Parsley Energy, Inc.NYSE
Tue, Oct. 18, 3:49 PM
- SM Energy (SM +1.5%) surged to a 52-week high at the open before pulling back following news of its purchase of 35.7K acres in the Midland Basin in west Texas for $1.1B in cash and 13.4M shares valued at ~$500M.
- SM expects to use the proceeds from a $785M sale of property and other assets in the Williston Basin to Oasis Petroleum, also announced today, to pay for the bulk of its cash outlay for the deal.
- “Our Permian growth rate will be huge, higher than our more highly valued competitors,” SM CEO and President Jay Ottoson says without naming the competitors, but the company’s slide presentation lists Diamondback Energy (FANG -0.5%), Callon Petroleum (CPE -0.1%), Parsley Energy (PE -0.5%) and RSP Permian (RSPP -1.1%) as its top peers in the area.
- CapitalOne upgrades SM to Overweight from Equal Weight with a $50 price target, lifted from $46, as it estimates SM paid ~$42K/acre for the acreage when backing out 2.4M boe/day production from the total $1.6B purchase price.
- Williams Capital considers SM its top pick in the sector, saying the deal gives it "the scale to command an improved valuation and trade more like a Permian Basin company, especially when considering its execution of selling non-core assets."
Mon, Aug. 15, 5:52 PM
- Parsley Energy (NYSE:PE) agrees to acquire 11,672 leasehold acres of undeveloped acreage and producing oil and gas properties, as well as associated mineral and overriding royalty interests, in Texas' Midland Basin from unnamed sellers for a combined $400M.
- PE also says its first producing horizontal well on the Glasscock County acreage acquired in May registered a strong peak 30-day initial production rate of 1,161 boe/day.
- To help fund the deal, PE says it has launched a 7M-share public offering, with an underwriters option to purchase up to an additional 1.05M common shares, and a $200M private placement of additional 6.250% senior notes due 2024.
Mon, May 23, 4:42 PM
- Parsley Energy (NYSE:PE) -2.2% AH after agreeing to acquire mineral rights under ~30K acres consisting of Parsley leasehold and other adjacent properties in the Southern Delaware basin in Texas for $280.5M.
- PE says estimated net current production associated with the acquired mineral rights totals ~280 boe/day.
- To help fund the deal, PE announces concurrent equity and debt offerings of 8M common shares, with an underwriters option to purchase up to an additional 1.2M shares, and $200M in aggregate principal amount of senior unsecured notes due 2024.
Sep. 29, 2014, 12:26 PM
- Encana’s (ECA +2.3%) takeover of Athlon Energy (ATHL +24.6%) is good news for Diamondback Energy (FANG +2.3%) and Energen (EGN +2.2%), according to analysts at Sterne Agee.
- The acquisition implies a value of $98/share for FANG, Sterne says, based on FANG's 85K net acre leasehold position, estimated 19.8K boe/day of Q3 production, $585M of assumed debt, and a $1.7B market value for the Viper Energy Partners (NASDAQ:VNOM) units it owns.
- The firm sees even more upside for EGN, as ECA’s price implies a value of $102/share for EGN, based on 180K net acres across both sides of the Permian Basin, 48K boe/day of Q3 Permian Basin production, 132M cfe/day of Q3 San Juan Basin, and $835M of pro forma net debt as of Sept. 30.
- Permian producers Laredo Petroleum (LPI +5%), Parsley Energy (PE +5%) and RSP Permian (RSPP +4.8%) also are higher following the acquisition news.