth quarter of 2016, Parsley
announced acquisitions of approximately 94,000 net acres, bringing
total pro forma net acreage to approximately 227,000.
"The fourth quarter was a strong conclusion to an extraordinary
year for Parsley Energy," said Bryan
Sheffield, Parsley's Chairman and CEO. "During 2016 we grew
production by approximately 80% and set the pace on cost
compression, as well. Our operational momentum and anticipated rig
additions through 2017 position us for robust production growth
both this year and next, and our recently announced acquisitions of
premium acreage position us for many more years of efficient
growth. Having amassed what we believe to be the premiere acreage
portfolio of its size, our focus is on execution and capital
efficiency as we extract maximum value from the assets we have
consolidated."
Operational Highlights
During 4Q16 Parsley spud 23 and completed 21 horizontal wells
with an average working interest of 99% and an average lateral
length of approximately 9,500 feet.
Parsley's first well targeting the Wolfcamp C formation, the
Taylor 45-33-4601H, recently completed with a 2-mile lateral in
Reagan County, registered a strong
peak 24-hour rate of 2,414 Boe per day, representing the fourth
highest peak 24-hour rate among all Parsley wells completed to
date.
Among the wells that achieved 30-day peak production periods
since the Company's last quarterly update, two wells in
Upton County established
company-record 30-day initial production rates. The Atkins
14-11-4415H, completed with a 10,500 foot lateral in the Lower
Wolfcamp B interval, registered a 30-day IP rate of 1,932 Boe per
day, while the Grace 45-1-4306H, completed with a 7,800 foot
lateral in the Upper Wolfcamp B interval, posted an even higher
30-day IP rate of 2,194 Boe per day. Benefiting from differentiated
Wolfcamp thickness, Parsley continues to see strong results from
both the Upper Wolfcamp B and Lower Wolfcamp B target
intervals.
Together, the Mary 18-18B-7-4202H and the Mary 18-18B-7-4401H,
completed in Upton County with
lateral lengths of 10,400 feet in the Wolfcamp A and Lower Wolfcamp
B intervals, respectively, established a company-record 30-day IP
rate for a two-well pad of 3,386 Boe per day.
The Company's first drilled (second completed) well in
Reeves County, the Lincoln 4-1-4307H, posted a robust 30-day IP
rate of 1,929 Boe per day on a 6,900 foot lateral, representing the
Company's strongest Southern
Delaware well to date and the third highest 30-day IP rate
company-wide. Parsley's second drilled well in Reeves county, the Kauffman State C4-6-4307H,
has not yet achieved a 30-day rate but posted a company-record peak
24-hour rate of 2,666 Boe per day on a 6,400 foot lateral.
Financial Highlights
During the fourth quarter of 2016, the Company recorded a net
loss attributable to its stockholders of $30.7 million, or $0.17 per weighted average share, compared to
$2.7 million, or $0.02 per weighted average share, during the
third quarter of 2016. 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 the
fourth quarter of 2016 was $11.8
million, or $0.06 per diluted
share, compared to $6.7 million, or
$0.03 per weighted average share,
during the third quarter of 2016.(1)
Adjusted earnings before interest, income taxes, depreciation,
depletion, amortization, and exploration expense ("Adjusted
EBITDAX") for the fourth quarter of 2016 was $117.5 million, up 24% compared to the third
quarter of 2016.(1)
Parsley registered favorable quarter-over-quarter trends in unit
costs. LOE per Boe decreased from $4.15 in 3Q16 to $3.56 in 4Q16. General and administrative expense
("G&A") per Boe decreased from $6.24 in 3Q16 to $5.61 in 4Q16, while cash G&A per Boe, which
excludes stock-based compensation expense, decreased from
$5.40 in 3Q16 to $4.79 in 4Q16. Depreciation, depletion, and
amortization expense per Boe decreased from $16.62 in 3Q16 to $15.10 in 4Q16.
Reported capital expenditures increased from $92 million in 3Q16 to $158 million, reflecting a 72%
quarter-over-quarter increase in net completed footage. Fourth
quarter capital expenditures include costs associated with the
horizontal drilling activity noted above, as well as one vertical
well and two saltwater disposal wells.
Liquidity Update
Parsley entered 2017 with a strong balance sheet. As of
December 31, 2016, the Company had
approximately $733 million of
liquidity, consisting of $133 million
of cash on hand and an undrawn amount of $600 million on the Company's revolver. Pro forma
for acquisitions and equity offerings announced in January and
February and the issuance of new senior notes due 2025 announced in
February, the Company had approximately $1.36 billion of liquidity, consisting of
$765 million of cash on hand and an
undrawn amount of $598 million on the
Company's revolver.(2)
Hedging Update
In view of the anticipated production growth associated with
additional drilling and completion activity on an expanded asset
base, Parsley has added meaningfully to and extended the duration
of its oil hedge portfolio, thereby reducing the variability of its
anticipated cash flows and enhancing the Company's ability to
execute its development and value creation objectives. For details
on Parsley's hedging position, please see the tables below under
Supplemental Information and/or the Company's Annual Report on Form
10-K, upon availability, for the period ended December 31, 2016.
Conference Call Information
Parsley Energy will host a conference call and webcast to
discuss its results for the fourth quarter of 2016 on Friday, February 24 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). Participants should call
877-407-0672 (United
States/Canada) or
412-902-0003 (International) 10 minutes before the scheduled time
and request the Parsley Energy conference call. A telephone replay
will be available shortly after the call through March 3, 2017 by dialing 877-660-6853
(United States/Canada) or 201-612-7415 (International).
Conference ID: 13655145. A live broadcast will also be available at
www.parsleyenergy.com under the "Investor Relations" section of the
website. The Company has also posted to its website a presentation
that supplements the information in this release.
(1)
|
"Adjusted EBITDAX"
and "adjusted net income" are not presented in accordance with
generally accepted accounting principles in the United States
("GAAP"). Please see the supplemental financial information at the
end of this news release for a reconciliation of the non-GAAP
financial measures of adjusted EBITDAX and adjusted net income to
GAAP financial measures.
|
|
|
(2)
|
Revolver balance is
net of a $2 million letter of credit which does not change the
status of the Company's fully undrawn borrowing base.
|
About Parsley Energy, Inc.
Parsley Energy, Inc. is an independent oil and natural gas
company focused on the acquisition and development of
unconventional oil and natural gas reserves in the Permian Basin in
West Texas. For more information,
visit the Company's website at www.parsleyenergy.com.
Forward Looking Statements
Certain statements contained in this news release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements represent Parsley Energy's expectations or beliefs
concerning future events, and it is possible that the results
described in this news release will not be achieved. These
forward-looking statements are subject to risks, uncertainties and
other factors, many of which are outside of Parsley Energy's
control, which could cause actual results to differ materially from
the results discussed in the forward-looking statements. Any
forward-looking statement speaks only as of the date on which it is
made, and, except as required by law, Parsley Energy does not
undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise. New factors emerge from time to time, and it is not
possible for Parsley Energy to predict all such factors. When
considering these forward-looking statements, you should keep in
mind the risk factors and other cautionary statements found in the
Company's filings with the Securities and Exchange Commission
("SEC"), including its Annual Report on Form 10-K. The risk factors
and other factors noted in the Company's SEC filings could cause
its actual results to differ materially from those contained in any
forward-looking statement.
- Tables to Follow -
Parsley Energy,
Inc. and Subsidiaries
Selected Operating
Data
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net production
volumes:
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
2,811
|
|
|
1,462
|
|
|
9,368
|
|
|
4,807
|
|
Natural gas
(MMcf)
|
3,812
|
|
|
2,711
|
|
|
13,463
|
|
|
10,339
|
|
Natural gas liquids
(MBbls)
|
704
|
|
|
405
|
|
|
2,390
|
|
|
1,500
|
|
Total
(MBoe)
|
4,150
|
|
|
2,319
|
|
|
14,002
|
|
|
8,031
|
|
Average net daily
production (Boe/d)
|
45,109
|
|
|
25,207
|
|
|
38,257
|
|
|
22,003
|
|
Average sales
prices: (1)
|
|
|
|
|
|
|
|
Oil, without realized
derivatives (per Bbl)
|
$
|
46.76
|
|
|
$
|
39.00
|
|
|
$
|
41.34
|
|
|
$
|
44.89
|
|
Oil, with realized
derivatives (per Bbl)
|
$
|
49.41
|
|
|
$
|
51.30
|
|
|
$
|
47.56
|
|
|
$
|
56.60
|
|
Natural gas, without
realized derivatives (per Mcf)
|
$
|
2.91
|
|
|
$
|
2.17
|
|
|
$
|
2.30
|
|
|
$
|
2.57
|
|
Natural gas, with
realized derivatives (per Mcf)
|
$
|
2.91
|
|
|
$
|
2.25
|
|
|
$
|
2.30
|
|
|
$
|
2.72
|
|
NGLs (per
Bbl)
|
$
|
19.12
|
|
|
$
|
14.48
|
|
|
$
|
16.01
|
|
|
$
|
15.79
|
|
Total, without
realized derivatives (per Boe)
|
$
|
37.59
|
|
|
$
|
29.65
|
|
|
$
|
32.60
|
|
|
$
|
33.13
|
|
Total, with realized
derivatives (per Boe)
|
$
|
39.39
|
|
|
$
|
37.50
|
|
|
$
|
36.76
|
|
|
$
|
40.33
|
|
Average costs (per
Boe):
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
3.56
|
|
|
$
|
5.57
|
|
|
$
|
4.23
|
|
|
$
|
7.83
|
|
Production and ad
valorem taxes
|
$
|
2.15
|
|
|
$
|
1.90
|
|
|
$
|
1.99
|
|
|
$
|
2.22
|
|
Depreciation,
depletion and amortization
|
$
|
15.10
|
|
|
$
|
21.74
|
|
|
$
|
16.70
|
|
|
$
|
22.20
|
|
General and
administrative expenses (including stock-based
compensation)
|
$
|
5.61
|
|
|
$
|
5.39
|
|
|
$
|
6.04
|
|
|
$
|
6.89
|
|
General and
administrative expenses (cash based)
|
$
|
4.79
|
|
|
$
|
4.41
|
|
|
$
|
5.12
|
|
|
$
|
5.87
|
|
|
|
(1)
|
Average prices shown
in the table include transportation and gathering costs and reflect
prices both before and after the effects of the Company's realized
commodity hedging transactions. The Company's calculation of such
effects includes both realized gains and losses on cash settlements
for commodity derivative transactions and premiums paid or received
on options that settled during the period.
|
Parsley Energy,
Inc. and Subsidiaries
Consolidated
Statements of Operations
(Unaudited, in
thousands, except for per share data)
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
REVENUES
|
|
|
|
|
|
|
|
Oil sales
|
$
|
131,438
|
|
|
$
|
57,019
|
|
|
$
|
387,303
|
|
|
$
|
215,795
|
|
Natural gas
sales
|
11,094
|
|
|
5,870
|
|
|
30,928
|
|
|
26,582
|
|
Natural gas liquids
sales
|
13,462
|
|
|
5,863
|
|
|
38,273
|
|
|
23,680
|
|
Other
|
(118)
|
|
|
194
|
|
|
1,269
|
|
|
417
|
|
Total
revenues
|
155,876
|
|
|
68,946
|
|
|
457,773
|
|
|
266,474
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Lease operating
expenses
|
14,784
|
|
|
12,920
|
|
|
59,293
|
|
|
62,913
|
|
Production and ad
valorem taxes
|
8,923
|
|
|
4,403
|
|
|
27,916
|
|
|
17,800
|
|
Depreciation,
depletion and amortization
|
62,653
|
|
|
50,408
|
|
|
233,766
|
|
|
178,281
|
|
General and
administrative expenses (including stock-based
compensation)
|
23,290
|
|
|
12,508
|
|
|
84,591
|
|
|
55,294
|
|
Exploration
costs
|
1,152
|
|
|
5,307
|
|
|
13,931
|
|
|
13,865
|
|
Acquisition
costs
|
155
|
|
|
—
|
|
|
1,081
|
|
|
—
|
|
Impairment
|
—
|
|
|
950
|
|
|
—
|
|
|
950
|
|
Accretion of asset
retirement obligations
|
157
|
|
|
169
|
|
|
732
|
|
|
826
|
|
Rig termination
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
8,970
|
|
Other operating
expenses
|
1,549
|
|
|
1,440
|
|
|
5,316
|
|
|
1,696
|
|
Total operating
expenses
|
112,663
|
|
|
88,105
|
|
|
426,626
|
|
|
340,595
|
|
OPERATING INCOME
(LOSS)
|
43,213
|
|
|
(19,159)
|
|
|
31,147
|
|
|
(74,121)
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
|
Interest expense,
net
|
(16,279)
|
|
|
(11,220)
|
|
|
(55,233)
|
|
|
(45,553)
|
|
Loss on sale of
property
|
—
|
|
|
(36,705)
|
|
|
(119)
|
|
|
(34,374)
|
|
Prepayment premium on
extinguishment of debt
|
(36,335)
|
|
|
—
|
|
|
(36,335)
|
|
|
—
|
|
(Loss) gain on
derivatives
|
(26,993)
|
|
|
37,119
|
|
|
(50,835)
|
|
|
60,818
|
|
Other income
(expense)
|
6,638
|
|
|
(4,593)
|
|
|
5,034
|
|
|
(3,556)
|
|
Total other (expense)
income, net
|
(72,969)
|
|
|
(15,399)
|
|
|
(137,488)
|
|
|
(22,665)
|
|
(LOSS) BEFORE
INCOME TAXES
|
(29,756)
|
|
|
(34,558)
|
|
|
(106,341)
|
|
|
(96,786)
|
|
INCOME TAX
(EXPENSE) BENEFIT
|
(4,341)
|
|
|
8,622
|
|
|
17,424
|
|
|
23,755
|
|
NET
LOSS
|
(34,097)
|
|
|
(25,936)
|
|
|
(88,917)
|
|
|
(73,031)
|
|
LESS: NET LOSS
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
3,352
|
|
|
10,696
|
|
|
14,735
|
|
|
22,547
|
|
NET LOSS
ATTRIBUTABLE TO PARSLEY ENERGY, INC. STOCKHOLDERS
|
$
|
(30,745)
|
|
|
$
|
(15,240)
|
|
|
$
|
(74,182)
|
|
|
$
|
(50,484)
|
|
|
|
|
|
|
|
|
|
Net loss per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.17)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.46)
|
|
|
$
|
(0.45)
|
|
Diluted
|
$
|
(0.17)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.46)
|
|
|
$
|
(0.45)
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
178,990
|
|
|
125,437
|
|
|
161,793
|
|
|
111,271
|
|
Diluted
|
178,990
|
|
|
157,582
|
|
|
161,793
|
|
|
111,271
|
|
|
|
*
|
Certain
reclassifications and adjustments to prior period amounts have been
made to conform with current presentation.
|
Parsley Energy,
Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
(Unaudited, in
thousands)
|
|
|
December
31, 2016
|
|
December 31,
2015
|
Cash and cash
equivalents
|
$
|
133,379
|
|
|
$
|
343,084
|
|
Other current
assets
|
166,109
|
|
|
145,242
|
|
Total current
assets
|
299,488
|
|
|
488,326
|
|
Total property, plant
and equipment, net
|
3,616,560
|
|
|
1,985,753
|
|
Total noncurrent
assets
|
22,734
|
|
|
31,021
|
|
TOTAL
ASSETS
|
$
|
3,938,782
|
|
|
$
|
2,505,100
|
|
Total current
liabilities
|
$
|
344,954
|
|
|
$
|
228,497
|
|
Long-term
debt
|
1,041,324
|
|
|
546,832
|
|
Other noncurrent
liabilities
|
122,198
|
|
|
143,130
|
|
Total noncurrent
liabilities
|
1,163,522
|
|
|
689,962
|
|
Total
liabilities
|
1,508,476
|
|
|
918,459
|
|
Total
equity
|
2,430,306
|
|
|
1,586,641
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
|
3,938,782
|
|
|
$
|
2,505,100
|
|
Parsley Energy,
Inc. and Subsidiaries
Condensed
Consolidated Statements of Cash Flows
(Unaudited, in
thousands)
|
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net loss
|
$
|
(88,917)
|
|
|
$
|
(73,031)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Non-cash and other
items
|
372,155
|
|
|
247,215
|
|
Changes in operating
assets and liabilities
|
(55,047)
|
|
|
(1,894)
|
|
Net cash provided
by operating activities
|
228,191
|
|
|
172,290
|
|
Net cash used in
investing activities
|
(1,885,366)
|
|
|
(427,165)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Net proceeds
(repayments) from long-term debt
|
517,459
|
|
|
(121,932)
|
|
Issuance of common
stock
|
930,315
|
|
|
669,418
|
|
Other
|
(304)
|
|
|
(77)
|
|
Net cash provided
by financing activities
|
1,447,470
|
|
|
547,409
|
|
Net (decrease)
increase in cash and cash equivalents
|
(209,705)
|
|
|
292,534
|
|
Cash and cash
equivalents, beginning of year
|
343,084
|
|
|
50,550
|
|
Cash and cash
equivalents, end of year
|
$
|
133,379
|
|
|
$
|
343,084
|
|
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is not a measure of net income as determined by
GAAP. Adjusted EBITDAX is a supplemental non-GAAP financial measure
that is used by management and external users of the Company's
consolidated financial statements, such as industry analysts,
investors, lenders and rating agencies. The Company defines
Adjusted EBITDAX as net (loss) income before depreciation,
depletion and amortization, exploration costs, acquisition costs,
(gain) loss on sale of property, prepayment premium on
extinguishment of debt, asset retirement obligation accretion
expense, stock-based compensation, net interest expense, income tax
(benefit) expense, deferred tax asset valuation, rig termination
costs, (gain) loss on derivatives, net settlements on derivative
instruments, net premium realizations on options that settled
during the period, and inventory write down.
Management believes Adjusted EBITDAX is useful because it allows
the Company to more effectively evaluate its operating performance
and compare the results of its operations from period to period
without regard to its financing methods or capital structure. The
Company excludes the items listed above from net income in arriving
at Adjusted EBITDAX because these amounts can vary substantially
from company to company within its industry depending upon
accounting methods and book values of assets, capital structures
and the method by which the assets were acquired. Adjusted EBITDAX
should not be considered as an alternative to, or more meaningful
than, net income as determined in accordance with GAAP or as an
indicator of the Company's operating performance. Certain items
excluded from Adjusted EBITDAX are significant components in
understanding and assessing a company's financial performance, such
as a company's cost of capital and tax structure, as well as the
historic costs of depreciable assets, none of which are components
of Adjusted EBITDAX. The Company's computations of Adjusted EBITDAX
may not be comparable to other similarly titled measure of other
companies. The Company believes that Adjusted EBITDAX is a widely
followed measure of operating performance.
The following table presents a reconciliation of Adjusted
EBITDAX to the GAAP financial measure of net income for each of the
periods indicated.
Parsley Energy,
Inc. and Subsidiaries
Adjusted
EBITDAX
(Unaudited, in
thousands)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Adjusted EBITDAX
reconciliation to net loss:
|
|
|
|
|
|
|
|
Net loss attributable
to Parsley Energy, Inc. stockholders
|
$
|
(30,745)
|
|
|
$
|
(15,240)
|
|
|
$
|
(74,182)
|
|
|
$
|
(50,484)
|
|
Net loss attributable
to noncontrolling interests
|
(3,352)
|
|
|
(10,696)
|
|
|
(14,735)
|
|
|
(22,547)
|
|
Depreciation,
depletion and amortization
|
62,653
|
|
|
50,408
|
|
|
233,766
|
|
|
178,281
|
|
Exploration
costs
|
1,152
|
|
|
5,307
|
|
|
13,931
|
|
|
13,865
|
|
Interest expense,
net
|
16,279
|
|
|
11,220
|
|
|
55,233
|
|
|
45,553
|
|
Income tax expense
(benefit)
|
4,341
|
|
|
(8,622)
|
|
|
(17,424)
|
|
|
(23,755)
|
|
EBITDAX
|
50,328
|
|
|
32,377
|
|
|
196,589
|
|
|
140,913
|
|
Stock-based
compensation
|
3,405
|
|
|
2,278
|
|
|
12,871
|
|
|
8,133
|
|
Impairment
|
—
|
|
|
950
|
|
|
—
|
|
|
950
|
|
Acquisition
costs
|
155
|
|
|
—
|
|
|
1,081
|
|
|
—
|
|
Accretion of asset
retirement obligations
|
157
|
|
|
169
|
|
|
732
|
|
|
826
|
|
Rig termination
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
8,970
|
|
Loss on sale of
property
|
—
|
|
|
36,705
|
|
|
119
|
|
|
34,374
|
|
Prepayment premium on
extinguishment of debt
|
36,335
|
|
|
—
|
|
|
36,335
|
|
|
—
|
|
Loss (gain) on
derivatives
|
26,993
|
|
|
(37,119)
|
|
|
50,835
|
|
|
(60,818)
|
|
Net settlements on
derivative instruments
|
1,881
|
|
|
14,402
|
|
|
26,441
|
|
|
46,456
|
|
Net premium
realization on options that settled during the period
|
5,576
|
|
|
4,276
|
|
|
31,757
|
|
|
11,406
|
|
Inventory write
down
|
—
|
|
|
4,147
|
|
|
—
|
|
|
4,147
|
|
Deferred tax asset
valuation
|
(7,351)
|
|
|
—
|
|
|
(7,351)
|
|
|
—
|
|
Adjusted
EBITDAX
|
$
|
117,479
|
|
|
$
|
58,185
|
|
|
$
|
349,409
|
|
|
$
|
195,357
|
|
|
|
*
|
Certain
reclassifications to prior period amounts have been made to conform
with current presentation.
|
Adjusted Net Income
Adjusted net income is a performance measure used by management
to evaluate financial performance, prior to non-cash gains or
losses on derivatives, net cash received for derivative
settlements, net premiums received on options that settled during
the period, deferred tax asset valuation, (gain) loss on sale of
property, prepayment premium on extinguishment of debt, exploration
costs and acquisition costs while adjusting for noncontrolling
interest and the associated changes in estimated income tax.
Management believes adjusted net income is useful because it may
enhance investors' ability to assess Parsley's historical and
future financial performance. Adjusted net income should not be
considered an alternative to consolidated net income, operating
income, or any other measure of financial performance presented in
accordance with GAAP. The following table presents a reconciliation
of the non-GAAP financial measure of adjusted net income to the
GAAP financial measure of net loss.
Parsley Energy,
Inc. and Subsidiaries
Adjusted Net
Income and Net Income Per Share
(Unaudited, in
thousands, except per share data)
|
|
|
Three Months
Ended
December 31, 2016
|
|
Year
Ended
December 31, 2016
|
Net loss attributable
to Parsley Energy, Inc. stockholders
|
$
|
(30,745)
|
|
|
$
|
(74,182)
|
|
Exploration
costs
|
1,152
|
|
|
13,931
|
|
Acquisition
costs
|
155
|
|
|
1,081
|
|
Loss on
derivatives
|
26,993
|
|
|
50,835
|
|
Net settlements on
derivative instruments
|
1,881
|
|
|
26,441
|
|
Net premium
realization on options that settled during the period
|
5,576
|
|
|
31,757
|
|
Loss on sale of
property
|
—
|
|
|
119
|
|
Prepayment premium on
extinguishment of debt
|
36,335
|
|
|
36,335
|
|
Deferred tax asset
valuation
|
(7,351)
|
|
|
(7,351)
|
|
Noncontrolling
interest
|
(3,310)
|
|
|
(14,953)
|
|
Change in estimated
income tax
|
(18,884)
|
|
|
(47,152)
|
|
Adjusted net
income
|
$
|
11,802
|
|
|
$
|
16,861
|
|
Weighted average
diluted shares outstanding
|
208,117
|
|
|
193,036
|
|
Adjusted net income
per diluted share
|
$
|
0.06
|
|
|
$
|
0.09
|
|
Supplemental
Information
|
Parsley Energy,
Inc., Subsidiaries, and Entities to be Acquired
Open Crude Oil
Derivatives Positions(1)
|
|
|
|
1Q17
|
|
|
2Q17
|
|
|
3Q17
|
|
|
4Q17
|
|
|
1Q18
|
|
|
2Q18
|
|
|
3Q18
|
|
|
4Q18
|
|
|
1Q19
|
|
|
2Q19
|
|
|
3Q19
|
|
|
4Q19
|
|
Parsley
Energy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Put Spreads
(MBbls/d)(2)
|
|
13.8
|
|
|
13.6
|
|
|
35.7
|
|
|
45.5
|
|
|
23.3
|
|
|
23.1
|
|
|
19.6
|
|
|
19.6
|
|
|
|
|
|
|
|
|
|
Put Price
($/Bbl)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
49.93
|
|
|
$
|
49.93
|
|
|
$
|
52.66
|
|
|
$
|
52.80
|
|
|
$
|
53.21
|
|
|
$
|
52.14
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
|
|
|
|
|
|
|
Short Put Price
($/Bbl)
|
|
$
|
36.14
|
|
|
$
|
36.14
|
|
|
$
|
41.80
|
|
|
$
|
41.95
|
|
|
$
|
41.43
|
|
|
$
|
42.14
|
|
|
$
|
40.00
|
|
|
$
|
40.00
|
|
|
|
|
|
|
|
|
|
Three Way Collars
(MBbls/d)(3)
|
|
|
|
|
|
|
|
|
|
13.3
|
|
|
19.8
|
|
|
31.0
|
|
|
31.0
|
|
|
8.3
|
|
|
8.2
|
|
|
8.2
|
|
|
8.2
|
|
Call Price
($/Bbl)
|
|
|
|
|
|
|
|
|
|
$
|
74.38
|
|
|
$
|
75.28
|
|
|
$
|
75.65
|
|
|
$
|
75.65
|
|
|
$
|
80.40
|
|
|
$
|
80.40
|
|
|
$
|
80.40
|
|
|
$
|
80.40
|
|
Put Price
($/Bbl)
|
|
|
|
|
|
|
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
Short Put Price
($/Bbl)
|
|
|
|
|
|
|
|
|
|
$
|
40.00
|
|
|
$
|
40.00
|
|
|
$
|
40.00
|
|
|
$
|
40.00
|
|
|
$
|
40.00
|
|
|
$
|
40.00
|
|
|
$
|
40.00
|
|
|
$
|
40.00
|
|
Premium Realization
($ MM)(4)
|
|
$
|
(4.9)
|
|
|
$
|
(4.9)
|
|
|
$
|
(14.2)
|
|
|
$
|
(17.8)
|
|
|
$
|
(11.9)
|
|
|
$
|
(10.4)
|
|
|
$
|
(10.6)
|
|
|
$
|
(10.6)
|
|
|
$
|
(1.5)
|
|
|
$
|
(1.5)
|
|
|
$
|
(1.5)
|
|
|
$
|
(1.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Cush Basis Swaps
(MBbls/d)
|
|
11.3
|
|
|
11.3
|
|
|
12.2
|
|
|
12.2
|
|
|
1.0
|
|
|
1.0
|
|
|
1.0
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
Swap Price
($/Bbl)
|
|
$
|
(1.00)
|
|
|
$
|
(1.00)
|
|
|
$
|
(1.05)
|
|
|
$
|
(1.05)
|
|
|
$
|
(0.95)
|
|
|
$
|
(0.95)
|
|
|
$
|
(0.95)
|
|
|
$
|
(0.95)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Double Eagle:
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collars
(MBbls/d)(6)
|
|
|
|
1.5
|
|
|
4.0
|
|
|
4.0
|
|
|
3.0
|
|
|
3.0
|
|
|
3.0
|
|
|
3.0
|
|
|
|
|
|
|
|
|
|
Call Price
($/Bbl)
|
|
|
|
$
|
56.15
|
|
|
$
|
59.73
|
|
|
$
|
59.98
|
|
|
$
|
61.31
|
|
|
$
|
61.31
|
|
|
$
|
61.31
|
|
|
$
|
61.31
|
|
|
|
|
|
|
|
|
|
Put Price
($/Bbl)
|
|
|
|
$
|
47.00
|
|
|
$
|
46.75
|
|
|
$
|
46.75
|
|
|
$
|
45.67
|
|
|
$
|
45.67
|
|
|
$
|
45.67
|
|
|
$
|
45.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WTI Swaps
(MBbls/d)
|
|
|
|
1.0
|
|
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
Strike Price
($/Bbl)
|
|
|
|
$
|
53.42
|
|
|
$
|
55.00
|
|
|
$
|
55.00
|
|
|
$
|
55.00
|
|
|
$
|
55.00
|
|
|
$
|
55.00
|
|
|
$
|
55.00
|
|
|
|
|
|
|
|
|
|
Mid-Cush Basis Swaps
(MBbls/d)
|
|
|
|
|
|
4.5
|
|
|
4.5
|
|
|
3.5
|
|
|
3.5
|
|
|
3.5
|
|
|
3.5
|
|
|
|
|
|
|
|
|
|
Swap Price
($/Bbl)
|
|
|
|
|
|
$
|
(0.86)
|
|
|
$
|
(0.86)
|
|
|
$
|
(0.90)
|
|
|
$
|
(0.90)
|
|
|
$
|
(0.90)
|
|
|
$
|
(0.90)
|
|
|
|
|
|
|
|
|
|
Parsley Energy, Inc., Subsidiaries, and Entities
to be Acquired Open Natural Gas Derivatives
Positions(1)
|
|
|
1Q17
|
|
2Q17
|
|
3Q17
|
|
4Q17
|
|
1Q18
|
Parsley
Energy:
|
|
|
|
|
|
|
|
|
|
Three Way Collars
(MMBtu/d)(3)
|
15.8
|
|
|
15.7
|
|
|
15.5
|
|
|
15.5
|
|
|
|
Call Price
($/MMBtu)
|
$
|
4.02
|
|
|
$
|
4.02
|
|
|
$
|
4.02
|
|
|
$
|
4.02
|
|
|
|
Put Price
($/MMBtu)
|
$
|
2.75
|
|
|
$
|
2.75
|
|
|
$
|
2.75
|
|
|
$
|
2.75
|
|
|
|
Short Put Price
($/MMBtu)
|
$
|
2.36
|
|
|
$
|
2.36
|
|
|
$
|
2.36
|
|
|
$
|
2.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Double Eagle:
(5)
|
|
|
|
|
|
|
|
|
|
Swaps
(MMBtu/d)
|
|
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
Strike Price
($/MMBtu)
|
|
|
$
|
3.39
|
|
|
$
|
3.39
|
|
|
$
|
3.46
|
|
|
$
|
3.50
|
|
|
|
(1)
|
As of
2/23/2017
|
(2)
|
When NYMEX price is
above put price, Parsley receives the NYMEX price. When NYMEX price
is between the put price and the short put price, Parsley receives
the put price. When NYMEX price is below the short put price,
Parsley receives the NYMEX price plus the difference between the
short put price and the put price.
|
(3)
|
Functions similarly
to put spreads except that when index price is at or above the call
price, Parsley receives the call price.
|
(4)
|
Premium realizations
represent net premiums collected (from restructured positions) or
paid (including deferred premiums), which are recognized as income
or loss in the period of settlement.
|
(5)
|
Upon the closing of
Parsley's pending acquisition of equity interests in Double Eagle
Lone Star LLC, DE Operating LLC, and Veritas Energy Partners, LLC
(collectively, "Double Eagle"), as reported in Parsley's Form 8-K
filed with the SEC on 2/13/2017, Parsley will assume Double Eagle's
existing hedge positions.
|
(6)
|
When NYMEX price is
above the call price, Double Eagle receives call price. When NYMEX
is below the put price, Double Eagle receives the put price. When
NYMEX is between call and put prices, Double Eagle receives the
NYMEX price.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/parsley-energy-announces-fourth-quarter-2016-financial-and-operating-results-300412810.html
SOURCE Parsley Energy, Inc.