Parsley Energy Falls 2.5% Following Acquisition Announcement, Share Offering & Production Guidance

Shares of Parsley Energy Inc PE, an independent oil and natural gas company, were trading lower by more than 2 percent on Tuesday after the company announced a series of business updates.

Parsley Energy stated it has entered into an agreement to acquire certain undeveloped acreage and producing oil and gas properties located adjacent to its existing operating areas in the Southern Delaware and Midland Basis for $359 million in cash.

To finance the acquisition, Parsley Energy priced a public offering of 18.25 million shares of its Class A common stock for a total gross proceed of approximately $390.6 million.

"We are excited to announce a set of bolt-on acquisitions that add to our premier asset bases in both the Midland and Southern Delaware Basins," stated Bryan Sheffield, CEO of Parsley Energy. "These additions extend our running room in the Midland Basin and provide the critical mass necessary to make the Southern Delaware a core part of our ongoing development program. Together, the acquired properties increase our net acreage by 20%, and all have top-tier return potential."

Following the acquisition announcement, Parsley Energy raised its full-year production guidance from 30.0 to 33.0 MBoe per day to a new range of 31.5 to 34.5 MBoe per day. The company also expects its total capital expenditures in fiscal 2016 to now be $410 million to $460 million, marking an increase from a prior range of $380 million to $430 million.