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1Q 2018 Earnings Presentation – Sanchez Energy Corp

Sanchez Energy Corp · May 8, 2018 · 33 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. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 1
    Results Driven. Manufacturing Focused. Corporate Presentation May 2018 January 23, 2017 www.sanchezenergycorp.com
  2. 1Q 2018 Earnings Presentation – 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. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 3
    Sanchez Energy Overview 1Q18 Production (Boe/d) 80,600 Market Cap(1) 260 million Enterprise Value(1) 2,900 million Asset YE 2017 Proved Reserves (MMBoe) 363 Shares Outstanding 85 million Profile Eagle Ford Acreage Position (gross)…
  4. 1Q 2018 Earnings Presentation – 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. 1Q 2018 Earnings Presentation – 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. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 6
    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…
  7. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 7
    Eagle Ford Multi-Bench Development Comanche Area 3 Upside from Additional Zones Current Development Target Current Development Target 600 8 2018 Sanchez Energy Corporation
  8. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 8
    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…
  9. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 9
    Positive Impact of Longer Laterals 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. lateral length of 7,700…
  10. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 10
    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 Average Lateral Length (Ft.) 8,000 6.0 5.0 6,000 4.0 4,000 3.0 2.0…
  11. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 11
    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:…
  12. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 12
    Example: Comanche Area 3 Overview COMANCHE AREA 3 TYPE CURVE 2018 Activity In Area 3 IP (Bbl/d) 588 Oil Initial Decline (%) 77.6% Net D&C Capital 134MM Oil EUR (MBbl) 357 Drilling of 76 Gross (20 Net) Wells IP (Mcf/d)…
  13. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 13
    Example: Comanche Area 5 Overview COMANCHE AREA 5 TYPE CURVE 2018 Activity In Area 5 IP (Bbl/d) 836 Oil Initial Decline (%) 76.3% Net D&C Capital 86MM Oil EUR (MBbl) 536 Drilling of 46 Gross (12 Net) Wells IP (Mcf/d)…
  14. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 14
    Example: South Central Catarina Development 2018 Activity In South Central Catarina Net D&C Capital 97MM Drilling of 16 Gross Development Wells Completions of 16 Gross Development Wells South Central SOUTH CENTRAL CATARINA TYPE…
  15. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 15
    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…
  16. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 16
    Example: North Central Catarina Development 2018 Activity In North Central Catarina Net D&C Capital 81MM Drilling of 15 Gross Development Wells Completions of 15 Gross Development Wells North Central SN has successfully delineated…
  17. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 17
    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…
  18. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 18
    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…
  19. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 19
    Relationship with Sanchez Midstream Partners LP (SNMP) Western Eagle Ford Focus Results in Synergies Through SNMPs Midstream Asset Base 20 2018 Sanchez Energy Corporation
  20. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 20
    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…
  21. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 21
    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 52.61 52.56 52.53…
  22. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 22
    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…
  23. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 23
    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…
  24. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 24
    Appendix 25 2018 Sanchez Energy Corporation
  25. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 25
    2018 Production and Cost Guidance Guidance 2Q 2018 Full Year 2018 Production Volumes: Oil (Bbls/d) 28,000 - 29,000 28,000 - 29,000 NGL (Bbls/d) 27,000 - 28,000 27,000 - 28,000 Natural Gas (Mcf/d) 152,000 - 160,000 152,000 -…
  26. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 26
    2018 Capital Guidance 2018 Capital Budget Eagle Ford Operated Net Net Wells Catarina Comanche Wells Turned to Total Capital Maverick Land/Infrastructure/G&G Drilled Production (MM) Catarina 53 49 225 - 245 Maverick 3 3 15 - 20…
  27. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 27
    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…
  28. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 28
    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…
  29. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 29
    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 157,000…
  30. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 30
    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 6,300 55.24 Swaps 34,000 3.26…
  31. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 31
    Non-GAAP Reconciliation Slide Non-GAAP Reconciliation Adjusted EBITDAX Three Months Ended ( in thousands) 3/31/2018 12/31/2017 9/30/2017 6/30/2017 Net income (loss) (4,815) (61,352) 35,823 52,986 Adjusted by: Interest expense…
  32. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 32
    Non-GAAP Reconciliation Slide Non-GAAP Reconciliation Net Debt Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 Sanchez Long Term Debt: Senior Secured Notes 500,000 Senior Unsecured Notes 1,754,077 1,754,250 1,754,250…
  33. 1Q 2018 Earnings Presentation – Sanchez Energy Corp – slide 33
    Non-GAAP Reconciliation Slide Non-GAAP Reconciliation Operating Margin ( i n thous a nds ) Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 Sanchez Operating Margin: Oi l a nd Ga s Revenues 246,426 245,979 184,806…

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