Parsley Energy Expands In Permian With $607MM Acquisitions


Jan 10 (Reuters) - Oil and gas producer Parsley Energy Inc said on Tuesday it would buy acreage in the Permian Basin for about $607 million as the company increases its presence in the oil-rich region.

Parsley Energy's shares were down 4 percent at $35.1 in extended trading after the company announced a share sale plan to fund the acquisition.

The company said the acquisitions, which include undeveloped acreage and oil and gas producing properties, are located in the Midland and Southern Delaware Basins near its existing operations.

The Austin, Texas-based company said the acquisitions included 23,000 net leasehold acres and estimated current net production of about 2,300 barrels of oil equivalent per day (boe/d).

Parsley Energy said it expected the transactions to close on or before Feb. 27.

The company also set its capital budget to be between $750 million-$900 million for 2017, 60 percent of which it intends to use for development in the Midland Basin. The company's 2016 capital budget is expected to be between $460 million-$510 million.

Parsley Energy also estimated average 2017 net production to be about 57,000-63,000 boe/d, a near 60 percent growth from 2016.

The company said it had commenced an underwritten equity offering of 20 million Class A shares.

(Reporting by Vishaka George in Bengaluru; Editing by Sriraj Kalluvila)

Copyright 2017 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Business Analyst
Expertise: Project Management
Location: Houston, TX
US Houston: Attorney (Environmental Law)
Expertise: Environmental Engineer|Legal
Location: Houston, TX
Field Project Assistant
Expertise: Project Management
Location: Midland, TX
search for more jobs

Brent Crude Oil : $52.42/BBL 2.12%
Light Crude Oil : $49.51/BBL 2.35%
Natural Gas : $3.17/MMBtu 2.25%
Updated in last 24 hours