INVESTOR PRESENTATION 3Q 2016 Parsley Energy Overview Premier - PowerPoint PPT Presentation

INVESTOR PRESENTATION 3Q 2016

Parsley Energy Overview Premier Acreage Position (1) Investment Summary  Parsley Energy Leasehold Premier Acreage  Leading growt h profile  Robust ret urns  Abundant resource upside  S t rong financial posit ion 3Q16 Highlights  Added 450 net locat ions in second Wolfcamp B t arget zone  Market Snapshot Net product ion up 20% Q/ Q and 99% Y/ Y NYSE Symbol: PE  Net oil product ion up 24% Q/ Q and 131% Y/ Y Market Cap: $6,901 MM (2) Net Debt: $749 MM (1,3)  Raising FY16 product ion guidance t o 37.0-39.0 MBoe/ d Enterprise Value: $7,650 MM  Share Count: 208 MM (4) LOE per Boe down 5% Q/ Q and 46% Y/ Y Midland Basin Net Leasehold Acreage: 93,000 (1)  Lowering FY16 LOE per Boe guidance t o $4.25-$4.75 Delaware Basin Net Leasehold Acreage: 43,000 (1) 3Q16 Production: 43.0 MBoe/d  Borrowing base up 89% t o $900 MM (1) As of end 3Q16 pro forma for closing of Glasscock County acquisition on 10/4/2016; (2) Based on 11/1/2016 closing price; (3) Net debt calculated as $950 MM total debt less $201 MM cash and cash equivalents; (4) As of end 3Q16 2

Sustained Production Momentum Production Momentum  3Q16 production up 20% versus 2Q16 15 50  Raising FY16 guidance for third time this year, 43.0 from 36.0-38.0 to 37.0– 39.0 MBoe/ d 12 40  17% compound quarterly production growth 35.7 rate over ten quarters as a public company (1) Net Production (MBoe/d) 29.1 9 30  S trong production contribution per dollar 25.2 Rig Count 22.2 21.6 Capital Efficient Production Growth (2) 18.9 6 20 18.2 100% 50 Boe/d Added per $MM of Capex 3Q15-3Q16 Production Growth 15.3 14.0 80% 40 60% 30 9.2 3 10 40% 20 20% 10 N/M N/M 0% 0 0 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 PE 3Q15-3Q16 Vertical Rigs Horizontal Rigs Quarterly Net Production (MBoe/ d) (1) Parsley completed its initial public offering on May 29, 2014; (2) Peers include CPE, CXO, EGN, FANG, LPI, PXD and RSPP. Calculations for peers based on reported production for prior periods and Thomson Reuters consensus production estimates as of 10/31/2016 for 3Q16. Parsley data based on actuals for all periods. Production from reported acquisitions excluded from calculations based on estimated monthly decline of 3% 3

Ongoing Cost Compression LOE vs. Peers ($/Boe) (1)  LOE per Boe down for the 6 th consecutive $10.00 quarter $9.00  Peer-leading operating costs driven by $8.00 continuous focus on infrastructure $7.00 optimization and buildout $6.00  Favorable D&C trend despite rising $5.00 $4.15 completion intensity $4.00 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Peers PE Midland Basin Drilling & Completion Costs ($MM) (2) $7.0 $6.5 $6.0 $5.5 $5.2 $4.8 $4.7 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 (1) Peers include CPE, CXO, EGN, FANG, LPI, PXD, and RSPP. Source: company SEC filings; (2) Normalized to 7,000’ stimulated lateral 4

Differentiated Wolfcamp Thickness Supports Resource Expansion  Adding 550 gross / 450 net drilling locations in second Wolfcamp A&B Gross Thickness (upper) Wolfcamp B interval <500’ 500-700’ >700’  Estimated NPV of $3-5 MM per location (1) A MARTIN 1 HOWARD  Additional target interval enabled by high-quality 2 Wolfcamp, which thickens significantly in and through Glasscock Nose Parsley acreage in Upton and Reagan Counties 3 4 GLAS S COCK  800’ -900’ Wolfcamp A/ B complex is thickest in deep MIDLAND 5 portion of the basin 6 7 A’ 8 UPTON Midland Basin Wolfcamp B Inventory REAGAN Big Lake Fault 1,400 +85% Central Basin Platform Parsley Leasehold 1,200 Gross Horizontal Locations A A’ 1 2 3 4 5 6 7 8 1,000 800 500’ Wolfcamp A 600 900’ Wolfcamp B 400 200 N 80% of WC A&B 0 Invent ory 1 WC B Target Zone (Prior) 2 WC B Target Zones (Current) (1) Estimated present value is pre-tax and unhedged; NPV range based on productivity range of 800 MBoe to 1 MMBoe EUR for 7,000’ stimulated lateral scaled proportionately to average stimulated lateral length of 6,400’; Further assumes—D&C cost: $4.4 million; Oil price: $50 per barrel; Natural gas price: $3 per mcf; NGL price: $20 per barrel; working interest: 82%; net revenue interest: 62%; LOE: $7,500 per month fixed, $2.00 per barrel of oil variable; discount rate: 10% 5

Two Strong Wolfcamp B Targets Across Acreage  S tandalone Upper Wolfcamp B locations have 250 outperformed the 1 MMBoe type curve by 9% at 360-day mark 225  Outperformance is 17% when excluding wells drilled prior to June 1, 2015 200  Aerially-broad dataset indicates breadth of Upper B quality across acreage 175 Cumulative Production (MBoe) (1) 150 125 100 75 50 25 0 0 90 180 270 360 Parsley Leasehold PE Upper WC B Wells (2) Days of Production PE Lower WC B Wells Lower WC B Upper WC B (1) Normalized to 7,000’ stimulated lateral and for downtime; (2) Two Upper WC B wells in southeast Reagan County not shown on map 6

Promising Results from First 3-Well Stacked Pad  S t rong result s from first set of simult aneously Upper WC B Well Records 2 nd Highest Company 24-Hr IP complet ed, st acked wells in t he Wolfcamp A, Upper Wolfcamp B, and Lower Wolfcamp B int ervals 3,000 Peak 24-Hr IP (Boe/d) (1)  Upper WC B lat eral regist ered company’s 2,500 second highest peak 24-hour IP at 2,420 Boe/ d 2,000 1,500  3-well average t racking ahead of 1 MMBoe t ype curve 1,000 500  1.5-mile lat erals complet ed wit h st andard frac design 0 Bast 34-39- Grace 45-1- Robbie 17-8- Atkins 14-11- Dallas Keuchel  Locat ed in t he middle of Upt on and Reagan acreage 4412H 4306H 4403H 4202H 4301H posit ions (Lower WCB) (Upper WCB) (Lower WCB) (Wolfcamp A) (Upper WCB) Grace 3-Well Stack Pad Tracking 1 MMBoe Type Curve 40 Cumulative Production (MBoe) (1) 30 20 10 1 MMBoe Type Curve 0 Parsley Leasehold 0 10 20 30 Grace 3-well Pad Days of Production (1) Normalized to 7,000’ stimulated lateral and for downtime 7

Significant Resource Expansion Potential  800’ -900’ gross thickness in Wolfcamp A&B affords 600’ -700’ between top and bottom targets, each with 200’ - 250’ vertical separation  Wolfcamp A may support a second landing zone given thickness across acreage, amounting to four total potential landing zones in Wolfcamp A&B  Tests in 2017 will assess multiple Wolfcamp A targets on a standalone and combined basis  Lateral spacing tests on schedule for 2017  Up to 60 potential Wolfcamp A and B locations per section with fourth target and downspacing Current Potential Inventory Inventory per Section per Section 1-Mile Gun Barrel Upper -- 15 UA-LA Stagger Wolfcamp A Test Approx. 600-700 ft (2017) Lower 8 15 Wolfcamp A Current Inventory S pacing 660’ Upper 8 15 Wolfcamp B Lower 8 15 Wolfcamp B Grace UB-LB Stack & A-UB-LB Downspaced 330’ A-UB-LB Downspace Test Stack & Stagger Total 24 60 Stack Test (2017) Test (4Q16) (Online) Current Inventory Inventory Upside Note: Spacing tests will be on different leases 8

Positioned for Leading Growth  S ufficient inventory depth, acreage footprint, and Increasing Stimulated Lateral Lengths operational capacity to increase rig count ~8,000 Avg. Stimulated Lateral Length (Ft.)  Robust return profile across commodity price ~7,000 spectrum 6,432  Rising capital efficiency through longer laterals  S teeper growth and enhanced returns through high average working interest and net revenue interest  S calable takeaway arrangements  Inventory upside through multi-zone expansion and downspacing 2015 Actual 2016 Guidance 2017 Target Projected Wolfcamp Returns (1) Projected Wolfcamp NPV (1) 120% $16 $14 100% ) Rate of Return (% $12 80% NPV ($MM) $10 60% $8 $6 40% S t rip Prices $4 20% S t rip Prices $2 0% $0 $40 $45 $50 $55 $60 $40 $45 $50 $55 $60 Oil Price Oil Price (1) NYMEX WTI and Henry Hub strip prices as of 10/28/2016; NGL price: 40% of WTI; $3/Mcf gas for flat pricing scenarios; Midland Basin: based on 1 MMBoe EUR type curve for 7,000’ stimulated lateral; $4.7MM D&C; 100% WI, 75% NRI; $7,500/month fixed LOE; $2.00/BO variable LOE; Southern Delaware: based on NSAI ~880 MBoe EUR type curve for 7,000’ stimulated lateral; $6.1MM D&C; 100% WI; $7,500/month fixed LOE; $2.00/BO variable LOE; Estimated ROR and NPV are pre-tax and unhedged 9

Strong Productivity Across Asset Base  New and exist ing wells cont inue t o out perform 1 MMBoe 3Q16 Well Summary t ype curve in Midland and S out hern Delaware Basins Midland Delaware  S t rengt hening early rat es on Midland Basin wells:  3Q16: 176 Boe/ d (30-day IP per 1,000’ ) Wells (1) 24 2  2Q16: 171 Boe/ d (30-day IP per 1,000’ ) Average Lateral Length 6,644’ 7,800’ 30-day IP (Boe/d) 1,159 1,517 250 30-day IP per 1000’ (Boe/d) 176 194 225 % Oil 73% 75% 200 Cumulative Production (MBoe) (2) Parsley Energy Leasehold 175 Parsley Producing Wolfcamp Wells 150 125 100 75 50 25 0 0 90 180 270 360 Days of Production Midland Basin S. Delaware (1) Number of wells achieving a 30-day IP in 3Q16; (2) Normalized to 7,000’ stimulated lateral and for downtime 10