7 Feb 2017capital raising announcement● NeutralMajor
Parsley agreed on Feb 7, 2017 to buy Double Eagle's Midland Basin assets (about 71,000 net acres and 3,300 net drilling locations) for roughly $2.8 billion: about $1.4 billion cash plus about 39.4 million PE Units with matching Class B shares, exchangeable into Class A shares after a 90-day lock-up. Closing is expected by April 20, 2017. To fund the cash part it launched a 36,000,000-share Class A offering (plus a 5,400,000-share option) and a planned $350 million senior notes private placement; neither offering is conditioned on the acquisition closing. This is far larger than the January 2017 deals and further dilutes existing shareholders.
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11 Feb 2015capital raising announcement● NeutralMajor
Parsley Energy sold 14,885,797 new Class A shares in a private placement at $15.50 per share, closing February 11, 2015, for about $231 million gross and $224 million net. This is below the $18.50 IPO price, and the new shares dilute existing holders. The money is meant to repay part of its revolving credit borrowings and for general corporate purposes, and the company must file a resale registration for the buyers after its 2014 annual report.
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4 June 2014capital raising announcement▲ GoodMajor
Parsley Energy, Inc. closed its IPO on May 29, 2014: 57,500,000 Class A shares at $18.50, including 7,500,000 extra shares from the underwriters' option and 7,536,364 sold by existing holders. It also completed the ownership restructuring (the amended Parsley LLC agreement, merger of the employee holding company, a registration rights agreement, and a tax receivable agreement under which it pays 85% of certain realised tax savings to pre-IPO owners). It bought 4,640 acres in the Midland Basin-Core area for $127.6 million on June 4, 2014, which is the acreage option the IPO proceeds were earmarked for, at a lower price than the original $133.8 million for 5,040 acres.
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