David DellOsso - Parsley Energy, Inc. - Executive
VP & COO
Yes, John, this is David. We certainly do expect to increase our original sand usage, and its part of why you
see the bottom end of that range of $10.75. As an example, theres potential to save more than what weve seen in our recent Q2 and Q3 results. Those results did have some regional usage, but it was a minority fraction. So youre
absolutely right. It is an opportunity going forward. And were just were going to have to see weve got are going for stimulation, which will which includes sand as well. And so were going to get a little
more data on that pretty soon.
John Christopher Freeman - Raymond James & Associates, Inc., Research Division - Research
Analyst
Great. And then my follow-up question, in the 2020 guidance outlook that youve given, do you
assume that the lateral length of JAG is sort of stays where its at or do you factor in that, obviously, with the land synergies, youre picking up in the deal that the lateral length for JAG probably moves closer to what you all have
been and closer to 10,000 feet?
David DellOsso - Parsley Energy, Inc. - Executive
VP & COO
For 2020 in the near term, dont expect it to change much. That we did highlight those land synergies, which will
create benefits over the long-term and the very near term, though. Its based on a pretty comparable lateral length that we show on the Slide 8.
Operator
Our next question comes from Charles Meade with
Johnson Rice.
Charles Arthur Meade - Johnson Rice & Company, L.L.C., Research Division - Analyst
Good morning, Matt, you and your whole team there. Matt, I wondered if we could go back to your prepared comments, you talked about the water infrastructure.
And that you guys have, I believe, what I heard you say is that youve settled on a structure and youre working with a part of your couple of preferred parties. Can you elaborate a little bit on what led you to, I guess, pick this
structure, I believe what you said is a minority having in minority investor in the project? And what timeline we should be thinking about?
Matthew Gallagher - Parsley Energy, Inc. - President, CEO & Director
Sure, Charles. Anytime we go into an analysis of one of our assets, we cast a wide net of possibilities, and we funnel down based on what fits our needs the
best. And we really believe you can look at our lease operating expenses that we are a leader in operations of these assets. So this structure allows us to continue those operations across the basin and bringing in a partner, a financial partner,
essentially. Ill kick it over to Dalton for more of the time frame on that.
Ryan Dalton - Parsley Energy, Inc. - Executive
VP & CFO
Yes. I mean, what came apparent to us as we look through all these different options, not to repeat what Matt said
operational control is very important to us since if an alarm goes off at night we know that its being addressed by Parsley employees. But again, time frame, as Matt mentioned, hopefully, within the next month or two, well be able to go
into more details. But even though were saying were just monetizing a portion of the water assets, we wouldnt be doing so if it werent creating clear value for our shareholders.
Charles Arthur Meade - Johnson Rice & Company, L.L.C., Research Division - Analyst
Thanks for that added color. And then this question is perhaps for David, and I appreciate you guys have a lot of dense slides with a lot of information put
together on this capital efficiency theme. And it makes sense to me the way, David, youre talking about the productivity side and the cost side. But does it also make sense to perhaps think about it as a what assets you have and how you
prosecute those assets? And if youve separated that way and how, of course, it has effects on both the cost and the productivity side. How much of this uplift youre seeing on JAG or pro forma Parsley? How much of that is just kind of
better JAG rocks to work with? And how much of that is how youre going to be doing it differently?
David DellOsso - Parsley Energy, Inc. - Executive VP & COO
Yes, Charles, I think going forward, theres a slide a little bit later on where we talk about widening the fairways, we kind of give a refresh on our
inventory. So I think with the JAG assets that allows us to sort of increase our capital allocation to the Delaware. But within the Midland, were going to see it pretty similar 2020 pro forma look to what you saw in 2019, well have some
continued trends there. So yes, there I take your point, there are going to be differences between certain areas and a higher allocation of the Delaware is part of it. But as we talked about, more value per dollar invested. With these new
assets should help on the Delaware side and the lower cost structure, allowed it to normalize it more with what weve seen in the middle of this year.