Results Driven. Manufacturing Focused. Corporate Presentation December 2014 www.sanchezenergycorp.com
Sanchez Energy Overview Eagle Ford Shale Market Cap (1) 710 MM (1) Enterprise Value 1,865 MM Net Acreage: 226,000 acres 1P Reserves: 125 MMBoe (2) Current Production: 45,000 Boe/d Positioned to thrive in a period of volatile…
Eagle Ford Shale Position SN Position Summary Net Acres 226,000 Current Production (Boe/d) 45,000 Operated Rigs Non-Operated Rigs Gross Producing Wells 479 Hausser Wycross Talbutt Trust Alexander Ranch Briggs…
Transformational Growth At IPO Today (12/31/11) (9/30/14) Production 609 Boe/d 74x 45,000 Boe/d 6.7 MMBoe 19x 125 MMBoe (1) Proved Reserves 14% PD 46% PD PV-10 152 million 14x 2,082 million (1) LTM Revenue 15 million 59x…
Capital Expenditure & Production Guidance Reflecting the downturn in oil prices, SN has revised its preliminary 2015 capital plan range downwards to 850 900 million, a reduction of 250 300 million from the previous guidances midpoint…
Tailored Programs Enhancing Returns Buda open hole lateral development Longer laterals, higher proppant Down spacing UEF standalone, load trials pilots, UEF/Buda UEF/LEF tests stacking overlap Longer laterals, down…
Stacked Lateral Potential Palmetto Catarina Wycross Marquis La Salle Cotulla Cotulla Upper Eagle Ford Lower Eagle Ford Target 1 Lower Eagle Ford Target 2 Buda 10 Development Appraisal 2014 Sanchez…
Manufacturing Process Drives Capital Efficiency Multi-Well Pad Field Development Appraisal Well + Zipper Frac Savings and Well Design Savings SN Competitive Advantage 14.0 12.0 10.0 8.0 MM 6.0 12.9 4.0 9.5 7.3 2.0…
Track Record of Reducing Capital Prost Well Cost Reductions 7 MM Well 8 MM Well 9 MM Well 80% 60% IRR 40% 20% 0% 80 90 100 Oil Price / Bbl Alexander Rach Well Cost Reductions 5 MM Well 6 MM Well Drilling…
Catarina Overview Western Catarina (43,000 net acres) PUD Locations only in Western Catarina Partially developed; excellent offset operator results Eastern 200 LEF drilling locations Catarina 71 Proven UEF locations; 180 potential…
Initial Catarina Well Results Initial Upper Eagle Ford wells in Catarina have continued to exhibit strong rates and have achieved 30 day IP rates averaging 1,067 Boe/d First three Lower Eagle Ford wells in Catarina had initial 24 hour…
Cotulla Overview Hausser Wycross Talbutt Trust Wright Ranch Alexander Ranch Cotulla Acreage & Inventory Wycross Well Economics Alexander R. Well Economics Total Net Acres 41,000 EURs (MBoe) 500 EURs (MBoe) 450 Average…
Marquis & Palmetto Overview Marquis Palmetto Marquis Acreage & Inventory Prost / Moulton Well Economics Palmetto Acreage & Inventory Total Net Acres 71,000 EURs (MBoe) 450 Total Net Acres 9,000 Average Working Interest 100% D&C…
TMS Acreage Position and Activity 61,000 net acre position in the core of the TMS Contiguous blocky acreage with 3+ years of average remaining lease term St. Davis Unit 1H in Amite County, Mississippi came online with a 24 hour…
Capitalization 3Q14 liquidity of 896 million 3Q14 Capitalization Table & Liquidity (MM) As of 596 million in cash 9/30/14 650 million borrowing base with an Cash and Equivalents 596 elected commitment of 300 million and (1)…
Hedge Summary Hedging program protects cash flow, development, and capital spend 48% of anticipated total 2015 production hedged at the mid-point of production guidance range Hedging revenue objectives based on 90 oil pricing and 4 gas…
Capitalization Summary Revolving credit facility (due 2019) 650 MM borrowing base with an elected commitment of 300 million and an interest rate of LIBOR + 1.50% - 2.50% Restrictive covenant: Net Debt < 4.0x TTM EBITDA 600 MM of…
Summary Investment Highlights Deep inventory of high-return, low risk locations underpins growth 2,800+ net drilling locations across 226,000 net acres in the Eagle Ford 2015 production guidance midpoint: 50,000 Boe/d Operational…
NonGAAP Reconciliation and Measures Reconciliation of Net Income (Loss) To Reconciliation of PV-10 To Adjusted EBITDA (M) Standardized Measure (MM) Pro Forma Actual LTM Ended LTM Ended As of As of 9/30/14 12/31/11 9/30/14 12/31/11…