Parsley Energy Slips To Q2 Loss On IPO Related Expenses

(RTTNews) - Oil and natural gas company Parsley Energy, Inc. (PE), when went public in late May, reported Tuesday a loss for the second quarter compared to a profit last year, hurt by IPO related incentive unit compensation and non-cash loss on commodity derivatives.

The company successfully completed its initial public offering in May, issuing 57.5 million shares at $18.50 per share for gross proceeds of $1.06 billion.

The company noted that it does not include earnings per share for the year-ago quarter as it was not yet a public company and its assets and operations were owned by a limited liability company.

The Midland, Texas-based subsidiary of Parsley Energy, LLC reported a net loss of $38.65 million or $1.19 per share for the second quarter, compared to profit of $11.15 million in the prior-year quarter.

Results for the latest quarter include a one-time, non-cash expense of $1.56 per share associated with incentive compensation triggered by the company's IPO and a non-cash loss on commodity derivatives of $0.39 per share.

Excluding items, adjusted net income for the latest quarter was $17.87 million or $0.14 per share. On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter increased to $82.30 million from $26.57 million in the same quarter last year. Nine Wall Street analysts had a consensus revenue estimate of $77.10 million for the quarter.

Revenues from oil sales tripled to $61.74 million from $21.42 million, and revenues from natural gas and natural gas liquids sales soared to $20.57 million from $5.15 million in the year-ago quarter.

Average net daily production surged to 13,995 barrels of oil equivalent per day or boe/d, from 4,786 boe/d last year, boosted by incremental production from acquisitions. Average realized price per Boe without derivatives was $64.63, compared to $61.02 a year ago.

In the second quarter, Parsley Energy acquired about 11,000 net acres, including about 6,600 net acres from two previously announced acquisitions or Pacer and OGX, which were acquired for a total consideration of $293 million.

Total operating expenses soared to $93.54 million from $12.76 million in the prior-year quarter, including incentive unit compensation of $50.56 million.

Looking ahead to the second half of 2014, the company projects average net daily production in a range of 15,500 to 16,500 barrels of oil equivalent per day or boe/d. Total development expenditures are expected between $260 million and $300 million.

PE closed Tuesday's regular trading session at $21.97, down $0.25 or 1.13% on a volume of 0.70 million shares. However, the stock gained $1.00 or 4.55% in after-hours trading.