Double-digit Permian rigs, multiple frac crews for 2019 Parsley

By Luke Geiver | December 20, 2018

Parsley Energy’s Permian rig count for 2019 will remain in the double digits. Early plans for next year also include three to four frack spreads. For the full-year, the capital deployment budget will range from $1.35 billion to $1.55 billion.

Despite a flat—or slightly decreased—capital budget plan compared to 2018, the 2019 production numbers by Parsley will increase by roughly 20 percent.

The assumption for 2019 is a $50/b oil price. Service costs and other industry costs are expected to remain static, Parsley believes. At $50/b oil, Parsley does believe it could outspend operational cash flow by roughly $250 million regardless of an oil price scenario that dips below $50/b.

“Despite a less favorable commodity price environment, we still intend to take a significant step toward free cash flow generation in 2019,” said Matt Gallagher, president of Parsley. “We expect that the low breakeven economics associated with our resilient Permian Basin asset base will enable us to generate healthy returns on each dollar spent.”

To end the year, Parsley will bring 40 horizontal wells online in the fourth quarter. Production for the full year should be 76 to 78 mbo/d.