Sanchez Energy Announces Third Quarter 2016 Operating And Financial Results

HOUSTON, Nov. 07, 2016 (GLOBE NEWSWIRE) -- Sanchez Energy Corporation (NYSE:SN) ("Sanchez Energy" or the "Company"), today announced operating and financial results for the third quarter 2016.  Highlights include:
  • Total production of 4.7 million barrels of oil equivalent ("MMBoe"), or approximately 51,500 barrels of oil equivalent per day ("Boe/d"), was at the high end of Company's 50,000 to 52,000 Boe/d guidance for the third quarter 2016;
  • Average drilling and completion costs during the third quarter 2016 at Catarina and Cotulla were $3.0 million per well, with the Company's best wells coming in below $2.8 million per well in both areas; 
  • Recent development and pilot wells confirm Upper Eagle Ford extends over a larger area of Western Catarina. The Company now estimates it has over 350 Upper Eagle Ford locations with returns in excess of 50%; 
  • Most recent nine Hausser wells are outperforming type curves by 10 to 15 percent with returns greater than 85 percent at recent strip pricing;
  • Revenues of approximately $114.8 million were up approximately 3.5 percent when compared to the second quarter 2016, primarily due to improvements in realized commodity prices during the third quarter 2016;
  • Adjusted Revenue (a non-GAAP financial measure), inclusive of hedge settlements, was approximately $142.9 million during the third quarter 2016;  
  • On a GAAP basis, the Company reported a net loss attributable to common stockholders of $70.2 million for the third quarter 2016;
  • Adjusted EBITDA (a non-GAAP financial measure) of approximately $83.8 million during the third quarter 2016 was up approximately 5 percent when compared to the prior quarter;  
  • Strong liquidity of approximately $629 million as of Sept. 30, 2016, consisting of $329 million in cash and cash equivalents and an undrawn bank credit facility with an elected commitment amount of $300 million; and
  • Additions to this strong liquidity position are anticipated during the fourth quarter 2016 as a result of the Company's previously announced transactions with Sanchez Production Partners LP (NYSE MKT:SPP) ("SPP") and Carrizo Oil & Gas, Inc. ("Carrizo"), which are expected to result in cash proceeds totaling approximately $256 million.

MANAGEMENT COMMENTS"As previously reported, we achieved excellent operating results in the third quarter 2016, with process improvements and efficiency gains driving our average well cost below $3.0 million per well," said Tony Sanchez, III, Chief Executive Officer of Sanchez Energy. "The combination of strong production and lower costs has allowed us to achieve positive returns on our capital program.  This is evident in our financial results, as our Adjusted EBITDA for the third quarter 2016, at approximately $83.8 million, was up 5 percent over the second quarter. 

"Our strong operating and financial performance resulted in total liquidity, including availability under our undrawn credit facility, of approximately $629 million at the end of the third quarter.  Our liquidity position benefitted from the closing of the Carnero Gathering Transaction with SPP, which resulted in a cash payment during the third quarter 2016 of $37 million and the assumption by SPP of an estimated $7.4 million in remaining capital commitments.

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