Q3 2020 Parsley Energy Inc Earnings Call

Good morning, ladies and gentlemen, welcome to Parsley Energy's third quarter 2020 earnings call. My name is Sherry and I'll be your operator today.

As reminder, this call is being recorded at.

At this time all participants are in a listen only mode and now I'm pleased to turn the call over to Kyle Rhodes Parsley Energy's Vice President of Investor Relations.

Thank you operator, and good morning, everyone. In this morning's call are president and CEO, Matt Gallagher.

About a short said in the prepared remarks as we noted in our press release yesterday, he will not be hosting a Q and a session on the call.

Our remarks may contain forward looking statements. So please see <unk> earnings release for a discussion of these segments. So.

Associated risks.

Including the fact actual results may differ materially from our expectations.

Also make reference to non-GAAP measures. So please see the reconciliations.

And now I'll turn the call over to Matt.

Thanks Kyle.

Good morning, all thank you for joining us for our abbreviated third quarter conference call.

Turning to operations.

Overall, our team delivered another solid performance in the third quarter steady execution has become part of the course.

After reactivating development activity with two rigs and two frac crews in July.

Delivered steady improvement in drilling and completion efficiencies within each basin.

Notably.

Over basin.

We drilled our first two three mile lateral wells in 129 days, each which helped drive a new company record for Delaware drilling efficiency in Threeq you twice.

Our team attributes. These recent drilling efficiency gains to enhancements made to our remote operational command center.

R&D activity shutdown in May and June.

<unk> operational efficiency gains take hold partially is delivering leading edge well costs below $850 per foot in the Delaware Basin and remember our numbers also include facility extends.

This efficient reactivation of modern development activity translated to third quarter, Capex just $85 million.

Well production for the quarter averaged 111000 barrels of oil per day, just above the midpoint of our third quarter guidance range, helping to drive positive quarterly free cash flow.

Operational cost control was another highlight for this quarter.

We have reduced corporate operating cost on a unit basis by 33% year over here with some line items, reducing on an absolute basis. Despite a larger operated well count in larger production base.

This is the intentional result, refocused effort all team members, who have tackled integration with urgency we plan to do our part and the next day as well.

In line with our prior commentary partially deployed two additional rigs in late October bringing the current number of active operated rigs to four.

The company expects to continue operating four rigs and wanted to frac spreads for the remainder of 2012.

To wrap things up in.

And challenging macro conditions, the partially team blaze the trail through uncertain times consistently delivered on our action plan and position the company to endure wouldn't relevance the.

The combination of partially and pioneer creates an organization that will thrive as we forging new strong link at the low end of the global cost and emissions Kirk.

Neighboring acreage position was located entirely in the low cost high margin Permian basin. The industrial logic of this transaction is sound.

Furthermore.

The pioneer team shares our belief that a clear returns focused mindset is the best tool to compete for capital with the broader market.

Sustainable free cash flow and growing returns on capital are now the investment prerequisites for the energy sector and this combination strengthens those patents for our shareholders.

Additionally, I have the utmost confidence the combined organization will maintain a leadership role in advancing environmental sustainability efforts for our industry.

We look forward to finishing strong with a seamless integration and partnering with pioneer team as it seems its position as the premier independent MP.

Finally.

I would like to personally thank every employee and alumni for parsley energy for their role in the evolution of this company.

Operating a few dozen vertical wells in 2008.

To a global leadership position in MP operations today Craig.

Great job to the partially team and thank you all.

Thank you ladies and gentlemen, this concludes our conference today. Thank you for your interest you may now disconnect your lines.