Document:

EX-10.16

 Exhibit 10.16 

FORM OF MASTER REORGANIZATION AGREEMENT 

This Master Reorganization Agreement (this “Agreement”), dated as of May 2, 2014, is entered into by and
among Parsley Energy Inc., a Delaware corporation (“PubCo”), NGP X US Holdings, L.P., a Delaware limited partnership (“NGP”), Parsley Energy, LLC, a Delaware limited liability company
(“Parsley LLC”), the persons identified on the signature page hereto as Existing Members (the “Existing Members”) and Parsley Energy Employee Holdings, LLC, a Delaware limited liability company
(“PEEH” and, together with PubCo, NGP, Parsley LLC and the Existing Members, collectively, the “Parties”). 

RECITALS 
 WHEREAS,
Parsley LLC formed PubCo as a wholly owned subsidiary and, in connection therewith, contributed cash in the amount of $10 to PubCo in exchange for 1,000 shares of common stock of PubCo, par value $0.01 per share (the “PubCo
Shares”); 
 WHEREAS, in connection with, and prior to the completion of, an initial public offering of
PubCo’s Class A Common Stock (the “IPO”) pursuant to, and as more fully described in, a registration statement filed with the U.S. Securities and Exchange Commission, Registration No. 333-195230 (the
“Registration Statement”), certain restructuring transactions will be undertaken, as more fully described in the Registration Statement (the “Reorganization”);  

WHEREAS, the Board of Managers of Parsley LLC has determined that it is in the best interests of the members of Parsley LLC to
undertake the Reorganization; 
 WHEREAS, the Parties acknowledge and agree that the Board of Directors of PubCo, in its sole
discretion, has the authority to determine the terms of the IPO, including the number of shares of Class A Common Stock to be sold to the public and the IPO Price (as defined herein); and 

WHEREAS, in connection with the IPO and the Reorganization, the Parties desire to, among other things, (a) establish the economic
terms of the Reorganization, and (b) enter into certain agreements to effectuate the foregoing. 
 NOW, THEREFORE, in
consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows, and further agree that the actions
set forth in Article II shall be deemed to have been taken and become effective in the order set forth therein. 

ARTICLE I 
 DEFINITIONS

 The terms set forth below in this Article I shall have the meanings ascribed to them below or in the part of this
Agreement referred to below: 
 “A&R Parsley LLC Agreement” has the meaning set forth in Section
2.2. 

 “Agreement” has the meaning set forth in the preamble hereto.

 “Claims” has the meaning set forth in Section 6.1. 

“Class A Common Stock” means shares of PubCo’s Class A common stock, par value $0.01 per share, as
further described in the Registration Statement. 
 “Class B Common Stock” means shares of
PubCo’s Class B common stock, par value $0.01 per share, as further described in the Registration Statement. 

“Code” has the meaning set forth in Section 5.1. 

“Common Stock” means shares of Class A Common Stock and Class B Common Stock. 

“Continuing Members” means each of the persons set forth on Schedule A hereto. 

“Contributing Members” has the meaning set forth in Section 5.4(e). 

“Effective Time” means 12:01 a.m. Central Daylight Time on the date of the closing of the IPO. 

“Existing Members” has the meaning set forth in the preamble hereto. 

“Indemnifying Party” has the meaning set forth in Section 6,2. 

“Indemnitees” has the meaning set forth in Section 6.2. 

“Interest Contribution” has the meaning set forth in Section 5.1. 

“IPO” has the meaning set forth in the Recitals. 

“IPO Price” has the meaning set forth in Section 2.2. 

“Lock-Up Agreement” has the meaning set forth in Section 5.2(b). 

“Merger Agreement” means the Agreement and Plan of Merger, by and among PubCo and PEEH, in the form attached
hereto as Schedule B. 
 “Meter” has the meaning ascribed to such term in the Parsley LLC
Agreement. 
 “NGP” has the meaning set forth in the preamble hereto. 

“NGP Units” has the meaning set forth in Section 2.3(a). 

“Option Shares” means the shares of Class A Common Stock that PubCo will agree to issue upon an exercise
of the Over Allotment Option.  
 “Over Allotment Option” means the option to purchase additional
shares of Class A Common Stock granted by PubCo to the Underwriters pursuant to the Underwriting Agreement.  

  
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 “Parsley Equity” means membership interests in Parsley LLC prior
to entry into the A&R Parsley LLC Agreement. 
 “Parsley LLC” has the meaning set forth in the
preamble hereto. 
 “Parsley LLC Agreement” means the Limited Liability Company Agreement of Parsley
LLC, dated June 11, 2013, as in effect immediately prior to the Effective Time. 
 “Parties” has
the meaning set forth in the preamble hereto. 
 “PE Units” means units issued pursuant to the A&R
Parsley LLC Agreement. 
 “PEEH” has the meaning set forth in the preamble hereto. 

“PEEH Member” has the meaning set forth in Section 2.3(d). 

“PEEH Merger” has the meaning set forth in Section 2.3(d). 

“Preferred Return Units” means, with respect to NGP and each of the PSP Members, such number of PE Units held
by NGP or any PSP Member equal to the product of (i) (A) the aggregate Meter due and payable on the date of closing of the IPO, divided by (B) the IPO Price and (ii) the percentage set across from NGP’s and each PSP
Member’s name on Schedule D hereto, rounded down for fractional interests. 
 “PSP Members” means any of
David Smith, Frank Cremer, Rob Crumpler, Shack Ventures, LP, Buck Horn, L.P., OSO Capital II, L.P., Hedloc Investment Company, L.P., Parsley Interests, L.P., Kirk Fritschen, Justin Clark, SD Gray Family Partnership, LP, Ryan Dalton, Michael Hinson,
Colin Roberts, Kara Wood, Mike Senich, Brad Sublett, Stephanie Reed, Landon Martin, Kristin McClure, Isaac Hayes, PLZ Properties, LLC, Marbella Interests, LLC, and KMG Energy, LLC. 

“PubCo” has the meaning set forth in the preamble hereto. 

“PubCo Contributor(s)” has the meaning set forth in Section 5.1. 

“PubCo Shares” has the meaning set forth in the Recitals. 

“Registration Statement” has the meaning set forth in the Recitals. 

“Released Claims” has the meaning set forth in Section 6.1. 

“Released Parties” has the meaning set forth in Section 6.1. 

“Releasing Parties” has the meaning set forth in Section 6.1. 

“Reorganization” has the meaning set forth in the Recitals. 

  
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 “Representatives” has the meaning given such term in the Underwriting
Agreement. 
 “Securities Act” has the meaning set forth in Article IV. 

“Selling Stockholders” means Bryan Sheffield, Sheffield Energy Management, LLC, Michael Hinson, Matt Gallagher,
Paul Treadwell, Ryan Dalton, Diamond K Interests, LP, Parsley Interests, LP, One Putt Oil & Gas Ltd., Back Nine Oil & Gas Ltd., Nine Iron Oil & Gas Ltd., HowJan Properties, Inc., David Askew and NGP X US Holdings, L.P.

 “Underwriting Agreement” means a firm commitment underwriting agreement to be entered into between
PubCo, NGP, the Selling Stockholders and the underwriters named in the Registration Statement.  
 “Tax
Treatment” has the meaning set forth in Section 5.1. 
 “Transactions” has the
meaning set forth in Section 5.1. 
 ARTICLE II 

CONTRIBUTIONS AND ACKNOWLEDGEMENTS 

Section 2.1. Underwriting Agreement. After the date hereof and prior to the Effective Time, PubCo, NGP, the Selling
Stockholders and the Representatives shall enter into the Underwriting Agreement, pursuant to which PubCo shall issue and sell, and the Selling Stockholders shall sell, shares of Class A Common Stock to the Underwriters at a price per share
equal to the IPO Price (as defined herein), less underwriting discounts and commissions as set forth in the Underwriting Agreement; each of the Selling Stockholders has requested to include in the Registration Statement a number of shares of
Class A Common Stock equal to the dollar amount set forth next to each such person’s name on Schedule F; each of the Selling Stockholders understands, acknowledges and agrees that the number of shares of Class A Common Stock
that may ultimately be sold by such person may be reduced as determined by the Pricing Committee of the Board of Directors of PubCo, in its sole discretion, following consultation with the Representatives provided that any such reduction shall be
pro rata among the Selling Stockholders unless otherwise agreed to by any such person that is disproportionately cut back 

Section 2.2. Recapitalization. Effective immediately prior to the Effective Time, the Parsley LLC Agreement shall be
amended and restated substantially in the form attached hereto as Schedule C (the “A&R Parsley LLC Agreement”) and Parsley LLC shall be recapitalized such that the Parsley Equity is restated to consist solely of a
single class of units, which are referred to herein as the “PE Units,” and each member of Parsley LLC shall receive such number of PE Units as such member would have received pursuant to Section 4.4 of the Parsley
LLC Agreement if Parsley LLC were to make distributions to such members in an aggregate amount equal to the implied pre-offering equity value of Parsley LLC (the “Recapitalization”) based on the per share initial public
offering price of the Class A Common Stock to be sold in the IPO, before the gross spread paid to the underwriters along with related fees and expenses in connection with the offering (the “IPO Price”) and valuing such
PE Units at the IPO Price. The aggregate number of PE Units to be distributed to the members of Parsley LLC shall be determined by the Board of Managers of Parsley LLC and shall be set in a manner designed so that each PE Unit is economically
equivalent to one share of Class A Common Stock, as described in the Registration Statement. 

  
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 Section 2.3. Interest Contribution. Effective immediately following the
Effective Time and in connection with the IPO:  
 (a) NGP shall contribute, transfer, assign and deliver all of its right, title and
interest in the PE Units held by it, less any Preferred Return Units held by NGP, to PubCo (the “NGP Units”), and in exchange for such contribution, transfer, assignment and delivery, PubCo shall issue such number of shares
of Class A Common Stock to NGP equal to the number of NGP Units contributed pursuant to this Section 2.3(a); 
 (b) each of
the Existing Members, other than the Continuing Members and Parsley Energy Employee Holdings, LLC (“PEEH”), shall contribute, transfer, assign and deliver such Existing Member’s right, title and interest in all of the PE
Units held by them, other than any Preferred Return Units held by any such Existing Member, to PubCo and in exchange for such contribution, transfer, assignment and delivery, PubCo shall issue such number of shares of Class A Common Stock to
such Existing Member equal to the number of PE Units contributed by such Existing Member to PubCo pursuant to this Section 2.3(b); 

(c) each of the Continuing Members shall contribute, transfer, assign and deliver such Continuing Member’s right, title and interest in
the PE Units held by them, other than any Preferred Return Units held by such Continuing Member, in an amount equal to the product of (i) the percentage set forth opposite their name on Schedule A (expressed as a decimal) and
(ii) the number of PE Units, other than any Preferred Return Units, held by such Continuing Member, to PubCo and in exchange for such contribution, transfer, assignment and delivery, PubCo shall issue such number of shares of Class A
Common Stock to such Existing Member equal to the number of PE Units contributed by such Existing Member to PubCo pursuant to this Section 2.3(c); 

(d) PEEH shall merge with and into PubCo (with PubCo as the surviving entity) in accordance with the Merger Agreement (the
“PEEH Merger”) and PubCo shall issue to each member of PEEH (each a “PEEH Member”) the Merger Consideration (as such term is defined in the Merger Agreement, and the aggregate of which consists of a
number of shares of Class A Common Stock equal to the number of PE Units held by PEEH immediately prior to the PEEH Merger); and 

(e) PubCo shall redeem the PubCo Shares from Parsley LLC for a cash payment in the amount of $10.00. 

Section 2.4. Contribution of Class B Common Stock; Payment of Meter. Following the effectiveness of the transactions
contemplated by Section 2.3 on the date of the closing of the IPO: 
 (a) PubCo shall issue and sell, and the Selling
Stockholders shall sell, shares of Class A Common Stock to the Underwriters at a price per share equal to the IPO Price, less underwriting discounts and commissions, as set forth in the Underwriting Agreement; 

  
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 (b) PubCo shall contribute all of the net proceeds from the IPO received by PubCo to Parsley LLC
in exchange for the issuance by Parsley LLC to PubCo of such number of PE Units equal to the number of shares of Class A Common Stock sold by PubCo to the public in the IPO; 

(c) Parsley LLC shall make a cash payment to NGP and each PSP Member equal to the product of (i) the IPO Price and (ii) the number of
Preferred Return Units held by NGP and each such PSP Member, to redeem such Preferred Return Units in satisfaction of the right to payment of the Meter (as such term is defined in the Parsley LLC Agreement); 

(d) PubCo shall issue such number of shares of Class B Common Stock to Parsley LLC equal to (i) the number of PE Units outstanding
immediately after the redemption pursuant to Section 2.4(c) less (ii) the number of PE Units to be issued to PubCo pursuant to Section 2.4(b); 

(e) Parsley LLC shall distribute to each holder of PE Units (other than PubCo) one share of Class B Common Stock for each PE Unit such PE
Unit holder owns; 
 (f) the Parties hereto shall execute an amendment and restatement to that certain Registration Rights Agreement,
dated as of June 11, 2013 (the “Registration Rights Agreement”), by and among Parsley LLC, NGP and the parties set forth on the signature pages thereto, which agreement is substantially in the form attached hereto as
Schedule E, and the parties thereto hereby waive any rights under the Registration Rights Agreement as it relates to the IPO;  

(g) the Parties hereto acknowledge and agree that, effective as of the closing date of the IPO, that certain Voting and Transfer Restriction
Agreement, dated as of June 11, 2013, by and between Parsley LLC, NGP and the parties set forth on the signature pages thereto, shall be terminated and no longer in effect, and the parties thereto hereby waive any future rights under that
agreement; and 
 (h) in the event that the Over Allotment Option is exercised, PubCo shall issue the Option Shares to the Underwriters at a
price per share equal to the IPO Price, less underwriting discounts and commissions as set forth in the Underwriting Agreement, and PubCo shall contribute all of the net proceeds from the exercise of the Over Allotment Option received by PubCo to
Parsley LLC in exchange for the issuance by Parsley LLC to PubCo of such number of PE Units equal to the number of shares of Class A Common Stock sold by PubCo to the public pursuant to the Over Allotment Option. 

ARTICLE III 
 FURTHER
ASSURANCES 
 From time to time after the Effective Time, and without any further consideration, the Parties agree to execute,
acknowledge and deliver all such additional, assignments, conveyances, instruments, notices and other documents, and to do all such other acts and things, all in accordance with applicable law, as may be necessary or appropriate to (a) more
fully to assure 

  
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that the applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers and privileges granted by this Agreement, or which are intended to be so granted,
(b) more fully and effectively to vest in the applicable Parties and their respective successors and assigns beneficial and record title to the interests contributed and assigned by this Agreement or intended to be so and (c) more fully
and effectively to carry out the purposes and intent of this Agreement. 
 ARTICLE IV 

REPRESENTATIONS 
 Each of
the Parties hereby represents and warrants to each other Party: 
 (a) that such Party is an “Accredited Investor” as
defined in the Securities Act of 1933 (the “Securities Act”), and is acquiring its shares of Class A Common Stock or PE Units, as applicable, for its own account for investment, and not with a view to any distribution,
resale, subdivision or fractionalization thereof in violation of the Securities Act or any other applicable domestic or foreign securities law, and such Party does not have any present plan to enter into any contract, undertaking, agreement or
arrangement for any such distribution, resale, subdivision or fractionalization, except as described in the Registration Statement. Such Party has had an opportunity to discuss PubCo’s and Parsley LLC’s business, management, financial
affairs and the terms and conditions of this Agreement with PubCo’s and Parsley LLC’s management. Such Party acknowledges and agrees that PubCo or Parsley LLC, as applicable, shall place a legend in substantially the following form on
certificates or by notation on book-entry positions representing the shares of Class A Common Stock or PE Units, as applicable, other than with respect to any shares of Class A Common Stock that are contemplated to be sold under the
Registration Statement: 
 “THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR UNDER
APPLICABLE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS IT HAS BEEN REGISTERED UNDER SUCH LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.” 

(b) that the execution, delivery and performance by such Party of this Agreement, and the consummation of the transactions contemplated hereby,
do not and will not (i) conflict with or violate the certificate of incorporation, bylaws, certificate of formation, operating agreement or similar organizational document of such Party, as in effect on the date hereof (ii) conflict with
or violate any law applicable to such Party, or (iii) result in any breach of, constitute a default (or an event that, with notice or lapse of time or both, would become a default) under, require any consent of or notice to any person pursuant
to, give to others any right of termination, amendment, modification, acceleration or cancellation of, allow the imposition of any fees or penalties, require the offering or making of any payment or redemption, give rise to any increased,
guaranteed, accelerated or additional rights or entitlements of any person or otherwise adversely affect any rights of such Party under or pursuant to, any note, bond, mortgage, indenture, agreement, lease, license, permit, franchise, instrument,
obligation or other contract to which such Party is a party or by which such Party or its assets may be bound or affected; 

  
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 (c) that such Party owns all interests contributed hereby free and clear of all liens,
encumbrances, security interests, equities, charges or claims; 
 (d) that such Party reviewed with, or has had opportunity to consult with,
their own independent legal and tax advisors regarding the transactions contemplated hereby, including the U.S. federal, state, local, foreign and other tax consequences of the transactions contemplated hereby and hereby acknowledges that neither
PubCo or Parsley LLC nor their advisors (including Vinson & Elkins L.L.P) has provided to such Party any such legal or tax advice regarding the transactions contemplated hereby; and 

(e) that Parsley LLC and PubCo are making no representation or warranty as to the U.S. federal, state, local, foreign or other tax consequences
to the Existing Members, NGP or PEEH as a result of the transactions contemplated by this Agreement. The Existing Members, NGP and PEEH understand that each of them (and not Parsley LLC or PubCo) will be responsible for such person’s own tax
liability that may arise as a result of the transactions contemplated hereby. 
 ARTICLE V 

TAXES 

Section 5.1. Tax Treatment. Unless required to do so as a result of a final determination (as defined in Section 1313
of the Internal Revenue Code of 1986, as amended (the “Code”)), each of NGP and each Existing Member (each a “PubCo Contributor,” and collectively, the “PubCo Contributors”),
PEEH and PubCo agrees that it will not make any tax filing or otherwise take any position inconsistent with the qualification of the transactions described in Section 2.3 (the “Interest Contribution”) and the IPO
(collectively, the “Transactions”) as a transaction described in Section 351 of the Code. The U.S. federal income tax treatment of the Transactions described in the preceding sentence is referred to herein as the
“Tax Treatment.” If any Party becomes aware of any audit, inquiry, litigation or other proceeding relevant to the Tax Treatment, such person shall promptly notify the other Parties of such proceeding, and all Parties shall
use reasonable efforts to cooperate with respect to such proceeding. 
 Section 5.2. Tax Warranties by the PubCo
Contributors. Each PubCo Contributor represents and warrants to all other PubCo Contributors and PEEH that the statements as set forth below, solely as they relate to the Tax Treatment, are true, correct and complete as of the date hereof
and as of the effective time of the Transactions with respect to such PubCo Contributor: 
 (a) Such PubCo Contributor does not have
any current plan, intention, agreement, arrangement or understanding, and has not engaged in any material negotiations, related to: 
 (i)
engaging in the Transactions, other than pursuant to this Agreement, any agreements referenced herein and the Registration Statement, 

  
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 (ii) selling, exchanging, hedging, constructively selling or otherwise disposing of the Common
Stock to be received by such PubCo Contributor pursuant to the Interest Contribution, except as contemplated by this Agreement and the Registration Statement, 

(iii) acquiring or retaining any rights in the PE Units contributed to PubCo pursuant to this Agreement, 

(iv) allowing any person other than such PubCo Contributor to exercise control over the voting of the Common Stock received by such PubCo
Contributor in connection with the Interest Contribution, 
 (v) placing any Common Stock to be issued to such PubCo Contributor in escrow
or issuing such Common Stock after the completion of the Transactions under a conditional or contingent stock or similar arrangement, 

(vi) creating, extinguishing or modifying any indebtedness between such PubCo Contributor and PubCo or Parsley LLC as a result of the
Transactions, except for any de minimis advances made in connection with joint operations and the development of wells, or 
 (vii) issuing
Class A Common Stock to such PubCo Contributor other than solely for the PE Units contributed (or deemed contributed in the PEEH Merger) by such PubCo Contributor to PubCo in connection with the Interest Contribution; 

(b) To the extent such PubCo Contributor is subject to a lock-up letter agreement (the “Lock-Up Agreement”) pursuant
to the Underwriting Agreement, such PubCo Contributor does not have any current plan, intention, agreement, arrangement or understanding to request, and has not engaged in material negotiations with respect to, a release or waiver of any of the
restrictions set forth in the Lock-Up Agreement with respect to such PubCo Contributor; 
 (c) The aggregate fair market value of the PE
Units to be contributed by such PubCo Contributor to PubCo in connection with the Interest Contribution exceeds the sum of any liabilities that will be assumed or deemed to be assumed by PubCo for U.S. federal income tax purposes with respect to
such PE Units, including any expenses paid by PubCo on behalf of such PubCo Contributor in connection with the Transactions; 
 (d) Such
PubCo Contributor is not under the jurisdiction of a court in a Title 11 or similar case (within the meaning of Section 368(a)(3)(A) of the Code); 

(e) To such PubCo Contributor’s knowledge, the Transactions will occur pursuant to and in accordance with the terms of this Agreement, any
agreements referenced herein and the Registration Statement; and 
 (f) If such PubCo Contributor is an entity, to such PubCo
Contributor’s knowledge, no direct or indirect member, partner or owner of such PubCo Contributor has any current plan, intention, agreement, arrangement or understanding to sell, exchange, hedge, constructively sell or otherwise dispose of its
direct or indirect interests in such PubCo Contributor. 

  
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 Section 5.3. Tax Warranties by PEEH. PEEH represents and warrants to the PubCo
Contributors that, to the knowledge of PEEH, the statements as set forth below, solely as they relate to the Tax Treatment, are true, correct and complete as of the date hereof and as of the effective time of the Transactions with respect to each
PEEH Member: 
 (a) Such PEEH Member does not have any current plan, intention, agreement, arrangement or understanding, and has not
engaged in any material negotiations, related to: 
 (i) selling, exchanging, hedging, constructively selling or otherwise disposing of the
Common Stock to be received by such PEEH Member pursuant to the PEEH Merger, 
 (ii) acquiring or retaining any rights in the PE Units
received pursuant to the PEEH Merger, 
 (iii) allowing any person other than such PEEH Member to exercise control over the voting of the
Common Stock received by such PEEH Member in connection with the PEEH Merger, 
 (iv) placing any Common Stock to be issued to such PEEH
Member in escrow or issuing such Common Stock after the completion of the IPO under a conditional or contingent stock or similar arrangement, 

(v) creating, extinguishing or modifying any indebtedness between such PEEH Member and PubCo or Parsley LLC as a result of the Transactions,
except for any de minimis advances made in connection with joint operations and the development of wells, or 
 (vi) issuing Class A
Common Stock to such PEEH Member other than solely for the PE Units deemed to be contributed by such PEEH Member to PubCo in connection with the PEEH Merger; 

(b) The aggregate fair market value of the PE Units deemed to be contributed by the PEEH Members to PubCo in connection with the PEEH Merger
exceeds the sum of any liabilities that will be assumed or deemed to be assumed by PubCo for U.S. federal income tax purposes with respect to such PE Units, including any expenses paid by PubCo on behalf of PEEH or any PEEH Member in connection with
the Transactions; and 
 (c) Such PEEH Member is not under the jurisdiction of a court in a Title 11 or similar case (within the meaning of
Section 368(a)(3)(A) of the Code). 

  
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 Section 5.4. Tax Warranties by PubCo. PubCo represents and warrants to the
PubCo Contributors that the statements as set forth below, solely as they relate to the Tax Treatment, are true, correct and complete as of the date hereof and as of the effective time of the Transactions: 

(a) To PubCo’s knowledge, there is no agreement, arrangement or understanding relating to rights or obligations to vote its Common Stock;

 (b) There is no current plan, intention, agreement, arrangement or understanding for: (i) PubCo to issue any shares of Common Stock
or other interests in its equity other than Common Stock issued pursuant to the Transactions; (ii) PubCo or, to PubCo’s knowledge, the NGP, Existing Members or any other person affiliated with PubCo to redeem or otherwise reacquire any
Common Stock to be issued in connection with the Transactions; or (iii) PubCo or, to PubCo’s knowledge, any underwriter to release or waive any of the restrictions set forth in the Lock-Up Agreements; 

(c) PubCo has not engaged in any material negotiations with respect to any release or waiver of any of the restrictions set forth in the
Lock-Up Agreements, except with respect to any Contributor Pledge; 
 (d) To PubCo’s knowledge, there is no current plan, intention,
agreement, arrangement or understanding for any person to exercise any PubCo stock rights, warrants or subscriptions with respect to Common Stock other than pursuant to the Transactions; 

(e) The Class A Common Stock to be issued to the PubCo Contributors and the PEEH Members (together, the “Contributing
Parties”) as described in Section 2.3 of this Agreement will be issued and paid in exchange for solely the PE Units contributed (or deemed contributed in the PEEH Merger) by such Contributing Parties to PubCo in connection
with the Transactions; 
 (f) There is no indebtedness between any Contributing Party and PubCo, and there will be no such
indebtedness created in favor of any Contributing Party as a result of the Transactions, except for any de minimis advances made in connection with joint operations and the development of wells; 

(g) PubCo has no stock issued or outstanding other than the Common Stock; 

(h) To PubCo’s knowledge, there are no agreements, arrangements or understandings between or among any of the Parties relating to the
Transactions, including any agreement to place any Common Stock to be issued to any Contributing Party in escrow or to issue such Common Stock after the completion of the Transactions under a conditional or contingent stock or similar arrangement,
other than this Agreement, any agreements referenced herein and the Registration Statement; 
 (i) PubCo is not an investment company within
the meaning of Section 351(e)(1) of the Code and Treasury Regulation §1.351-1(c)(1)(ii); and 
 (j) To PubCo’s knowledge, the
Transactions will occur pursuant to and in accordance with the terms of this Agreement, any agreements referenced herein and the Registration Statement. 

  
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 ARTICLE VI 

MISCELLANEOUS 

Section 6.1. Release. Effective as of the Effective Date, each of the Parties, on behalf of himself (or herself or itself)
and his (or her or its assigns), heirs, beneficiaries, representatives, agents and affiliates (the “Releasing Parties”), hereby fully and finally releases, acquits and forever discharges each of the other Parties and each of
their respective present and former officers, directors, employees, agents, predecessors, successors, assigns, insurers and attorneys (the “Released Parties”) from any and all claims, causes of action, liabilities, losses,
costs, damages, penalties, charges, expenses and all other forms of liability or obligation whatsoever, in law or equity, whether asserted or unasserted, known or unknown, foreseen or unforeseen (“Claims”), arising prior to
the Effective Date and relating to such Releasing Party’s ownership of equity of Parsley LLC prior to the Effective Date or otherwise arising from or relating to the transactions contemplated by this Agreement, including, but not limited to,
the right to have the shares of Class A Common Stock received pursuant to the Reorganization registered for sale pursuant to the Registration Statement (collectively, the “Released Claims”);
provided, however, that the Released Claims shall exclude any Claims arising from or relating to or in connection with (a) rights or obligations expressly set forth in this Agreement and (b) any
claim or right to indemnification or advancement of expenses under the Parsley LLC Agreement as in effect prior to the Effective Date. Each Releasing Party expressly acknowledges that the release contained herein applies to all Released Claims,
whether such Released Claims are known or unknown, and include Released Claims that if known by the Releasing Party might materially affect its decision to effect the release contained herein. Each Releasing Party has considered and taken into
account the possible existence of such Released Claims in determining to execute and deliver this Agreement. Without limiting the generality of the foregoing, solely with respect to the Released Claims, each Releasing Party expressly waives any and
all rights conferred upon it by any statute or rule of law that provides that a release does not extend to claims that the Releasing Party does not know or suspect to exist in its favor at the time of executing the release, which if known by the
Releasing Party would have materially affected the Releasing Party’s release with the Released Parties. This Agreement constitutes a complete defense of any and all Released Claims. Each Releasing Party further agrees not to initiate any
litigation, lawsuit, claim or action against any Released Party with respect to any Released Claim, except that the Releasing Party shall not be limited hereby from responding to, joining, prosecuting or being involved in any litigation, lawsuit,
claim or action brought against such Releasing Party in respect of a Released Claim, nor from adjudicating whether or not a Claim constitutes a Released Claim. 

Section 6.2. Tax Indemnification. From and after the Effective Time, each Party (the “Indemnifying
Party”) shall indemnify, defend and hold harmless each other Party and such other Party’s affiliates, and its and its affiliates’ respective directors, officers, managers, members, partners, stockholders, employees, agents and
representatives, as applicable (the “Indemnitees”), from any and all damages, losses, obligations, liabilities, payments, costs and expenses (including reasonable fees and expenses of outside attorneys, accountants and other
professional advisors and expert witnesses), whether known or unknown, contingent or vested, matured or unmatured, that are or may be suffered or incurred by any such Indemnitee arising out or relating to a breach of any representation, warranty,
covenant, agreement or obligation of the Indemnifying Party set forth in Article V; provided that the indemnity described in this Section 6.2 shall apply only to the extent that such breach
adversely affects the Tax Treatment and such adverse effect results in damages, losses, obligations, liabilities, payments, costs and/or expenses that are suffered or incurred by an Indemnitee. 

  
 12 

 Section 6.3. Delivery of FIRPTA Certificate. Prior to the Effective Time, each
PubCo Contributor will deliver to PubCo a certificate meeting the requirements of Treasury Regulation § 1.1445-2(b)(2) certifying that such PubCo Contributor is not a “foreign person” within the meaning of Section 1445 of the
Code, duly executed by such PubCo Contributor. 
 Section 6.4. Termination. This Agreement shall terminate and be
of no further force or effect if the IPO has not been completed by 11:59 p.m. New York time on December 31, 2014. 

Section 6.5. Successors and Assigns; No Third Party Rights. The Agreement shall be binding upon and inure to the benefit of
the Parties and their respective successors and assigns. Except as set forth in Section 5.1 for the Released Parties, this Agreement is not intended to, and does not create, rights in any other person and no person is or is intended to
be a third-party beneficiary of any of the provisions of this Agreement. 
 Section 6.6. Severability. If any of
the provisions of this Agreement are held by any court of competent jurisdiction to contravene, or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not
invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the particular provision or provisions held to be invalid, and an equitable adjustment shall be made and necessary provision added so as to give
effect to the intention of the Parties as expressed in this Agreement at the time of execution of this Agreement. 

Section 6.7. Waivers and Amendments. Any waiver of any term or condition of this Agreement, or any amendment or supplement
to this Agreement, shall be effective only if in writing and signed by the Parties. A waiver of any breach or failure to enforce any of the terms or conditions of this Agreement shall not in any way affect, limit or waive a Party’s rights
hereunder at any time to enforce strict compliance thereafter with every term or condition of this Agreement. 
 Section 6.8.
Entire Agreement. This Agreement, together with the A&R Parsley LLC Agreement, constitute the entire agreement among the Parties pertaining to the transactions contemplated hereby, and together supersede all prior agreements,
understandings, negotiations and discussions, whether oral or written, of the Parties pertaining thereto. 
 Section 6.9.
Governing Law. The Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware. 

Section 6.10. Counterparts. This Agreement may be executed in any number of counterparts (including by facsimile or other
electronic means) with the same effect as if all Parties had signed the same document. 

*    *    *    *    * 

  
 13 

 IN WITNESS WHEREOF, this Agreement has been duly executed by each of the Parties as of the date
first written above. 
  

			
	PARSLEY ENERGY, LLC
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 [SIGNATURE PAGES TO MASTER
REORGANIZATION AGREEMENT] 

 
			
	PARSLEY ENERGY, INC.
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	PARSLEY ENERGY EMPLOYEE HOLDINGS,
LLC
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	NGP X US HOLDINGS, L.P.
		
	By:	 	NGP X Holdings GP, L.L.C.
		 	Its General Partner
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	EXISTING MEMBERS
		
	By:	 	 
		 	Bryan Sheffield

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	SHEFFIELD ENERGY MANAGEMENT, L.L.C.
		
	By:	 	 
	Name:	 	Bryan Sheffield
	Title:	 	President

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	Matt Gallagher

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	Michael Hinson

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	Ryan Dalton

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	Paul Treadwell

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	Colin Roberts

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	PARSLEY INTERESTS, L.P.
		
	By:	 	 
	Name:	 	Joe M. Parsley
	Its:	 	President of IOMO Oil Corp. GP of Parsley Interests LP

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	ONE PUTT OIL & GAS LTD.
		
	 By:
	 	 
	 Name:
	 	Sure Putt Inc. GP
	 Its:
	 	President

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	BACK NINE OIL & GAS LTD.
		
	By:	 	 
	Name:	 	Sure Putt Inc. GP
	Its:	 	President

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	NINE IRON OIL & GAS LTD.
		
	By:	 	 
	Name:	 	Sure Putt Inc. GP
	Its:	 	President

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	HOWJAN PROPERTIES, INC.
		
	 By:
	 	 
	 Name:
	 	Howard W. Parker
	 Title:
	 	President

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	DIAMOND K INTERESTS, L.P.
		
	By:	 	 
	Name:	 	Christopher O. Kayem
	Title:	 	Vice President

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	 
	David Askew

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	 
	David Smith

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	 
	Frank Cremer

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	 
	Rob Crumpler

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	SHACK VENTURES, LP
		
	By:	 	 
	Name:	 	
	Its:	 	

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	BUCK HORN, L.P.
		
	By:	 	 
	Name:	 	
	Its:	 	

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	OSO CAPITAL II, L.P.
		
	By:	 	 
	Name:	 	
	Its:	 	

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	HEDLOC INVESTMENT COMPANY, L.P.
		
	By:	 	 
	Name:	 	
	Its:	 	

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	 
	Kirk Fritschen

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	 
	Justin Clark

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	SD GRAY FAMILY PARTNERSHIP, LP
		
	By:	 	SD Gray Management, LLC
		 	Its General Partner
		
	By:	 	  

		 	Steven D. Gray, Manager

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	  

	Kara Wood

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	  

	Mike Senich

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	  

	Brad Sublett

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	  

	Stephanie Reed

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	  

	Landon Martin

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	  

	Kristin McClure

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
	
	  

	Isaac Hayes

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	PLZ PROPERTIES, LLC
		
	By:	 	  

	Name:	 	Paul Treadwell
	Title:	 	Managing Owner

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	MARBELLA INTERESTS, LLC
		
	By:	 	  

		 	Bryan Sheffield, President

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	KMG ENERGY, LLC
		
	By:	 	  

	Name:	 	Matt Gallagher
	 Title:
	 	Member

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	BUTTE FAMILY PARTNERS, LLC
		
	By:	 	  

	Name:	 	Ryan Dalton
	 Title:
	 	Member

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	Cecilia Camarillo Self Directed IRA
		
	By:	 	  

	Name:	 	
	 Title:
	 	

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	Cecilia Camarillo
		
	By:	 	  

	Name:	 	Cecilia Camarillo, Individually

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	HHR Energy, LLC
		
	By:	 	  

	Name:	 	Colin Roberts
	 Title:
	 	Member

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	Kara Wood IRA
		
	By:	 	  

	Name:	 	Kara Wood
	 Title:
	 	

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	Blackbear Resources, LLC
		
	By:	 	  

	Name:	 	Isaac Hayes
	 Title:
	 	

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	1993 Little Inter Vivos Trust
		
	By:	 	  

	Name:	 	
	 Title:
	 	

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 
			
	Franco Services Inc.
		
	By:	 	  

	Name:	 	Gary P. Little
	 Title:
	 	

  

[SIGNATURE PAGES TO MASTER REORGANIZATION
AGREEMENT] 

 Schedule A 
  

					
	 Continuing Members
	  	% PE Units 
Contributed to PubCo	 
	 Bryan Sheffield
	  	 	40	% 
	 Sheffield Energy Management, LLC
	  	 	50	% 
	 Michael Hinson
	  	 	50	% 
	 Matt Gallagher
	  	 	20	% 
	 Paul Treadwell
	  	 	50	% 
	 Ryan Dalton
	  	 	30	% 
	 Diamond K Interests, LP
	  	 	100	% 
	 Parsley Interests, LP
	  	 	50	% 
	 One Put Oil & Gas, Ltd.
	  	 	40	% 
	 Back Nine Oil & Gas, Ltd.
	  	 	40	% 
	 Nine Iron Oil & Gas, Ltd.
	  	 	40	% 
	 How-Jan Properties, Inc.
	  	 	40	% 

 Schedule B 

Form of Merger Agreement 

 Schedule C 

Form of A&R Parsley LLC Agreement 

 Schedule D 

Preferred Return Units 
  

					
	 Name
	  	Percentage	 
	 David Smith
	  	 	0.0680	% 
	 Frank Cremer
	  	 	0.0680	% 
	 Rob Crumpler
	  	 	0.0680	% 
	 Shack Ventures, LP
	  	 	1.0199	% 
	 Buck Horn, L.P.
	  	 	1.0199	% 
	 OSO Capital II, L.P.
	  	 	1.0199	% 
	 Hedloc Investment Company, L.P.
	  	 	2.7196	% 
	 Parsley Interests, L.P.
	  	 	0.6799	% 
	 Kirk Fritschen
	  	 	0.1360	% 
	 Justin Clark
	  	 	0.0680	% 
	 SD Gray Family Partnership, LP
	  	 	1.0199	% 
	 Ryan Dalton
	  	 	0.4759	% 
	 Michael Hinson
	  	 	0.5439	% 
	 Colin Roberts
	  	 	0.1700	% 
	 Kara Wood
	  	 	0.0680	% 
	 Mike Senich
	  	 	0.0680	% 
	 Brad Sublett
	  	 	0.0680	% 
	 Stephanie Reed
	  	 	0.3400	% 
	 Landon Martin
	  	 	0.1700	% 
	 Kristin McClure
	  	 	0.0680	% 
	 Isaac Hayes
	  	 	0.1224	% 
	 PLZ Properties, LLC
	  	 	0.2720	% 
	 Marbella Interests, LLC
	  	 	0.6799	% 
	 KMG Energy, LLC
	  	 	0.6799	% 
	 NGP X US Holdings, L.P.
	  	 	88.3873	% 

 Schedule E 

Form of Amended and Restated Registration Rights Agreement 

 Schedule F 

Proposed Secondary SalesEX-10.17

 Exhibit 10.17 

FORM OF AGREEMENT AND PLAN OF MERGER 

THIS AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of [•], 2014 and effective as of the Effective Time (as
defined below), pursuant to Section 18-209 of the Delaware Limited Liability Company Act (the “Delaware Act”) and Section 264 of the Delaware General Corporation Law (the “DGCL”), is made and entered into
by and among Parsley Energy Employee Holdings, LLC, a Delaware limited liability company (“MergerCo”) and Parsley Energy, Inc., a Delaware corporation (“Parsley,” and together with MergerCo, the
“Parties”). 
 RECITALS 

WHEREAS, the board of managers of Parsley Energy, LLC has adopted by written consent resolutions recommending and approving this
Agreement and the Merger (as defined below in Section 3 hereof) upon the terms and conditions hereinafter set forth; and 

WHEREAS, the holders of a majority of the limited liability company interests in MergerCo have voted to approve this Agreement and the
Merger upon the terms and conditions hereinafter set forth; and 
 WHEREAS, the board of directors of Parsley has adopted resolutions
declaring advisable and approving this Agreement and the Merger upon the terms and conditions hereinafter set forth; and 
 WHEREAS,
the Parties desire to enter into this Agreement to set forth the terms and conditions upon which the Merger shall take place. 
 NOW,
THEREFORE, in consideration of the promises and the mutual covenants and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and for the purpose of prescribing
the terms and conditions of the Merger and the mode of carrying the same into effect, the Parties hereby covenant and agree as follows: 

AGREEMENTS 
 1.
Effective Time. The Merger shall become effective upon the filing of the Certificate of Merger, in substantially the form of the Certificate of Merger attached hereto as Annex A, with the Secretary of State of the State of Delaware, or
at such later date specified in such Certificate of Merger (such time being referred to herein as the “Effective Time”). 

2. Name; Type of Entity; Jurisdiction. The name, type of entity and jurisdiction of formation of the parties to the Merger are as
follows: 
  

					
	 Name of Entity
	 	 Type of Entity
	 	 Jurisdiction of Formation

	Parsley Energy Employee Holdings, LLC	 	Limited Liability Company	 	Delaware
	Parsley Energy, Inc.	 	Corporation	 	Delaware

 3. Merger. In accordance with Section 18-209 of the Delaware Act and Section 264
of the DGCL, and subject to and upon the terms and conditions of this Agreement, MergerCo shall, at the Effective Time and in accordance with Section 4 hereof, be merged with and into Parsley, the separate organizational existence of
MergerCo shall cease and Parsley shall continue as the surviving entity (the “Merger”). Parsley, as the entity surviving the Merger (the “Surviving Entity”), shall continue its existence as a corporation under the
laws of the State of Delaware. 
 4. Conversion of Ownership Interests. At the Effective Time, by virtue of the Merger and without
any action on the part of the holders of any membership interests of MergerCo (“Membership Interests”): 
  

	 	a.	Each issued and outstanding Membership Interest shall be converted into [•] shares (the “Merger Consideration”) of Parsley’s Class A common stock, par value $0.01 per share (the
“Class A common stock”). 

  

	 	b.	No certificates representing fractional shares of Class A common stock shall be issued in connection with the conversion described herein. Parsley may, in lieu of delivering such fractional Class A common
stock, elect, in its sole discretion, (on a stockholder by stockholder basis) to (i) pay an amount in cash to the holder of such fractional Membership Interest equal to the same fraction of the price per share of each Class A common stock
of $[•], (ii) round the total shares delivered up to the next highest round number of Class A common stock, or (iii) round the total shares delivered down to the previous round number of Class A common stock.

 5. Effect of the Merger. At and after the Effective Time, the Merger will have the effects set forth in
Section 18-209 of the Delaware Act and Section 264 of the DGCL. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time all property, rights, privileges, powers and franchises of MergerCo shall be
vested in Parsley, and all debts, liabilities and duties of MergerCo shall become the debts, liabilities and duties of Parsley. 
 6.
Amendment. At any time prior to the Effective Time, this Agreement may, to the extent permitted by the Delaware Act and the DGCL, be supplemented, amended or modified by the mutual written consent of the Parties. 

7. Constituent Documents of the Surviving Entity. At the Effective Time, upon the Merger becoming effective, Parsley’s Amended and
Restated Certificate of Incorporation, as filed [•], 2014 with the Secretary of State of the State of Delaware, shall be and will constitute the certificate of incorporation of the Surviving Entity until amended in the manner provided by law,
and the Amended and Restated Bylaws of Parsley, dated as of [•], 2014, shall be and will constitute the bylaws of the Surviving Entity until amended in the manner provided by law. 

8. Counterparts. This Agreement may be executed in one or more counterparts, each of which when executed shall be deemed to be an
original but all of which shall constitute one and the same agreement. 
 9. Governing Law. This Agreement shall be governed by and
construed and enforced under the laws of the State of Delaware. 

  
 2 

 10. Entire Agreement; No Third Party Beneficiaries. This Agreement (including the Annexes
hereto and the documents and instruments referred to herein) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof, and is not
intended to confer upon any person other than the Parties any rights or remedies hereunder. 
 11. Assignment. Neither this Agreement
nor any of the rights, interests or obligations hereunder shall be assigned by any of the Parties without the prior written consent of the other Parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit
of, and be enforceable by, the Parties and their respective successors and assigns. 
 12. Severability. If any provision of this
Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. The Parties further agree that if any provision contained herein is, to any extent, held
invalid or unenforceable in any respect under the laws governing this Agreement, they shall take any actions necessary to render the remaining provisions of this Agreement valid and enforceable to the fullest extent permitted by law and, to the
extent necessary, shall amend or otherwise modify this Agreement to replace any provision contained herein that is held invalid or unenforceable with a valid and enforceable provision giving effect to the intent of the Parties to the greatest extent
legally permissible. 
 [Signature page follows] 

  
 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date
first written above. 
  

							
	SURVIVING ENTITY:	 		 	PARSLEY ENERGY, INC.
				
		 		 	By:	 	 
		 		 	Name:	 	Bryan Sheffield
		 		 	Title:	 	President and Chief Executive Officer

  

							
	MERGING ENTITY:	 		 	PARSLEY ENERGY EMPLOYEE HOLDINGS, LLC
				
		 		 	By:	 	 
		 		 	Name:	 	Bryan Sheffield
		 		 	Title:	 	Manager

 Signature Page to Agreement and Plan of Merger 

 ANNEX A 

FORM OF CERTIFICATE OF MERGER OF 

PARSLEY ENERGY EMPLOYEE HOLDINGS, LLC 

WITH AND INTO 
 PARSLEY
ENERGY, INC. 
 Pursuant to Section 18-209 of the Delaware Limited Liability Company Act (the “Delaware Act”) and
Section 264 of the Delaware General Corporation Law (the “DGCL”), the undersigned corporation submits the following Certificate of Merger adopted for filing and hereby certifies that: 

FIRST: The name and state of domicile of each of the constituent entities is as follows: 

 

					
	 Name of Entity
	 	 Type of Entity
	 	 Jurisdiction of Formation

	Parsley Energy Employee Holdings, LLC	 	Limited liability company	 	Delaware
	Parsley Energy, Inc.	 	Corporation	 	Delaware

 SECOND: An Agreement and Plan of Merger (the “Plan of Merger”) providing for the
merger (the “Merger”) of Parsley Energy Employee Holdings, LLC, a Delaware limited liability company (“MergerCo”), with and into Parsley Energy, Inc., a Delaware corporation (“Parsley”), has been
approved, adopted, certified, executed and acknowledged in accordance with the provisions of Section 18-209 of the Delaware Act and Section 264 of the DGCL by each of the constituent entities. 

THIRD: Parsley shall be the surviving company after the Merger (the “Surviving Company”). The name of the Surviving
Company is Parsley Energy, Inc. 
 FOURTH: The Merger is to become effective upon filing of this certificate. 

FIFTH: The Amended and Restated Certificate of Incorporation of Parsley, as filed [•], 2014 with the Secretary of State of the
State of Delaware, shall be and will constitute the certificate of incorporation of the Surviving Company. 
 SIXTH: The executed
Plan of Merger is on file at: 500 W. Texas Ave., Tower I, Suite 200, Midland, Texas 79701, the principal place of business of the Surviving Company. 

SEVENTH: A copy of the Plan of Merger will be furnished by the Surviving Company, upon request and without cost, to any shareholder of
any constituent corporation or any member of any constituent limited liability company. 
 [Signature page follows] 

 IN WITNESS WHEREOF, Parsley has caused this Certificate of Merger to be signed by a duly
authorized officer thereof, on the             day of [•], 2014. 
  

			
	PARSLEY ENERGY, INC.
		
	By:	 	  

	Name:	 	Bryan Sheffield
	Title:	 	President and Chief Executive Officer

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