Mon, Aug. 8, 11:57 AM
- SM Energy’s (SM +7.2%) $980M purchase of drilling rights in the Permian Basin shows that producers are willing to pay a premium for access to one of the few spots where oil exploration still turns a profit, Bloomberg reports.
- SM will pay the equivalent of $39.5K/acre for drilling rights across 24,783 acres in the Permian Basin, will ahead of the $25K-$35K that acreage in the Permian’s Midland Basin section had been fetching as recently as May and almost doubling SM's holdings in the region.
- Other Permian producers also are trading higher, including: PXD +2.2%, CXO +1.8%, XEC +2.1%, CWEI +6.1%, APA +3.8%, FANG +2.1%, PE +1.2%, QEP +3.6%, RSPP +2.4%, APC +2.6%, DVN +3.7%, MTDR +2.3%.
Thu, Aug. 4, 2:02 PM
Tue, Jul. 26, 2:56 PM
- Parsley Energy (PE +2.3%) is initiated with an Outperform rating and $34 price target at Imperial Capital, which notes that PE's activity in the Midland Basin has resulted in improving efficiencies and peer leading internal rates of return, while early Delaware Basin results show similar promise.
- PE boasts a lean balance sheet, with $821M of pro forma liquidity, and the company's hedging strategy protects it from the fall in crude prices, which also results in lower service costs, the firm says.
- With liquidity, a low cost structure, smart hedges, and no finger on the pause button, Imperial believes PE has all the ingredients to continue to outperform the group.
Mon, May 23, 5:37 PM
Mon, Apr. 18, 2:31 PM
- Investors should stay on defense through select oil and gas stocks such as Concho Resources (CXO +2.5%), Noble Energy (NBL +0.9%), PDC Energy (PDCE +4.3%), Parsley Energy (PE +2.2%), Pioneer Natural Resources (PXD +2.3%), Synergy Resources (SYRG +1.5%) and Cimarex Energy (XEC +1.8%) following the producers' failure to reach a deal at Doha, Stifel says.
- The firm says the balance sheets of the seven companies should remain sound even if WTI oil prices fall short of its $37/bbl forecast for 2016, and the group also owns some of the strongest assets as measured by half-cycle returns.
- A re-surging market share battle between Saudi Arabia and Iran casts doubt on the timing of a realignment of oil supply and demand, and the divide between the two countries runs deep and could widen if the Saudis flood an oversupplied market with additional barrels, Stifel says.
- Now read Stifel downgrades "riskier" oil stocks ahead of OPEC meeting
Wed, Mar. 30, 3:30 PM
- Analysts at Seaport Global upgrade seven oil and gas producers, advocating for increased exposure to select names they say should protect investors in the event of a move back toward $50/bbl, while downgrading 11 others.
- Seaport upgrades seven companies to Buy: Continental Resources (CLR +3.4%), Callon Petroleum (CPE +1.4%), Marathon Oil (MRO +1.9%), Oasis Petroleum (OAS +2.8%), Rice Energy (RICE +1.7%), Petroquest Energy (PQ +9.1%) and Lonestar Resources (OTCQX:LNREF +6.6%).
- Downgraded to Sell are Whiting Petroleum (WLL +4.1%), Southwestern Energy (SWN -2.5%), WPX Energy (WPX +0.6%), Laredo Petroleum (LPI -1.1%), Jones Energy (JONE +0.9%), Northern Oil & Gas (NOG +1%), Carrizo Oil & Gas (CRZO +1.6%), Memorial Resource (MRD +2.5%), Matador Resources (MTDR -0.3%), Sanchez Energy (SN +1.6%) and PDC Energy (PDCE -0.9%).
- The firm also favors gaining leverage to the Oklahoma STACK play, thus CLR and Newfield Exploration (NFX +1.9%) have "taken the pole position away" from Permian producers Parsley Energy (PE +1.3%) and Pioneer Natural Resources (PXD +1%).
Tue, Mar. 15, 12:28 PM
- Oasis Petroleum (OAS -5.1%) is upgraded to Overweight with a $9 price target, raised from $6, at J.P. Morgan, which believes OAS is well positioned operationally vs. peers and that the company’s enhanced completions in the Bakken generate top-tier returns.
- The firm also downgrades Whiting Petroleum (WLL -10.7%) to Neutral from Overweight with an $8 price target, primarily to reflect valuation after shares have surged 140% from their late-February low.
- J.P. Morgan favors companies that can sustain or quickly re-establish positive operating momentum as the industry begins fighting the decline curve; its top picks are Callon Petroleum (CPE -2.7%), Diamondback Energy (FANG -1%), Newfield Exploration (NFX -2.9%), Parsley Energy (PE -0.4%) and PDC Energy (PDCE -0.9%).
Dec. 9, 2015, 5:40 PM
Dec. 9, 2015, 4:37 PM
- Parsley Energy (NYSE:PE) -3.6% AH after agreeing to acquire certain undeveloped acreage and producing oil and gas properties in Texas' Midland Basin for $148.5M.
- PE says the property includes 238 net horizontal drilling locations across 5,274 net surface acres in its core operating area; estimated net production in November from three horizontal wells was 1K boe/day.
- To fund the deal, PE launches a public offering of 8.5M common shares by the company and 850K shares by NGP X US Holdings, one of the company's stockholders.
Dec. 9, 2015, 10:36 AM
- Concho Resources (CXO +2.3%) and Pioneer Natural Resources (PXD +4.3%) are named J.P. Morgan's top large-cap picks among E&P companies focused on the Permian Basin, which the firm says is positioned at the low end of the U.S. tight oil cost curve and thus poised to benefit from efficiency and productivity gains.
- CXO boasts a deep inventory of high rate of return locations in the Delaware Basin; given the company's success there, the firm sees the potential for a "positive rate of change" in the Midland Basin.
- Even though PXD has lagged its Permian peers over the past 12-18 months on a weaker capital efficiency metric, the firm expects the company to realize a positive turn in capital efficiency along with differential oil growth to drive outperformance.
- Parsley Energy (PE +4.2%) and Diamondback Energy (FANG +4.4%) are JPM's top small- and mid-cap picks; Cimarex (XEC +1.7%), Energen (EGN +1.8%) and RSP Permian (RSPP +2.6%) are rated Neutral, while Laredo Petroleum (LPI +4.7%) is tagged with an Underweight rating.
Dec. 2, 2015, 3:59 PM
- Diamondback Energy (FANG -1.8%) and Parsley Energy (PE -3.2%) are initiated with Buy ratings, and RSP Permian (RSPP -3.4%) is upgraded to Buy from Hold, at Deutsche Bank, although the stocks are snowed under by today's broad losses in energy sector.
- Deutsche Bank views FANG as one of the best positioned producers in the Permian Basin, complete with top-tier margins, growth, inventory, and liquidity; "It’s all systems go for FANG’s returns focused development program to continue generating peer-leading results," the firm writes.
- PE recently posted 52-week highs but the firm says it is well positioned to remain the fastest growing company in its oil-focused producer group "while generating strong returns from an enviable Wolfcamp position that is still in the early stages of horizontal development."
- The firm says RSPP offers the best combination of core acreage, debt adjusted growth and margins among mid-cap Permian focused producers and has executed its multi-year growth plan with minimal leverage, and it likes RSPP’s leverage to an improving crude outlook as it remains mostly unhedged in 2016.
Nov. 30, 2015, 12:58 PM
- Parsley Energy (PE +3.7%) is upgraded to Focus Stock from Sector Outperfrom with a $25 price target, raised from $22, at Scotia Howard Weil.
- With an anticipated volume ramp into 2016 and corresponding growth in oil as a percentage of total production, the firm forecasts PE's cash netbacks to increase to north of 60%; combined with decreasing costs as PE transitions to pad drilling, the recycle ratio should be peer leading moving into 2016.
- Despite continued crude price weakness, PE is well positioned for next year on both hedging and the balance sheet, and Scotia feels comfortable that a four-rig program would still generate plenty of EBITDA to keep net debt/EBITDA trending down through the year from ~2.7x to the low 2x.
Nov. 27, 2015, 2:39 PM
Sep. 18, 2015, 9:15 AM
Feb. 6, 2015, 9:56 AM
- Parsley Energy (PE -7.2%) says it plans a 2015 capital spending budget of $225M-$250M, and expects production to average 18K-19K boe/day, or 30% Y/Y growth at the midpoint relative to 2014's 14.2K boe/day.
- Q4 net production averaged 18.2K boe/day, up 19% Q/Q, while FY 2014 net production jumped 184% Y/Y to 14.2K boe/day.
- Year-end 2014 proved reserves rose 66% Y/Y to 90.9M boe; proved developed reserves were 46M boe, or 51% of total proved reserves.
- Also acquired undeveloped acreage located adjacent to its existing operating areas, primarily in Reagan County, Tex., for $139M.
- PE also says it will sell ~14.9M common shares in a private placement, and expects to use the proceeds from the offering to repay borrowings under its revolving credit facility and for general corporate purposes.
Jan. 12, 2015, 3:17 PM
- Goldman Sachs upgrades a few energy stocks even as it cast a pall of gloom over most of the sector today (I, II, III), raising Chesapeake Energy (CHK -3.6%) to Buy from Neutral and Parsley Energy (PE -4.2%) to Neutral from Sell as potential "shale sale" winners.
- Despite PE's relative vulnerability to lower oil prices because of its weak balance sheet and negative projected free cash, Goldman has more confidence that its core Permian Basin position makes it an attractive M&A target.
- Among potential "shale scale" winners - companies that either can build positions in the core and reduce costs of capital - the firm's favorites remain EOG Resources (NYSE:EOG), Range Resources (NYSE:RRC), Pioneer Natural Resources (NYSE:PXD), Cabot Oil & Gas (NYSE:COG) and Concho Resources (NYSE:CXO).
- However, Goldman cuts Bill Barrett (BBG -8.3%) to Sell from Neutral, seeing greater downside risk to its production in a lower oil price environment, and lowers Eclipse Resources (ECR -1.5%) to Neutral from Buy due to a persistently wide funding gap through 2017 coupled with a weak balance sheet.
Parsley Energy, Inc is an oil and natural gas company, which focuses on the acquisition, development and exploitation of unconventional oil and natural gas reserves in the Permian Basin. It operates through two segments: Oil & Natural Gas Exploration and Production. The company was founded by... More
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States