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Upstream: Complex Finance Reporting: IPO

Founded in 2008, Parsley Energy, Inc. (Parsley) is an independent oil and natural gas company with operations in the Permian Basin, where they develop unconventional oil and natural gas reserves.  Over the past several years, Parsley has grown from a two-person start-up to a large-scale corporation that operates several hundred wells and produces more than fifteen-thousand barrels (net) of oil equivalent per day.

In August 2013, Parsley engaged Opportune to assist the Company in its efforts to complete the registration statement to be filed with the Securities and Exchange Commission (SEC) in connection with an initial public offering (IPO) of its common shares.  The Opportune team of professionals worked closely with Parsley, its legal counsel, auditors, and underwriters in executing the assignment.  Specifically, our team was responsible for the conversion of accounting records from a cash basis to an accrual basis; addressing a number of complex technical reporting issues, including stock-based compensation and commodity derivative accounting and disclosures; accounting for the contemporary UP-C structure (where less than 100% of the operating entity is contributed to the Registrant); preparation of all required financial statements and footnotes and pro forma financial statements; and preparation of Management’s Discussion and Analysis, all in accordance with the SEC’s rules and regulations. Parsley successfully closed a $925 million IPO (50 million common shares at $18.50 per share) on May 29, 2014.

Our expertise rivals the national offices of multinational firms, while our focus on the energy market and personalized client service make us a unique player in this advisory arena. Whether raising capital, acquiring or divesting assets, or complying with the ever-changing requirements of standard-setting bodies, Opportune is prepared to meet clients’ needs through every stage of their life cycle. Our professionals have been through each of those stages, both as executives in industry and as advisors, and we use that experience to tailor a practical, rather than academic, approach to meeting deadlines. For additional information, click here.

Amy Stutzman

Managing DirectorOpportune LLP