Exploration & Production | Deals - Acquisition, Mergers, Divestitures

Sanchez Energy Completes Acquisition Eagle Ford Shale Core

Share Print Bookmark    |    Monday,June 30,2014

Sanchez Energy Corporation  announced today the closing of the previously announced acquisition of Eagle Ford Shale assets from wholly-owned subsidiaries of Royal Dutch Shell plc with an effective date of January 1, 2014. Including the approximate $51.1 million deposit previously paid, total consideration for the acquisition was approximately $553.5 million, comprised of the $639 million purchase price less approximately $85.5 million in normal and customary closing adjustments. The final purchase price is subject to further customary post-closing adjustments. The transaction was funded from cash on hand from a portion of the net proceeds from our previously issued $850 million senior unsecured 6.125% notes due 2023.

Sanchez Energy separately announced today the closing of its Second Amended and Restated $1.5 billion Credit Agreement, dated as of June 30, 2014, with an elected, available, commitment amount of $425 million. There are no outstanding loans under the amended credit facility.

Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy, said: "This strategic acquisition adds significant reserves, production and future resource potential in an area of the Eagle Ford Shale where we have demonstrated an ability to rapidly assimilate and efficiently develop acquired properties. We believe that our recently completed equity and notes capital raises along with our new bank credit facility will leave us in a financial position of considerable strength to execute our plans."