Shale producer Parsley Energy sets higher 2020 cash flow target

FILE PHOTO: A horizontal drilling rig on a lease owned by Parsley Energy operates at sunrise in the Permian Basin near Midland, Texas U.S. August 24, 2018. REUTERS/Nick Oxford

(Reuters) - Shale producer Parsley Energy raised its cash flow target and reinstated its 2020 production guidance on Tuesday, saying it expects to pump about 110,000 barrels of oil per day in the fourth quarter, according to a company presentation.

Parsley is targeting $400 million in free cash flow this year, up from a prior goal of $350 million, according to a presentation posted on its website. It also expects well costs in the second half of 2020 to be 25% below initial estimates.

Reporting by Jennifer Hiller; Editing by Chris Reese