Parsley Energy Class A (PE)

[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.