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Sanchez Energy Corporation (SN)(“Sanchez Energy,” the “Company,” “we,” “our,” “us,” or similar terms), today announced that it has received commitments from its lending group to change the borrowing base under its $1.5 billion first lien revolving credit facility from $550 million to $500 million with an unchanged elected commitment of $300 million, effective today. With nothing drawn on the borrowing base, the Company has significant headroom to its 2.25x senior secured leverage covenant.

Gleeson Van Riet, Sanchez Energy’s Chief Financial Officer, reported, “We are pleased with the results of our Fall 2015 Borrowing Base Redetermination and are grateful for the continued support of our entire bank group. Our banking syndicate has consistently assisted us in our efforts to create value for our shareholders. Our new approved $500 million borrowing base takes into account our reserve growth since our last redetermination, slightly offset by the change in bank credit price decks and the Western Catarina Midstream sale. We have decided to maintain our $300 million elected commitment amount knowing we have the ability to access the much higher approved borrowing base. The Company’s liquidity remains strong with a current cash position in excess of $450 million in addition to this completely unused bank credit facility. We expect to fully fund our 2016 capital program through cash on hand and cash flow from operations without drawing down on the Company’s revolving credit facility and would expect to enter 2017 with a positive cash balance.”

“In addition, during the fourth quarter Sanchez Energy entered into additional derivative contracts covering anticipated future gas production in 2016 and 2017. As of November 19, 2015, Sanchez Energy has approximately 6.6 million barrels of anticipated crude production and 35.3 Bcf of gas production for 2016 hedged, or approximately 12,471.7 MBOE (34,076 BOE/D), which represents approximately 68% of its anticipated total 2016 production at the mid-point of its 4Q 2015 guidance range. Further detail regarding current hedges for anticipated future production is included herein.”


The following table summarizes the Company’s hedge contracts as of November 19, 2015:

Daily Volume
Commodity Instrument Period (Bbls / MMBtu) Average Price
Oil Swaps November-December 31, 2015 14,000 $73.23 WTI Swap
Oil Swaps January 1-December 31, 2016 7,000 $70.11 WTI Swap
Oil Puts January 1-December 31, 2016 11,000 $60.00 WTI Puts
Gas 3-Way Costless Collar November-December 31, 2015 10,000 Short $4.90 HHub Call / Long $4.00 HHub Put /
Short $3.50 HHub Put
Gas Enhanced Swaps November-December 31, 2015 31,000 $4.31 HHUB Swap
Short $3.75 HHUB Put
Gas Swaps November-December 31, 2015 20,000 $3.96 HHUB Swap
Gas Swaps January 1-December 31, 2016 99,154 $3.12 HHUB Swap
Gas Swaps January 1-December 31, 2017 76,562 $3.00 HHUB Swap
Oil Total Oil Hedged Calendar Year 2015 14,000
Oil Total Oil Hedged Calendar Year 2016 18,000
Oil Total Oil Hedged Calendar Year 2017 0
Gas Total Gas Hedged Calendar Year 2015 61,000
Gas Total Gas Hedged Calendar Year 2016 99,154
Gas Total Gas Hedged Calendar Year 2017 76,562


An updated investor presentation has been uploaded to the Investors section of the Company’s website (


Sanchez Energy Corporation is an independent exploration and production company focused on the acquisition and development of unconventional oil resources in the onshore U.S. Gulf Coast, with a current focus on the Eagle Ford Shale in South Texas where we have assembled approximately 207,000 net acres, and the Tuscaloosa Marine Shale. For more information about Sanchez Energy Corporation, please visit our website: