NYSE:PE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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


Snowflake Analysis

Moderate growth potential unattractive dividend payer.


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

3.7%

PE

1.0%

US Oil and Gas

-0.4%

US Market


1 Year Return

-36.4%

PE

-45.9%

US Oil and Gas

18.3%

US Market

Return vs Industry: PE exceeded the US Oil and Gas industry which returned -45.5% over the past year.

Return vs Market: PE underperformed the US Market which returned 18% over the past year.


Shareholder returns

PEIndustryMarket
7 Day3.7%1.0%-0.4%
30 Day18.0%3.8%8.0%
90 Day-5.8%-15.0%9.4%
1 Year-35.4%-36.4%-42.6%-45.9%21.0%18.3%
3 Year-57.0%-57.7%-45.2%-52.5%42.1%32.7%
5 Year-38.7%-39.7%-42.6%-53.7%85.6%64.7%

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

Valuation

Is Parsley Energy undervalued compared to its fair value and its price relative to the market?

3.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PE ($10.45) is trading below our estimate of fair value ($10.92)

Significantly Below Fair Value: PE is trading below fair value, but not by a significant amount.


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 (1x) 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 16 analysts?

85.3%

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 (8.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: PE's revenue (8.9% 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 (10.3%).


Next Steps

Past Performance

How has Parsley Energy performed over the past 5 years?

-63.1%

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 63.1% 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 (-35%).


Return on Equity

High ROE: PE has a negative Return on Equity (-97.7%), 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 ($333.5M) do not cover its short term liabilities ($613.2M).

Long Term Liabilities: PE's short term assets ($333.5M) do not cover its long term liabilities ($3.2B).


Debt to Equity History and Analysis

Debt Level: PE's debt to equity ratio (75.9%) is considered high.

Reducing Debt: PE's debt to equity ratio has increased from 51.2% to 75.9% 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: Insufficient data to determine if PE has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Parsley Energy current dividend yield, its reliability and sustainability?

1.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PE's dividend (1.91%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: PE's dividend (1.91%) is low compared to the top 25% of dividend payers in the US market (4.57%).


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 (11.7% 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)

1.75yrs

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 ($USD6.58M) is about average for companies of similar size in the US market ($USD5.57M).

Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Gallagher
President1.75yrsUS$6.58m0.20%
$ 8.8m
Michael Hinson
Co-Founder & Senior VP of Corporate Affairs12.75yrsUS$1.37m0.11%
$ 4.7m
Ryan Dalton
Executive VP & CFO6.83yrsUS$3.21m0.11%
$ 4.7m
David Dell'Osso
Executive VP & COO2yrsUS$4.00m0.011%
$ 453.8k
Colin Roberts
Executive VP7.5yrsUS$2.20m0.090%
$ 3.9m
Bryan Sheffield
Founder & Executive Chairman3.75yrsUS$5.04m2.71%
$ 116.9m
Paul Treadwell
Co-Founder & Senior VP of Production Operations3.75yrsno datano data
Cecilia Camarillo
Senior Vice President of Accounting4.75yrsno datano data
Kyle Rhodes
Vice President of Investor Relationsno datano datano data
Katharine McAden
Corporate Communications Managerno datano datano data
Stephanie Reed
Senior Vice President of Corporate Development0.75yrno data0.028%
$ 1.2m
Jody Jordan
Vice President of Marketing2.67yrsno datano data

4.3yrs

Average Tenure

42yo

Average Age

Experienced Management: PE's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Gallagher
President1.75yrsUS$6.58m0.20%
$ 8.8m
Bryan Sheffield
Founder & Executive Chairman3.75yrsUS$5.04m2.71%
$ 116.9m
S. Wil VanLoh
Independent Director0.75yrno datano data
A. Alameddine
Independent Lead Directorno dataUS$294.23k0.036%
$ 1.6m
Jerry Windlinger
Independent Director3.83yrsUS$249.23k0.0070%
$ 304.1k
Karen Hughes
Independent Director3.17yrsUS$244.23k0.0027%
$ 118.6k
James Kleckner
Independent Director0.75yrno data0.061%
$ 2.6m
William Browning
Independent Director6.17yrsUS$269.73k0.0050%
$ 213.5k
David Smith
Independent Director6.83yrsUS$260.48k0.012%
$ 502.5k
Hemang Desai
Independent Director6.25yrsUS$244.23k0.0092%
$ 398.6k
Ronald Brokmeyer
Independent Director4.58yrsUS$256.80k0.010%
$ 450.3k

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: PE's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PE insiders have only sold shares 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 30.3%.


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$4.314b
  • Market Cap: US$4.037b
  • Shares outstanding: 412.79m
  • Website: https://www.parsleyenergy.com

Number of Employees


Location

  • Parsley Energy, Inc.
  • 303 Colorado Street
  • Suite 3000
  • Austin
  • Texas
  • 78701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PENYSE (New York Stock Exchange)YesClass A Common StockUSUSDMay 2014
17PADB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 2014
PE *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 00:49
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.