Parsley Energy — Merger or Acquisition (October 2019)
17 slides from Parsley Energy's merger presentation, Oct 15, 2019
Slide 1: Acquisition of Jagged Peak Energy
INVESTOR PRESENTATION 3Q »2017 SEPTEMBER 25, 2018 ACQUISITION OF JAGGED PEAK ENERGY OCTOBER 14, 2019 PARSLEYENERGY.COM Exhibit 99.2
Slide 2: Important Disclosures
Important Disclosures No Offer or Solicitation Communications in this presentation do not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed transaction or otherwise, nor shall ther
Slide 3: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Certain statements in this presentation concerning the proposed transaction, including any statements regarding the expected timetable for completing the proposed transaction, the results, effects, benefits and synergies of the proposed tran
Slide 4: Parsley Acquisition of Jagged Peak – A Natural Extension in the Permian
Parsley Acquisition of Jagged Peak – A Natural Extension in the Permian Low-Premium Transaction is Accretive to Cash Flow per Share, Free Cash Flow(1) per Share, Cash Return on Capital Invested (“CROCI”)(2), and Net Asset Value Complementary and Contiguous Oil-Weighted Production and Inventory with
Slide 5: Preliminary Pro Forma 2020 Outlook
Preliminary Pro Forma 2020 Outlook Pro Forma Parsley Acreage Pro Forma Rigs Status Quo Rigs Slight moderation of pro forma activity prioritizes free cash flow growth (1) Free cash flow is a non-GAAP financial measure. Free cash flow is defined as cash flow from operations before changes in operating
Slide 6: Transaction Overview
Transaction Overview (1) As of 6/30/2019; (2) Enterprise values as of 10/11/2019. Transaction Details All Stock, Low Premium Transaction Transaction valued at $2.27 billion, including the assumption of $625 million of Jagged Peak net debt(1) Jagged Peak shareholders will receive 0.447 Parsley shares
Slide 7: Defend and extend operational efficiency gains
Defend and extend operational efficiency gains YTD footage drilled/completed per rig/crew registered double digit growth from FY18 levels Work with high-performing service partners on pricing and contracting Achieving a step-change improvement in capital efficiency(1) Hedge to protect cash flow and
Slide 8: Dialed in to Permian Scale Sweet Spot
Dialed in to Permian Scale Sweet Spot Efficient allocation of capital within the Permian requires sufficient scale Parsley believes optimal scale both retains corporate agility and ensures a voice in service market Voice in Market Corporate Agility Limited Small-Scale Optimal Scale Midstream: Sizabl
Slide 9: Complementary High-Margin Assets
Source: FactSet. (1) Adjusted EBITDAX Margin is a non-GAAP financial measure. For a reconciliation of the non-GAAP financial measure of Adjusted EBITDAX Margin to the most directly comparable GAAP financial measure, please see the Supplementary Slides located at the end of this presentation; (2) Pee
Slide 10: Synergy Scorecard
General & Administrative and Operational Additional Synergies Water Infrastructure Potential to expand ongoing Parsley water infrastructure-related strategic initiatives Overlapping Acreage Land synergies driven by extending laterals and eliminating lease line buffers Synergy Scorecard Annual Value
Slide 11: Synergy Spotlight – Delaware Well Costs
Parsley significantly reduced Delaware well costs over the past 12 months despite more upsized fracs Aim to reduce Jagged Peak’s targeted well cost by at least $100/ft Collaborative implementation of best practices Supply chain advantages of optimal scale Operational continuity and efficiency Expect
Slide 12: Synergy Spotlight – Acreage Overlap and Water Infrastructure
Parsley Jagged Peak Adjoining Positions Increase Returns Expands Company-Owned Water Business JAG SWD JAG Source Water Wells JAG SWD Pipeline PE Electrical Lines PE SWD Gathering JAG Fresh Water Pipeline JAG Pit Locations PE SWD PE SWD Pipeline Synergy Spotlight – Acreage Overlap and Water Infrastru
Slide 13: Strong, Flexible Financial Position
Strong, Flexible Financial Position 1H25 2H25 $1,100 $400 $700 $450 $650 Senior Notes ($MM) Revolving Credit Facility ($MM)(1) Maintains Healthy Leverage Profile with Ample Borrowing Capacity Pro forma Parsley leverage remains healthy, consistent with that of standalone Parsley Larger cash flow base
Slide 14: Supplementary Slides
SUPPLEMENTARY SLIDES SUPPLEMENTARY SLIDES Supplementary Slides
Slide 15: Pro Forma Hedge Position
Pro Forma Hedge Position Methodical, consistent approach Protect cash flow stream in weaker oil price environment Preserve meaningful upside exposure in stronger oil price environment Align hedges with regional price exposure Hedge positions as of 10/11/2019. Prices represent the weighted average pr
Slide 16: Parsley Energy Standalone Adj. EBITDAX and Net Leverage Ratio Reconciliations
Parsley Energy Standalone Adj. EBITDAX and Net Leverage Ratio Reconciliations Note: Certain reclassifications to prior period amounts have been made to conform with current presentation.
Slide 17: Pro Forma Adj. EBITDAX and Net Leverage Ratio Reconciliations
Pro Forma Adj. EBITDAX and Net Leverage Ratio Reconciliations Note: Certain reclassifications to prior period amounts have been made to conform with current presentation; (1) JAG contract termination fee relates to the early termination of a frac fleet contract. These amounts are included as part of
Parsley Energy — Merger or Acquisition (October 2019) on 6ix