Parsley Energy, Inc. recently delivered impressive third-quarter 2020 earnings. However, the pleasing results could not drive the stock much so far as there has been no major price change since the earnings release on Oct 28.
Behind the Earnings Headlines
Parsley Energy’sthird-quarter 2020 adjusted net earnings per share of 22 cents beat the Zacks Consensus Estimate of 16 cents. Better-than-expected results were attributable to higher year-over-year production volumes. Further, Parsley Energy's average quarterly volume came in at 183.2 thousand barrels of oil equivalent per day, outpacing the Zacks Consensus Estimate of 181 thousand barrels of oil equivalent per day. However, the bottom line fell from earnings of 29 cents per share in third-quarter 2019 due to weak year-over-year average oil price realizations.
Moreover, Parsley Energy’s total revenues of $447.39 million surpassed the Zacks Consensus Estimate of $441 million. However, the top line fell 12.3% from the year-ago sales of $510 million.
Production Data and Realized Prices (Minus Derivatives’ Impact)
Parsley Energy's average quarterly volume expanded 21.8% year over year to 183.2 thousand barrels of oil equivalent per day (comprising 81.8% liquids), backed by the rising production of oil, natural gas and natural gas liquids (NGLs). In the quarter under review, the company’s 26 gross horizontal wells came online.
Average realized oil price declined 32.6% from the year-ago quarter to $37.19 per barrel. Meanwhile, NGLs price realization increased 16.2% to $12.87. Realized price for natural gas in the quarter was $1.02, higher than the year-ago level of 59 cents per thousand cubic feet.
Total Expenses
Total operating expenses declined to $291.2 million from the year-ago figure of $357.1 million. Further, production and ad valorem taxes descended to $31.7 million from $38.2 million in the prior year. Depreciation costs also fell to $128 million from $211.7 million in the corresponding quarter of last year.
Capex & Balance Sheet
Capital expenditure totaled $85 million, of which 98.8% was allotted to drilling and completion activities while the remaining was spent on water infrastructure and non-operated development operations. In the quarter under review, the company generated free cash flow worth $157.5 million.
As of Sep 30, 2020, Parsley Energy had cash and cash equivalents of $4.7 million. Its long-term debt was $2,996 million, representing total debt to total capital of 45.1%. Parsley Energyrecently entered into an amendment to its revolving credit agreement, which reaffirmed its borrowing base at $2.7 billion and increased the elected commitment amount from $1.075 billion to $1.1 billion.
The company’s board of directors declared a quarterly dividend of 5 cents per share, payable Dec 18, 2020 to its shareholders of record on Dec 8.
Guidance
In light of Parsley Energy's recent entry into a definitive merger agreement with Pioneer Natural Resources Company , the company stopped issuing guidance and long-term outlook information concerning its operations.
Zacks Rank & Key Picks
Parsley Energy currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Oasis Petroleum Inc and Earthstone Energy, Inc. , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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Parsley Energy (PE) Q3 Earnings Beat but Stock Barely Moves
Parsley Energy, Inc. recently delivered impressive third-quarter 2020 earnings. However, the pleasing results could not drive the stock much so far as there has been no major price change since the earnings release on Oct 28.
Behind the Earnings Headlines
Parsley Energy’sthird-quarter 2020 adjusted net earnings per share of 22 cents beat the Zacks Consensus Estimate of 16 cents. Better-than-expected results were attributable to higher year-over-year production volumes. Further, Parsley Energy's average quarterly volume came in at 183.2 thousand barrels of oil equivalent per day, outpacing the Zacks Consensus Estimate of 181 thousand barrels of oil equivalent per day. However, the bottom line fell from earnings of 29 cents per share in third-quarter 2019 due to weak year-over-year average oil price realizations.
Moreover, Parsley Energy’s total revenues of $447.39 million surpassed the Zacks Consensus Estimate of $441 million. However, the top line fell 12.3% from the year-ago sales of $510 million.
Production Data and Realized Prices (Minus Derivatives’ Impact)
Parsley Energy's average quarterly volume expanded 21.8% year over year to 183.2 thousand barrels of oil equivalent per day (comprising 81.8% liquids), backed by the rising production of oil, natural gas and natural gas liquids (NGLs). In the quarter under review, the company’s 26 gross horizontal wells came online.
Average realized oil price declined 32.6% from the year-ago quarter to $37.19 per barrel. Meanwhile, NGLs price realization increased 16.2% to $12.87. Realized price for natural gas in the quarter was $1.02, higher than the year-ago level of 59 cents per thousand cubic feet.
Total Expenses
Total operating expenses declined to $291.2 million from the year-ago figure of $357.1 million. Further, production and ad valorem taxes descended to $31.7 million from $38.2 million in the prior year. Depreciation costs also fell to $128 million from $211.7 million in the corresponding quarter of last year.
Parsley Energy, Inc. Price, Consensus and EPS Surprise
Parsley Energy, Inc. price-consensus-eps-surprise-chart | Parsley Energy, Inc. Quote
Capex & Balance Sheet
Capital expenditure totaled $85 million, of which 98.8% was allotted to drilling and completion activities while the remaining was spent on water infrastructure and non-operated development operations. In the quarter under review, the company generated free cash flow worth $157.5 million.
As of Sep 30, 2020, Parsley Energy had cash and cash equivalents of $4.7 million. Its long-term debt was $2,996 million, representing total debt to total capital of 45.1%. Parsley Energyrecently entered into an amendment to its revolving credit agreement, which reaffirmed its borrowing base at $2.7 billion and increased the elected commitment amount from $1.075 billion to $1.1 billion.
The company’s board of directors declared a quarterly dividend of 5 cents per share, payable Dec 18, 2020 to its shareholders of record on Dec 8.
Guidance
In light of Parsley Energy's recent entry into a definitive merger agreement with Pioneer Natural Resources Company , the company stopped issuing guidance and long-term outlook information concerning its operations.
Zacks Rank & Key Picks
Parsley Energy currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Oasis Petroleum Inc and Earthstone Energy, Inc. , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>