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May 2016 Corporate Presentation – Sanchez Energy Corp

Sanchez Energy Corp · May 9, 2016 · 28 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. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 1
    Results Driven. Manufacturing Focused. Corporate Presentation May 2016 www.sanchezenergycorp.com
  2. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 2
    Sanchez Energy Overview Eagle Ford Shale Market Cap (1) 500 MM (1) Enterprise Value 2,150 MM Net Acreage: 200,000 acres (2) 1P Reserves: 128 MMBoe (2) Avg. 1Q 2016 Production: 56,500 Boe/d Positioned to thrive in a period of…
  3. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 3
    Eagle Ford Shale Position SN Position Summary Net Acres 200,000 1Q16 Avg. Production (Boe/d) 56,500 Operated Rigs 2 Non-Operated Rigs 0 Gross Producing Wells 640 Marquis Palmetto Maverick Wycross Alexander Ranch…
  4. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 4
    Transformational Growth At IPO Today (12/31/11) (3/31/16) Production 609 Boe/d 93x 56,500 Boe/d(1) 6.7 MMBoe 19x 128 MMBoe(2) Proved Reserves 14% PD 51% PD(2) PV-10 152 million 3.9x 594 million(2) LTM Revenue 15 million 30x…
  5. May 2016 Corporate Presentation – 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. May 2016 Corporate Presentation – 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. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 7
    2016 Guidance Summary Expected 2016 production to range between 48,000 and 52,000 Boe/d and expected 2Q16 production to range between 50,000 and 52,000 Boe/d Subsequent quarterly production will fluctuate due to the effects of pad…
  8. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 8
    Operations A Manufacturing Transformation 2016 Sanchez Energy Corporation
  9. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 9
    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 31.40…
  10. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 10
    2016 Capital and Production Update 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 million and 250 million…
  11. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 11
    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…
  12. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 12
    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 3.5MM 28% Unit Cost…
  13. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 13
    Asset Development 2016 Sanchez Energy Corporation
  14. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 14
    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…
  15. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 15
    Catarina Overview 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 Production in line…
  16. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 16
    Western Catarina Well Results 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 Results consist of…
  17. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 17
    Western Catarina Development 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 extended into Central…
  18. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 18
    South Central Catarina 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+ location inventory SC…
  19. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 19
    Maverick Regional 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 Type Curve Oil EUR…
  20. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 20
    Financial Highlights 2016 Sanchez Energy Corporation
  21. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 21
    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…
  22. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 22
    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…
  23. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 23
    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,…
  24. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 24
    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;…
  25. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 25
    Summary & Highlights 200,000 net acres throughout the Eagle Ford shale with 2,900 net drilling locations Increased average EURs by over 40% from 2014 Strong Asset Base (1) First quarter 2016 production of 56,500 Boe/d, exceeding the…
  26. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 26
    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…
  27. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 27
    Capitalization Summary Revolving credit facility (due June 2019) 350 million borrowing base with an elected commitment of 300 million and an interest rate of LIBOR + 2.00% - 3.00% as of 3/31/16 Financial Maintenance Covenants:…
  28. May 2016 Corporate Presentation – Sanchez Energy Corp – slide 28
    2016 Detailed Production Expense Guidance 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 million deferred gain…

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