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January 2014 Corporate Presentation – Sanchez Energy Corp

Sanchez Energy Corp · Jan 6, 2014 · 32 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 1
    Corporate Presentation January 2014
  2. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 2
    Sanchez Energy Overview Market Cap (1) 1,135 MM Enterprise Value 1,880 MM Eagle Ford Shale Net Acreage: 125,000 acres 1P Reserves: 54 MMBoe (2) Production: 20,000+ Boe/d Rapidly Growing Production grew 700% YOY Oil Weighted…
  3. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 3
    Strong Growth in Production and Proved Reserves Average Daily Net Production (Boe/d) Pro Forma Proved Reserve Growth (MMBoe) (1) 60 20,000 17,000 PD PUD 54 - 15,000 50 16,000 40 11,774 Average Boe/d 12,000 72%…
  4. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 4
    Oil Concentrated Reserves And High Cash Margins Crude oil represents 76% of reserves (88% liquids) 6/30/13 Pro Forma Reserves by Product Mix (1) Realized Price Vs. Unhedged Cash Margins (/Boe) (2) (3) 86.96 Gas Taxes 5.11 12% LOE…
  5. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 5
    Capital Expenditures Focused On Eagle Ford Preliminary 2014 Operating Capital Plan (MM) Gross % of Full Year Net Wells Net Wells Operating Project Area Rig Count Spud Completed Capex Capital Marquis 2.0 20 23 195 28% Palmetto 2.0 14…
  6. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 6
    Eagle Ford Shale 7 2013 Sanchez Energy Corporation
  7. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 7
    The Eagle Ford Shale Core Focus Area SN Position Summary Net Acres 125,000 Current Production (Boe/d) 20,000+ Gross Drilling Rigs 6 Producing Wells 187 8 2013 Sanchez Energy Corporation
  8. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 8
    Wycross Overview Acreage & Inventory Wycross Acreage Total Net Acres 3,600 Average Working Interest 60% Wycross Average Net Revenue Interest 45% 30 Day IPs From Current Well Spacing (Acres) 80+ 13 Wells (Boe/d) Net Identified…
  9. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 9
    Marquis Overview Acreage & Inventory Marquis Area Acreage Total Net Acres 69,000 Average Working Interest 100% Marquis (Prost) 30 Day IPs From Average Net Revenue Interest 75% 17 Wells (Boe/d) Current Well Spacing (Acres) 60 Net…
  10. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 10
    Palmetto Overview Acreage & Inventory Palmetto Area Acreage Total Net Acres 9,800 Average Working Interest 50% Palmetto 30 Day IPs From Average Net Revenue Interest 37% 41 Wells (Boe/d) Current Well Spacing (Acres) 60 Net…
  11. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 11
    Cotulla Maverick Overview Acreage & Inventory Cotulla Maverick Area Acreage Total Net Acres 43,000 Average Working Interest 90% Alexander Ranch 30 Day IPs From Average Net Revenue Interest 66% 32 Wells (Boe/d) Current Well Spacing…
  12. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 12
    Tuscaloosa Marine Shale 13 2013 Sanchez Energy Corporation
  13. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 13
    Tuscaloosa Marine Shale TMS Transaction Eagle Ford to TMS Trend Sanchez Energy acquired 40,000 net acres in the core of the TMS and is in a 50/50 joint venture and AMI with Sanchez Resources, the JV that currently holds 115,000…
  14. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 14
    TMS Acreage Position and Activity Anticipated 2014 SN Activity SN anticipates spudding up to 4 gross (2 net) operated wells and participating in 10 - 15 gross non-operated wells with working interests ranging from 1% - 25% First SN…
  15. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 15
    Operations and Financial Overview 16 2013 Sanchez Energy Corporation
  16. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 16
    Operational Focus on Cost Efficiencies Pad Drilling Efficiencies Cash Operating Cost (per Boe) We have experienced cost reductions with the move to pad drilling across all of our assets Cost reductions of 10% compared to single…
  17. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 17
    Drilling Efficiencies Cotulla (Alexander Ranch) Marquis (Prost) Alexander Ranch wells have seen a decrease of Prost wells have seen a decrease of 6 days (19%) 6 days (23%) from spud to rig release over the from spud to rig release over…
  18. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 18
    Well Performance Improvement Early production results from the most recent 7 wells drilled on Alexander Ranch are exceeding our expectations and outperforming the type curve 40,000 35,000 30,000 Gross Cumulative Oil (Bbl)…
  19. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 19
    Downspace Testing Across Portfolio Reserve Current Potential Report Number of Development Spacing 40 Acre Plan Spacing Utilizing 3D Seismic Area (Acres) Test Wells (Acres) Microseismic Coverage Palmetto 60 5 40 Marquis 60 0 60…
  20. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 20
    Top Quartile EBITDA Margins Oil Driven Production 76% of 3Q13 production was crude oil (86% including NGLs) Premium Pricing 93% of oil is sold on LLS pricing Low Transportation Costs - 50% of oil sold into pipelines; multiple sales…
  21. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 21
    Ample Liquidity After Recent Financings Pro Forma 3Q13 Capitalization Table & Liquidity (MM) Current pro forma liquidity of As of Pro Forma (1) 9/30/2013 Adjustments 9/30/2013 570 million after closing the Cash and Equivalents 490…
  22. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 22
    Summary Investment Considerations Rapidly Growing Base Of Oil Production And Proved Reserves 125,000 Net Acres In The Eagle Ford With 1,500+ Net Identified Locations Eagle Ford Shale: 40 Acres Pilots Can Further Expand High Quality…
  23. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 23
    Appendix 24 2013 Sanchez Energy Corporation
  24. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 24
    Capitalization Summary Revolving Credit Facility (due 2018) 300 MM Borrowing base with interest rate of LIBOR + 2.00% - 2.75% 0 MM drawn at end of 3Q13 Consortium of 10 banks Restrictive covenant: Net Debt < 4.0x TTM EBITDA 600 MM…
  25. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 25
    Hedge Summary & Philosophy We maintain an active hedging program to help support capital spending, protect cash flow, and ensure strong financial coverage metrics Currently have 3.5 million barrels hedged for 2014 at an average…
  26. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 26
    NonGAAP Reconciliation and Measures Pro Forma Reconciliation of Net Income (Loss) To Adjusted EBITDA (M) 3 Months Ended 3Q13 Net Income (Loss) 3,880 Plus: Interest Expense 9,460 Depreciation, Depletion, Amortization, And…
  27. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 27
    Project Area Type Curves 28 2013 Sanchez Energy Corporation
  28. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 28
    Wycross Area Type Curve & Economics Wycross Area Type Curves and Well Economics 550 MBoe EUR 8.0 MM Capex 1,200 Oil Price ( / Bbl) 80.00 90.00 100.00 NPV-10 (MM) 5.9 7.9 9.8 IRR 53% 75% 100% 1,000 Payout (Years) 1.5 1.2 0.9…
  29. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 29
    Marquis Area Type Curve & Economics Marquis Area Type Curves and Well Economics 550 MBoe EUR 9.0 MM Capex 1,200 Oil Price ( / Bbl) 80.00 90.00 100.00 NPV-10 (MM) 4.9 6.8 8.8 IRR 38% 53% 71% 1,000 Payout (Years) 2.0 1.6 1.3…
  30. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 30
    Palmetto Area Type Curve & Economics Palmetto Area Type Curves and Well Economics 750 MBoe EUR 9.0 MM Capex 1,500 Oil Price ( / Bbl) 80.00 90.00 100.00 NPV-10 (MM) 9.4 12.0 14.6 IRR 86% 117% 154% 1,250 Payout (Years) 1.1 0.9 0.8…
  31. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 31
    Cotulla Area Type Curve & Economics Cotulla Alexander Ranch Area Type Curves and Well Economics 500 MBoe EUR 7.5 MM Capex 900 Oil Price ( / Bbl) 80.00 90.00 100.00 NPV-10 (MM) 2.3 3.8 5.3 IRR 24% 34% 46% 750 Payout (Years) 2.9 2.2…
  32. January 2014 Corporate Presentation – Sanchez Energy Corp – slide 32
    TMS Area Type Curve & Economics TMS Area Single Well Economics TMS Area Development Well Economics 800 MBoe EUR 15.0 MM Capex 800 MBoe EUR 10.0 MM Capex Oil Price ( / Bbl) 80.00 90.00 100.00 Oil Price ( / Bbl) 80.00 90.00 100.00…

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