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- The quiet period expiration for PE occurs June 16, allowing underwriters to release positive information on the firm into the market, starting June 17.
- PE’s early market performance has been small but consistent, and the company’s very strong underwriters could likely influence the price upward on June 17.
- We recommend this event as a buying opportunity for PE.
- Of the latest IPOs in the Permian Basin, Parsley Energy and its management have opportunistically timed its debut.
- Though some investors believe the Permian gold dust is settling, E&P firms have their heads down working their acreage to very good effect.
- Parsley is targeting all of the optimum stacked intervals in the Permian, plus another that has not been commonly spoken of -- the deep Atoka interval.
- Parsley Energy has production, reserves, acreage and strategies that should be positive for investors.
- Parsley is a pure play on the Permian Basin.
- The company has and is currently still showing rapid as well as profitable growth.
- While the company faces the usual risks, there might be more upside potential if profitable growth continues.
- Oil and natural gas company focused on the acquisition, development and exploitation of unconventional oil and natural gas reserves in the Permian Basin.
- As of December 31, 2013, PE's total estimated proved reserves were approximately 54.8 MMBoe, of which approximately 43% were classified as proved developed reserves.
- At 428 times annualized earnings for Q1 '14, PE seems expensive, except 43% of reserves are 'proved developed reserves'.
- Parsley is coming to market at a reasonable valuation among a peer group of high priced Permian pure plays.
- We expect the deal to be well received with future horizontal success driving the multiple (and volumes) higher.
- Parsley's acreage is "Core of Core" in the Midland Basin with a Delaware Basin Wildcard.