Skip to main content Corporate Presentation March 2016 – Sanchez Energy Corp | Shale Experts
Loading...
Pm

Corporate Presentation March 2016 – Sanchez Energy Corp

Sanchez Energy Corp · Mar 28, 2016 · 27 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 1
    Results Driven. Manufacturing Focused. Corporate Presentation March 2016 www.sanchezenergycorp.com
  2. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 2
    Sanchez Energy Overview Eagle Ford Shale Market Cap (1) 350 MM (1) Enterprise Value 1,930 MM Net Acreage: 200,000 acres (2) 1P Reserves: 128 MMBoe (2) Avg. 4Q 2015 Production: 58,115 Boe/d Positioned to thrive in a period of…
  3. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 3
    Eagle Ford Shale Position SN Position Summary(1) Net Acres 200,000 4Q15 Avg. Production (Boe/d) 58,115 Operated Rigs 2 Non-Operated Rigs 0 Gross Producing Wells 621 Marquis Palmetto Maverick Wycross Alexander Ranch…
  4. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 4
    Transformational Growth At IPO Today (12/31/11) (12/31/15) Production 609 Boe/d 95x 58,115 Boe/d(1) 6.7 MMBoe 19x 128 MMBoe Proved Reserves 14% PD 51% PD PV-10 152 million 3.9x 594 million (2) LTM Revenue 15 million 32x 476…
  5. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 5
    Delivering Strong Results Reserves by Category (12/31/15) Reserves by Product Mix (12/31/15) CAGR from 2011: 109% 160 PD PUD 140 135 128 NGL 28.8% 120 100 52% Oil 40.6% 49% 80 59 Gas 30.6% 60 40 58% 21 48% 51% 20 7 82% 42% 0 86%…
  6. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 6
    Reduction in 2016 Upstream Capital Guidance 2016 Capital Program represents an approximate 60% planned reduction in spending as compared to 2015 while expected to maintain flat production 2016 CAPITAL BUDGET Eagle Ford Operated Rigs…
  7. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 7
    2016 Guidance Summary INTERNAL USE ONLY Expected 2016 production to range between 48,000 and 52,000 Boe/d and expected 1Q16 production to range between 48,000 and 52,000 Boe/d Subsequent quarterly production will fluctuate due to the…
  8. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 8
    Low Cost Operator With Sustained Cost Reductions Total Cash Operating Cost Including Interest & Preferred Dividends (/Boe) Cash G&A LOE Taxes Interest & Dividends 50.00 45.06 45.00 4.78 41.46 40.00 4.72 35.00 9.37 4.53…
  9. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 9
    2016 Capital and Production Update INTERNAL USE ONLY Focus on high rate of return drilling areas and continued delineation of the Cotulla and Catarina areas of the Eagle Ford SN expects to execute a 2016 capital plan between 200 - 250…
  10. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 10
    Cost Structure as Compared to Eagle Ford Peers 9,000 10.0 Eagle Ford Company Disclosed Drilling and Completions Cost (MM) Average Lateral Length 8,000 9.0 7,000 8.0 Average Lateral Length (Ft) 6,000 7.0 5,000 6.0…
  11. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 11
    Cost Execution - Catarina 7.4 MM Lift 15% Facilities Sustainable Half of Process & Design Savings 2015 Cost Savings are Drilling expected 12% to be Sustainable Unit Cost Sustainable Savings 3.5M 28% Unit Cost…
  12. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 12
    2016 Focus on High Rate of Return Areas SN 2016 Development is expected to largely focus on the three areas below; Cotulla and South Central Catarina are newly emerging areas, providing outstanding returns, that were not valued by SN…
  13. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 13
    Catarina Overview INTERNAL USE ONLY Upper Eagle Ford 150+ Potential Locations 7 wells in stacked pilots drilled to date High oil yields of 250 Bbl/MMcf Middle Eagle Ford 500+ potential Locations Large Stacked Pay Application…
  14. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 14
    Western Catarina Well Results INTERNAL USE ONLY At year end 2015 Ryder Scott PUD curves increased to match internal type curves PUD curves are still conservative to allow for variation in results and future upwards technical revisions…
  15. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 15
    Western Catarina Development INTERNAL USE ONLY Mix of LEF & MEF infill locations depending upon prior well penetration Stacking in LEF and MEF for step outs Increase in type curve from 600 Mboe to 750 Mboe Eastern limit being…
  16. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 16
    South Central Catarina INTERNAL USE ONLY Excellent rates and projected EURs Unvalued at acquisition Stacking in LEF to MEF Southern rim transition from West to East Catarina Q4 2015 / 2016 Appraisal and Development Focus 200+…
  17. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 17
    Maverick Regional INTERNAL USE ONLY Eagle Ford high porosity & oil saturation unlocked through completion design 2016 Appraisal focus 150+ well inventory MAVERICK IP (Bbl/d) 473 Oil Initial Decline (%) 68.5% Maverick…
  18. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 18
    Conservative Financial Strategy SN has worked diligently to bolster liquidity and ensure development funding for the foreseeable future(1) 2016 capital program expected to be fully funded with FCF and cash on hand with no reliance on…
  19. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 19
    Extended Debt Maturity Runway No bonds maturing for the next 5 years Bank revolver currently undrawn Robust covenant headroom High Yield has no financial maintenance covenants Revolver financial maintenance covenants are: 1.0x…
  20. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 20
    Hedge Peer Comparison 2016 % of Oil/Gas Production Hedged Oil Gas 120% 100% % Production Hedged 80% 60% 40% 20% 0% 24 Note: * Source: Citi High Yield Report December 2, 2015 ** Peers include BCEI, CRK,…
  21. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 21
    Hedging Effect on 2016 Revenue SN 2016 Revenue Commodity Price Sensitivity SN 2016 % Hedged Revenue Robust hedging expected to mitigate 2016 revenue expected to be the potential impact of commodity comprised of 82% hedged revenue;…
  22. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 22
    Summary & Highlights 200,000 net acres throughout the Eagle Ford shale with 2,900 drilling locations Increased average EURs by over 40% from 2014 Strong Asset Base (1) 2015 Production of 52,500 Boe/d, exceeding the high end of guidance…
  23. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 23
    NOL Rights Plan SN had a 765 million Net Operating Loss as of 12/31/15 Valuable asset since NOL can offset future income taxes Significant changes in equity ownership could trigger IRS limitations on future NOL usage Particularly…
  24. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 24
    Capitalization Summary Revolving credit facility (due June 2019) 425 million borrowing base with an elected commitment of 300 million and an interest rate of LIBOR + 1.50% - 2.50% as of 01/25/16 Financial Maintenance Covenants:…
  25. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 25
    Hedge Summary As Of 12/31/15 Hedge Summary as of 12/31/2015 Daily Volume Commodity Instrument Period (Bbls / MMBtu) Average Price Oil Swaps January 1 - December 31, 2016 7,000 70.11 WTI Swap Oil Puts January 1 - December 31, 2016…
  26. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 26
    2016 Detailed Production Expense Guidance INTERNAL USE ONLY SN received 345 Million in cash when the Western Catarina Midstream sale / leaseback closed in October 2015 As part of that transaction, SN recognized an estimated 75…
  27. Corporate Presentation March 2016 – Sanchez Energy Corp – slide 27
    NonGAAP Reconciliation and Measures Reconciliation of Net Income (Loss) To Reconciliation of PV-10 To Adjusted EBITDA (M) Standardized Measure (MM) Twelve Months Ended December 31, 2015 2011 Net income (loss) (1,454,629) 1,968 Year…

From the store

Browse maps, data & reports in the Shale Experts store