Parsley Energy added significant inventory to its portfolio with the acquisition of Double Eagle Energy's Midland Basin assets for US$2.8 billion. The assets include 71,000 net acres with 23 drilled-but-uncompleted wells and 3.6 mboe/d of production. Coupled with last month's acquisition of nearly 18,000 net acres, the company has nearly doubled its Midland Basin acreage in 2017. Parsley will fund the acquisition through the issuance of shares and senior notes. We value the acreage at over US$43,000/acre. This is a premium to the consideration paid, and mostly due to Parsley's operational expertise in the region. Parsley is one of the premier operators in the Southern Fairway sub-play, with recent normalized IP rates 28% higher than the average. In its core operating area, the company drills wells 25% cheaper than the average in the area. We estimate Parsley's ability to drill low-cost wells adds over 25% of value (NPV10) compared to an average operator.