Current PE Stock Info

FY2017 CapEx of $1.2 billion: 40 wells to be placed on production each quarter in 2018

Parsley Energy, Inc. (ticker: PE) has released certain full-year 2017 results and an operational update for its Wolfcamp C delineation program.

Q4 and FY2017 results

Parsley expects full-year 2017 net production of 68 MBOEPD, up 78% relative to full-year 2016 net production. Additionally, Parsley Energy expects to report analogous growth in 2017 net oil production, up 75% versus 2016 net oil production to approximately 45 MBOPD. Full-year expected production is based on anticipated Q4 2017 net production of 80-81 MBOEPD and 51-52 MBOPD.

The company completed 41 wells in Q4 2017. Parsley Energy expects Q4 capital expenditures of approximately $410-$420 million – this translates to full-year 2017 capital expenditures of about $1.2 billion. According to Parsley Energy, higher Q4 spending was caused by more completions, longer laterals and increased infrastructure/facility spending.

2018 capital program

Parsley expects average net oil production of 65-70 MBOPD in 2018, representing year-over-year growth of 50% at the midpoint. The company said it expects corresponding total production volumes of 98-108 MBOEPD in 2018.

Parsley expects to place approximately 40 gross horizontal wells on production per quarter during 2018. The previously issued guidance for 2018 capital expenditures of $1.35-$1.55 billion remains in place.

Wolfcamp C updated results

Several Wolfcamp C wells were placed on production during 2017. The five wells have registered an average peak 30-day production rate of 198 BOEPD (122 BOPD) per thousand lateral feet. Additionally, the Char Hughes 28-2-4803H turned to production two weeks ago with a lateral length of 11,000-feet in central Reagan County, hitting a peak 24-hour production rate of more than 1,000 BOPD, extending the areal delineation of the Wolfcamp C target to the southeast corner of Parsley’s Midland Basin acreage.

Divesting non-operated properties

Parsley recently closed the divestiture of a portion of its non-operated properties. In aggregate, the company divested approximately 10,000 net (63,000 gross) acres in Martin, Howard, Reagan, Irion, Dawson and Pecos Counties for approximately $57 million, or $5,700 per acre.

2017 was a transformational year: Bryan Sheffield

“By any measurement 2017 was a transformational year for Parsley Energy, with a substantial resource discovery, sizable acquisitions, a peer-leading activity ramp, and compelling volume growth through which we are benefitting disproportionately from higher oil prices,” said Chairman and CEO Bryan Sheffield. “Our focus now turns to a simplified 2018 development program that applies 2017 delineation and testing results and will increasingly be characterized by more familiar areas, proven configurations and calibrated designs as we move through the year.”

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