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

Good value with reasonable growth potential.

Risks

  • Parsley Energy has significant price volatility in the past 3 months.

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

0.9%

NYSE:PE

-2.0%

US Oil and Gas

-1.6%

US Market


1 Year Return

-43.8%

NYSE:PE

-26.0%

US Oil and Gas

-3.0%

US Market

PE underperformed the Oil and Gas industry which returned -26% over the past year.

PE underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

PEIndustryMarket
7 Day0.9%-2.0%-1.6%
30 Day-0.1%-10.8%-5.7%
90 Day-12.6%-10.6%0.2%
1 Year-43.8%-43.8%-23.3%-26.0%-0.8%-3.0%
3 Year-52.6%-52.6%-9.5%-17.6%38.1%29.1%
5 Year-26.6%-26.6%-34.8%-43.8%50.8%34.1%

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?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Parsley Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

Parsley Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Parsley Energy is overvalued based on earnings compared to the US Oil and Gas industry average.

Parsley Energy is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Parsley Energy is good value based on expected growth next year.


Price Based on Value of Assets

Parsley Energy is good value based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

How is Parsley Energy expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Parsley Energy's revenue is expected to grow by 13.5% yearly, however this is not considered high growth (20% yearly).

Parsley Energy's earnings are expected to grow significantly at over 20% yearly.

Parsley Energy's revenue growth is expected to exceed the United States of America market average.

Parsley Energy's earnings growth is expected to exceed the United States of America market average.

Parsley Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Parsley Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Parsley Energy has delivered over 20% year on year earnings growth in the past 5 years.

Parsley Energy's 1-year earnings growth is less than its 5-year average (8.5% vs 58.2%)

Parsley Energy's earnings growth has not exceeded the US Oil and Gas industry average in the past year (8.5% vs 22.6%).


Return on Equity

Parsley Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Parsley Energy used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Parsley Energy has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Parsley Energy's financial position?


Financial Position Analysis

Parsley Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Parsley Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Parsley Energy's level of debt (34.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (62.1% vs 34.6% today).

Debt is well covered by operating cash flow (60.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4x coverage).


Balance Sheet

High level of physical assets or inventory.

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?


Dividend Yield and Payments Analysis

Unable to evaluate Parsley Energy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Parsley Energy's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Parsley Energy has not reported any payouts.

Unable to verify if Parsley Energy's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Parsley Energy has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Parsley Energy's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Parsley Energy's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Matt Gallagher (37yo)

0.6yrs

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

Matt's remuneration is lower than average for companies of similar size in United States of America.

Matt's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.6yrs

Average Tenure

41yo

Average Age

The tenure for the Parsley Energy management team is about average.


Board Age and Tenure

3.0yrs

Average Tenure

56yo

Average Age

The tenure for the Parsley Energy board of directors is about average.


Insider Trading

More shares have been bought than sold by Parsley Energy individual insiders in the past 3 months, but not in substantial volumes.


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
BuyUS$27,32005 Sep 18
Hemang Desai
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$27.32
SellUS$70,375,00031 Aug 18
Bryan Sheffield
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares2,500,000
Max PriceUS$28.15

Ownership Breakdown


Management Team

  • Ryan Dalton (40yo)

    Executive VP & CFO

    • Tenure: 5.7yrs
    • Compensation: US$2.72m
  • Kyle Rhodes

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Bryan Sheffield (41yo)

    Founder & Executive Chairman

    • Tenure: 2.6yrs
    • Compensation: US$5.04m
  • Colin Roberts (41yo)

    Executive VP

    • Tenure: 6.3yrs
    • Compensation: US$1.86m
  • Matt Gallagher (37yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$3.89m
  • Paul Treadwell (52yo)

    Co-Founder & Senior VP of Production Operations

    • Tenure: 2.6yrs
  • Mike Hinson (51yo)

    Co-Founder & Senior VP of Corporate Development

    • Tenure: 11.6yrs
    • Compensation: US$1.37m
  • Cecilia Camarillo

    Senior Vice President of Accounting

    • Tenure: 3.6yrs
  • Jody Jordan

    Vice President of Marketing

    • Tenure: 1.5yrs
  • David Dell'Osso (41yo)

    Executive VP & COO

    • Tenure: 0.8yrs
    • Compensation: US$2.59m

Board Members

  • Ray Alameddine (72yo)

    Lead Director

    • Tenure: 0.0yrs
    • Compensation: US$293.63k
  • Jerry Windlinger (67yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$246.13k
  • Karen Hughes (62yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: US$255.58k
  • Bryan Sheffield (41yo)

    Founder & Executive Chairman

    • Tenure: 2.6yrs
    • Compensation: US$5.04m
  • Bill Browning (65yo)

    Independent Director

    • Tenure: 5.0yrs
    • Compensation: US$272.93k
  • Matt Gallagher (37yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$3.89m
  • David Smith (49yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$258.63k
  • Hemang Desai (53yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$246.13k
  • Ron Brokmeyer (56yo)

    Independent Director

    • Tenure: 3.4yrs
    • 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$5.095b
  • Market Cap: US$4.523b
  • 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 Analysis2019/08/25 00:37
End of Day Share Price2019/08/23 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.