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Parsley Energy

NYSE:PE
Snowflake Description

Good value with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PE
NYSE
$5B
Imp Market Cap
  1. Home
  2. US
  3. Energy
Company description

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. The last earnings update was 9 days ago. More info.


Add to Portfolio Compare Print
  • Parsley Energy has significant price volatility in the past 3 months.
PE Share Price and Events
7 Day Returns
-2.9%
NYSE:PE
-5.4%
US Oil and Gas
-3.1%
US Market
1 Year Returns
-43.8%
NYSE:PE
-23.2%
US Oil and Gas
-1.7%
US Market
PE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Parsley Energy (PE) -2.9% -2.8% -22.6% -43.8% -53.1% -20.3%
US Oil and Gas -5.4% -11% -13.1% -23.2% -18.3% -43.3%
US Market -3.1% -5.3% -1.2% -1.7% 28.2% 35%
1 Year Return vs Industry and Market
  • PE underperformed the Oil and Gas industry which returned -23.2% over the past year.
  • PE underperformed the Market in United States of America which returned -1.7% over the past year.
Price Volatility
PE
Industry
5yr Volatility vs Market

Value

 Is Parsley Energy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Parsley Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Parsley Energy.

NYSE:PE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.897 (1 + (1- 21%) (49.13%))
1.164
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.164 * 5.96%)
9.67%

Discounted Cash Flow Calculation for NYSE:PE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Parsley Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:PE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.67%)
2020 202.04 Analyst x9 184.23
2021 375.71 Analyst x7 312.38
2022 481.00 Analyst x1 364.66
2023 567.75 Est @ 18.04% 392.48
2024 644.08 Est @ 13.44% 405.98
2025 709.97 Est @ 10.23% 408.06
2026 766.62 Est @ 7.98% 401.77
2027 815.72 Est @ 6.4% 389.81
2028 858.98 Est @ 5.3% 374.29
2029 897.89 Est @ 4.53% 356.75
Present value of next 10 years cash flows $3,590.41
NYSE:PE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $897.89 × (1 + 2.73%) ÷ (9.67% – 2.73%)
$13,291.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $13,291.99 ÷ (1 + 9.67%)10
$5,281.15
NYSE:PE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,590.41 + $5,281.15
$8,871.56
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $8,871.56 / 316.66
$28.02
NYSE:PE Discount to Share Price
Calculation Result
Value per share (USD) From above. $28.02
Current discount Discount to share price of $15.95
= -1 x ($15.95 - $28.02) / $28.02
43.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Parsley Energy is available for.
Intrinsic value
43%
Share price is $15.95 vs Future cash flow value of $28.02
Current Discount Checks
For Parsley Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Parsley Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Parsley Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.93
NYSE:PE Share Price ** NYSE (2019-08-16) in USD $15.95
United States of America Oil and Gas Industry PE Ratio Median Figure of 102 Publicly-Listed Oil and Gas Companies 8.91x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Parsley Energy.

NYSE:PE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PE Share Price ÷ EPS (both in USD)

= 15.95 ÷ 0.93

17.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Parsley Energy's expected growth come at a high price?
Raw Data
NYSE:PE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
26.7%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 79 Publicly-Listed Oil and Gas Companies 0.31x
United States of America Market PEG Ratio Median Figure of 2,115 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

NYSE:PE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.16x ÷ 26.7%

0.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Parsley Energy is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Parsley Energy's assets?
Raw Data
NYSE:PE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $20.21
NYSE:PE Share Price * NYSE (2019-08-16) in USD $15.95
United States of America Oil and Gas Industry PB Ratio Median Figure of 198 Publicly-Listed Oil and Gas Companies 0.87x
United States of America Market PB Ratio Median Figure of 5,261 Publicly-Listed Companies 1.67x
NYSE:PE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PE Share Price ÷ Book Value per Share (both in USD)

= 15.95 ÷ 20.21

0.79x

* Primary Listing of Parsley Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Parsley Energy is good value based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Parsley Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Parsley Energy has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Parsley Energy expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
26.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Parsley Energy expected to grow at an attractive rate?
  • Parsley Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Parsley Energy's earnings growth is expected to exceed the United States of America market average.
  • Parsley Energy's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 26.7%
NYSE:PE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 13.8%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,270 2,265 928 2
2022-12-31 2,950 2,123 777 2
2021-12-31 2,658 1,949 636 12
2020-12-31 2,282 1,615 526 21
2019-12-31 1,929 1,324 315 20
NYSE:PE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,892 1,344 259
2019-03-31 1,861 1,205 262
2018-12-31 1,826 1,219 369
2018-09-30 1,683 1,101 365
2018-06-30 1,413 855 239
2018-03-31 1,159 876 160
2017-12-31 967 691 107
2017-09-30 811 545 26
2017-06-30 703 504 37
2017-03-31 596 250 -25
2016-12-31 458 230 -74
2016-09-30 371 237 -59

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Parsley Energy's earnings are expected to grow significantly at over 20% yearly.
  • Parsley Energy's revenue is expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Parsley Energy Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.49 2.49 2.49 1.00
2022-12-31 2.35 2.35 2.35 1.00
2021-12-31 2.28 2.76 1.90 8.00
2020-12-31 1.81 2.18 1.37 14.00
2019-12-31 1.02 1.38 0.75 12.00
NYSE:PE Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.93
2019-03-31 0.95
2018-12-31 1.36
2018-09-30 1.38
2018-06-30 0.93
2018-03-31 0.64
2017-12-31 0.44
2017-09-30 0.12
2017-06-30 0.18
2017-03-31 -0.14
2016-12-31 -0.46
2016-09-30 -0.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Parsley Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Parsley Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Parsley Energy has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Parsley Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Parsley Energy's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 21.6%).
Earnings and Revenue History
Parsley Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Parsley Energy Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 1,892.11 258.95 168.64
2019-03-31 1,861.36 262.17 160.78
2018-12-31 1,826.43 369.13 152.66
2018-09-30 1,683.04 365.27 148.34
2018-06-30 1,413.04 238.63 141.16
2018-03-31 1,158.93 160.22 139.15
2017-12-31 967.04 106.77 130.73
2017-09-30 811.43 26.11 117.99
2017-06-30 702.95 36.74 112.72
2017-03-31 596.14 -25.39 99.28
2016-12-31 457.77 -74.18 88.16
2016-09-30 371.07 -58.68 83.01
2016-06-30 302.76 -55.06 71.62
2016-03-31 273.75 -52.81 66.42
2015-12-31 266.47 -50.48 60.93
2015-09-30 275.41 45.90 59.57
2015-06-30 294.79 61.86 54.44
2015-03-31 299.24 42.35 45.92
2014-12-31 302.43 61.35 39.57
2014-09-30 264.40 -15.89 34.64
2014-06-30 218.22 -20.83 27.47
2014-03-31 162.49 28.96 22.36
2013-12-31 121.02 27.51 16.55
2013-09-30 94.17 21.07 9.41
2012-12-31 37.68 12.90 3.63

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Parsley Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Parsley Energy used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • 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).
X
Past performance checks
We assess Parsley Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Parsley Energy has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Parsley Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Parsley Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Parsley Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Parsley Energy Company Filings, last reported 1 month ago.

NYSE:PE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 6,428.00 2,221.36 64.10
2019-03-31 6,290.57 2,180.62 10.38
2018-12-31 6,319.74 2,179.88 163.22
2018-09-30 6,238.83 2,179.14 167.82
2018-06-30 6,100.15 2,178.40 301.41
2018-03-31 5,969.65 2,182.38 500.11
2017-12-31 5,880.71 2,176.97 703.47
2017-09-30 5,859.94 1,495.31 242.55
2017-06-30 5,873.18 1,494.40 502.62
2017-03-31 4,583.09 1,492.66 1,916.51
2016-12-31 2,430.31 1,108.54 133.38
2016-09-30 2,462.59 941.35 571.76
2016-06-30 2,190.21 741.42 441.02
2016-03-31 1,563.79 545.75 28.31
2015-12-31 1,586.64 545.57 343.08
2015-09-30 1,382.90 554.85 123.12
2015-06-30 1,166.01 600.04 21.10
2015-03-31 1,187.57 555.23 27.24
2014-12-31 992.49 675.43 50.55
2014-09-30 925.70 557.41 132.76
2014-06-30 900.06 558.90 523.52
2014-03-31 776.90 559.08 596.97
2013-12-31 30.87 430.20 19.39
2013-09-30 27.50 214.78 18.81
2012-12-31 6.02 119.66 13.67
  • 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).
X
Financial health checks
We assess Parsley Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Parsley Energy has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Parsley Energy dividends. Estimated to be 0% next year.
If you bought $2,000 of Parsley Energy shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 4.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 4.00
2020-12-31 0.00 6.00
2019-12-31 0.00 8.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Parsley Energy's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Parsley Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Parsley Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Parsley Energy has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Matt Gallagher
COMPENSATION $3,885,232
AGE 37
TENURE AS CEO 0.6 years
CEO Bio

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 served as its Chief Operating Officer from May 2014 to October 9, 2018. He has been a Director of Parsley Energy, Inc. since January 9, 2018. Since joining Parsley Energy in 2010, he has served in positions of increasing responsibility across the company, including overseeing engineering and geoscience activities. Prior to joining Parsley, Mr. Gallagher served in various engineering and investor relations functions with Pioneer Natural Resources between 2005 and 2010. Mr. Gallagher has a Bachelor of Science in Petroleum Engineering from the Colorado School of Mines, serves on the board of directors of the Permian Basin Petroleum Association, and is a member of the Permian Basin Society of Petroleum Engineers and the West Texas Geological Society.

CEO Compensation
  • Matt's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Matt's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Parsley Energy management team in years:

3.6
Average Tenure
41
Average Age
  • The tenure for the Parsley Energy management team is about average.
Management Team

Bryan Sheffield

TITLE
Founder & Executive Chairman
COMPENSATION
$5M
AGE
41
TENURE
11.6 yrs

Matt Gallagher

TITLE
President
COMPENSATION
$4M
AGE
37
TENURE
0.6 yrs

Ryan Dalton

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
40
TENURE
5.7 yrs

David Dell'Osso

TITLE
Executive VP & COO
COMPENSATION
$3M
AGE
41
TENURE
0.8 yrs

Colin Roberts

TITLE
Executive VP
COMPENSATION
$2M
AGE
41
TENURE
6.3 yrs

Paul Treadwell

TITLE
Co-Founder & Senior VP of Production Operations
AGE
52
TENURE
2.6 yrs

Mike Hinson

TITLE
Co-Founder & Senior VP of Corporate Development
COMPENSATION
$1M
AGE
51
TENURE
11.6 yrs

Cecilia Camarillo

TITLE
Senior Vice President of Accounting
TENURE
3.6 yrs

Kyle Rhodes

TITLE
Vice President of Investor Relations

Jody Jordan

TITLE
Vice President of Marketing
TENURE
1.5 yrs
Board of Directors Tenure

Average tenure and age of the Parsley Energy board of directors in years:

3
Average Tenure
56
Average Age
  • The tenure for the Parsley Energy board of directors is about average.
Board of Directors

Bryan Sheffield

TITLE
Founder & Executive Chairman
COMPENSATION
$5M
AGE
41
TENURE
2.6 yrs

Matt Gallagher

TITLE
President
COMPENSATION
$4M
AGE
37
TENURE
1.6 yrs

David Smith

TITLE
Independent Director
COMPENSATION
$259K
AGE
49
TENURE
5.7 yrs

Ray Alameddine

TITLE
Lead Director
COMPENSATION
$294K
AGE
72

Bill Browning

TITLE
Independent Director
COMPENSATION
$273K
AGE
65
TENURE
5 yrs

Hemang Desai

TITLE
Independent Director
COMPENSATION
$246K
AGE
53
TENURE
5.1 yrs

Ron Brokmeyer

TITLE
Independent Director
COMPENSATION
$246K
AGE
56
TENURE
3.4 yrs

Jerry Windlinger

TITLE
Independent Director
COMPENSATION
$246K
AGE
67
TENURE
2.7 yrs

Karen Hughes

TITLE
Director
COMPENSATION
$256K
AGE
62
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • Parsley Energy individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Jun 19 Buy Jerry Windlinger Individual 05. Jun 19 05. Jun 19 1,985 $17.50 $34,738
22. May 19 Sell Bryan Sheffield Individual 20. May 19 20. May 19 -100,000 $20.24 $-2,024,210
06. Mar 19 Sell Colin Roberts Individual 05. Mar 19 05. Mar 19 -3,500 $18.73 $-65,559
01. Mar 19 Sell Bryan Sheffield Individual 28. Feb 19 28. Feb 19 -305,000 $18.25 $-5,567,074
01. Mar 19 Sell Michael Hinson Individual 01. Mar 19 01. Mar 19 -41,727 $18.43 $-769,029
06. Dec 18 Buy Jerry Windlinger Individual 04. Dec 18 04. Dec 18 3,193 $19.94 $63,668
04. Dec 18 Buy Ronald Brokmeyer Individual 04. Dec 18 04. Dec 18 1,000 $19.99 $19,990
03. Dec 18 Buy Ronald Brokmeyer Individual 30. Nov 18 30. Nov 18 3,000 $20.30 $60,900
03. Dec 18 Buy A. Alameddine Individual 30. Nov 18 30. Nov 18 1,000 $20.00 $20,000
27. Nov 18 Buy A. Alameddine Individual 27. Nov 18 27. Nov 18 5,000 $21.10 $105,499
05. Sep 18 Buy Hemang Desai Individual 04. Sep 18 04. Sep 18 1,000 $27.32 $27,320
31. Aug 18 Sell Bryan Sheffield Individual 28. Aug 18 28. Aug 18 -2,500,000 $28.15 $-70,375,000
24. Aug 18 Sell Michael Hinson Individual 24. Aug 18 24. Aug 18 -13,328 $28.75 $-383,180
X
Management checks
We assess Parsley Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Parsley Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should We Worry About Parsley Energy, Inc.'s (NYSE:PE) P/E Ratio?

See our latest analysis for Parsley Energy How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Parsley Energy: P/E of 17.66 = $16.41 ÷ $0.93 (Based on the year to June 2019.) Is A High Price-to-Earnings Ratio Good? … NYSE:PE Price Estimation Relative to Market, August 13th 2019 Its relatively high P/E ratio indicates that Parsley Energy shareholders think it will perform better than other companies in its industry classification.

Simply Wall St -

Parsley Energy, Inc. (NYSE:PE) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in Parsley Energy, Inc. … Check out our latest analysis for Parsley Energy Parsley Energy Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Founder & Executive Chairman, Bryan Sheffield, for US$70m worth of shares, at about US$28.15 per share. … NYSE:PE Recent Insider Trading, July 25th 2019 Insiders at Parsley Energy Have Sold Stock Recently There was substantially more insider selling, than buying, of Parsley Energy shares over the last three months.

Simply Wall St -

Is Parsley Energy (NYSE:PE) Using Too Much Debt?

NYSE:PE Historical Debt, July 10th 2019 How Healthy Is Parsley Energy's Balance Sheet? … Since Parsley Energy does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Can Parsley Energy, Inc. (NYSE:PE) Improve Its Returns?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Parsley Energy: 5.0% = US$262m ÷ US$6.3b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Parsley Energy Have A Good Return On Equity? … Parsley Energy's Debt And Its 5.0% ROE Although Parsley Energy does use debt, its debt to equity ratio of 0.35 is still low.

Simply Wall St -

Should We Be Cautious About Parsley Energy, Inc.'s (NYSE:PE) ROE Of 5.0%?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Parsley Energy: 5.0% = US$262m ÷ US$6.3b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Parsley Energy Have A Good Return On Equity? … How Does Debt Impact Return On Equity?

Simply Wall St -

Shareholders Should Look Hard At Parsley Energy, Inc.’s (NYSE:PE) 5.9% Return On Capital

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Parsley Energy: 0.059 = US$519m ÷ (US$9.6b - US$741m) (Based on the trailing twelve months to March 2019.) So, Parsley Energy has an ROCE of 5.9%. … What Are Current Liabilities, And How Do They Affect Parsley Energy's ROCE? … Parsley Energy reports few current liabilities, which have a negligible impact on its unremarkable ROCE.

Simply Wall St -

Why Parsley Energy, Inc. (NYSE:PE) Could Have A Place In Your Portfolio

Proven track record with reasonable growth potential Over the past year, PE has grown its earnings by 64%, with its most recent figure exceeding its annual average over the past five years. … NYSE:PE Past and Future Earnings, May 28th 2019 With a debt-to-equity ratio of 37%, PE’s debt level is reasonable. … NYSE:PE Historical Debt, May 28th 2019 Next Steps: For Parsley Energy, there are three relevant aspects you should further research: Valuation: What is PE worth today?

Simply Wall St -

Why Parsley Energy, Inc.'s (NYSE:PE) High P/E Ratio Isn't Necessarily A Bad Thing

Looking at earnings over the last twelve months, Parsley Energy has a P/E ratio of 21.13. … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Parsley Energy: P/E of 21.13 = $20.02 ÷ $0.95 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … NYSE:PE Price Estimation Relative to Market, May 14th 2019 Its relatively high P/E ratio indicates that Parsley Energy shareholders think it will perform better than other companies in its industry classification.

Simply Wall St -

Are Investors Undervaluing Parsley Energy, Inc. (NYSE:PE) By 34%?

by taking the expected future cash flows and discounting them to their present value. … I will use the Discounted Cash Flow (DCF) model. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Parsley Energy, Inc. (NYSE:PE): What Does The Future Look Like?

The most recent earnings release Parsley Energy, Inc.'s (NYSE:PE) announced in December 2018a

Simply Wall St -

Company Info

Description

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. As of December 31, 2018, its acreage position consisted of 198,946 net acres, including 154,107 net acres in the Midland Basin and 44,839 net acres in the Delaware Basin; and operated 425.3 net acres of the horizontal wells and 735.7 net acres of the vertical wells, as well an estimated proved oil, natural gas, and natural gas liquid reserves of 521.7 MMBoe. The company was founded in 2008 and is headquartered in Austin, Texas.

Details
Name: Parsley Energy, Inc.
PE
Exchange: NYSE
Founded: 2008
$4,901,820,422
$4,483,814,889
316,655,066
Website: http://www.parsleyenergy.com
Address: Parsley Energy, Inc.
303 Colorado Street,
Suite 3000,
Austin,
Texas, 78701,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PE Class A Common Stock New York Stock Exchange US USD 23. May 2014
DB 17PA Class A Common Stock Deutsche Boerse AG DE EUR 23. May 2014
BMV PE * Class A Common Stock Bolsa Mexicana de Valores MX MXN 23. May 2014
Number of employees
Current staff
Staff numbers
527
Parsley Energy employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 00:36
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/16
Last earnings filing: 2019/08/08
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.