Parsley Energy — Investor Presentation (February 2015)
19 slides from Parsley Energy's investor presentation, Feb 6, 2015
Slide 1: Investor Presentation February 2015
Exhibit 99.2 Investor Presentation February 2015
Slide 2: Forward Looking Statements and Cautionary Statements
Forward Looking Statements and Cautionary Statements Forward-Looking Statements The information in this presentation includes “forward-looking statements” that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statemen
Slide 3: Parsley Energy Overview
Parsley Energy Overview Market Snapshot Production and Reserves Premier Acreage Position NYSE Symbol: PE 4Q14 Production: 18.2 MBoe/d Market Cap: $2,484 MM (1) Proved Reserves: 91 MMBoe (4) Net Debt: $395 MM (2) • Liquids: 77% Enterprise Value: $2,879 MM (3) • Proved Developed: 51% • Midland Basin C
Slide 4: 2015 Capital Program – Flexible and Efficient
2015 Capital Program – Flexible and Efficient 2015 Capital Program Overview Estimated 2015 Capex Mix Capital Discipline Facilities & Efficient spending plan with Y/Y average and exit to exit Other production growth on sharply reduced capital budget ~15% Estimated capex of $225-$250 million, represen
Slide 5: Efficient Production Growth with Improving Margins
Efficient Production Growth with Improving Margins Estimated Y/Y Production Growth Estimated 2015 Production Mix 20 100% 16 80% 12 60% 8 40% 4 20% 0 0% 2014 2015E 2014 2015E Oil Gas NGL 2015 Production Profile Estimated production between 18.0 and 19.0 MBoe/d, up from 14.2 MBoe/d in 2014 30% Y/Y pro
Slide 6: Highly Productive Horizontal Wells
Highly Productive Horizontal Wells 1,600 PE Average Horizontal Well Production (1) 1,400 690 MBoe EUR Type Curve (2) 10% EUR Increase: 760 MBoe 1,200 20% EUR Increase: 830 MBoe 1,000 800 600 400 200 0 Months 1 2 3 4 5 6 7 8 9 10 11 12 Well Count 20 18 14 12 9 6 5 4 3 2 1 0 in PE Average (1) Normaliz
Slide 7: Attractive Well Economics Become More Compelling with Service Cost Declines and EUR Improvement
Attractive Well Economics Become More Compelling with Service Cost Declines and EUR Improvement 690 MBoe EUR Type Curve 10% EUR Increase: 760 MBoe Rate of Return Sensitivity to D&C Costs Rate of Return Sensitivity to D&C Costs 20% EUR Increase: 830 MBoe Type Well Assumption Rate of Return Sensitivit
Slide 8: Bolt-on Acquisitions Enhance Premier Asset Base
Bolt-on Acquisitions Enhance Premier Asset Base Transaction Summary Midland Basin Position and Acquisition Closed on 8,450 net acres, primarily in Reagan County, for $139 million Bolt-on assets in heart of Horizontal Focus Area Based on offset results, anticipate attractive well economics on acquire
Slide 9: Acquired Properties Surrounded by Strong Wells
Acquired Properties Surrounded by Strong Wells Stimulated Number of Peak 24-hr IPPeak 30-day IP Peak 30-day IP (1) Number Well Name County Well Zone Lateral Length Stages (Boe/d) (Boe/d) per 1,000' Lateral % Liquids Core Horizontal well productivity 1 Dusek 45-1HB Upton Wolfcamp B 9,061 39 2,044 1,5
Slide 10: Strong Liquidity Position Enhances Flexibility
Strong Liquidity Position Enhances Flexibility Strong balance sheet to fund drilling plan through 2016, with $519 million of pro forma liquidity based on Pro Forma Liquidity (1) committed portion of borrowing base ($ millions) — Pro forma cash of $154 million as of December 31, (2) First lien borrow
Slide 11: Capturing Hedge Value
Capturing Hedge Value Parsley monetized a portion of its hedge value by “rolling” future positions to lower put spreads Strategy Benefits Capture unrealized value of hedge position in depressed oil price Turned unrealized gains into $49 million of cash net of the cost of environment while retaining
Slide 12: Oil Hedge Position
Oil Hedge Position Oil Positions 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Put Spreads (Bbl/day) 5,222 6,264 7,826 10,272 10,989 12,198 14,185 15,326 - - Put Price ($/Bbl) $77.29 $77.76 $66.35 $55.00 $55.00 $55.00 $60.17 $59.79 - - Short Put Price ($/Bbl) $57.77 $58.16 $50.10 $40.00 $40.00 $
Slide 13: Gas Hedge Position
Gas Hedge Position Natural Gas Positions 1Q15 2Q15 3Q15 4Q15 (1) Three Way Collars (MMBtu/day) 10,000 9,890 9,783 9,783 Call Price ($/MMBtu) $5.25 $5.25 $5.25 $5.25 Put Price ($/MMBtu) $4.50 $4.50 $4.50 $4.50 Short Put Price ($/MMBtu) $3.75 $3.75 $3.75 $3.75 Total MMbtu per day hedged 10,000 9,890 9
Slide 14: Substantial Reserve Growth
Substantial Reserve Growth Reserve summary, as of 12/31/14, prepared by Netherland, Sewell & Associates, Inc. (“NSAI”) Drillbit F&D of $19.68/Boe (1) Reserves up 66% Y/Y PDP up 126% Y/Y PV-10 up 79% Y/Y Oil (Mbbls) Nat Gas (Mmcf) NGL (Mbbls) Total (Mboe) PV-10 ($MM)(2) PDP 23,368 64,829 11,370 45,54
Slide 15: Promising Southern Delaware Exploration Program
Promising Southern Delaware Exploration Program Parsley’s acreage position in the Coyanosa sub-basin, within the Southern Delaware 52 Square Mile Proprietary 3D Seismic Data Shoot Basin, has Pennsylvanian-aged rocks in the oil window Stacked pay potential from Bone Spring down through the Woodford 3
Slide 16: Appendix
PARSLEY ENERGY Appendix
Slide 17: Premier Acreage Position
Premier Acreage Position Midland Basin Acreage Map Midland Basin Pro Forma Acreage (1) Net Surface Acreage Core Tier 1 Total 49,504 30,131 79,634 Net Effective Acreage Core Tier 1 Total Lower Spraberry 14,603 16,553 31,156 Wolfcamp A 34,550 26,604 61,154 Wolfcamp B 37,022 26,604 63,626 Wolfcamp C 37
Slide 18: Substantial Drilling Inventory
Substantial Drilling Inventory Midland Basin Drilling Inventory Midland Basin Pro Forma Drilling Inventory (1) Net Horizontal Undrilled Locations Core(2) Tier 1(3) Total (4) Lower Spraberry 63 89 152 Wolfcamp A 175 121 296 Wolfcamp B 182 117 299 Wolfcamp C 197 123 320 Cline 228 118 346 Atoka 300 108
Slide 19: Disclaimer
Disclaimer The Horizontal Type Curve was prepared by Parsley’s internal reserve engineers by conducting a decline curve analysis of third party production data submitted to the Texas Rail Road Commission for 106 horizontal wells drilled since 2011 in Reagan, Upton and Midland counties. The Horizonta
Parsley Energy — Investor Presentation (February 2015) on 6ix