Results Driven. Manufacturing Focused. Corporate Presentation August 2015 www.sanchezenergycorp.com
Sanchez Energy Overview Eagle Ford Shale Market Cap (1) 378 MM (1) Enterprise Value 2,125 MM Net Acreage: 223,000 acres 1P Reserves: 130 MMBoe (2) Avg. 2Q 2015 Production: 53,923 Boe/d Positioned to thrive in a period of volatile…
Managing Through the Bottom of the Cycle Focused on high-quality, low-cost oil and condensate resource play Eagle Ford Focus High grading drilling program, reducing costs, and realizing higher well performance than initial estimates…
Transformational Growth At IPO Today (12/31/11) (6/30/15) Production 609 Boe/d 89x 53,923 Boe/d(1) 6.7 MMBoe 19x 130 MMBoe (2) Proved Reserves 14% PD 46% PD (2) PV-10 152 million 13x 1,923 million (3) LTM Revenue 15 million…
Revised 2015 Capital Plan: Focus On Liquidity SN has reduced its 2015 capital plan from 600 - 650 million to 550 - 600 million while simultaneously increasing production guidance Focus will be on high rate of return projects while…
Full Year 2015 & 3Q15 Guidance Expected 2015 production to range between 46,000 and 50,000 Boe/d, an increase of 57% over 2014 production at the mid-point of guidance, with expected 3Q15 production to range between 46,000 and 50,000…
Operations A Manufacturing Transformation 9 2015 Sanchez Energy Corporation
Eagle Ford Shale Position SN Position Summary Net Acres 223,000 2Q15 Production (Boe/d) 53,923 Operated Rigs 3 Non-Operated Rigs 0 Gross Producing Wells 565 Hausser Wycross Alexander Ranch 10 2015 Sanchez…
Catarina Overview Western Catarina (43,000 net acres) Early results support stacked pay development in three Eagle Ford benches; Upper, Middle, & Lower Eastern Catarina Eagle Ford Central Well performance currently exceeding high…
Driving Cost Reductions in Catarina Operational Efficiencies Realized Driving Further Competitive Advantage Reductions in Catarina drilling cycle times has Optimized fluids & wellbore design translated into substantial cost savings…
Western Catarina Well Results Initial Upper Eagle Ford wells in Catarina have continued to exhibit strong performance and have sustained rates above the Lower Eagle Ford Type Curve SN Operated wells average production results are…
Completions Optimization Yields Superior Results SN has realized strong production results as compared to offset wells results in Catarina e.g. Piloncillo D20 pad as depicted below was drilled by the previous operator and completed by…
Maximizing Utilization of Acreage Use of Extended Reach Laterals and Stacked Development increases recovery per acre in the asset Original Development Plan Current Development Plan Outline indicates Orphaned Acreage Extended…
Vertical Expansion of Catarina Development Upper Eagle Ford 150+ potential Locations Additional potential across ranch Early rates in line with LEF Type Curve Middle Eagle Ford 500+ potential Locations Large Stacked Pay…
Maximizing Catarina Hydrocarbon Recovery SN Development Plan results in potential for significantly increased Hydrocarbon Recovery Per Acre Overall SN Development Impact Previous Downhole Design Development Plan Impact Potential…
Palmetto Overview Acreage & Inventory Palmetto Area Acreage Total Net Acres 9,000 Average Working Interest (1) 50% Average Net Revenue Interest (1) 37% Planned Well Spacing (Acres) 40 Net Identified Drilling Locations (2) 170+…
TMS Acreage Position and Activity 66,000 net acre position in the core of the TMS Contiguous blocky acreage with 3+ years of average remaining lease term Currently completing the Bloomer 2H in Wilkinson County, Mississippi…
Financial Highlights 21 2015 Sanchez Energy Corporation
Conservative Financial Strategy Solid Financial Position and Liquidity to fund future development 572 million liquidity through cash and undrawn revolver facility at 2Q15 No debt maturities until 2019 Continue to maintain a balanced…
Capitalization, Credit Facility & Debt Maturity Liquidity of 572 million as of 6/30/15 Credit Facility Details (MM) 272 million in cash and 300 million 700 Borrowing Base 650 elected commitment 600 550 Elected Commitment Option to…
Hedge Strategy Hedge Volume: At June 30, 2015, 50% of estimated remaining 2015 volume(1) hedged (77% oil and 73% gas) Hedge Book Valuation(2): 98 million at 6/30/15 Put Purchase: April 27, 2015, SN purchased 11,000 Bbl/d of WTI Puts…
Summary Investment Highlights Operational and financial flexibility to thrive in an uncertain commodity price environment 2015 capital plan fully funded without need to drawn on unused credit facility Ability to preserve SNs strong…
Appendix 26 2015 Sanchez Energy Corporation
Capitalization Summary Revolving credit facility (due 2019) 550 MM borrowing base with an elected commitment of 300 million and an interest rate of LIBOR + 1.50% - 2.50% Restrictive covenants: Maximum Senior Secured Debt to LTM…
Hedge Summary As Of 6/30/15 28 2015 Sanchez Energy Corporation
NonGAAP Reconciliation and Measures Reconciliation of Net Income (Loss) To Reconciliation of PV-10 To Adjusted EBITDA (M) Standardized Measure (MM) Three Months Ended June 30, 2015 2014 As of As of 12/31/14 12/31/11 Net loss…
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