INVESTOR PRESENTATION 3Q 2017 Forward Looking & Cautionary - PowerPoint PPT Presentation

Q1 2019 Earnings Presentation May 1, 2019 INVESTOR PRESENTATION 3Q »2017

Forward Looking & Cautionary Statements Forward-Looking Statements The information in this presentation includes “forward-looking statements” that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this presentation, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on Parsley Energy, Inc.’s (“Parsley Energy,” “Parsley,” or the “Company”) current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the exploration for and development, production, gathering and sale of oil and natural gas. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, the production potential of our undeveloped acreage, cash flow and access to capital, the timing of development expenditures and the risk factors discussed in or referenced in our filings with the United States Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this presentation. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this presentation. Our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or cost increases. Industry and Market Data This presentation has been prepared by Parsley and includes market data and other statistical information from third-party sources, including independent industry publications, government publications or other published independent sources. Although Parsley believes these third-party sources are reliable as of their respective dates, Parsley has not independently verified the accuracy or completeness of this information. Some data are also based on Parsley’s good faith estimates, which are derived from its review of internal sources as well as the third-party sources described above. 2

Parsley Energy Overview Parsley Energy Acreage Permian Basin Net Net Leasehold Acreage: ~190,000 (1) Premier Permian Pure-Play Midland HOWARD (96% Operated) Basin Midland Basin: ~148,500 ANDREWS MARTIN Delaware Basin: ~41,500 LEA ► Economies of scale and core inventory depth Net Royalty Acreage: ~7,500 Standardized Royalty ► Elite return profile Acreage (12.5% NRI): ~60,000 (2) GLASSCOCK ECTOR ► Efficient and sustainable growth WINKLER MIDLAND ► Advantaged production flow and pricing Delaware Central Basin Basin ► Financial flexibility with strong balance sheet WARD Platform CRANE ► Economic uplift from minerals ownership UPTON REAGAN REEVES PECOS Parsley Acreage 1Q19 Highlights Market Snapshot (3) ► Confirmed 2019 plan is on track & on budget NYSE Symbol: PE ► Furthered operational efficiency gains Market Cap: $6,320 MM Net Debt: $2,170 MM ► Minimized winter downtime Enterprise Value: $8,490 MM ► Delivered strong Delaware results Share Count: 317 MM (1) As of 3/31/2019 pro forma for scheduled 2019 acreage expirations recorded in 4Q18; (2) Parsley’s ~7,500 net royalty acres are shown on a 100% NRI basis. If Parsley’s royalty ownership is standardized to a 12.5%, or 1/8th, royalty interest, Parsley’s net royalty acreage would equate to approximately 60,000 net royalty acres; (3) Market capitalization calculated using fully diluted share count of 317 MM shares (281 MM Class A shares plus 36 MM Class B shares) as of 5/1/2019 and closing price as of 4/30/2019. Net debt as of 3/31/2019. Net Debt is a non-GAAP financial measure defined as total debt less cash and cash equivalents. Enterprise Value is calculated as market capitalization plus 3 net debt, where market capitalization is calculated as share price times the sum of Class A shares outstanding and Class B shares outstanding. Because non-controlling interest represents the portion of total book value of equity allocated to Class B shareholders, it is already represented in the enterprise value calculation by the inclusion of Class B shares in the calculation of market capitalization, and should not be added separately as a component of enterprise value.

2019 Action Plan: On Track & On Budget Guiding Principles 2019 Action Plan Accountability 1Q19 Progress  Rate of Return (“ROR”)-driven approach Improve capital efficiency by On track 8-10%+ YoY (1) to well selection  Outspend by less than $250 million in Discipline Accelerate timeline to self-funded growth On budget any oil price environment (2)  Further increase visibility on Addition of corporate returns metric to Added CROCI to 2019 incentive plan (3) management and shareholder alignment 2019 incentive plan  Defend and extend operational Increase footage drilled/completed per 1Q19 footage drilled per rig has efficiency gains rig/crew over FY18 levels increased ~10% from FY18 levels  Work with high-performing service Improve capital efficiency by On track 8-10%+ YoY (1) partners on pricing and contracting Stability  Hedge to protect cash flow and balance Outspend by less than $250 million in On budget sheet while retaining oil price upside any oil price environment (2) Collaborate with Permian Strategic PSP initiatives in motion; enhancing  Sustain culture that promotes and Partnership (“PSP”); publish internal processes for ESG oversight prioritizes community stewardship Sustainability Report by year-end 2019 and reporting  Increase 3 rd party water revenues Leverage legacy water infrastructure Strategic review underway investments and/or explore strategic alternatives Foresight  Deliver healthy long-term realized oil Exercise patience on incremental crude Dependable flow assurance & realized prices while limiting minimum volume modest discount vs. WTI Cushing (4) transport agreements commitments (1) Capital efficiency calculated as barrels of organic oil production added (Q4 1 /Q4 0 , adjusted for proved developed producing (“PDP”) oil base decline) per million dollars of development capital expenditures. Assumes 4Q18/4Q17 PDP 4 oil base decline of ~45% and 4Q19/4Q18 PDP oil base decline of ~43%. Adjusted for divestitures closed after 9/30/2018; (2) Outspend is a non-GAAP financial measure and is defined as cash flow from operations before changes in operating assets and liabilities less development capital expenditures; (3) Disclosed in definitive proxy statement for 2019 annual meeting (filed with SEC on April 8, 2019). Cash return on capital invested (“CROCI”) is calculated by dividing the sum of the Company’s cash flow from operations and after-tax interest expense by the sum of the Company’s average gross property, plant and equipment and average non-cash working capital; (4) 1Q19 oil price realization excluding effect of hedges and including gathering fee; WTI Cushing price sourced from Bloomberg.