Parsley Energy
Market Cap
US$5.7b
Last Updated
2020/11/29 00:28 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential with imperfect balance sheet.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: PE's weekly volatility (10%) has been stable over the past year.
Market Performance
7 Day Return
14.0%
PE
8.0%
US Oil and Gas
2.8%
US Market
1 Year Return
-8.2%
PE
-31.4%
US Oil and Gas
20.9%
US Market
Return vs Industry: PE exceeded the US Oil and Gas industry which returned -31.4% over the past year.
Return vs Market: PE underperformed the US Market which returned 20.7% over the past year.
Shareholder returns
| PE | Industry | Market | |
|---|---|---|---|
| 7 Day | 14.0% | 8.0% | 2.8% |
| 30 Day | 36.0% | 30.3% | 11.1% |
| 90 Day | 24.4% | 6.9% | 6.5% |
| 1 Year | -6.8%-8.2% | -26.8%-31.4% | 23.6%20.9% |
| 3 Year | -49.0%-49.9% | -34.2%-43.2% | 47.3%37.6% |
| 5 Year | -25.5%-26.8% | -21.7%-37.1% | 94.3%72.9% |
Long-Term 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
2 days ago | Simply Wall St
Is Parsley Energy (NYSE:PE) Using Too Much Debt?3 weeks ago | Simply Wall St
Parsley Energy (NYSE:PE) Share Prices Have Dropped 64% In The Last Three Years3 months ago | Simply Wall St
Have Insiders Sold Parsley Energy, Inc. (NYSE:PE) Shares Recently?Valuation
Is Parsley Energy undervalued compared to its fair value and its price relative to the market?
1.36x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: PE ($13.75) is trading above our estimate of fair value ($10.98)
Significantly Below Fair Value: PE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PE is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.
PE vs Market: PE is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate PE's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: PE is overvalued based on its PB Ratio (1.4x) compared to the US Oil and Gas industry average (1x).
Next Steps
Future Growth
How is Parsley Energy forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
84.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: PE is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: PE's is expected to become profitable in the next 3 years.
Revenue vs Market: PE's revenue (9.2% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: PE's revenue (9.2% 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 (11.7%).
Next Steps
Past Performance
How has Parsley Energy performed over the past 5 years?
-72.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PE is currently unprofitable.
Growing Profit Margin: PE is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: PE is unprofitable, and losses have increased over the past 5 years at a rate of 72% per year.
Accelerating Growth: Unable to compare PE's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: PE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-29.6%).
Return on Equity
High ROE: PE has a negative Return on Equity (-100.23%), as it is currently unprofitable.
Next Steps
Financial Health
How is Parsley Energy's financial position?
Financial Position Analysis
Short Term Liabilities: PE's short term assets ($269.9M) do not cover its short term liabilities ($608.3M).
Long Term Liabilities: PE's short term assets ($269.9M) do not cover its long term liabilities ($3.1B).
Debt to Equity History and Analysis
Debt Level: PE's debt to equity ratio (72.6%) is considered high.
Reducing Debt: PE's debt to equity ratio has increased from 40% to 72.6% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable PE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: PE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 13% per year.
Next Steps
Dividend
What is Parsley Energy current dividend yield, its reliability and sustainability?
1.45%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PE's dividend (1.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: PE's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (4.08%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether PE's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if PE's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: PE is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: PE's dividends in 3 years are forecast to be thoroughly covered by earnings (10.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Matt Gallagher (38 yo)
1.83yrs
Tenure
US$6,584,555
Compensation
Mr. Matthew Gallagher, also known as Matt, has been Chief Executive Officer of Parsley Energy, Inc. since January 1, 2019. Mr. Gallagher has been President of Parsley Energy, Inc. since January 5, 2017 and...
CEO Compensation Analysis
Compensation vs Market: Matt's total compensation ($USD6.58M) is about average for companies of similar size in the US market ($USD6.90M).
Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.83yrs | US$6.58m | 0.20% $ 11.5m | |
| Co-Founder & Senior VP of Corporate Affairs | 12.83yrs | US$1.37m | 0.11% $ 6.2m | |
| Executive VP & CFO | 6.92yrs | US$3.21m | 0.11% $ 6.2m | |
| Executive VP & COO | 2.08yrs | US$4.00m | 0.011% $ 596.1k | |
| Executive VP | 7.58yrs | US$2.20m | 0.090% $ 5.1m | |
| Founder & Executive Chairman | 3.83yrs | US$5.04m | 2.68% $ 151.9m | |
| Co-Founder & Senior VP of Production Operations | 3.83yrs | no data | no data | |
| Senior Vice President of Accounting | 4.83yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Corporate Communications Manager | no data | no data | no data | |
| Senior Vice President of Corporate Development | 0.83yr | no data | 0.028% $ 1.6m | |
| Vice President of Marketing | 2.67yrs | no data | no data |
4.3yrs
Average Tenure
42yo
Average Age
Experienced Management: PE's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.83yrs | US$6.58m | 0.20% $ 11.5m | |
| Founder & Executive Chairman | 3.83yrs | US$5.04m | 2.68% $ 151.9m | |
| Independent Director | 0.83yr | no data | no data | |
| Independent Lead Director | no data | US$294.23k | 0.036% $ 2.0m | |
| Independent Director | 3.92yrs | US$249.23k | 0.0070% $ 399.1k | |
| Independent Director | 3.25yrs | US$244.23k | 0.0027% $ 155.5k | |
| Independent Director | 0.83yr | no data | 0.061% $ 3.5m | |
| Independent Director | 6.25yrs | US$269.73k | 0.0049% $ 280.4k | |
| Independent Director | 6.92yrs | US$260.48k | 0.012% $ 659.7k | |
| Independent Director | 6.33yrs | US$244.23k | 0.0092% $ 522.8k | |
| Independent Director | 4.67yrs | US$256.80k | 0.010% $ 591.0k |
3.9yrs
Average Tenure
57yo
Average Age
Experienced Board: PE's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30.4%.
Top Shareholders
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$5.677b
- Market Cap: US$5.207b
- Shares outstanding: 412.86m
- 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 | 2020/11/29 00:28 |
| End of Day Share Price | 2020/11/27 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.