Parsley Energy, Inc. (NYSE:PE) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 09:00 am ET


Parsley Energy, Inc. (NYSE:PE) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen. Welcome to Parsley Energy's Second Quarter 2020 Earnings Conference Call. My name is Robert, and I will be your operator today. As a reminder, this conference call is being recorded. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

And now, I'm pleased to turn the call over to your host, Kyle Rhodes, Parsley Energy's Vice President of Investor Relations. Thank you. You may begin.

Kyle Rhodes

Thank you, operator, and good morning, everyone. We are again dialing in from our respective home offices this morning. With me on the call are President, and CEO, Matt Gallagher; Chief Operating Officer; David Dell'Osso; Chief Financial Officer, Ryan Dalton; and Senior Vice President of Corporate Development, Land and Midstream, Stephanie Reed.

Our remarks today may contain forward-looking statements. So please see our earnings release for a discussion of these statements and associated risks, including the fact that actual results may differ materially from our expectations. We also make reference to non-GAAP measures, so please see the reconciliations in the earnings release.

During this call, we will refer to an Investor Presentation that can be found on our website, and our prepared remarks will begin with reference to Slide 3 of that presentation. After our prepared remarks, we'll be happy to take your questions.

And with that, I'll turn the call over to Matt.

Matt Gallagher

Thanks, Kyle. I believe the sign of true professional excellence, whatever the occupation is executing a difficult task and making it look easy. That is exactly what our team did during a challenging second quarter and you can see some of those highlights on the left of Slide 3. Before digging into some of the team's accomplishments, I wanted to quickly remind those investors that might be newer to our stories that our asset base is located in the core of the Texas Permian Basin, as you can see in the map on the right, and we have zero exposure to Federal lands.

We consistently deliver high operating margins that have a deep bench of high working interest operated in locations to prosecute in years to come. Our strategy since early 2019 has been to extract optimum financial returns in a given market condition from our resource base, leading to increasing free cash flows, and increasing returns to shareholders, all while taking a leadership position in the ESG space.

With that, let's turn to Slide 4. Corporate Agility was imperative during the second quarter where oil price volatility surged. We previously mentioned that we implemented a voluntary production curtailment strategy during the month of May and plan to restore a vast majority of that production during the month of June. So that's the one line summary conclusion you might read in a press release.

For getting from point A in May to point B in June, so much work went on behind the scenes to execute this curtailment strategy safely and responsibly and ultimately help deliver the cash