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- Parsley Energy
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
About Parsley Energy
Parsley Energy is a Midland-based exploration and production company focused on the Permian Basin's oil and gas reserves in West Texas. The firm develops acreage in the Midland Basin using horizontal drilling and hydraulic fracturing techniques. Acquired by Pioneer Natural Resources in 2021 for $7.6 billion, Parsley previously operated multiple rigs and held extensive leasehold positions across Reagan and Martin counties.
Founded
2008
HQ
Website
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.
| Acquirer | Date | Type | Price | EV/Revenue |
|---|---|---|---|---|
| 19 Oct 2020 | Strategic M&A | $4.5B | 2.6x |
Parsley Energy Funding History
Parsley Energy has raised a total of $65M across 1 funding round.
Parsley Energy funding rounds
| Date | Stage | Investors | Raised | Deal Summary |
|---|---|---|---|---|
| Aug 2013 | Undisclosed stage | Natural Gas Partners (lead) | $65M | Parsley 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
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
This data is available for Pro users. Sign up to see all 1 Parsley Energy investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
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Start Free TrialAcquisitions by Parsley Energy
Parsley Energy has acquired 1 company 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
| 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. |
| HQ Country | |
| HQ City | Denver, CO |
| Deal Date | 14 Oct 2019 |
| Valuation | $2.3B |
| EV/Revenue | |
| EV/EBITDA | |
This data is available for Pro users. Sign up to see all Parsley Energy acquisitions and their M&A valuation multiples. Start Free Trial | |
Parsley Energy Competitors
Parsley Energy competitors include listed companies like PTT Oil and Retail, Solaris Energy, Tamarack Valley Energy and Patterson-UTI, and private ones like Transportadora Associada de Gás and TANAP.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Publicly listed | $20B | $649M | $4.5B | 0.2x | ||
| Publicly listed | $622M | $178M | $4.6B | 7.8x | ||
| Publicly listed | $1.2B | $399M | $4.6B | 4.1x | ||
| Publicly listed | $4.8B | $901M | $4.6B | 1.2x | ||
| Private | - | - | $4.2B | - | ||
| Private | - | - | $4B | - |
Parsley Energy Public Comps
Parsley Energy is no longer listed, but its public comps include PTT Oil and Retail, Solaris Energy, Tamarack Valley Energy, Patterson-UTI, Oceaneering, Scorpio Tankers, Tidewater, Transportadora de Gas del Sur, Crescent Energy and Par Pacific Holdings.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $20B | $649M | 0.2x | 0.2x | 7.4x | 8.7x | |||
| $622M | $178M | 10.5x | 7.8x | 36.5x | 17.4x | |||
| $1.2B | $399M | 3.8x | 4.1x | 11.1x | 6.0x | |||
| $4.8B | $901M | 1.2x | 1.2x | 6.3x | 6.0x | |||
| $2.8B | $411M | 1.7x | 1.6x | 11.7x | 11.5x | |||
| $938M | $570M | 3.5x | 3.0x | 5.8x | 4.7x | |||
| $1.4B | $541M | 3.3x | 3.1x | 8.1x | 7.5x | |||
| $1.1B | $597M | 3.8x | 3.2x | 7.2x | 6.0x | |||
This data is available for Pro users. Sign up to see all Parsley Energy competitors and their valuation data. Start Free Trial | ||||||||
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 Midland, 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 PTT Oil and Retail, Solaris Energy, Tamarack Valley Energy, Patterson-UTI, Transportadora Associada de Gás and TANAP. |
| How many companies has Parsley Energy acquired? | Parsley Energy has acquired 1 company, including Jagged Peak Energy. |
| What was the largest acquisition by Parsley Energy? | The $2.3B acquisition of Jagged Peak Energy in October 2019 is the largest acquisition Parsley Energy has made to date. |
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