Parsley Energy Acquisition, Valuation, Funding & Investors

Parsley Energy was acquired by Pioneer Natural Resources for $4.5B in October 2020, a 2.6x multiple on $1.8B of revenue.

Parsley Energy acquisition price

$4.5B

Acquired by Pioneer Natural Resources · Oct 2020

Parsley Energy revenue at acquisition

$1.8B

Last twelve months · Oct 2020

Parsley Energy revenue multiple at acquisition

2.6x

EV/Revenue · Oct 2020

Cumulative funding Parsley Energy raised

$65M

across 1 funding round

Parsley Energy Overview

About Parsley Energy

Parsley Energy was an independent oil and natural gas producer headquartered in Austin, Texas, that acquired, explored and developed unconventional oil and gas reserves in the Permian Basin of West Texas. Its acreage lay in the Midland and Delaware sub-basins, where it concentrated on horizontal development drilling; at the end of 2019 it had rights to develop about 246,400 gross (191,200 net) acres, interests in 753 gross horizontal producing wells and estimated proved reserves of 592.3 million barrels of oil equivalent. It earned its revenue from selling crude oil, natural gas and natural gas liquids, with oil sales making up $1.76 billion of 2019 total revenues of $1.96 billion. Average production rose from 22,003 barrels of oil equivalent per day in 2015 to 140,608 in 2019, and it owned field operation facilities in Midland and Fort Stockton. The holding company Parsley Energy, Inc. was incorporated in Delaware in December 2013 to carry out the company's IPO and traded on the New York Stock Exchange under the symbol PE. On January 10, 2020 it acquired Delaware Basin producer Jagged Peak Energy, and on January 12, 2021 Pioneer Natural Resources acquired Parsley in an all-stock merger agreed in October 2020, making Parsley and Jagged Peak subsidiaries of Pioneer.


Founded

2008

HQ

United StatesAustin, TX

Status

Acquired

Customer focus

B2B

Revenue model

Product sales

Revenue

$1.8B (Oct 2020)

Valuation

$4.5B (acquired Oct 2020)

Sectors

Parsley Energy Acquisition

Parsley Energy was acquired by Pioneer Natural Resources for $4.5B on 19 October 2020.

The acquisition price implies a 2.6x revenue multiple on $1.8B of revenue.

Before the acquisition Parsley Energy had raised $65M across 1 funding round.

Pioneer Natural Resources agreed to acquire Parsley Energy, a pure-play Permian Basin oil and gas exploration and production company, for approximately $4.5 billion in an all-stock transaction valued as of October 19, 2020. The deal included Pioneer assuming approximately $3.1 billion of Parsley's debt, bringing the total enterprise value to $7.6 billion. Under the fixed exchange ratio of 0.1252 Pioneer shares per Parsley share, Parsley shareholders would receive an approximately 7.9% to 8% premium to the closing stock price as of October 19, 2020, with Pioneer shareholders owning 76% of the combined company post-close and existing Parsley shareholders holding 24%. The strategic rationale centered on creating a Permian pure-play with unmatched independent scale. The combined entity would hold approximately 930,000 net acres of premium Permian acreage (no federal lands) with combined production of 328,000 barrels of oil per day and 558,000 barrels of oil equivalent per day as of the second quarter of 2020. The transaction would increase Pioneer's proved reserves by approximately 65% based on year-end 2019 figures. Parsley's operations in both the Midland and Delaware Basins complemented Pioneer's existing asset base, positioning the combined company as the leading Permian independent E&P operator with production exceeding major competitors including ConocoPhillips, Concho, ExxonMobil, Occidental, and Anadarko. The deal was expected to generate approximately $325 million in run-rate capital and cost synergies, with approximately $75 million annually from lower cost of capital benefits as Pioneer's stronger balance sheet would refinance Parsley's higher-cost debt. The transaction was announced on October 20, 2020, and expected to close in the first quarter of 2021.

Parsley Energy acquisition details
AcquirerDateTypePriceEV/Revenue
  • Pioneer Natural Resources
19 Oct 2020Strategic M&A$4.5B2.6x

Parsley Energy Funding History

Parsley Energy has raised a total of $65M across 1 funding round.

Parsley Energy funding rounds

Parsley Energy funding rounds
DateStageInvestorsRaisedDeal Summary
Aug 2013Undisclosed stageNatural Gas Partners (lead)$65MParsley Energy, founded in 2008, was an independent oil and natural gas company focused on operations in the Permian Basin, particularly the Midland Basin, and headquartered in Austin, Texas. The company closed a $65 million preferred equity investment from Natural Gas Partners (NGP) on August 12, 2013, marking a milestone in its growth phase after prior debt financing from partners like Western National Bank and Chambers Energy Capital. CEO Bryan Sheffield noted NGP's creativity in structuring the deal and their strategic value, with management retaining majority equity ownership. This funding supported Parsley Energy's expansion in drilling and development, as evidenced by 2013 aggregate drilling and completion capital expenditures of $268.4 million, excluding acquisitions, and interests in 530 gross (247 net) producing wells by December 31, 2013, with an average working interest of 57% excluding legacy wells. The company planned a 2014 capital budget of approximately $430 million for 151 gross vertical and 30 gross horizontal wells, mostly in the Midland Basin, anticipating 75-85% working interest. Parsley Energy was later acquired in 2021, with subsequent activities including public offerings and acquisitions involving billions in proceeds and transactions.

Who has invested in Parsley Energy?

1 investor has backed Parsley Energy across its funding rounds, including Natural Gas Partners.

Lead investors include Natural Gas Partners.


Parsley Energy Investors

Investors in Parsley Energy by funding rounds participated
InvestorHQRoundsRoleFirst check

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Acquisitions by Parsley Energy

Parsley Energy has acquired 2 companies to date.

Last acquisition by Parsley Energy was on October 14th 2019. Parsley Energy acquired Jagged Peak Energy for $2.3B.


Latest Acquisitions by Parsley Energy

Jagged Peak Energy
Double Eagle Energy
Description
Jagged Peak Energy is a Denver-headquartered independent oil and natural gas company targeting the Southern Delaware Basin in the Permian. It acquires and develops unconventional reserves of oil and liquids-rich gas using horizontal drilling and multi-stage fracturing. Operations span Reeves and Loving counties in West Texas, led by executives with experience at Ute Energy and Bill Barrett Corporation.
Double Eagle Energy is an oil and gas exploration and production business based in Fort Worth, Texas. It was built through a series of partnerships between its co-chief executives, John Sellers and Cody Campbell, and funds managed by Apollo Global Management, starting with Double Eagle Energy Holdings in 2013. The founders also run Double Eagle Development, a leasehold acquisition company that has leased more than one million acres across Texas and the Mid-Continent, and the energy business follows a land-centred strategy of assembling acreage positions and producing properties. Its first vehicle invested in the Anadarko and Ardmore basins of Oklahoma and sold its SCOOP assets in 2014, and later vehicles pursued non-operated and Permian Basin positions. In 2016 Double Eagle merged with Veritas Energy Partners to form Double Eagle Energy Permian, backed by Apollo, Post Oak Energy Capital and Magnetar Capital. The company earns revenue from producing oil and gas and from selling acreage and producing properties to larger operators.
HQ CountryUnited StatesUnited States
HQ City
Denver, CO
Fort Worth
Deal Date14 Oct 20197 Feb 2017
Valuation$2.3B$2.8B
EV/Revenue
EV/EBITDA

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Parsley Energy Competitors

Parsley Energy competitors include listed companies like Delek Group, PTT Oil and Retail, Warrior Met Coal and Navitas Petroleum, and private ones like TANAP and Yinson Production.

Public and private companies comparable to Parsley Energy
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Delek GroupIsraelIsraelPublicly listed$1.3B$997M$4.5B-
PTT Oil and RetailThailandThailandPublicly listed$20B$645M$4.5B0.2x
Warrior Met CoalUnited StatesUnited StatesPublicly listed$1.3B$234M$4.4B2.2x
Navitas PetroleumIsraelIsraelPublicly listed$467M$74M$4.4B-
TANAPTurkeyAnkaraPrivate--$4B-
Yinson ProductionSingaporeSingaporePrivate$606M-$3.7B6.1x

Parsley Energy Public Comps

Parsley Energy is no longer listed, but its public comps include Delek Group, PTT Oil and Retail, Warrior Met Coal, Navitas Petroleum, Golar LNG, Sinopec Oilfield Service, MyMesra, Crescent Energy, Aegis Logistics and Seatrium.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Delek Group$1.3B$997M8.2x-10.7x-
PTT Oil and Retail$20B$645M0.2x0.2x7.3x8.8x
Warrior Met Coal$1.3B$234M3.3x2.2x18.2x7.8x
Navitas Petroleum$467M$74M13.1x-82.7x-
Golar LNG$394M$152M16.0x15.2x41.5x20.6x
Sinopec Oilfield Service$12B$838M0.7x0.7x10.4x-
MyMesra$9.4B$454M0.4x0.3x7.5x6.7x
Crescent Energy$3.6B$1.7B2.7x2.0x5.8x3.3x

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Common questions about Parsley Energy

When was Parsley Energy founded?Parsley Energy was founded in 2008.
Where is Parsley Energy headquartered?Parsley Energy is headquartered in Austin, TX, United States.
Is Parsley Energy publicly listed?No, Parsley Energy was acquired by Pioneer Natural Resources in October 2020.
Who acquired Parsley Energy?Parsley Energy was acquired by Pioneer Natural Resources in October 2020.
How much was Parsley Energy acquired for?Parsley Energy was acquired for $4.5B in October 2020, a 2.6x revenue multiple.
How much funding has Parsley Energy raised?Parsley Energy has raised $65M across 1 funding round.
What was Parsley Energy's last funding round?Parsley Energy's last funding round was a $65M undisclosed-stage round in August 2013, led by Natural Gas Partners.
Who are Parsley Energy's investors?Parsley Energy's investors include Natural Gas Partners.
Which companies are comparable to Parsley Energy?Companies comparable to Parsley Energy include Delek Group, PTT Oil and Retail, Warrior Met Coal, Navitas Petroleum, TANAP and Yinson Production.
How many companies has Parsley Energy acquired?Parsley Energy has acquired 2 companies, including Jagged Peak Energy and Double Eagle Energy.
What was the largest acquisition by Parsley Energy?The $2.8B acquisition of Double Eagle Energy in February 2017 is the largest acquisition Parsley Energy has made to date.

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