Skip to main content Scotia Howard Weil Conference – Sanchez Energy Corp Investor Presentation | Shale Experts
Loading...
Pm

Scotia Howard Weil Conference – Sanchez Energy Corp

Sanchez Energy Corp · Mar 27, 2017 · 41 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. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 1
    Results Driven. Manufacturing Focused. Corporate Presentation March 2017 January 23, 2017 www.sanchezenergycorp.com
  2. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 2
    Sanchez Energy Overview Market Cap(1) 1,000 MM Eagle Ford Shale (1) Enterprise Value 2,500 MM Net Acreage: 335,000 (2) Avg. 2016 Production: 53,350 Boe/d Pro-Forma Production: 80,000 Boe/d(2) Dominant Western Eagle Ford Acreage…
  3. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 3
    Sanchez Energy: Transformation in 2016 2.3 Billion Comanche Acquisition Will acquire 300 MMBoe of proved reserves and 67,000 Boe/d in the Eagle Ford Along with Blackstone, agreed to acquire Anadarkos Eagle Ford acreage Factory…
  4. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 4
    Leads to Creation of Shareholder Value 3 yr. Projected Production CAGR Results in the ability to deliver Over 30% both free cash flow and production growth EBITDA Projected to More Than Double by 2018 Improves the balance sheet…
  5. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 5
    Sanchez Energy Building Asset Base in 2016 YE 2015: 200,000 Net Eagle Ford Acres Through a series of strategic initiatives, Sanchez Energy is now one of the largest operators in the basin, focused on multiple-bench development in…
  6. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 6
    Sanchez Energy Transformation Snapshot Proved Reserves SN Production 350 340 90,000 80,000 300 2017 Focus on Converting 80,000 PUDs & PDNP to PDP 70,000 250 60,000 52,524 53,000 190 (MMBoe) 200 50,000 Boe/d 150 135…
  7. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 7
    Large Inventory of High Rate of Return Locations Inventory of over 4,000 High Rate of Return Net Drilling Locations Maverick Net Drilling Locations 1,000 3-Stream EUR (MBoe) 350 Est. Capital Cost (MM) 3.0 IRR (%)* 60-80%…
  8. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 8
    Strong Net Asset Value Location Summary Net Producing + Net Engineered Net Contingent Total Net Undrilled Total Net Area DUC Wells Locations(1) Locations(2) Wells Locations Comanche 392 832 162 994 1,386 Catarina 333 846 626 1,472…
  9. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 9
    Multi-Bench Development Total Eagle Ford Thickness Eagle Ford Well Density Western Eagle Ford Western Eagle Ford Multi-Bench Development Across Western Eagle Ford Lower, Middle and Upper Eagle Ford Shale with upside in…
  10. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 10
    Multi-Bench Development Potential TARGET BENCH DEVELOPMENT ZONE FUTURE GROSS DEVELOPMENT LOCATIONS AUSTIN CHALK E LOWER AUSTIN Brittleness 1,000-1,500 CHALK UPPER EAGLE 2,000-3,000 UPPER EAGLE FORD A FORD UPPER EAGLE…
  11. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 11
    Completion Enhancements Increasing Type Curves Impact of Completion Design on Catarina Well Results(1) 2016 Completion 1,000 Mboe 2015 Completion Cumulative Boe 700 Mboe Pre-2014 Completion 450 Mboe Producing…
  12. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 12
    South Central Development E33 Pad Continues to Outperform South Central Type Curve E-33 step out pad continues to outperform and is tracking 20% above the current South Central Type Curve In the process of flowing back 14 total…
  13. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 13
    Cost Structure Compared to Eagle Ford Peers Average Lateral Length 9,000 9.0 Eagle Ford Company Disclosed Drilling and Completions Cost 8,000 8.0 7,000 7.0 6,000 6.0 Average Lateral Length (Ft) 5,000 5.0 (MM)…
  14. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 14
    South Central Catarina Well Economics Margin Increases through Retention of Operating Efficiencies in a Rising Service Cost Environment Oil Price (/Bbl) 55 65 75 Gas Price (/MMBtu) 3.00 3.25 3.50 Estimated Well Costs 3.2MM 3.8MM…
  15. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 15
    Focus on Integration and Scalability Many Aspects Of The Comanche Acquisition Are Strategically Similar To The Acquisition Of Catarina Acquisition Comparison Catarina Acquisition Comanche Acquisition Acquisition Value Buildup PDP…
  16. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 16
    Comanche Activity Update Focused on Integration Sanchezs Comanche asset team has been meeting since January Began vendor negotiations in January to get in front of service cost inflation DUC Focused Operations Expect to complete…
  17. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 17
    2017 Capital Guidance 2017 Capital Budget Eagle Ford Operated Capital Catarina Maverick Rigs Net Wells (MM) Comanche Comanche DUC Catarina 1.5 53 160 - 170 Palmetto Land/Infrastructure/G&G Maverick 1 35 100 - 110 23% Comanche…
  18. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 18
    Sanchez Energy Positioned for Significant Growth Comanche Provides Significant Production Growth While Operating Within Cash Flow in the Next 12-18 Months 1,400 120 1,200 100 1,000 Production (MBoe/d) Capital Spending…
  19. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 19
    Financial Flexibility to Increase Capital Spending Comanche Expected to Deliver Production Growth While Internally Funding CapEx in 2018 SN Base Case (MM)* SN + Accelerated Capital Spending (MM)* 150 1,000 Accelerated Free Cash…
  20. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 20
    And Increase Production and NAV Production Growth and Free Cash Flow Expected to Reduce Leverage Ratios Significantly Over the Next Two Years Improved Production Growth Rate SN Leverage (1) 200 3.50x 3-Year CAGR 35% 3.00x 150…
  21. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 21
    Extensive Field Infrastructure Extensive Field Gathering and Water Infrastructure Throughout Comanche 3rd Party Gathering System Comanche Water Infrastructure Comanche Acreage Identified for further Infrastructure Buildout Gas…
  22. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 22
    SPP Midstream Relationship Western Eagle Ford Focus Results in Synergies Through SPPs Midstream Asset Base 24 2017 Sanchez Energy Corporation
  23. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 23
    Financial Strategy Maintain Adequate Liquidity Monetized non-core assets to build liquidity No near term debt maturities Achieve Upside Through Balanced Commodity Mix Continue Active Hedge Program to De-Risk Cash Flows Focus…
  24. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 24
    Extended Debt Maturity Runway No Bonds Maturing Until 2021 Revolver Currently Undrawn Robust Covenant Headroom High yield has no financial maintenance covenants Maintenance covenants under existing revolver are: 1.0x Current Ratio…
  25. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 25
    Achieve Upside Through Blended Commodity Mix NGL Discount to WTI Expected to Shrink Multiple ethane crackers expected to come online starting in 2017 Growing propane exports Natural Gas Strategically located near export lines to…
  26. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 26
    Focus on Remaining a Low Cost Leader SNs Low Cost Leadership Improves Margins and Supports the Companys Capital Program 50 Cash G&A LOE Taxes Interest & Dividends 45.06 45 4.78 41.46 40 4.72 9.37 Total Cash Operating Cost…
  27. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 27
    Strengthening Balance Sheet SN Leverage SN + Comanche Leverage 5.0x 5.0x 4.0x 4.0x 3.0x 3.0x 2.0x 2.0x 1.0x 1.0x 2017E 2018E 2019E 2017E 2018E 2019E STRIP* 65/3.50 STRIP* 65/3.50 Long-Term Outlook EBITDA…
  28. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 28
    Sanchez Energy: Summary Highlights Dominate Western Announced 2.3 billion acquisition in the Western Eagle Ford Eagle Ford Acreage Position Leased 110,000 net acres in Maverick and Javelina areas Relentless Focus on Well costs…
  29. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 29
    2017 Production and Cost Guidance Guidance (1) FY 2017 FY 2018 Production Volumes: Oil (Bbls/d) 29,250 - 30,750 39,200 - 41,160 NGLs (Bbls/d) 23,010 - 24,190 28,800 - 30,240 Natural Gas (Mcf/d) 154,440 - 162,360 192,000 -…
  30. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 30
    Comanche Acquisition Adjacent to SNs Core Acreage 33.5 MBoe/d Net to SN 36% oil / 34% NGLs Over 900 MM in NPV-10 Value from PDP and PDNP (DUCs), net to SN 132 Drilled Uncompleted Wells (DUCs) de-risk near-term development and…
  31. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 31
    Strategic JV Facilitates Comanche Acquisition Repeatable Structure Matches Cash Flow with Appropriate Financing Blackstone Sanchez Energy Energy Partners Non-Recourse Unrestricted Subsidiary Non-Recourse RBL Restricted…
  32. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 32
    Drilling Inventory Breakeven Analysis 2,657 Total Net Engineered Locations Average Estimated Breakeven Price 35/Bbl 600 48 Net Locations Breakeven Oil Price 500 40 WTI Breakeven Oil Price 10% IRR Net Engineered Drilling…
  33. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 33
    Detailed SN Hedge Position Crude Oil Hedges Natural Gas Hedges Type of Daily Volume Daily Volume Quarter Contract Bbls/d Floor Price Ceiling Price Quarter Type of Contract MMBtus/d Swap Price Swaps 5,000 51.70 Swaps 104 3.05…
  34. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 34
    Detailed UnSub Hedge Position Crude Oil Hedges Natural Gas Hedges Type of Daily Volume Daily Volume Quarter Contract Bbls/d Floor Price Ceiling Price Quarter Type of Contract MMBtus/d Swap Price Swaps 7,396 55.85 Swaps 43 3.26 2Q17…
  35. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 35
    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 6/30/16 Financial Maintenance Covenants:…
  36. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 36
    2016 Catarina Appraisal Results Piloncillo E33 (Pilot + 4 MEF laterals) Highest IP rate pad brought online to date (1,500-1,800 Boe/d per well) Exceeds south central type curve Piloncillo A25 (Pilot + 3 UEF/MEF laterals)…
  37. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 37
    Leader in Existing Multi-Bench Development Multi-Bench Development of Existing Sanchez Assets Catarina Drilled Wells in Middle & Upper Eagle Ford 60 Number of Wells Drilled 50 40 30 20 10 0 2014 2015 2016 2017E…
  38. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 38
    Western Catarina Development Stacked development focused in the Lower and Middle Eagle Ford Significant amount of additional high rate of return drilling inventory remaining Successful infill and step-out drilling program to date…
  39. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 39
    Comanche: Area 3 Overview 2017 Activity In Area 3 Comanche Area 3 IP (Bbl/d) 520 Oil Net Capital 80MM Initial Decline (%) 78.0% Oil EUR (MBbl) 258 Drilling of 61 Gross Development Wells IP (Mcf/d) 2,487 Completions of 40…
  40. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 40
    Comanche: Area 5 Overview 2017 Activity In Area 5 Comanche Area 5 IP (Bbl/d) 740 Net Capital 55MM Oil Initial Decline (%) 77.0% Oil EUR (MBbl) 413 Drilling of 51 Gross Development Wells Completions of 20 Gross Development…
  41. Scotia Howard Weil Conference – Sanchez Energy Corp – slide 41
    Maverick Regional 2017 Maverick development activity 35 net wells at 750 ft in-zone spacing 2016 appraisal focused on double and triple stacking Eagle Ford target intervals 500+ well inventory for single zone LEF; nearly doubles…

From the store

Browse maps, data & reports in the Shale Experts store