Corporate Presentation August 2013 1 2013 Sanchez Energy Corporation
Sanchez Energy Corporation Overview Eagle Ford Shale Position Sanchez Energy Overview Eagle Ford Oil Marquis Onshore Gulf Coast oil resource focus with a core Condensate 140,000 net acre position in the Eagle Ford Shale Dry Gas…
Oil-Weighted Production & Reserve Growth Average Daily Net Production Per Period (Boe/d) (1) Proved Reserve Growth (MMBoe) (1) 15,000 50 -- PD PUD 16,000 43.0 13,000 12,000 40 -- 11,000 12,000 30 70% 7,726 21.2 8,000 20…
2013 Capital Expenditure Budget 2013 Budget Summary 2013 Capital Plan % of Sanchez Energy plans on Full Year Net Wells Net Wells Operating Project Area Rig Count Spud Completed Capex Capital spending a total of 475 million Marquis…
The Eagle Ford Shale - Core Focus Areas Eagle Ford Sanchez Energy Position Summary Marquis Oil Net Acres 140,000 Condensate Proved Reserves (Mmboe) 43.0 Dry Gas Current Production (Boe/d) 12,000+ SN Leases Drilling Rigs 6…
Marquis Acreage & Inventory Sanchez Energy Marquis Area Acreage Position Total Net Acres 69,000 Average Working Interest (%) 100% Recent 10,300 net acre 5 Mile Creek Average Net Revenue Interest (%) 75% Acquisition Current Well…
Palmetto Acreage & Inventory Sanchez Energy Palmetto Area Acreage Position Total Net Acres 9,700 Average Working Interest (%) 50% Average Net Revenue Interest (%) 37% Current Well Spacing 60 Acres Net Identified Drilling Locations(1)…
Cotulla Maverick Acreage & Inventory Sanchez Energy Cotulla Maverick Area Acreage Position Total Net Acres 59,000 Average Working Interest (%) 90% Cotulla Area Average Net Revenue Interest (%) 73% Current Well Spacing 60 Acres Net…
Development Efficiencies Pad Drilling Efficiencies Down-spaced Wells With the transition to pad drilling across all of our assets we have experienced cost reductions of +10% Key Drivers: Location costs reduced and spread over…
Operational Efficiencies Drive Improving Cash Margins Our growing production and operational improvements have resulted in our cash margins per barrel of oil increasing from 38.51 to 62.49 per Boe since our IPO in 2011 Key Drivers:…
Tuscaloosa Marine Shale 12 2013 Sanchez Energy Corporation
Tuscaloosa Marine Shale Transaction TMS Transaction Overview Eagle Ford and TMS Run Along the Carbonate Margin Sanchez Energy acquired 40,000 net acres in the core of the TMS and becomes 50/50 joint venture partner with Sanchez…
TMS Joint Venture Acreage Position Sanchez Energys 40,000 net acres in the core of the play are surrounded by an increasing number of well results from Encana and Goodrich with IPs of 1,000+ Boe/d Sanchez Energy TMS Joint Venture…
TMS Well Results The table below highlights TMS wells put on production within the past 20 months and is ordered from newest vintage wells to oldest wells Well results in the TMS have been improving over the past two years with a…
Summary Investment Considerations Rapidly Growing Base of Proved Reserves & Production 140,000 Net Acres in Eagle Ford with 1,700+ Net Identified Drilling Locations 2013 Drilling Program Creates Significant Near Term Value…
Appendix 17 2013 Sanchez Energy Corporation
Marquis Area Type Curve & Economics Marquis Area Type Curves and Well Economics (1) 1,200 550 MBoe EUR 9.0 MM Capex Oil Price ( / Bbl) 80.00 90.00 100.00 NPV-10 (MM) 4.9 6.8 8.8 1,000 IRR 38% 53% 71% Average Monthly Production…
Palmetto Area Type Curve & Economics Palmetto Area Type Curves and Well Economics (1) 1,500 750 MBoe EUR 9.0 MM Capex Oil Price ( / Bbl) 80.00 90.00 100.00 NPV-10 (MM) 9.4 12.0 14.6 1,250 IRR 86% 117% 154% Average Monthly…
Cotulla Area Type Curve & Economics Cotulla Alexander Ranch Area Type Curves and Well Economics (1) 600 450 MBoe EUR 7.5 MM Capex Oil Price ( / Bbl) 80.00 90.00 100.00 NPV-10 (MM) 1.7 3.0 4.4 500 IRR 19% 27% 36% Average Monthly…
Hedging Summary & Philosophy We maintain an active hedging program to help support capital spending, protect cash flow and ensure strong financial coverage metrics We have historically been limited by our bank credit facility to hedging…
Non-GAAP Reconciliations Reconciliation Of PV-10 To Standardized Measure (MM) As of 6/30/13 PV-10 846 Present Value Of Future Income Taxes Expenses Discounted at 10% (177) Standardized Measure 669 Standardized measure is…