16.74 -0.01 (-0.06%)
After hours: 4:01PM EST
|Bid||16.84 x 2200|
|Ask||16.83 x 4000|
|Day's Range||16.40 - 16.95|
|52 Week Range||13.72 - 22.11|
|Beta (5Y Monthly)||0.66|
|PE Ratio (TTM)||17.61|
|Forward Dividend & Yield||0.12 (0.69%)|
|Ex-Dividend Date||Dec 07, 2019|
|1y Target Est||N/A|
(Bloomberg) -- This is the year when shale drillers are finally going to deliver solid returns to investors that have grown weary of the industry’s decade-long cash burn, the head of explorer Parsley Energy Inc. said.Why? Because for the first time the producers behind the U.S. shale boom are collectively showing restraint in capital spending at a time when crude prices are rising and struggling oil-service providers are lowering their rates, Parsley Chief Executive Officer Matt Gallagher said in an interview. In the past, explorers would instead have taken advantage of that to drill at full throttle again.“It’s the proof-in-the-pudding year,” Gallagher said. “We’ve been telling generalists in the financial community that you’re going to get a payday for investing in this great renaissance.”Whether investors will be easily convinced is yet to be seen. After Wall Street poured more than $200 billion in a growth-focused, debt-driven shale patch in past years, most drillers have yet to produce free cash flow that would ensure healthy returns. The S&P index of exploration and production companies fell 11% last year, even as oil jumped 34% in New York.But Parsley might have more reasons to be optimistic than others. The Austin, Texas-based company on Thursday won shareholder approval to acquire rival Jagged Peak Energy Inc. for $1.8 billion. Its shares fell 1% to $18.27 at 10:34 a.m. in New York as an easing of fears of disruption to Middle Eastern supplies pushed West Texas Intermediate, the U.S. benchmark, toward its biggest weekly loss since July.It’s a deal that Gallagher had to hit the road and man the phones for in order to convince investors of its potential. After an initial negative reaction that sent the stock plunging 11% the day the deal was announced, the shares have rebounded 20% since. That’s about double the gain for S&P’s E&P index over the same span, at a time when the market has mostly punished buyers.Even as he works to integrate Jagged Peak into Parsley, Gallagher reiterated that the newly merged company is a good takeover target.“It’d be very attractive to a lot of companies,” Gallagher said, declining to name possible suitors. “I don’t think that anything done in this deal would negate that.”Gallagher, who took over as CEO from Parsley founder and chairman Bryan Sheffield last year, expects a continued throttling back of U.S. oil growth, to an expansion of about 500,000 barrels a day in 2020, with even slower growth through 2025.That’s roughly half the annual growth expected by the U.S. Energy Information Administration. American output ended 2019 at a record level of nearly 13 million barrels a day, more than any other nation and up from less than 12 million at the start of last year, according to weekly EIA data.This will finally be the year that investor skepticism is eased, Gallagher predicts.“I think 2019 was the inflection year: We saw these glimmers of hope that the shale leaders can print free cash flow,” he said. “And 2020 is going to see free cash flow in spades.”(Updates with share price in fifth paragraph.)To contact the reporter on this story: David Wethe in Houston at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Carlos Caminada, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Given that shale drillers will probably generate handsome free cashflows in 2020, it would be ideal to keep an eye on the following Permian explorers that are poised to gain.
This is the year when shale drillers are finally going to deliver solid returns to investors that have grown weary of the industry's decade-long cash burn, the head of explorer Parsley Energy Inc. said.
With WTI crude, the domestic benchmark, bouncing back above $60 per barrel on multiple tailwinds, the investor hunger for M&A deals in the energy space is likely to remain strong.
Hedge funds and other investment firms that we track manage billions of dollars of their wealthy clients' money, and needless to say, they are painstakingly thorough when analyzing where to invest this money, as their own wealth also depends on it. Regardless of the various methods used by elite investors like David Tepper and David […]
Parsley Energy, Inc. (NYSE:PE) shareholders should be happy to see the share price up 19% in the last month. But that...
The acquisition of a Denver oil company will eliminate all 92 of the jobs at its headquarters in early 2020. Jagged Peak Energy Inc. (NYSE: JAG) is being acquired in an all-stock transaction valued at $2.3 billion by Austin-based Parsely Energy Inc. (NYSE: PE). It expects to lay off its CEO James Kleckner and other top executives and operations personnel after the deal closes Jan. 10.
Production growth is likely to be much slower from the U.S. and other non-OPEC countries, and could go flat or decline slightly the following year. That could remove the fear of oversupply, and bring more stability to the market.
Colorado’s tightening oil and gas regulations played a key role in the $1.7 billion deal of the two largest oil producers based in the state. SRC Energy focused on being acquired by PDC Energy and didn’t shop itself more broadly because it believed Colorado’s strict regulatory environment would discourage out-of-state oil companies. SRC Energy Inc. (NYSE: SRCI) and PDC Energy Inc. (Nasdaq: PDCE) announced their all-stock deal Aug. 26 combining to the two Denver-based companies.
Parsley Energy (PE) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
The Zacks Analyst Blog Highlights: Diamondback Energy, Pioneer Natural Resources, Callon and Parsley Energy
Amid an overall bull market, many stocks that smart money investors were collectively bullish on surged through November 22nd. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 52% and 49% respectively. Our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted returns. […]
The Permian Shale, which is spread over roughly 75,000 square miles of western Texas and southeastern New Mexico, is believed to hold enough oil to feed all the domestic refineries for 12 years.
A flurry of oil and gas industry mergers in early fall buoyed what has been a quiet market for deals. Experts says its a sign of declining investor confidence even as companies producing oil and natural gas from onshore shale basins like Colorado’s Denver-Julesburg Basin set new records in production. The industry is caught between debt taken on in 2017 and 2018 as companies raced to establish growth amid high oil prices and the sudden lack of confidence in the sector now that lower oil prices have lingered and U.S. oil production continues to boom and contribute to oversupply.
Parsley's (PE) third-quarter average quarterly volume grows 29.4% year over year on the back of higher production of oil, natural gas and natural gas liquids.
Jagged Peak Energy's (JAG) third-quarter results are affected by lower commodity price realizations and higher operating expenses, partially offset by rise in production volumes.
In this article we are going to estimate the intrinsic value of Parsley Energy, Inc. (NYSE:PE) by estimating the...
Parsley Energy (PE) delivered earnings and revenue surprises of -14.71% and 1.94%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?