NYSE:PE

Stock Analysis Report

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.

Snowflake

Fundamentals

Reasonable growth potential with adequate 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


Market Performance


7 Day Return

4.5%

PE

0.8%

US Oil and Gas

0.6%

US Market


1 Year Return

-41.5%

PE

-21.8%

US Oil and Gas

6.2%

US Market

Return vs Industry: PE underperformed the US Oil and Gas industry which returned -21.8% over the past year.

Return vs Market: PE underperformed the US Market which returned 6.2% over the past year.


Share holder returns

PEIndustryMarket
7 Day4.5%0.8%0.6%
30 Day-8.3%-3.2%-1.8%
90 Day-2.4%-9.9%-2.0%
1 Year-41.4%-41.5%-18.9%-21.8%8.6%6.2%
3 Year-52.9%-52.9%-6.1%-14.4%45.7%36.3%
5 Year-5.7%-5.9%-21.2%-32.1%68.5%50.0%

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 based on future cash flows and its price relative to the stock market?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: PE ($16.97) is trading below our estimate of fair value ($23.08)

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


Price Based on Earnings

PE vs Industry: PE is poor value based on its PE Ratio (18.3x) compared to the Oil and Gas industry average (9.9x).

PE vs Market: PE is poor value based on its PE Ratio (18.3x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: PE is good value based on its PEG Ratio (0.8x)


Price Based on Value of Assets

PB vs Industry: PE is good value based on its PB Ratio (0.8x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Parsley Energy expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

23.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PE's forecast earnings growth (23.2% per year) is above the savings rate (2.7%).

Earnings vs Market: PE's earnings (23.2% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PE's revenue (11.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: PE's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: PE's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Parsley Energy performed over the past 5 years?

58.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PE has become profitable over the past 5 years, growing earnings by 58.2% per year.

Accelerating Growth: PE's earnings growth over the past year (8.5%) is below its 5-year average (58.2% per year).

Earnings vs Industry: PE earnings growth over the past year (8.5%) underperformed the Oil and Gas industry 22.6%.


Return on Equity

High ROE: PE's Return on Equity (4.8%) is considered low.


Return on Assets

ROA vs Industry: PE's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: PE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Parsley Energy's financial position?


Financial Position Analysis

Short Term Liabilities: PE's short term assets ($395.7M) do not cover its short term liabilities ($789.3M)

Long Term Liabilities: PE's short term assets ($395.7M) do not cover its long term liabilities ($2.6B)


Debt to Equity History and Analysis

Debt Level: PE's debt to equity ratio (34.6%) is considered satisfactory

Reducing Debt: PE's debt to equity ratio has reduced from 62.1% to 34.6% over the past 5 years.

Debt Coverage: PE's debt is well covered by operating cash flow (60.5%).

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?

0.52%

Expected Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years0.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate PE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if PE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


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?

3.8yrs

Average management tenure


CEO

Matt Gallagher (37yo)

0.8yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

41yo

Average Age

Experienced Management: PE's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

56yo

Average Age

Experienced Board: PE's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$34,73806 Jun 19
Jerry Windlinger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,985
Max PriceUS$17.50
SellUS$2,024,21022 May 19
Bryan Sheffield
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares100,000
Max PriceUS$20.24
SellUS$65,55906 Mar 19
Colin Roberts
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares3,500
Max PriceUS$18.73
SellUS$769,02901 Mar 19
Michael Hinson
EntityIndividual
Role
Top Key Executive
Co-Founder & Senior VP of Corporate Development
Shares41,727
Max PriceUS$18.43
SellUS$5,567,07401 Mar 19
Bryan Sheffield
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares305,000
Max PriceUS$18.25
BuyUS$63,66806 Dec 18
Jerry Windlinger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,193
Max PriceUS$19.94
BuyUS$19,99004 Dec 18
Ronald Brokmeyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$19.99
BuyUS$60,90003 Dec 18
Ronald Brokmeyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$20.30
BuyUS$20,00003 Dec 18
A. Alameddine
EntityIndividual
Role
Lead Director
Lead Director
Shares1,000
Max PriceUS$20.00
BuyUS$105,49927 Nov 18
A. Alameddine
EntityIndividual
Role
Lead Director
Lead Director
Shares5,000
Max PriceUS$21.10

Ownership Breakdown


Management Team

  • Ryan Dalton (40yo)

    Executive VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$2.72m
  • Kyle Rhodes

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Bryan Sheffield (41yo)

    Founder & Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: US$5.04m
  • Colin Roberts (41yo)

    Executive VP

    • Tenure: 6.5yrs
    • Compensation: US$1.86m
  • Matt Gallagher (37yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$3.89m
  • Paul Treadwell (52yo)

    Co-Founder & Senior VP of Production Operations

    • Tenure: 2.8yrs
  • Mike Hinson (51yo)

    Co-Founder & Senior VP of Corporate Development

    • Tenure: 11.8yrs
    • Compensation: US$1.37m
  • Cecilia Camarillo

    Senior Vice President of Accounting

    • Tenure: 3.8yrs
  • Jody Jordan

    Vice President of Marketing

    • Tenure: 1.7yrs
  • David Dell'Osso (41yo)

    Executive VP & COO

    • Tenure: 1yrs
    • Compensation: US$2.59m

Board Members

  • Ray Alameddine (72yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$293.63k
  • Jerry Windlinger (67yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$246.13k
  • Karen Hughes (62yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$255.58k
  • Bryan Sheffield (41yo)

    Founder & Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: US$5.04m
  • Bill Browning (65yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$272.93k
  • Matt Gallagher (37yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$3.89m
  • David Smith (49yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$258.63k
  • Hemang Desai (53yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$246.13k
  • Ron Brokmeyer (56yo)

    Independent Director

    • Tenure: 3.6yrs
    • 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$5.374b
  • Market Cap: US$4.771b
  • 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

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 Analysis2019/10/13 02:00
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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