INVESTOR PRESENTATION 3Q 2017 PARSLEYENERGY.COM Forward Looking - PowerPoint PPT Presentation

Q3 2018 Earnings Presentation November 1, 2018 INVESTOR PRESENTATION 3Q »2017 PARSLEYENERGY.COM

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. Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”) Natural gas and natural gas liquids (“NGLs”) sales and associated production volumes for the three months ended September 30, 2018 reflect adjustments associated with Parsley’s adoption of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”), effective January 1, 2018. Unless otherwise noted, all references to 3Q18 production volumes and per Boe unit costs likewise reflect this adoption, which has the effect of increasing certain natural gas and NGLs volumes and revenues, offset by a corresponding transportation and processing cost such that there is no change to reported net income. The recognition and presentation of oil volumes and associated revenues and expenses are unaffected by the adoption of ASC 606. For more information on ASC 606 and a reconciliation of 3Q18 production and unit costs under ASC 605 and as adjusted under ASC 606, please see Supplementary Slides. 2

Parsley Energy Overview Parsley Energy Acreage Permian Basin Net Midland Net Leasehold Acreage: ~200,000 (2) Premier Permian Pure-Play HOWARD Basin (96% Operated) ANDREWS Midland Basin: ~155,000 LEA ► Efficient and sustainable growth trend MARTIN Delaware Basin: ~45,000 Net Royalty Acreage: ~7,500 ► Elite return profile GLASSCOCK ► Economies of scale and core inventory depth MIDLAND ECTOR WINKLER ► 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 3Q18 Highlights Market Snapshot ► Robust operating cash margin (1) NYSE Symbol: PE ► Disciplined portfolio management Market Cap: $7,419 MM (3) Net Debt: $1,851 MM (4) ► Sustained operational momentum Enterprise Value: $9,270 MM (5) ► Reduced capital costs Share Count: 317 MM (1) Operating cash margin is a non-GAAP financial measure. For reconciliation of operating cash margin to the most directly comparable GAAP financial measure, please see Supplementary Slides; (2) As of 11/1/2018 pro forma for 3 pending divestiture; (3) Calculated using fully diluted share count of 317 mm shares (280mm Class A shares plus 37mm Class B shares) as of 11/1/2018 and closing price as of 10/31/2018; (4) As of 9/30/2018 pro forma for expected proceeds of ~$165 million from divestitures announced 11/1/2018. Net Debt is a non-GAAP financial measure defined as total debt less cash and cash equivalents; (5) Enterprise value is calculated as market capitalization plus 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.

Laying the Foundation – 10-Year Lookback   Achieve Scale Build Reinvestment Runway 20 125 Midland Basin Parsley Operating Area in 2008 Parsley Acreage ► Fastest to 100 MBoe/d (1) 16 100 ► 7 th Largest Permian Rig Program (2) Net Production (MBoe/d) % of Dev Inventory Drilled (5) MARTIN HOWARD Horizontal Rig Count % of Dev Inventory Remaining (5) Inventory Life at Current Pace (6) 12 75 8 50 ANDREWS 4 25 GLASSCOCK ECTOR 0 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Central Basin MIDLAND Platform Horizontal Rigs Net Production (MBoe/d)  Create Shareholder Value CRANE 50% ► One of 5 operators to Compound Annual Delaware Basin generate positive shareholder 25% Growth Rate return since Parsley IPO (4) 0% UPTON -25% REAGAN -50% REEVES (3) (4) Production per DAS 2014-18E CAGR TSR CAGR from PE IPO PECOS (1) Bloomberg; Based on number of reporting periods for production between 10 MBoe/d and 100 MBoe/d; Peers include oil-focused E&Ps (oil represents at least 40% of total production) for which relevant production data is available; 4 Peers include AREX, BCEI, CDEV, CLR, CPE, CRZO, CXO, FANG, HK, JAG, MTDR, NOG, OAS, PDCE, PetroHawk, ROSE, RSPP, SM, SN, SRCI, and WLL; Production adjusted for non-controlling interest where applicable; (2) DrillingInfo as of October 19, 2018; (3) Production per debt-adjusted share (DAS) from Evercore ISI as of October 22, 2018; Peers include APA, APC, AR, CHK, CLR, CNQ-TSE, COG, CPE, CXO, DVN, ECA, EGN, EOG, EQT, FANG, MRO, NBL, NFX, OAS, PXD, QEP, RRC, SU-TSE, SWN, WLL, WPX, and XEC; (4) FactSet as of October 30, 2018; Parsley shares priced at $18.50 per share on May 22, 2014; (5) Development inventory includes operated locations in Lower Spraberry, Wolfcamp A, Wolfcamp B, and Wolfcamp C zones; As of 11/1/2018 pro forma for pending divestiture; (6) Based on YTD 2018 activity levels in each development area as of October 30, 2018.