Current SN Stock Info
  • 2015 year-end reserves were 128 MMboe at the SEC oil price of $50.28/Bbl
  • Johnson Rice reiterates “Buy” rating

Sanchez Energy Corporation (ticker: SN; announced operating and financial results for the fourth quarter and full-year 2015.


  • Record production of 5.3 million barrels of oil equivalent (“MMBoe”)
  • Record quarterly average daily production of 58,115 barrels of oil equivalent per day (“Boe/d”)
  • Better than expected production results were driven by Catarina production of 46,030 Boe/d, the highest quarterly production level recorded to date from the asset, as well as strong performance from new wells in the Cotulla area
  • Average quarterly well costs at Catarina of $3.5 million per well and wells are 40 percent more productive since first acquired
  • $435 million cash balance at year-end 2015 and $735 million in total liquidity
  • Closed the Western Catarina Midstream Divestiture for approximately $345 million in cash
  • Entered a joint venture with Targa Resources Partners LP (“Targa”)to construct a cryogenic processing plant and high pressure gathering pipeline near Catarina, which is expected to provide a path to improved yields, lower processing fees, and significant marketing benefits


  • Record annual production of 19.2 MMBoe for an average annual production rate of 52,560 Boe/d, an increase of 72% over 2014 production
  • Record oil production averaging 19,629 barrels per day (“Bbl/d”)
  • Upstream capital expenditures including accruals of $545 million in 2015 compared to $867 million in 2014, a reduction of approximately 37% over 2014
  • $155 million mark-to-market value of hedging position at year-end 2015 corresponding to hedge contracts covering approximately 82% of expected 2016 revenues, and $189 million current mark-to-market value of hedge position as of February 24, 2016
  • Completed the 50-well annual drilling commitment at Catarina for the period July 1, 2015 through June 30, 2016, which provides the Company with significant operational and financial flexibility in 2016 and 2017, as up to 30 wells drilled in excess of the minimum commitment can be carried forward to the next annual period
  • 2015 year-end proved reserves are approximately 128 MMBoe, with a PV-10, a non-GAAP measure defined below, of $594 million

“Our achievements in 2015 include ending the year with a strong cash position of $435 million. The company’s cash position was aided by several key divestitures with Sanchez Production Partners which generated approximately $430 million in cash proceeds without needing to issue additional equity or debt. Our balance sheet remains strong and we are well prepared to weather a prolonged down cycle,” said Tony Sanchez, III, Chief Executive Officer of Sanchez Energy, in a company statement.

“We improved well results in all areas through increased drilling and completion efficiencies — notably, Catarina wells are now over 40 percent more productive than they were when we acquired them. Next, we reduced our capital cost structure considerably by more than 55 – 65 percent across our asset areas. These two accomplishments alone significantly improved our well economics throughout our portfolio and allowed us to reach our original production target range with a capital program we reduced by about 50 percent over the course of the year.

“We also ended the year with a solid hedge position including covering approximately 100% of our oil volumes and 95% of our gas volumes, both hedged in 2016 at attractive prices. This competitive hedge position will allow us to execute our 2016 plan and build flexibility for 2017. We expect that these achievements will provide a strong foundation as we navigate through 2016 and prepare for 2017.”

Sanchez Energy will present at The Oil & Services Conference™

Tony Sanchez III presents Sanchez Energy at EnerCom's The Oil & Gas Conference 20. Photo: OAG360

Tony Sanchez III presents Sanchez Energy at EnerCom’s The Oil & Gas Conference 20. Photo: OAG360

Sanchez Energy is a presenting company at EnerCom’s The Oil & Services Conference™ on March 9, 2016, in San Francisco.

The Johnson Rice research report on Sanchez Energy may be read here.


Legal Notice