Parsley Energy
Market Cap
US$4.8b
Last Updated
2019/12/09 00:46 UTC
Data Sources
Company Financials +
Executive Summary
Parsley Energy, Inc., an independent oil and natural gas company, engages in the acquisition, development, exploration, production, and sale of crude oil and natural gas properties in the Permian Basin in west Texas and Southeastern New Mexico.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with reasonable growth potential.
Similar Companies
Share Price & News
How has Parsley Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PE has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
7.2%
PE
1.6%
US Oil and Gas
0.03%
US Market
1 Year Return
-9.8%
PE
-10.2%
US Oil and Gas
18.6%
US Market
Return vs Industry: PE underperformed the US Oil and Gas industry which returned -10.2% over the past year.
Return vs Market: PE underperformed the US Market which returned 18.6% over the past year.
Shareholder returns
| PE | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.2% | 1.6% | 0.03% |
| 30 Day | -4.9% | -3.4% | 1.7% |
| 90 Day | -11.5% | -0.2% | 5.7% |
| 1 Year | -9.6%-9.8% | -7.0%-10.2% | 21.1%18.6% |
| 3 Year | -55.5%-55.6% | -12.4%-20.4% | 45.6%36.2% |
| 5 Year | 40.0%39.8% | -7.7%-21.4% | 71.1%52.3% |
Price Volatility Vs. Market
How volatile is Parsley Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Independent Director Ronald Brokmeyer Just Bought Shares In Parsley Energy, Inc. (NYSE:PE)1 week ago | Simply Wall St
Don't Sell Parsley Energy, Inc. (NYSE:PE) Before You Read This1 month ago | Simply Wall St
Parsley Energy, Inc. Just Recorded A 24% EPS Beat: Here's What Analysts Are Forecasting NextValuation
Is Parsley Energy undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PE ($16.27) is trading below our estimate of fair value ($37.15)
Significantly Below Fair Value: PE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PE is poor value based on its PE Ratio (17.1x) compared to the Oil and Gas industry average (9.9x).
PE vs Market: PE is good value based on its PE Ratio (17.1x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: PE is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: PE is good value based on its PB Ratio (0.8x) compared to the US Oil and Gas industry average (0.8x).
Next Steps
Future Growth
How is Parsley Energy forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
29.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PE's forecast earnings growth (29% per year) is above the savings rate (1.7%).
Earnings vs Market: PE's earnings (29% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PE's revenue (17.3% per year) is forecast to grow faster than the US market (7.4% per year).
High Growth Revenue: PE's revenue (17.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PE's Return on Equity is forecast to be low in 3 years time (10.4%).
Next Steps
Past Performance
How has Parsley Energy performed over the past 5 years?
55.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PE has high quality earnings.
Growing Profit Margin: PE's current net profit margins (14%) are lower than last year (21.7%).
Past Earnings Growth Analysis
Earnings Trend: PE has become profitable over the past 5 years, growing earnings by 55.8% per year.
Accelerating Growth: PE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PE had negative earnings growth (-27.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (-15.6%).
Return on Equity
High ROE: PE's Return on Equity (4.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Parsley Energy's financial position?
Financial Position Analysis
Short Term Liabilities: PE's short term assets ($451.6M) do not cover its short term liabilities ($809.7M).
Long Term Liabilities: PE's short term assets ($451.6M) do not cover its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: PE's debt to equity ratio (33.5%) is considered satisfactory.
Reducing Debt: PE's debt to equity ratio has reduced from 60.3% to 33.5% over the past 5 years.
Debt Coverage: PE's debt is well covered by operating cash flow (57.4%).
Interest Coverage: PE's interest payments on its debt are well covered by EBIT (4x coverage).
Balance Sheet
Inventory Level: PE has a high level of physical assets or inventory.
Debt Coverage by Assets: PE's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is Parsley Energy's current dividend yield, its reliability and sustainability?
0.74%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: PE's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).
High Dividend: PE's dividend (0.74%) is low compared to the top 25% of dividend payers in the US market (3.7%).
Stability and Growth of Payments
Stable Dividend: PE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: PE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: PE is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of Parsley Energy's salary, the management and board of directors tenure and is there insider trading?
3.9yrs
Average management tenure
CEO
Matt Gallagher (37yo)
0.9yrs
Tenure
US$3,885,232
Compensation
Mr. Matthew Gallagher, also known as Matt, has been Chief Executive Officer of Parsley Energy, Inc. since January 1, 2019. Mr. Gallagher has been President of Parsley Energy, Inc. since January 5, 2017 and ...
CEO Compensation Analysis
Compensation vs Market: Matt's total compensation ($USD3.89M) is about average for companies of similar size in the US market ($USD5.10M).
Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.9yrs
Average Tenure
41yo
Average Age
Experienced Management: PE's management team is considered experienced (3.9 years average tenure).
Board Age and Tenure
3.4yrs
Average Tenure
56yo
Average Age
Experienced Board: PE's board of directors are considered experienced (3.4 years average tenure).
Insider Trading
Insider Buying: PE insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$14.95 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,985 |
| Max Price | US$17.50 |
| Entity | Individual |
| Role | Chairman of the Board Founder & Executive Chairman |
| Shares | 100,000 |
| Max Price | US$20.24 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 3,500 |
| Max Price | US$18.73 |
| Entity | Individual |
| Role | Top Key Executive Co-Founder & Senior VP of Corporate Development |
| Shares | 41,727 |
| Max Price | US$18.43 |
| Entity | Individual |
| Role | Chairman of the Board Founder & Executive Chairman |
| Shares | 305,000 |
| Max Price | US$18.25 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.
Management Team
Ryan Dalton (40yo)
Executive VP & CFO
- Tenure: 6yrs
- Compensation: US$2.72m
Kyle Rhodes
Vice President of Investor Relations
- Tenure: 0yrs
Bryan Sheffield (41yo)
Founder & Executive Chairman
- Tenure: 2.9yrs
- Compensation: US$5.04m
Colin Roberts (41yo)
Executive VP
- Tenure: 6.7yrs
- Compensation: US$1.86m
Matt Gallagher (37yo)
President
- Tenure: 0.9yrs
- Compensation: US$3.89m
Paul Treadwell (52yo)
Co-Founder & Senior VP of Production Operations
- Tenure: 2.9yrs
Mike Hinson (51yo)
Co-Founder & Senior VP of Corporate Development
- Tenure: 11.9yrs
- Compensation: US$1.37m
Cecilia Camarillo
Senior Vice President of Accounting
- Tenure: 3.9yrs
Jody Jordan
Vice President of Marketing
- Tenure: 1.8yrs
David Dell'Osso (41yo)
Executive VP & COO
- Tenure: 1.2yrs
- Compensation: US$2.59m
Board Members
Ray Alameddine (72yo)
Lead Director
- Tenure: 0yrs
- Compensation: US$293.63k
Jerry Windlinger (67yo)
Independent Director
- Tenure: 3yrs
- Compensation: US$246.13k
Karen Hughes (62yo)
Independent Director
- Tenure: 2.3yrs
- Compensation: US$255.58k
Bryan Sheffield (41yo)
Founder & Executive Chairman
- Tenure: 2.9yrs
- Compensation: US$5.04m
Bill Browning (65yo)
Independent Director
- Tenure: 5.3yrs
- Compensation: US$272.93k
Matt Gallagher (37yo)
President
- Tenure: 0.9yrs
- Compensation: US$3.89m
David Smith (49yo)
Independent Director
- Tenure: 6yrs
- Compensation: US$258.63k
Hemang Desai (53yo)
Independent Director
- Tenure: 5.4yrs
- Compensation: US$246.13k
Ron Brokmeyer (56yo)
Independent Director
- Tenure: 3.8yrs
- Compensation: US$246.13k
Company Information
Parsley Energy, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Parsley Energy, Inc.
- Ticker: PE
- Exchange: NYSE
- Founded: 2008
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Implied Market Cap: US$4.759b
- Market Cap: US$4.227b
- Shares outstanding: 316.66m
- Website: https://www.parsleyenergy.com
Number of Employees
Location
- Parsley Energy, Inc.
- 303 Colorado Street
- Suite 3000
- Austin
- Texas
- 78701
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PE | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | May 2014 |
| 17PA | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | May 2014 |
| PE * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | May 2014 |
Biography
Parsley Energy, Inc., an independent oil and natural gas company, engages in the acquisition, development, exploration, production, and sale of crude oil and natural gas properties in the Permian Basin in ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/09 00:46 |
| End of Day Share Price | 2019/12/06 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.