|TEV||6,985||TEV/EBIT||16||TTM 2019-09-30, in MM, except price, ratios|
|8-K||2020-09-01||Regulation FD, Exhibits|
|8-K||2020-08-05||Earnings, Regulation FD, Exhibits|
|Part I: Financial Information|
|Item 1: Financial Statements|
|Note 1. Organization and Nature of Operations|
|Note 2. Summary of Accounting Policies|
|Note 3. Revenue From Contracts with Customers|
|Note 4. Derivative Financial Instruments|
|Note 5. Property, Plant and Equipment|
|Note 6. Acquisitions and Divestitures|
|Note 7. Asset Retirement Obligations|
|Note 8. Debt|
|Note 9. Leases|
|Note 10. Equity|
|Note 11. Stock - Based Compensation|
|Note 12. Income Taxes|
|Note 13. Commitments and Contingencies|
|Note 14. Restructuring and Other Termination Costs|
|Note 15. Related Party Transactions|
|Note 16. Significant Customers|
|Note 17. Disclosures About Fair Value|
|Note 18. Subsequent Events|
|Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations|
|Item 3. Quantitative and Qualitative Disclosures About Market Risk|
|Item 4. Controls and Procedures|
|Part II. Other Information|
|Item 1. Legal Proceedings|
|Item 1A. Risk Factors|
|Item 2. Unregistered Sales of Equity Securities and Use of Proceeds|
|Item 5. Other Information|
|Item 6. Exhibits|
|Balance Sheet||Income Statement||Cash Flow|
Rev, G Profit, Net Income
Ops, Inv, Fin
|QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934|
|TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934|
|Title of each class||Trading Symbol||Name of each exchange on which registered|
|Smaller reporting company|
|Emerging growth company|
If an emerging growth company indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Bbl. One stock tank barrel, of 42 U.S. gallons liquid volume, used in reference to crude oil, condensate or natural gas liquids.
Boe. One barrel of oil equivalent, with 6,000 cubic feet of natural gas being equivalent to one barrel of oil.
Boe/d. One barrel of oil equivalent per day.
British thermal unit or Btu. The heat required to raise the temperature of a one-pound mass of water from 58.5 to 59.5 degrees Fahrenheit.
Completion. The process of treating a drilled well followed by the installation of permanent equipment for the production of oil or natural gas, or in the case of a dry hole, the reporting of abandonment to the appropriate agency.
Condensate. A mixture of hydrocarbons that exists in the gaseous phase at original reservoir temperature and pressure, but that, when produced, is in the liquid phase at surface pressure and temperature.
Deterministic. The method of estimating reserves or resources is called deterministic when a single value for each parameter (from the geoscience, engineering, or economic data) in the reserves calculation is used in the reserves estimation procedure.
Developed acreage. Acreage spaced or assigned to productive wells, excluding undrilled acreage held by production under the terms of the applicable lease.
Development well. A well drilled within the proved area of an oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive.
Dry hole. A well found to be incapable of producing hydrocarbons in sufficient quantities such that proceeds from the sale of such production exceed production expenses and taxes.
Economically producible. A resource that generates revenue that exceeds, or is reasonably expected to exceed, the costs of the operation. For a complete definition of economically producible, refer to the SEC’s Regulation S-X, Rule 4-10(a)(10).
Exploration costs. Costs incurred in identifying areas that may warrant examination and in examining specific areas that are considered to have prospects of containing oil and natural gas reserves, including costs of drilling exploratory wells and exploratory-type stratigraphic test wells. Exploration costs may be incurred both before acquiring the related property and after acquiring the related property. Principal types of exploration costs, which include depreciation and applicable operating costs of support equipment and facilities and other costs of exploration activities, are:
(i) Costs of topographical, geographical and geophysical studies, rights of access to properties to conduct those studies, and salaries and other expenses of geologists, geophysical crews, and others conducting those studies. Collectively, these are referred to as geological and geophysical costs or G&G costs.
(ii) Costs of carrying and retaining undeveloped properties, such as delay rentals, ad valorem taxes on properties, legal costs for title defense, and the maintenance of land and lease records.
(iii) Dry hole contributions and bottom hole contributions.
(iv) Costs of drilling and equipping exploratory wells.
(v) Costs of drilling exploratory type stratigraphic test wells.
Exploratory well. A well drilled to find a new field or to find a new reservoir in a field previously found to be productive of oil or natural gas in another reservoir.
Extension well. A well drilled to extend the limits of a known reservoir.
Field. An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structural feature and/or stratigraphic condition. There may be two or more reservoirs in a field that are separated vertically by intervening impervious, strata, or laterally by local geologic barriers, or by both. Reservoirs that are associated by being in overlapping or adjacent fields may be treated as a single or common operational field. The geological terms structural feature and stratigraphic condition are intended to identify localized geological features as opposed to the broader terms of basins, trends, provinces, plays, areas-of-interest, etc.
Formation. A layer of rock which has distinct characteristics that differ from nearby rock.
Free cash flow. A non-GAAP financial measure, which we define as cash flow from operations before changes in operating assets and liabilities less development capital expenditures.
GAAP. Accounting principles generally accepted in the United States.
Gross acres or gross wells. The total acres or wells, as the case may be, in which an entity owns a working interest.
Horizontal drilling. A drilling technique where a well is drilled vertically to a certain depth and then drilled laterally within a specified target zone.
Identified drilling locations. Potential drilling locations specifically identified by our management based on evaluation of applicable geologic and engineering data accrued over our multi-year historical drilling activities.
Lease operating expense. All direct and allocated indirect costs of lifting hydrocarbons from a producing formation to the surface constituting part of the current operating expenses of a working interest. Such costs include labor, superintendence, supplies, repairs, maintenance, allocated overhead charges, workover, insurance and other expenses incidental to production, but exclude lease acquisition or drilling or completion expenses.
LIBOR. London Interbank Offered Rate.
MBbl. One thousand barrels of crude oil, condensate or NGLs.
MBoe. One thousand barrels of oil equivalent.
Mcf. One thousand cubic feet of natural gas.
MMBoe. One million barrels of oil equivalent.
MMBtu. One million British thermal units.
|(29)||MMcf. One million cubic feet of natural gas.|
Natural gas liquids or NGLs. The combination of ethane, propane, butane, isobutane and natural gasolines that when removed from natural gas become liquid under various levels of higher pressure and lower temperature.
Net acres or net wells. The percentage of total acres or wells, as the case may be, an owner has out of a particular number of gross acres or wells. For example, an owner who has a 50% interest in 100 gross acres owns 50 net acres.
NYMEX. The New York Mercantile Exchange.
Operator. The entity responsible for the exploration, development and production of a well or lease.
Parsley LLC Agreement. The Limited Liability Company Agreement of Parsley LLC, dated June 11, 2013, thereafter amended and restated by the Second Amended and Restated Limited Liability Company Agreement, dated May 29, 2014, thereafter amended and restated by the Third Amended and Restated Limited Liability Company Agreement, dated February 20, 2019, thereafter amended and restated by the Fourth Amended and Restated Limited Liability Company Agreement, dated July 22, 2019, as in effect as of the applicable date.
PE Units. The single class of units that represents the membership interests in Parsley Energy, LLC.
Probabilistic. The method of estimation of reserves or resources is called probabilistic when the full range of values that could reasonably occur for each unknown parameter (from the geoscience and engineering data) is used to generate a full range of possible outcomes and their associated probabilities of occurrence.
Proved developed reserves. Proved reserves that can be expected to be recovered:
(i) Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared with the cost of a new well; or
(ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.
Proved reserves. Those quantities of oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced, or the operator must be reasonably certain that it will commence, within a reasonable time. For a complete definition of proved oil and natural gas reserves, refer to the SEC’s Regulation S-X, Rule 4-10(a)(22).
Proved undeveloped reserves or PUDs. Proved reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. The following rules apply to PUDs:
(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances;
(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances justify a longer time; and
(iii) Under no circumstances shall estimates for proved undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, or by other evidence using reliable technology establishing reasonable certainty.
Reasonable certainty. A high degree of confidence. For a complete definition of reasonable certainty, refer to the SEC’s Regulation S-X, Rule 4-10(a)(24).
Recompletion. The process of re-entering an existing wellbore that is either producing or not producing and completing new or existing reservoirs in an attempt to establish new production or increase existing production.
Reliable technology. A grouping of one or more technologies (including computational methods) that have been field tested and have been demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation.
Reserves. Estimated remaining quantities of oil and natural gas and related substances anticipated to be economically producible, as of a given date, by application of development prospects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and natural gas or related substances to market and all permits and financing required to implement the project.
Reservoir. A porous and permeable underground formation containing a natural accumulation of producible hydrocarbons that is confined by impermeable rock or water barriers and is separate from other reservoirs.
SEC. The United States Securities and Exchange Commission.
Spacing. The distance between wells producing from the same reservoir. Spacing is often expressed in terms of acres, e.g., 40-acre spacing, and is often established by regulatory agencies.
Undeveloped acreage. Leased acreage on which wells have not been drilled or completed to a point that would permit the production of economic quantities of oil or natural gas regardless of whether such acreage contains proved reserves.
Wellbore. The hole drilled by the bit that is equipped for oil or gas production on a completed well. Also called well or borehole.
Working interest. The right granted to the lessee of a property to explore for and to produce and own oil, natural gas or other minerals. The working interest owners bear the exploration, development and operating costs on either a cash, penalty or carried basis.
Workover. Operations on a producing well to restore or increase production.
WTI. West Texas Intermediate crude oil, which is a light, sweet crude oil, characterized by an American Petroleum Institute gravity, or API gravity, between 39 and 41 and a sulfur content of approximately 0.4 weight percent that is used as a benchmark for other crude oils.
|June 30, 2020||December 31, 2019|
|Cash and cash equivalents||$||$|
|Accounts receivable, net of allowance for doubtful accounts:|
|Joint interest owners and other|
|Oil, natural gas and natural gas liquids|
|Short-term derivative instruments, net|
|Other current assets|
|Total current assets|
|PROPERTY, PLANT AND EQUIPMENT|
|Oil and natural gas properties, successful efforts method|
|Accumulated depreciation and depletion||(||(|
|Total oil and natural gas properties, net|
|Other property, plant and equipment, net|
|Total property, plant and equipment, net|
|Operating lease assets, net of accumulated depreciation|
|Long-term derivative instruments, net|
|Other noncurrent assets|
|Total noncurrent assets|
|LIABILITIES AND EQUITY|
|Accounts payable and accrued expenses||$||$|
|Revenue and severance taxes payable|
|Short-term derivative instruments, net|
|Current operating lease liabilities|
|Other current liabilities|
|Total current liabilities|
|Deferred tax liabilities|
|Operating lease liabilities|
|Payable pursuant to tax receivable agreement|
|Long-term derivative instruments, net|
|Asset retirement obligations|
|Financing lease liabilities|
|Other noncurrent liabilities|
|Total noncurrent liabilities|
|COMMITMENTS AND CONTINGENCIES|
Preferred stock, $
Class A, $
Class B, $
|Additional paid in capital|
|(Accumulated deficit) retained earnings||(|
Treasury stock, at cost,
|Total stockholders' equity|
|TOTAL LIABILITIES AND EQUITY||$||$|
|Three Months Ended June 30,||Six Months Ended|
|(In thousands, except per share data)|
|Natural gas sales|
|Natural gas liquids sales|
|Lease operating expenses|
|Transportation and processing costs|
|Production and ad valorem taxes|
|Depreciation, depletion and amortization|
|General and administrative expenses|
|Exploration and abandonment costs|
|Impairment of long-lived assets|
|Accretion of asset retirement obligations|
|Gain on sale of property||(||(|
|Rig termination costs|
|Restructuring and other termination costs|
|Other operating expenses|
|Total operating expenses|
|OPERATING (LOSS) INCOME||(||(|
|OTHER INCOME (EXPENSE)|
|Interest expense, net||(||(||(||(|
|Gain (loss) on early extinguishment of debt||(|
|(Loss) gain on derivatives||(||(|
|Change in TRA liability|
|Other income (expense)||(|
|Total other (expense) income, net||(||(||(|
|(LOSS) INCOME BEFORE INCOME TAXES||(||(|
|INCOME TAX BENEFIT (EXPENSE)||(||(|
|NET (LOSS) INCOME||(||(|
|LESS: NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS||(||(|
|NET (LOSS) INCOME ATTRIBUTABLE TO|
PARSLEY ENERGY, INC. STOCKHOLDERS
|Net (loss) income per common share:|
|Weighted average common shares outstanding:|
paid in capital
|Retained earnings (Accumulated deficit)||Treasury stock||Treasury stock||Total stockholders’ equity||Noncontrolling|
Balance at December 31, 2019
Shares of Class A common stock issued or reissued for acquisition
Change in equity due to issuance of PE Units by Parsley LLC
Exchange of PE Units and Class B common stock for Class A common stock
Change in net deferred tax liabilities due to issuance of PE Units by Parsley LLC
Vesting of restricted stock units
Repurchase of common stock
Restricted stock forfeited
Dividends and distributions declared ($