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Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp

Sanchez Energy Corp · Mar 26, 2018 · 34 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 2018 Energy Conference – Sanchez Energy Corp – slide 1
    Results Driven. Manufacturing Focused. Corporate Presentation March 2018 January 23, 2017 www.sanchezenergycorp.com
  2. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 2
    Sanchez Energy Premier Eagle Ford Shale Operator Premier Low Cost Operator in the Eagle Ford Shale Leader In Multi-Zone Eagle Ford Development Contiguous Acreage Position With 15+ Year Drilling Inventory Capital…
  3. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 3
    Sanchez Energy Overview 4Q17 Production (Boe/d) 82,000 Market Cap(1) 450 million Enterprise Value(1) 3,000 million Asset YE 2017 Proved Reserves (MMBoe) 363 Shares Outstanding 84 million Profile Eagle Ford Acreage Position (gross)…
  4. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 4
    Sanchez Energys Three-Year Plan Focus - Deliver peer-leading returns on invested capital - Fund capital spending with internally-generated cash flow on Financial Discipline High Grade - Divest assets that do not compete for…
  5. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 5
    Recent A&D Successes Focused on High-Grading Portfolio Key ancillary value-creation initiative Strategic Grass Roots Leasing In 2016-2017, acquired 135,000 net acres in the Western Eagle Ford (Maverick and Javelina assets)…
  6. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 6
    Efficient Production Growth Reducing Capital Spending While Delivering Strong Production Growth Comanche Comanche DUC Catarina Maverick Non- D&C Capital Palmetto Capital budget focused on low-risk development 2 15 - 25 13 - 33…
  7. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 7
    Eagle Ford Focus Total Eagle Ford Thickness Concentrated Acreage Position Maverick Western Eagle Ford Comanche Catarina Multi-Bench Development Across Western Eagle Ford Eagle Ford Acreage is Within a 50-Mile Radius…
  8. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 8
    Eagle Ford Multi-Bench Development Comanche Area 3 Upside from Additional Zones Current Development Target Current Development Target 600 9 2018 Sanchez Energy Corporation
  9. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 9
    High Return, Repeatable Drilling Inventory Inventory of Over 4,000 Net Drilling Locations Over 40% of the Companys drilling inventory generates 30%+ returns at 55/Bbl and 3/MMBtu 65% of 2018 development plan targets Tier 1 locations…
  10. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 10
    Positive Impact of Longer Laterals & Newer Completion Impact of Longer Lateral & Newer Completion Designs on Well Results 2016 Avg. lateral length of 6,000 ft. 2017 Avg. lateral length of 6,200 ft. 2018E 2018E Avg.…
  11. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 11
    Cost Structure Compared to Eagle Ford Peers 12,000 9.0 Average Lateral Length Eagle Ford Company Disclosed 2017 D&C Cost (MM) 8.0 10,000 7.0 8,000 6.0 Average Lateral Length (Ft.) 5.0 6,000 4.0 4,000 3.0 2.0…
  12. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 12
    Comanche Well Results to Date Sanchez Energy Brought Online 150 Gross Comanche Wells During 2017 Stumberg Ranch 56H Stumberg Ranch 55H Sanchez Energy Sanchez Energy IP-30: 2,288 Boe/d, 69% oil IP-30: 2,855 Boe/d, 66% oil Lateral:…
  13. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 13
    Example: Comanche Area 3 Overview COMANCHE AREA 3 TYPE CURVE 2018 Activity In Area 3 IP (Bbl/d) 588 Initial Decline (%) 77.6% Oil Net D&C Capital 122MM Oil EUR (MBbl) 357 Drilling of 101 Gross Development Wells IP (Mcf/d)…
  14. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 14
    Example: Comanche Area 5 Overview COMANCHE AREA 5 TYPE CURVE 2018 Activity In Area 5 IP (Bbl/d) 836 Initial Decline (%) 76.3% Oil Net D&C Capital 45MM Oil EUR (MBbl) 536 Drilling of 35 Gross Development Wells IP (Mcf/d)…
  15. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 15
    Example: South Central Catarina Development 2018 Activity In South Central Catarina Net D&C Capital 68MM Drilling of 17 Gross Development Wells Completions of 17 Gross Development Wells South Central SOUTH CENTRAL CATARINA TYPE…
  16. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 16
    Example: North Central Catarina Type Curve Catarina North Central Development SN has successfully delineated a New Development Area in the North Central portion of Catarina North Central Development targeting two Upper Eagle Ford…
  17. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 17
    Example: North Central Catarina Development 2018 Activity In North Central Catarina Net D&C Capital 50MM Drilling of 16 Gross Development Wells Completions of 16 Gross Development Wells North Central SN has successfully delineated…
  18. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 18
    Eagle Ford Shale: Ideal Market Access and Product Mix Eagle Ford Regional Pricing Benefits Eagle Ford Has Direct Access to Premium Markets - Close proximity to Gulf Coast markets for exports - Pipeline connectivity to premium…
  19. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 19
    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…
  20. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 20
    Relationship with Sanchez Midstream Partners LP (SNMP) Western Eagle Ford Focus Results in Synergies Through SNMPs Midstream Asset Base 21 2018 Sanchez Energy Corporation
  21. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 21
    Financial Overview Improve Liquidity Through Potential Asset Divestitures Comanche water delivery system Palmetto producing asset Maverick producing asset Achieve Upside Through Balanced Commodity Mix Improvement to NGL pricing…
  22. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 22
    Active Hedging Program Helps Mitigate Price Volatility Significant hedge position guarantees base level of cash flows Oil Hedges (SN Consolidated) Oil Hedged (Bbls/d) Committed Unhedged Volumes Price (/Bbl) 25,000 52.66 52.61 52.56…
  23. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 23
    Improving Balance Sheet Operating Margins Continue to Increase Deleveraging Remains a Priority Improvement through increase in production Reduce leverage through paydown of UnSub revolver Higher price realizations Targeting leverage…
  24. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 24
    Sanchez Energy: Investment Highlights Dominant Eagle Ford Acreage Position 285,000 net acres in the Eagle Ford Significant Resource Potential Over 1 billion Boe High-Grade Asset Base Potential to divest non-core assets…
  25. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 25
    Appendix 26 2018 Sanchez Energy Corporation
  26. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 26
    2018 Production and Cost Guidance Guidance 1Q 2018 Full Year 2018 Production Volumes: Oil (Bbls/d) 28,000 - 29,000 30,000 - 32,000 NGL (Bbls/d) 27,000 - 28,000 30,000 - 32,000 Natural Gas (Mcf/d) 159,000 - 160,000 170,000 -…
  27. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 27
    2018 Capital Guidance 2018 Capital Budget Eagle Ford Operated Net Net Wells Wells Turned to Total Capital Drilled Production (MM) Catarina 44 44 205 - 215 Maverick 3 3 15 - 25 Comanche 33 19 145 - 150 Comanche DUC - 21 40 -…
  28. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 28
    Substantially Enhanced Maturity Profile Current RBL bank market highly restrictive with limited flexibility New, longer tenor bond replaces existing, short-dated RBL Clears debt maturity schedule through 2020 (first maturity in June…
  29. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 29
    Strategic JV Facilitated Comanche Acquisition Repeatable Structure Matches Cash Flow with Appropriate Financing Blackstone Sanchez Energy Corporation Energy Partners Non-Recourse Unrestricted Subsidiary Non-Recourse RBL Gavilan…
  30. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 30
    Detailed SN Restricted Subsidiary Hedge Position Crude Oil Hedges Natural Gas Hedges Daily Volume Daily Volume Quarter Type of Contract Bbls/d Swap Price Quarter Type of Contract MMBtus/d Swap Price Swaps 16,000 51.58 Swaps 144,000…
  31. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 31
    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 6,800 55.22 Swaps 36,000 3.26…
  32. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 32
    Non-GAAP Reconciliation Slide Non-GAAP Reconciliation Adjusted EBITDAX Three Months Ended ( in thousands) 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Net income (loss) (61,352) 35,823 52,986 15,736 Adjusted by: Interest expense…
  33. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 33
    Non-GAAP Reconciliation Slide Non-GAAP Reconciliation Net Debt Three Months Ended 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Sanchez Long-Term Debt: Seni or Uns ecured Notes 1,754,250 1,754,250 1,750,000 1,750,000 SN Credi t Fa ci…
  34. Scotia Howard Weil 2018 Energy Conference – Sanchez Energy Corp – slide 34
    Non-GAAP Reconciliation Slide Non-GAAP Reconciliation Operating Margin ( i n thous a nds ) Three Months Ended 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Sanchez Operating Margin: Oi l a nd Ga s Revenues 245,979 184,806 175,704…

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