PE - Parsley Energy, Inc.

NYSE - Nasdaq Real Time Price. Currency in USD
6.88
-0.03 (-0.43%)
As of 2:23PM EDT. Market open.
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Previous Close6.91
Open7.55
Bid6.77 x 1300
Ask6.78 x 1300
Day's Range6.50 - 7.71
52 Week Range3.92 - 22.11
Volume8,442,664
Avg. Volume9,718,717
Market Cap2.839B
Beta (5Y Monthly)1.01
PE Ratio (TTM)10.97
EPS (TTM)0.63
Earnings DateApr 28, 2020 - May 03, 2020
Forward Dividend & Yield0.20 (2.89%)
Ex-Dividend DateMar 08, 2020
1y Target Est14.97
  • Are Options Traders Betting on a Big Move in Parsley Energy (PE) Stock?
    Zacks

    Are Options Traders Betting on a Big Move in Parsley Energy (PE) Stock?

    Investors need to pay close attention to Parsley Energy (PE) stock based on the movements in the options market lately.

  • Drillers warn of $10 oil if regulator doesn't step in
    American City Business Journals

    Drillers warn of $10 oil if regulator doesn't step in

    A pair of oil producers is asking the Railroad Commission of Texas to consider curtailing the state's production to prevent U.S. oil prices from plummeting to less than $10 per barrel. Austin-based Parsley Energy Inc. and Irving-based Pioneer Natural Resources USA Inc. requested a public hearing Monday afternoon with the Railroad Commission. The meeting needs to happen soon because both companies say that any order the commission hands down should target May production.

  • Trump’s Energy Dominance Gives Way to Incoherence
    Bloomberg

    Trump’s Energy Dominance Gives Way to Incoherence

    (Bloomberg Opinion) -- The long arc of the American dream of energy independence, having recently soared Icarus-like toward energy dominance, has finally crashed ignominiously into energy incoherence.Since early on in his term, President Donald Trump has boasted about U.S. fossil fuels giving him the whip hand. Yet there was a fatal flaw in his cunning plan: The domestic industries backing him weren’t quite up to the job. Coal policy has been one long exercise in white-boarding ways of  forcing the market by fiat to take more of something it manifestly doesn’t want. With oil and gas, freedom fracks turned out to rest on the unconditional support of capital markets — and the latter now have some rather exacting conditions.Hence, this week’s spectacle of Trump calling on Russian President Vladimir Putin to ease up on his oil price war with Saudi Arabia. Meanwhile, Pioneer Natural Resources Co. and Parsley Energy Inc. have written to the Texas Railroad Commission seeking an OPEC-style coordinated cut in oil production in order to preserve “U.S. energy independence,” which they say was a result of “private enterprise and innovation.”There’s much to unpack there, but it’s crucial to take a moment to acknowledge one other development this week: Trump’s announcement of measures to gut the vehicle fuel-economy targets set by the previous administration.Allow me to summarize: America is now so energy dominant that its president seeks favors from an adversary to help bail out domestic oil producers, while simultaneously rolling back policies that would reduce U.S. dependence on oil. Think about another oil shock, the one in 1973 that scarred the baby boomers and sparked America’s independence fetish in the first place. That year, oil demand in the OECD countries outstripped their own supply by almost 27 million barrels a day. A decade later, that gap was just under 18 million a day. Where did those 8.9 million barrels a day go? Half of it was increased production as regions like the North Sea and Alaska really got going. But the other half was reduced demand; partly a function of recession but, more structurally, a concerted effort to stop using oil in power plants and make do with more efficient vehicles.Given the call to the Kremlin this week, let’s add a geopolitical layer to this. Somehow, the U.S. survived and prospered after Saudi Arabia, among others, effectively turned off the oil taps in the 1970s. The following decade, the Soviet Union collapsed partly because it couldn’t handle Saudi Arabia opening the oil taps. The U.S. did well because it used its “private enterprise and innovation” — to borrow Pioneer’s and Parsley’s phrase — to diversify its energy options. The Soviet Union, never particularly famous for those attributes, remained addicted to oil, albeit as a hopeless dealer unable to weather a price drop for what it was pushing.The frackers seeking political help are correct in observing that Covid-19 is an “extraordinary, unforeseeable crisis.” But just as Trump tries to give the coronavirus a Chinese passport to gloss over his administration’s shortcomings, the E&P industry seeks to blame its predicament entirely on external forces. Only last week, Scott Sheffield, Pioneer’s CEO, said in an interview with CNBC that the crash would leave only about 10 publicly traded U.S. oil producers with decent balance sheets versus dozens of “ghosts and zombies” carrying too much debt. That somehow didn’t make it into his letter on Monday, but it rather hints at an underlying problem in this business all of its own making. Here’s a stab at a new approach. First, admit that the Covid-19 demand shock won’t be offset by a coordinated supply cut even if you could arrange it. A supply cut is coming anyway as storage space fills and prices crater. It will be painful, and the government should help the workers and communities affected most by this ( not highly paid CEOs). Second, recognize that the supposed leverage over foreign powers provided by fracking has evaporated along with the industry’s access to the high-yield bond market. The industry will survive, but it will have to restructure and cool its jets.Finally, rather than debase America by horse-trading for an extra $5 on the price of oil (sorry, drivers, there are Texas’ electoral college votes to think about), how about using our technological edge to reduce dependence on oil in the first place? Then the country might be able to act with a bit more (what’s the word?) independence. Step one on that front: Don’t launch a war on efficiency standards that makes even some car manufacturers uneasy. Suggested slogan? “Energy intelligence” has a nice, if somewhat less macho, ring to it.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Barrons.com

    6 Stocks That Can Survive the Oil Shock, Even if It Lasts Years, According to One Analyst

    Hope for a quick rebound in oil prices has faded, and now some analysts are extending their forecasts for extremely low prices beyond 2021.

  • Two Shale CEOs Back Plan to Cut Texas Output After Oil’s Crash
    Bloomberg

    Two Shale CEOs Back Plan to Cut Texas Output After Oil’s Crash

    (Bloomberg) -- Two of the biggest drillers in America’s largest oil-producing state have asked Texas regulators to consider a cut to crude output after a historic price crash.Pioneer Natural Resources Co. and Parsley Energy Inc. asked the three-member Texas Railroad Commission on Monday to call an emergency virtual meeting no later than April 13 and issue an order setting the “reasonable market demand for oil from Texas” for May, according a five-page letter shared with Bloomberg News. Ryan Sitton, one of the commissioners, said earlier on Monday that the regulating body would discuss curbing oil output at its next meeting.“We need dramatic government action, because we know the operators cannot uniformly talk together,” Matt Gallagher, chief executive officer at Austin, Texas-based Parsley, said in an interview. The pair of shale explorers believe a 20% cut to the state’s production would be most helpful for the industry, Gallagher said. Pioneer is led by Scott Sheffield, whose son Bryan is Parsley’s chairman.The request comes less than a week after Sitton surprised the oil market with his own controversial call for state caps on oil output. His proposal for a 10% cut in production was blasted by the American Petroleum Institute, a major industry lobbying group, as a “shortsighted” and “anti-competitive” effort that will “harm U.S. consumers and American businesses.” Securing America’s Future Energy, a group that advocates for policies to reduce U.S. dependence on oil, said Monday that trying to regulate supplies would only give OPEC license “to continue manipulating the market at our expense.”The crude industry is facing a rare combination of plummeting demand and soaring supplies as Saudi Arabia and Russia battle for market share amid the Covid-19 pandemic. Oil futures have tumbled to the lowest in almost two decades amid the outbreak, which has pummeled the global economy.“Taking this action from a state level I think will help enable discussions at an international level from our federal government,” Gallagher said.Gallagher said he’s most concerned that if the U.S. energy industry drops to complete inactivity for a couple of months, it would hit the oilfield services industry so hard that companies could never recover. The U.S. has already lost its ability to ever produce 13 million barrels a day again, creating the risk that the country will become more reliant on imports, he said.“That ship has sailed,” he said. “If we don’t rebalance the market soon, in two years or so, we’re going to be importing 5 to 7 million barrels a day from foreign sources and be right back to where we started from a geopolitical standpoint.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Why Is Parsley Energy (PE) Down 70.2% Since Last Earnings Report?
    Zacks

    Why Is Parsley Energy (PE) Down 70.2% Since Last Earnings Report?

    Parsley Energy (PE) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

  • What Is Parsley Energy's (NYSE:PE) P/E Ratio After Its Share Price Tanked?
    Simply Wall St.

    What Is Parsley Energy's (NYSE:PE) P/E Ratio After Its Share Price Tanked?

    To the annoyance of some shareholders, Parsley Energy (NYSE:PE) shares are down a considerable 70% in the last month...

  • Parsley Energy Slashes 2020 Capex by 40%, Expects $225M FCF
    Zacks

    Parsley Energy Slashes 2020 Capex by 40%, Expects $225M FCF

    Taking the current market volatility into account, Parsley Energy's (PE) executive heads plan to cut their respective annual cash compensations by at least 50% from the prior- year level.

  • MarketWatch

    Parsley Energy cuts 2020 capex budget to less than $1 billion, to rein in development over coronavirus

    Parsley Energy Inc. said Wednesday it is cutting its capex budget for 2020 to less than $1 billion from a previous plan for $1.6-$1.8 billion budget as it expects West Texas Intermediate oil prices to range from $30 to $35 on average through the year. The Austin, Texas-based company said it would significantly reduce development to reflect the lower oil price. "This is not a time for indecision or half measures," Chief Executive Matt Gallagher said in a statement. The company operated 15 development rigs and five frac spreads on average in January and February. On March 9, the company said it had dropped to three frac spreads and had approved plans to drop to 12 rigs as soon as practicable. "Over the next several weeks, Parsley plans to further reduce its baseline activity pace to four-to-six rigs and two-to-three frac spreads," said the statement. The company's executive officers have agreed to a pay cut of at least 50% over 2019. The company is expecting to generate at least $225 million of free cash flow this year because of the cuts. It said guidance for 2020 is no longer valid. Shares fell 7% premarket, and are down 73% in the last 12 months, while the S&P 500 has fallen 11%.

  • PR Newswire

    Parsley Energy Provides Supplementary Update On 2020 Development Plans

    Parsley Energy, Inc. (NYSE: PE) ("Parsley," "Parsley Energy," or the "Company") today provided a supplementary update on its 2020 development program that was outlined on March 9, 2020.

  • Oil-Hedge Strategy That Failed Shale in 2014 Burns It Again
    Bloomberg

    Oil-Hedge Strategy That Failed Shale in 2014 Burns It Again

    (Bloomberg) -- In the aftermath of the 2014 oil crash, U.S. shale learned a painful lesson: Not all hedging strategies pay off. Countless producers were left exposed to big losses after crude plunged to levels that made their insurance less valuable.Now, as the shale industry tries to pick up the pieces after the Saudi-Russia war for market share hammered crude, some of those same producers are reliving the same costly mistake. Noble Energy Inc., Callon Petroleum Co. and Parsley Energy Inc. are among drillers sorely exposed to the latest market crash due to their hedging strategy, a Bloomberg review of company records show.At issue are complex financial contracts called three-way collars. The options are a relatively cheap way to hedge against fluctuations in oil, as long as prices don’t fall too much. Compared with swaps, which guarantee a certain price, the collars are essentially costless -- a key consideration in such a capital intensive industry where expenses have been cut nearly to the bone in order to survive and turn a profit.While the three-way collars fell out of favor after the crash of 2014, many shale producers started loading up again in the past year or so, comforted by crude prices that reliably hovered between $50 and $60 a barrel.“Flash forward, all those old habits for three-way collars started creeping back in,” said John Saucer, vice president of research and analysis at Mobius Risk Group, an energy risk management and advisory firm that works with oil producers. “It worked when oil was trading range-bound. But then things changed.”ExposedHedging, in theory, protects producers from market declines by allowing them to lock-in a certain price for their oil. One way a company can hedge output is by buying a floor on the price (called a put option) and then offsetting the cost of that floor by selling a ceiling (a call option). To cut costs even further, a producer can sell what’s known as a subfloor, a put option that’s much lower than where prices are currently trading. That three-pronged approach is known as a three-way collar and it functions well when oil’s moving sideways but can leave producers vulnerable if the market bottoms out.That wasn’t a problem during shale’s heyday, when West Texas Intermediate hummed around $90 a barrel, or even last month, when prices were trading within a predictable range.But after Saudi Arabia last week announced it would flood the market with cheap crude, at least 350,000 barrels a day of WTI contracts became exposed to the meltdown in oil prices, according to data from BloombergNEF.While most oil hedges are in the relatively safe form of swaps, “certain producers are in a bad position currently due to unfortunate three-way collars,” said Daniel Adkins, an analyst at BNEF.Nevertheless, the strategy has become increasingly important to some producers’ hedging portfolios in recent years, according to company filings.Deja VuPioneer Natural Resources Co., which in the aftermath of the 2014 crash converted 85% of it oil derivatives from three-way collars to fixed-price swaps, recently started loading up on three-ways again. By the end of 2019, the company hedged almost 50 million barrels of oil using the strategy, up from just 5.5 million the year before.In the last two years, Denbury Resources Inc. also eased its swap positions in favor of three-way collars, repeating a move it made from 2013 through 2015.Parsley had more than 27 million barrels hedged using three-ways at the end of 2019, four times more than the prior year. The company also decreased use of put spreads and fixed-price swaps. While it had some three-way structures in 2014, it had none by the end of 2015.Parsley on Monday announced it restructured its hedges and is reigning in capital spending in light of the downturn. On Friday, the company said added about 30 million more swaps in hedges for 2021, while it saw a small 5 million barrel decrease in three ways. It also added some put spreads and two-way collars.“Our three-ways were set up to protect against the price at which 80% of North American projects were no longer economic,” Parsley Chief Executive Officer Matt Gallagher said in a statement. “We are aggressively looking at all options to protect against asymmetric risk.”Occidental Petroleum Corp. also plans to cut capital spending after prices plunged below some of its hedging levels and threatened its dividend.“When you look at three-way collars, given the volatile nature of this market, being knocked out of the market was always a viable threat depending on how quickly prices moved,” said Michael Tran, director of global energy strategy at RBC Capital Markets. “This was an insurance policy that wasn’t always guaranteed.”(Updates with Parsley hedging announcement in 14th paragraph)To contact the reporters on this story: Catherine Ngai in New York at cngai16@bloomberg.net;Michael Roschnotti in New York at mroschnotti1@bloomberg.netTo contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net, Pratish NarayananFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • PR Newswire

    Parsley Energy Provides Supplementary Update On 2020 And 2021 Hedge Program

    Parsley Energy, Inc. (NYSE: PE) ("Parsley," "Parsley Energy," or the "Company") today provided an update to its oil hedge position for 2020 and 2021. Parsley's baseline capital budget assumes $30-$35 WTI oil price for the remainder of 2020.

  • Hedge Funds Have Never Been This Bullish On Parsley Energy Inc (PE)
    Insider Monkey

    Hedge Funds Have Never Been This Bullish On Parsley Energy Inc (PE)

    Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published this article and predicted that US stocks will go down by at least 20% in the next 3-6 months. We also told you to short the market ETFs and buy long-term bonds. Investors who agreed with […]

  • Thomson Reuters StreetEvents

    Edited Transcript of PE earnings conference call or presentation 20-Feb-20 2:00pm GMT

    Q4 2019 Parsley Energy Inc Earnings Call

  • Austin energy company to scale back amid oil stock slump
    American City Business Journals

    Austin energy company to scale back amid oil stock slump

    One of the few energy companies headquartered in Austin is cutting back on operations and, with the price of crude oil expected to remain low, slashing tens of millions of dollars from its cash flow expectations. It assumes $30-35 per barrel for the rest of 2020

  • Oil Plunges Most Since 1991 After Producers Embark on Price War
    Bloomberg

    Oil Plunges Most Since 1991 After Producers Embark on Price War

    (Bloomberg) -- Oil crashed the most in 29 years as Saudi Arabia and Russia vowed to pump more in a battle for market share just as the coronavirus spurs the first decline in demand since 2009.Futures slumped by about 25% in New York and London Monday as Moscow and Riyadh began an all-out price war after the collapse of talks between members of the OPEC+ alliance last week.Saudi Arabia slashed its official crude pricing and is threatening record output. Russia’s largest producer, meanwhile, said it will ramp up production next month. What’s more, all of the annual growth the International Energy Agency had anticipated last month has been erased, and oil demand is now expected to contract by 90,000 barrels a day this year.The oil crash sent shock-waves across markets, with U.S. stocks going through one of the biggest sell-offs since the financial crisis, Treasury yields plummeting, and credit markets buckling. Stocks of energy producers were dragged down, and explorers including Occidental Petroleum Corp. and Parsley Energy Inc. planning drilling cuts.“We’ve never experienced anything like this before,” says David Tawil, president of Maglan Capital in New York. “There was demand weakness before and this clash of the titans between Russia and Saudi is the ultimate shock. In the near term, markets are going to be absolutely chaotic and it’s going to be an overwhelming time for the entire industry.”Read More: Oil-Price Collapse Seen Battering U.S. Investment, EmploymentThe Saudi-Russia price war could wipe out the results of three years of OPEC+ production cuts in a single month.Monday’s oil collapse resonated through energy-industry stocks. Exxon Mobil Corp. saw its stock drop the most in 11 years, while smaller shale drillers in West Texas also slumped. Shares of Hess Corp., Occidental Petroleum, and Chevron Corp. all suffered double-digit losses.“There will be almost no place to hide,” Stewart Glickman, energy analyst at CFRA Research said in a note. “Exploration and production, of course, will be worst off since their fortunes wax and wane with crude oil prices.”The Energy Information Administration said it’s delaying the release of its monthly Short-Term Energy Outlook to allow time to “incorporate recent global oil market events.”Brent for May settlement fell 24% to settle at $34.36 on the London-based ICE Futures Europe Exchange after tumbling to $31.02 earlier in the session.West Texas Intermediate crude for April slumped as much as 34% to $27.34 a barrel on the New York Mercantile Exchange. The U.S. benchmark settled at $31.13.The shocks in supply and demand have also reverberated across time-spreads, options and volatility. Brent’s three-month price structure widened sharply as oil for prompt delivery collapsed against later shipments.It moved deeper into contango, a sign of bearishness and oversupply, making it profitable for physical traders to buy crude and put it into storage, either in onshore tank farms or at sea on tankers.“Markets are bracing for oil prices in the 20s,” said Ellen Wald, president of Transversal Consulting and a nonresident fellow at the Atlantic Council’s Global Energy Center. “I don’t think production can win this war. There’s not enough demand for it. That’s the difference between 2014 and today.”Saudi Arabia slashed its official prices by the most in at least 20 years over the weekend and privately told some market participants it could raise output by a record 12 million barrels a day. Russia’s state oil company Rosneft PJSC is planning to lift oil production and could start ramping up output on April 1 and add 300,000 barrels a day within weeks of that date.Energy Minister Alexander Novak said the current state of global oil markets is within Moscow’s forecast range, noting it will make efforts to ensure the nation’s oil sector remains competitive, according to a statement on the government website.“No one thought this would be a probable outcome,” said Ian Nieboer, managing director at RS Energy Group, now part of Enverus. “There’s an aggressive threat to demand and its amplified by a flood of barrels into markets that don’t need it. It’s hard to imagine where we go from here.”Amid the collapse in the alliance, Nigeria’s Minister of State for Petroleum said the country would boost oil output and has the capacity to increase output to more than 2 million barrels a day.\--With assistance from Javier Blas, Anthony DiPaola, Ramsey Al-Rikabi, Alexander Kwiatkowski, Alfred Cang, Serene Cheong and Andrew Janes.To contact the reporters on this story: Dan Murtaugh in Singapore at dmurtaugh@bloomberg.net;Alex Longley in London at alongley@bloomberg.net;Jackie Davalos in New York at jdavalos10@bloomberg.netTo contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.net, Pratish Narayanan, Carlos CaminadaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Shale Drillers Are Staring Down Barrel at Worst Oil Bust Yet
    Bloomberg

    Shale Drillers Are Staring Down Barrel at Worst Oil Bust Yet

    (Bloomberg) -- America’s shale drillers have never faced an oil bust quite like this.The split between Russia and its one-time OPEC allies last week has ignited an all-out price war. U.S. crude prices plunged the most since the 1990s, falling to less than $28 a barrel and rendering vast swathes of the U.S. oil industry unprofitable. Shares and bonds of shale producers plunged Monday, with the S&P 500 Energy Index posting its worst intraday decline on record.It’s a disaster for U.S. frackers including Chesapeake Energy Corp. and Whiting Petroleum Corp., who were already trading at distressed levels -- and makes more defaults and bankruptcies all but certain. After burning through hundreds of billions of dollars in cash over the past decade, the industry has consistently disappointed investors while accumulating huge debts. It now finds itself backed into a corner, increasingly shut out of capital markets. Banks were already poised to cut credit lines after writing off as much as $1 billion in shale loans last year, more than they have in 30 years of making them.This could mark the end of a historic boom that vaulted the U.S. to predominance in world crude production. On Monday, shale producers Diamondback Energy Inc. and Parsley Energy Inc. said they’re cutting the number of drill rigs in response the price slump.The boom-and-bust cycle is as old as the oil industry itself. The current price crash has echoes of 1986, when Saudi Arabia abandoned attempts to prop up a glutted market and pumped at will, sending oil futures plunging by more than half in a matter of months.But never before has so much U.S. output been in such peril -- and never has demand for that supply been so uncertain. When financial markets collapsed in 2008-2009, dragging crude demand and prices down with them, America’s shale patch as it is now didn’t exist. Oil drillers in the Permian were just warming up to the idea of hydraulic fracturing and pumping less than 1 million barrels a day.When oil tumbled to a 13-year low in early 2016, driven by a glut of supplies worldwide, the fracking revolution was indeed in full swing. But demand was strong and the region had still not yet topped 2 million barrels a day.Today, the Permian churns out more than 5 million barrels, exceeding Iraq and accounting for more than one-third of America’s total production. Shale companies weathered the last major downturn in 2018 by getting lean and plowing forward with drilling plans. This time around, they’re in a more precarious financial position and can’t afford to keep adding to a glut.“This industry shot itself in the foot with dramatic shale production growth,” said Dan Pickering, founder and chief investment officer of Houston-based asset manager Pickering Energy Partners. Drillers need “a dose of self help,” he said. “It’s kind of them against the world right now.”American shale companies are largely responsible for years of swelling world supply. Indirectly, they’ve been supported by OPEC nations and their allies cutting production to prop up prices. But the key Saudi-Russia “bromance,” as it was once described by Citigroup Inc. oil analyst Ed Morse, is over. No longer is Russia willing to bail out U.S. shale.Ominously, Russian Energy Minister Alexander Novak said in Vienna on Friday that his nation’s producers will be free to pump at will when current production caps expire at the end of the month. Saudi Arabia in turn started an all-out oil price war on Saturday, slashing its official selling prices by the most in 20 years in an effort to push as many barrels into the market as possible.That leaves American shale drillers scant time to prepare for an onslaught from the rest of the world’s oil behemoths.“The vultures already are circling,” said Amy Myers Jaffe, a senior fellow at the Council on Foreign Relations, who is frequently sought out by OPEC ministers and industry leaders for her views on oil. “What is the appetite for investors to refinance a new round of shale?”Shale drillers large and small are being pummeled by equity investors. After big drops on Friday, most of the 57 members of the S&P Oil & Gas Exploration & Production Select Industry Index fell Monday. Shale producers Oasis Petroleum Inc., California Resources Corp. and Occidental Petroleum Corp. tumbled more than 40%.Energy bonds also plummeted, with the average spread over Treasuries for companies in the Bloomberg Barclays High Yield Energy index surging above 10% for the first time since 2016, a threshold typically associated with distress. SM Energy Co. and Oasis Petroleum Inc. led high-yield declines. SM’s 6.625% notes due 2027 fell 34 cents to 36 cents on the dollar, to yield about 28%.Junk-bond sales in the U.S. had already slowed to a trickle, with just three deals pricing in the past two weeks, none of them oil or gas companies, according to data compiled by Bloomberg.With oil at about $30 a barrel, some shale explorers will find it impossible to pay lenders and support newly minted dividend programs adopted to entice retail investors. In addition, promises to finally generate free cash flow -- which has become something of an obsession in parts of the industry -- may be for naught.“There’s the old joke about the sign in the bar that says ‘free beer tomorrow,’” said Michael Roomberg, who helps manage $4 billion at Miller Howard Investments Inc. For shale drillers, “becoming free cash flow positive is something similar. And clearly this price reaction may delay that inflection point even further.”Following Friday’s decimation of shale stocks, KPMG International’s Global Head of Energy Regina Mayor said she sees a buying opportunity. “I do not think this is the death of shale,” she said. “I think it’s a good time to buy.”But for many observers, the path ahead for the U.S. shale sector appears to be painful and uncertain. Even before Friday’s dramatic events, some forecasters, including Goldman Sachs Group Inc., expected global oil demand to shrink in 2020 for only the fourth time in nearly 40 years due to the effects of the coronavirus. A rationalization of the hundreds of independent U.S. producers currently active appears inevitable, according to Ian Nieboer, managing director of RS Energy, now part of Enverus.“What we’re going to end up with is a major hollowing out of the industry,” he said.(Updates with bond prices in 15th paragraph)\--With assistance from Carlos Caminada, Sayer Devlin and Allison McNeely.To contact the reporters on this story: Joe Carroll in Houston at jcarroll8@bloomberg.net;Rachel Adams-Heard in Houston at radamsheard@bloomberg.net;David Wethe in Houston at dwethe@bloomberg.net;Kevin Crowley in Houston at kcrowley1@bloomberg.netTo contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Christine BuurmaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • MarketWatch

    Parsley Energy now sees average WTI price of $30 to $35 in 2020 vs. prior $50

    Parsley Energy Inc. said Monday it is lowering its 2020 capital budget assumptions to a West Texas Intermediate price of $30 to $35 a barrel from a prior $50. The Austin, Tx.-based company said it has started to reduce development activity as it moves to preserve cash and a strong balance sheet. The company operated 15 development rigs and five frac spreads on average in January and February. On March 6, it dropped to three frac spreads and approved plans to drop to 12 rigs as soon as it can. The company had previously said it expected to generate free cash flow of at least $200 million in 2020 at a $50-a-barrel oil price. "In the context of $30-$35 WTI oil prices for the remainder of the year, the company would target at least $85 million of free cash flow, accomplished through incremental activity reductions, likely in combination with lower service and equipment costs," the company said in a statement. Parsley has restructured some of its hedge positions to provide additional protection against slumping oil prices and continues to actively manage the position. Shares have fallen 73% in the last 12 months, while the S&P 500 has gained 1.7%.

  • PR Newswire

    Parsley Energy Provides Update On 2020 Development Plans

    Parsley Energy, Inc. (NYSE: PE) ("Parsley," "Parsley Energy," or the "Company") today provided an update on its 2020 development program.

  • Will OPEC Cut Production Deeper to Lift Coronavirus-Hit Oil?
    Zacks

    Will OPEC Cut Production Deeper to Lift Coronavirus-Hit Oil?

    Oil price might recover if the allied producers decide on an emergency crude production cut.

  • Parsley (PE) Q4 Earnings Miss, Sales Beat on Output Gain
    Zacks

    Parsley (PE) Q4 Earnings Miss, Sales Beat on Output Gain

    Parsley Energy (PE) delivers higher revenues in Q4, attributable to better-than-expected production.

  • Parsley Energy, Inc. Just Missed EPS By 42%: Here's What Analysts Think Will Happen Next
    Simply Wall St.

    Parsley Energy, Inc. Just Missed EPS By 42%: Here's What Analysts Think Will Happen Next

    Last week saw the newest full-year earnings release from Parsley Energy, Inc. (NYSE:PE), an important milestone in the...

  • Parsley Energy (PE) Lags Q4 Earnings Estimates
    Zacks

    Parsley Energy (PE) Lags Q4 Earnings Estimates

    Parsley Energy (PE) delivered earnings and revenue surprises of -9.68% and 3.00%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?

  • Parsley Energy (PE) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
    Zacks

    Parsley Energy (PE) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

    Parsley Energy (PE) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.