Results Driven. Manufacturing Focused. Sanchez Experience in Eagle Ford Acquisitions September 16th, 2014 www.sanchezenergycorp.com
Eagle Ford Shale Position INTERNAL USE ONLY SN Eagle Ford Position Summary Net Acres 224,000 Current Production (Boe/d) 37,000 Operated Rigs Non-Operated Rigs Gross Producing Wells 429 Hausser Wycross Talbutt Trust…
Transformational Growth INTERNAL USE ONLY At IPO Today (12/31/11) (6/30/14) Production 609 Boe/d 61x 37,000 Boe/d 6.7 MMBoe 117 MMBoe Proved Reserves 17x 14% PD 44% PD PV-10 152 million 13x 1,977 million LTM Revenue 15…
Delivering Strong Results INTERNAL USE ONLY Reserves by Product Mix (6/30/14) Quarterly Production 125 Actual PF Catarina 117 40,000 35,000 100 PD PUD 30,000 56% 25,000 (MBOE/D) 75 MMBoe 59 20,000 15,000 50 43 58%…
Acquisition Strategy INTERNAL USE ONLY Opportunistic with Acquisitions 1. Cost structure improves return of capital following acquisition 2. Less expensive alternative to leasing with reduced risk and lease expiration burden 3.…
Acquisition History INTERNAL USE ONLY Acquisition : Five Mile Creek Timing : July 2013 Purchase Price (MM) : 29 Acquisition : Cotulla Timing : May 2013 Purchase Price (MM) : 265 Acquisition : Wycross Timing : October 2013…
Optimization of Alexander Ranch INTERNAL USE ONLY In May 2013, acquired operated assets across 44,461 net acres in the Eagle Ford Shale from Hess Corporation for 265 million cash plus 15 million cash in customary closing adjustments…
Cost Reductions Expanding Core INTERNAL USE ONLY 9 2014 Sanchez Energy Corporation
Catarina Asset INTERNAL USE ONLY 10 2014 Sanchez Energy Corporation
Catarina Status Update INTERNAL USE ONLY Since closing the acquisition on June 30, we have moved swiftly to develop Catarina After brief transition period with Shell, SN took over full operations on August 1 Drilling: 2 rigs pad…
Catarina Acquisition Rationale INTERNAL USE ONLY Highly Accretive & Attractive Valuation Significant Additional Upside Immediately accretive to EPS, CFPS, production per share and reserves Acquisition Metrics based on UEF production…
Western Catarina Offset Operator Performance INTERNAL USE ONLY APC Briscoe Ranch Anadarko Acreage EUR: 600+ MBoe IRR: 70+% Avg. EUR: 550 Mboe IRR: 50%+ Lewis Petroleum Swift Energy Private Operator Avg EUR: 675 Mboe APC…
Western Margin Zone Targeting INTERNAL USE ONLY A3 PILOT 10 TOC 0 SN Catarina Development Focus on TOC rich Lower Eagle Ford Target zone of Rosetta, APC, SM, etc. (all offsetting operators) Multiple targets in both the Upper Eagle…
Stacked Lateral Potential INTERNAL USE ONLY Western Catarina Type Log SN intends to target the Lower Eagle Ford (LEF) with additional infill potential in the Upper Eagle Ford (UEF) as a secondary target The majority of wells drilled…
Eastern Catarina Potential Regional Cross Section of Lower Eagle Ford Potential INTERNAL USE ONLY A A Successful SN wells from Alexander Ranch and Briggs Alexander A Ranch have similar LEF core & log rock quality as the Ranch…
Key Points INTERNAL USE ONLY Capital efficiency key to positioning SN to be a consolidator in the Eagle Ford Eagle Ford is expanding vertically Valuation determined from deep technical analysis of assets prior to bidding Maintain…
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