Parsley Energy prices upsized IPO

Parsley Energy Inc.

Parsley Energy Inc. (NYSE: PE) has priced its initial public offering of 50 million shares of its Class A common stock at $18.50 per share. The shares are expected to begin trading on the New York Stock Exchange on May 23 under the ticker symbol “PE.”

Parsley is offering 42,463,636 shares of its Class A common stock, and the selling stockholders named in the registration statement are offering 7,536,364 shares of Parsley’s Class A common stock. Parsley has granted the underwriters a 30-day option to purchase up to an additional 7,500,000 shares from Parsley. The offering is expected to close on May 29.

Parsley intends to use the net proceeds of approximately $737.9 million to make a cash payment to certain holders of preferred interests in Parsley Energy LLC to repay all outstanding borrowings under its revolving credit facility, to fund the acquisition of acreage in Parsley’s Midland Basin core area and to fund a portion of its exploration and development program. Parsley will not receive any of the proceeds from the sale of shares of Parsley’s Class A common stock by the selling stockholders.

Credit Suisse Securities (USA) LLC and Goldman, Sachs & Co. are acting as joint book-running managers for the offering. JP Morgan Securities LLC and Wells Fargo Securities LLC are also acting as book-running managers for the offering. Morgan Stanley & Co. LLC, Raymond James & Associates Inc., Tudor, Pickering, Holt & Co. Securities Inc., RBC Capital Markets LLC, Global Hunter Securities LLC, Macquarie Capital (USA) Inc., Scotia Capital (USA) Inc., Simmons & Co. International, and Stephens Inc. are acting as co-managers for the offering.

Parsley Energy is an independent oil and natural gas company focused on the acquisition, development, and exploitation of oil and natural gas reserves in the Permian Basin in West Texas.

 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...