Parsley Energy Misses on Earnings, $PE Loses Over 12% on The Day


RBC issued a note $PE positive on the company’s Permian exposure:

Key factors that drive outperformance include a core Permian asset base, 50%+ oil growth in 2018E, a more managed cash flow & capital spending outlook, and a strong balance sheet. The company is capable of FCF neutrality by mid-2019, assuming flat activity levels. If crude oil prices remain above $50/bbl (WTI), free-cash-flow neutrality is likely more “conceptual”, in our view, because value creation will come organically through the drill-bit.

RBC has a $36 price target

Parsley Energy Inc

NYSE: PE · December 22, close 29.54 ▲ 0.33 (1.13%)