PARSLEY ENERGY, INC. (NYSE:PE) Files An 8-K Regulation FD Disclosure
Item7.01
| Regulation FD Disclosure. |
Offering of Senior Notes
On December 6, 2016, Parsley Energy, LLC (Parsley LLC), a
subsidiary of Parsley Energy, Inc. (the Company), issued a news
release announcing that Parsley LLC and its wholly owned
subsidiary, Parsley Finance Corp., have commenced, subject to
market conditions and other factors, a private placement (the
Notes Offering) of $600 million in aggregate principal amount of
senior unsecured notes due 2025 to fund, along with cash on hand,
the repurchase for cash of their outstanding 7.500% senior
unsecured notes due 2022 (the 2022 Notes). A copy of the news
release is attached hereto as Exhibit99.1 and incorporated herein
by reference.
Tender Offer
On December 6, 2016, Parsley LLC issued a news release announcing
that it has commenced a cash tender offer to purchase any and all
of its 2022 Notes (the Tender Offer). A copy of the news release
is attached hereto as Exhibit99.2 and incorporated herein by
reference.
The information in this Item 7.01 (including the exhibits) shall
not be deemed to be filed for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the Exchange Act),
or otherwise subject to the liabilities of that section, and is
not incorporated by reference into any filing under the
Securities Act of 1933, as amended, or the Exchange Act.
| Item8.01 | Other Events. |
In connection with the Notes Offering, Parsley LLC provided to
investors in the Notes Offering an update to its commodity
derivatives position. The disclosure provided to such investors
is set forth below.
| 4Q16 | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 1Q18 | 2Q18 | ||||||||||||||||||||||
|
OIL: |
||||||||||||||||||||||||||||
|
Put Spreads (MBbls/d)(1) |
23.5 | 20.5 | 20.2 | 35.7 | 45.5 | 23.3 | 6.6 | |||||||||||||||||||||
|
Put Price ($/Bbl) |
$ | 45.03 | $ | 45.88 | $ | 45.88 | $ | 52.79 | $ | 53.11 | $ | 53.21 | $ | 52.50 | ||||||||||||||
|
Short Put Price ($/Bbl) |
$ | 32.78 | $ | 34.14 | $ | 34.14 | $ | 41.21 | $ | 41.40 | $ | 41.43 | $ | 42.50 | ||||||||||||||
|
Premium Realization ($MM)(2) |
$ | 5.6 | ($ | 4.9 | ) | ($ | 4.9 | ) | ($ | 14.2 | ) | ($ | 17.8 | ) | ($ | 9.5 | ) | ($ | 2.3 | ) | ||||||||
|
Mid-Cush Basis Swaps (MBbls/d) |
8.2 | 11.3 | 11.3 | 12.2 | 12.2 | |||||||||||||||||||||||
|
Swap Price ($/Bbl) |
($ | 0.87 | ) | ($ | 1.00 | ) | ($ | 1.00 | ) | ($ | 1.05 | ) | ($ | 1.05 | ) | |||||||||||||
|
NATURAL GAS: |
||||||||||||||||||||||||||||
|
Three Way Collars (MMBtu/d)(3) |
15.8 | 15.7 | 15.5 | 15.5 | ||||||||||||||||||||||||
|
Call Price ($/MMBtu) |
$ | 4.02 | $ | 4.02 | $ | 4.02 | $ | 4.02 | ||||||||||||||||||||
|
Put Price ($/MMBtu) |
$ | 2.75 | $ | 2.75 | $ | 2.75 | $ | 2.75 | ||||||||||||||||||||
|
Short Put Price ($/MMBtu) |
$ | 2.36 | $ | 2.36 | $ | 2.36 | $ | 2.36 |
Note: Hedge position as of November30, 2016.
| (1) |
When NYMEX price is above put price, the Company receives the NYMEX price. When NYMEX price is between the put price and the short put price, the Company receives the put price. When NYMEX price is below the short put price, the Company receives the NYMEX price plus the difference between the short put price and the put price. |
| (2) |
Premium realizations represent net premiums collected (from restructured positions) or paid (including deferred premiums), which are recognized as income or loss in the period of settlement. |
| (3) |
Functions similarly to put spreads except that when index price is at or above the call price, the Company receives the call price. |
| Item9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. |
|
ExhibitNo. |
Description |
|
| 99.1 |
News Release, dated December 6, 2016, titled Parsley Energy, LLC Announces $600 Million Private Placement of Senior Unsecured Notes Due 2025 to Repurchase its Outstanding 7.500% Senior Unsecured Notes Due 2022. |
|
| 99.2 |
News Release, dated December 6, 2016, titled Parsley
for Any and All of its 7.500% Senior Unsecured Notes Due |
2
About PARSLEY ENERGY, INC. (NYSE:PE)
Parsley Energy, Inc. is an independent oil and natural gas company. The Company is focused on the acquisition, development and exploitation of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and Southeastern New Mexico and comprises over three primary sub-areas: the Midland Basin, the Central Basin Platform and the Delaware Basin. The Company’s properties are primarily located in the Midland and Delaware Basins and its activities have been focused on the vertical development of the Spraberry, Wolfberry and Wolftoka Trends of the Midland Basin. The Company’s vertical wells in the Permian Basin are drilled into stacked pay zones that include the Spraberry, Wolfcamp, Upper Pennsylvanian (Cline), Strawn, Atoka and Mississippian formations. The Company splits its assets into over four areas, including the Midland Basin-Core, Midland Basin-Tier I, Midland Basin-Other and Southern Delaware Basin. PARSLEY ENERGY, INC. (NYSE:PE) Recent Trading Information
PARSLEY ENERGY, INC. (NYSE:PE) closed its last trading session down -1.41 at 36.86 with 4,472,186 shares trading hands.
