Parsley Energy Class A (PE)

[Timothy Smith]

Permian is top tier portfolio. Once rebalancing begins it will do very well.

[north40000]

PE has been consistently profitable for us since our purchase in 12/2014, despite the maelstrom affecting other small cap drillers.
Thanks for bringing that info to my attention.

[Timothy Smith]

Parsley Energy (NYSE:PE): Q2 EPS of -$0.01 beats by $0.02.

Revenue of $77.9M (-5.3% Y/Y) beats by $5.67M.

[north40000]

T. Boone Pickens adds PE to portfolio, 1 of 4 in 1st qtr:

http://investorplace.com/2015/05/t-boone-pickens-oil-stocks-hp-pe-ecr-rrc/?sid=RH9411&cp=IPIE&ct=20150519&cc=eletter&en=408324&auth=balance&cpp=IPIE&enn=408324#.VVv5elKVWSo

[Timothy Smith]

Love the Permian. Where do we go from here?

[boo boo]

I've been waiting on you. Knew you'd show up here.

[Timothy Smith]

Parsley is currently operating two horizontal rigs and is set to add a third horizontal rig in 3Q14. The company plans to continue to accelerate its production growth through the addition of another three horizontal rigs by 3Q15, after which time the company will add an additional 1-2 horizontal rigs per year to further enhance development of its various prospects and support future production and reserve growth.

As part of this transition to additional horizontal drilling, Parsley will begin to slow its vertical program (specifically moving from nine vertical rigs to eight vertical rigs during 2014) although the company intends to maintain vertical development as part of its ongoing effort to hold acreage, capture additional horizontal development opportunities, enhance recovery and maintain underlying base production volumes.

[Timothy Smith]

$PE holds ~111,600 pro forma net acres in the Permian Basin, of which ~89,300 net acres (~80% of total) are located in the Midland Basin and 22,300 net acres are located in the Delaware Basin.

Within its Midland Basin holdings, the company has ~36,700 net acres in the core in Midland and Martin Counties of which the company operates 100%.

With multiple Wolfcamp benches as well as other prospective formations, the company’s acreage position may represent significantly more ‘effective’ net acreage relative to other single formation horizontal plays.

Going forward, the development of multiple formations will be a key driver to meaningfully increasing shareholder value.

[Timothy Smith]

$PE committed to unlocking the resource potential in the stacked pay core of the Midland Basin, where the majority of our reserves and production are concentrated.

[DocLevi]

Cramer said 400K bbls per week went unsold from Permian because of the glut and as soon as pipeline opens then the companies undercutting each other of sales would be less.

And of course the IPO probably pays off the 2016 debt, if... if, i.e., its available as they're sure to spend for drilling and lease purchases...

[PROFIT PROWLER]

Not sure on the pipeline. Ran across Parsley on MSN while doing research just the other day.

[DocLevi]

It would be nice to know how they plan on paying off that debt by 2016 ... as I thought I took prospectus proven reserves and multiplied by 91/bbl and how ever many months and didn't come close to the amount... maybe I should double check or maybe they plan on getting leases from daddy's company PXD as people can't drill their 3 yr leases in Eagleford and it's open game down there for out of mega wells area, (the big drillers put on backburner to look at later), like the 400-600 bbls/day area of Eagleford (Cramer mentioned something about Eagleford leases for PXD so I assume deals to acquire are ahead) glut down there too forming according to Cramer...)

When is the new oil pipeline due to open their in Permian this June for the taking to Houston area?

[PROFIT PROWLER]

This is right in my backyard. I live in West Texas so I think i'll keep this stock on watch.

[DocLevi]

Permian Basin play for oil and gas exploration with an article on IPO (IPO was Friday - second day of trading today) saying this was mainly a frac'ing service company, but the prospectus should good leases in Permian Basin.

Kicker that keeps me out, 200+million load due in 2016... nuts based on prospectus production... I thought... What about you?