Quality Assets. Disciplined Management. Investor Presentation www.sanchezpp.com September 2015
Transforming SPP 2015 Sanchez Production Partners LP
Transforming SPP The Old SPP / Constellation Energy Partners Steps of the Transformation Asset Mix Established Relationship With SOG Challenge: Orphan MLP with no sponsor Significant leverage with no Converted from LLC to LP…
Western Catarina Midstream Transaction 2015 Sanchez Production Partners LP
The Catarina Field Acquired by SN from Royal Dutch Shell in June 2014 Significant South Texas (Eagle Ford Shale) acreage position, larger in size than the Houston Metropolitan area Western Catarina (43,000 net acres) Early results…
Western Catarina Midstream Asset Overview Asset Overview Asset Details Dedicated 35,000 acres (1) Gathering and processing assets originally constructed by Royal Acreage Dutch Shell as part of the infrastructure for the development…
Western Catarina Midstream Transaction Buyer: Sanchez Production Partners LP (SPP) Seller: SN Catarina, LLC, a wholly-owned subsidiary of Sanchez Energy Corp. (SN) Purchase Price: 345 MM Effective Date: 10/01/2015 Closing…
Investment Highlights 2015 Sanchez Production Partners LP
SPP Investment Highlights Identified acquisition inventory of midstream and Visible production assets with value 1 billion As of 9/28/2015 Growth Growth profile targets 15% DPU CAGR through 2019 Enterprise Value (1) 500.0 MM…
Visible Growth 2012 2013 2014 2015 and Beyond Development/Growth SN acquires SN grows its Eagle Ford asset base, Ongoing Eagle Ford development focused on Catarina drilling Catarina through the drill bit and acquisitions activity…
Premiere Asset Base(1) Sanchez Production Partners LP Western Catarina Midstream Assets SPP Production Assets Located in a dedication area covering Gulf Coast non-operated assets approximately 35,000 net acres in acquired from…
Well-Sponsored Partnership Sanchez Oil & Gas Corporation (SOG) 1972 Operations and Technical Support Private operating platform with 200 employees Experienced management Technical and operational expertise Active business…
Capital Optimization Focus 4 Growth at SPP 1 SN invests capital in generates currency development drilling Capital for SNs future growth Perpetuates Deployed and acquisitions Growth Produces growth in Platform Yr. 0-2 production,…
Conservative Financial Management Pro Forma As of October (MM) 6/30/2015 Adj. 2015 Cash & Cash Equivalents 5.2 5.2 Borrowing Capacity 4.0 90.0 94.0 = Borrowing Base 110.0 90.0 200.0 - Debt Outstanding 106.0 106.0 Total…
Appendix I Escalating Working Interest Advantage 2015 Sanchez Production Partners LP
EWI Case Study: Repeatable Win/Win Structure(1) Typical Eagle Ford Well 6.0 PV t=0 Mo. Eagle Ford wells are characterized by fast payback during a period of steep decline followed by a longer period of stable cash flow 5.0 5.8 MM…
SPP Eagle Ford Acquisition Illustrated below, the SPP Eagle Ford Acquisition was structured to offset natural production declines, minimize maintenance capital requirements, and maintain more stable cash flows over the life of the…
SPP Eagle Ford Acquisition (Closed March 2015) Trend Field Assets Included In Transaction Trend Eagle Ford Shale Field Palmetto Location (County) Gonzales County, TX Type Wellbore Interests Operator Marathon Well (Reserve) Type…
Appendix II Additional Financial Information 2015 Sanchez Production Partners LP
SPP Hedging Program(1) SPP intends to hedge a high percentage of PDP for up to five years SPPs hedge strategy primarily utilizes swaps and costless collars, as warranted by market conditions Hedges executed with SPPs lenders and…
Non-GAAP Financial Measures Use of Non-GAAP Financial Measures Historic Financials: EBITDA and Adjusted EBITDA are non-GAAP financial measures that are reconciled to their most comparable GAAP financial measure under Reconciliation of…
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