Parsley Energy, Inc. (NYSE: PE) (“Parsley Energy” or the “Company”)
today announced that it has commenced an underwritten public offering of
8,500,000 shares of its Class A common stock by the Company and 850,000
shares of its Class A common stock by NGP X US Holdings, L.P., one of
the Company’s stockholders. The Company and the selling stockholder
expect to grant the underwriters an option to purchase up to an
additional 1,275,000 and 127,500 shares of the Company’s Class A common
stock, respectively.
The Company recently entered into a purchase and sale agreement
providing for the sale and transfer by the seller (“Seller”) of Seller’s
interests in 6,040 gross (5,274 net) acres located in Upton, Reagan and
Glasscock Counties, Texas, with 238 associated net horizontal drilling
locations, for an aggregate purchase price of $148.5 million in cash
(subject to customary purchase price adjustments), which the Company
intends to fund with a portion of the net proceeds of the offering,
along with cash on hand. The properties to be acquired had average net
production of approximately 1,000 Boe/d during the month of November and
also include one horizontal well that is anticipated to be completed by
the Seller prior to close. Any remaining net proceeds will be used to
fund a portion of the Company’s capital program and for general
corporate purposes. The Company will not receive any of the proceeds
from the sale of shares by the selling stockholder.
Goldman, Sachs & Co. and Credit Suisse Securities (USA) LLC are acting
as underwriters for the offering.
The offering is being made pursuant to an effective shelf registration
statement, which has been filed with the Securities and Exchange
Commission (the “SEC”) and became effective June 5, 2015. The offering
will be made only by means of a preliminary prospectus supplement and
the accompanying base prospectus, copies of which may be obtained on the
SEC’s website at www.sec.gov.
Alternatively, the underwriters will arrange to send you the preliminary
prospectus supplement and related base prospectus if you request them by
contacting:
Goldman, Sachs & Co.
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Attn: Prospectus Department
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200 West Street
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New York, NY 10282
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Telephone: 1-866-471-2526
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Credit Suisse Securities (USA) LLC
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Attn: Prospectus Department
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One Madison Avenue
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New York, NY 10010
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Telephone: 1-800-221-1037
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This press release is neither an offer to sell nor a solicitation of an
offer to buy any securities, nor shall there be any sale of any such
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Parsley Energy, Inc.
Parsley Energy, Inc. is an independent oil and natural gas company
focused on the acquisition and development of unconventional oil and
natural gas reserves in the Permian Basin in West Texas.
Forward-Looking Statements
Certain statements contained in this news release constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements represent Parsley Energy’s expectations or beliefs concerning
future events, and it is possible that the results described in this
news release will not be achieved. These forward-looking statements are
subject to risks, uncertainties and other factors, many of which are
outside of Parsley Energy’s control, which could cause actual results to
differ materially from the results discussed in the forward-looking
statements. Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, Parsley Energy does
not undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise. New factors emerge from time to time, and it is not possible
for Parsley Energy to predict all such factors. When considering these
forward-looking statements, you should keep in mind the risk factors and
other cautionary statements found in our filings with the SEC,
including, but not limited to, our Annual Report on Form 10-K for the
year ended December 31, 2014, and our subsequent Quarterly Reports on
Form 10-Q. The risk factors and other factors noted in our SEC filings
could cause our actual results to differ materially from those contained
in any forward-looking statement.
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