Steve Zachritz
Growth, long-term horizon, commodities, oil & gas

Parsley Energy ---- Addressing Inventory Concerns

Parseley Energy (NYSE:PE) Acquires Acreage Which Should Partially Address Recent Long Lateral Inventory Sellside Worries

Adding Core and Tier 1 Acreage

Parsley added 5,472 net acres in Reagan County, TX, adjacent to current operations (77% in what they deem their Midland Basin Core (sold to them by (NYSE:XEC)) with the balance in Tier 1 - see map below). This increase their Midland Basin Core + Tier 1 acreage position by 8%. The deal comes with associated production of 1,800 BOEpd from the Wolfcamp A and B and they noted that 1,500 BOEpd of those volumes are from five new wells, which we see as an honest attempt to not mislead with regard to flush production.


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