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Parsley Energy $PE,  missed on the top and bottom line in Q2 earnings Wednesday with it's shares cracked further on the news, $PE was already down over 6%, after earnings it is now down over 12% on the day. The company is focused exclusively on the Midland and Southern Delaware basins in the Permian. 

Parsley had a slight shift in production mix in 2Q17, with oil as a percentage of total production down from 69% to 67%, a function of contributions from recently acquired vertical production and seasonal increases in plant efficiencies that boosted the recovery of NGLs.

Earnings:  EPS of 5 cents on revenue of $213.6 million. Misses on both fronts, expectations were EPS 11 cents with revenue $222 million.

Reaction: Parsley Energy Inc NYSE: PE - After-hours25.79 -1.60 (-5.84%This was after closing down for the day at 27.39 -1.85 (- 6.33%). The stock is down over 12% on the day.

 

Production

  • Net production averaged 64.7 MBoe per day, up 18% versus 1Q17 and 81% year-over-year.
  • Daily net oil production increased 14% versus 1Q17 and 82% year-over-year.

Balance Sheet and Hedging

As of June 30, 2017, the Company had approximately $1.5 billion of liquidity, consisting of $503 million of cash on hand and an undrawn amount of $997 million on the Company's revolver.(2) Parsley added to its oil hedge portfolio during the quarter and now has an average of 58 MBbls per day of oil hedged during 2018 with an average floor price of approximately $50/Bbl.(3) "Parsley Energy continues to operate from strong financial footing," said Ryan Dalton, Parsley's CFO. "A differentiated cash position and an advantaged hedge book provide a buffer if oil prices decline and facilitate strategic growth in more constructive commodity scenarios."

Guidance

  • Parsley is increasing guidance for full-year 2017 and 4Q17 daily net production, reflecting broadly stronger well performance and higher NGL volumes.
  • The Company is reducing its estimated full-year 2017 oil percentage to account for its 2Q17 production mix, as discussed above, and for increasing contributions from Wolfcamp C wells.
  • Parsley is also reducing its expected completion count in the Southern Delaware Basin to reflect extended project cycle times earlier this year.
  • Estimated full-year 2017 capital expenditures are unchanged, as fewer expected completions are offset by incremental drilling activity associated with early rig delivery. All other guidance remains unchanged, as well.

Source: http://www.parsleyenergy.com/investors/news-releases/news-release-details/2017/Parsley-Energy-Announces-Second-Quarter-2017-Financial-And-Operating-Results-Raises-Production-Guidance-And-Announces-Successful-Delineation-Results/default.aspx

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