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May 2014 Corporate Presentation – Sanchez Energy Corp

Sanchez Energy Corp · May 12, 2014 · 26 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 2014 Corporate Presentation – Sanchez Energy Corp – slide 1
    Corporate Presentation May 2014
  2. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 2
    Sanchez Energy Overview Market Cap (1) 1,385 MM Enterprise Value 2,235 MM Eagle Ford Shale Net Acreage: 120,000 acres 1P Reserves: 59 MMBoe Production: 20,000+ Boe/d Significant Growth 1Q14 production grew 376% YOY Oil Weighted…
  3. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 3
    Strong Growth in Production and Proved Reserves Average Daily Net Production (Boe/d) Proved Reserve Growth (MMBoe) 70 30,000 PD PUD 23,000 60 59 21,000 25,000 21,000 19,000 50 43 20,000 18,784 58% Average Boe/d 40…
  4. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 4
    Oil Concentrated Reserves And High Cash Margins Crude oil represents 77% of reserves (88% crude oil and NGLs) Reserves by Product Mix Realized Price Vs. Unhedged Cash Margins (/Boe) (1) 79.59 Taxes 6.15 LOE 9.41 NGL 11% Cash…
  5. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 5
    Capital Expenditures Focused On Eagle Ford 2014 Capital Plan (MM) Gross % of % of Full Year Net Wells Net Wells Capital D&C Project Area Rig Count Spud Completed Capex Plan Capital Plan Marquis 3.0 35 32 270 285 44% 47% Palmetto 0.7…
  6. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 6
    Full Year 2014 and 2Q14 Guidance Full Year 2014 Guidance Metrics Range Production Guidance (Boe/d) Full Year 2014 Average 21,000 23,000 Full Year Operating Cost & Expense Guidance (/Boe) Oil & Natural Gas Production Expenses 9.00…
  7. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 7
    The Eagle Ford Shale Core Focus Area SN Eagle Ford Position Summary Net Acres 120,000 Current Production (Boe/d) 20,000+ Gross Drilling Rigs 6 Gross Producing Wells 216 9 2014 Sanchez Energy Corporation
  8. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 8
    Cotulla Overview Wycross Talbutt Trust Wright Ranch Alexander Ranch Cotulla Acreage & Inventory Wycross 2014 Capital Plan Other Cotulla 2014 Capital Plan Total Net Acres 39,000 2014 Capital Plan (MM) 140 150 2014 Capital…
  9. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 9
    Marquis & Palmetto Overview Marquis Palmetto Marquis Acreage & Inventory Marquis 2014 Capital Plan Palmetto 2014 Capital Plan Total Net Acres 70,000 2014 Capital Plan (MM) 270 285 2014 Capital Plan (MM) 45 55 Average…
  10. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 10
    TMS Acreage Position and Activity 40,000 net acre position in the core of the TMS Contiguous blocky acreage with 3+ years of average remaining lease term SN anticipates spudding up to 4 gross (2 net) operated wells and participating in…
  11. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 11
    Operational Focus on Efficiencies The move to pad drilling across our assets has reduced costs and increased efficiencies MultiWell Pad Drilling Cash Operating Cost / Boe 100% 90% 45.06 80% 75% 4.78 36.74 9.37 60% 4.53 7.26…
  12. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 12
    Drilling Efficiency Example: La Salle County Average Feet / Day (Spud to TD) 2,500 Feet/Day Feet/Day 2,000 Feet/Day 1,903 1,909 Average Feet / Day Feet/Day 1,658 1,438 1,500 1,000 500 0 2Q13 3Q13 4Q13 1Q14…
  13. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 13
    Completions Efficiency Example: La Salle County Frac Stages Pumped / Day 8 7.6 Number of Pumped Stages 7 6.1 6 5 4.3 3.9 4 3 2 1 0 2Q13 3Q13 4Q13 1Q14 Number of Stages Frac Cost / Stage (M) 250 207.2 Frac Cost…
  14. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 14
    Total Well Cost Reduction: La Salle County Total Well Cost (MM) Previous Operator 9.0 8.4 Average 8.0 7.0 5.9 6.0 6.0 Average Well Cost (MM) 5.5 5.0 4.0 3.0 2.0 1.0 0.0 3Q13 4Q13 1Q14 Target 17%…
  15. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 15
    Downspace Testing Across Portfolio Net PUD Reserve Current Locations Report Number of Development Booked Spacing 40 Acre Plan Spacing Utilizing 3D Seismic Area (12/31/13) (Acres) Test Wells (Acres) Microseismic Coverage Palmetto…
  16. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 16
    Top Quartile EBITDA Margins Oil Driven Production 73% of 4Q13 production was crude oil (86% including NGLs) Premium Pricing 93% of oil is sold on LLS pricing Low Transportation Costs 50% of oil sold into pipelines; multiple sales…
  17. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 17
    Ample Liquidity To Fund Our 2014 Capital Plan Current liquidity of 436 million 1Q14 Capitalization Table & Liquidity (MM) 111 million in cash As of 3/31/2014 400 million borrowing base with an Cash and Equivalents 111 elected…
  18. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 18
    Summary Investment Considerations Significant growth in base of production and proved reserves Focused on manufacturing efficiency and driving down costs 120,000 net acres in the Eagle Ford with 1,800+ net identified locations…
  19. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 19
    Capitalization Summary Revolving credit facility (due 2018) 400 MM borrowing base with an elected commitment of 325 million and an interest rate of LIBOR + 1.50% 2.50% 0 MM drawn at end of 1Q14 Consortium of 10 banks Restrictive…
  20. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 20
    Hedge Summary & Philosophy We maintain an active hedging program to help support capital spending, protect cash flow, and ensure strong financial coverage metrics Currently have 3.5 million barrels and 3.3 Bcf of gas hedged for 2014,…
  21. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 21
    NonGAAP Reconciliation and Measures Reconciliation of Net Income (Loss) To Adjusted EBITDA (M) 3 Months Ended 4Q13 Net Income (Loss) 14,202 Plus: Interest Expense 13,321 Depreciation, Depletion, Amortization, And Accretion…
  22. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 22
    Wycross Area Type Curves & Economics 1,200 550 MBoe EUR 7.5 MM Capex Oil Price ( / Bbl) 80.00 90.00 100.00 NPV10 (MM) 5.9 7.8 9.8 1,000 Average Monthly Production (Boe/d) IRR 57% 81% 110% Payout (Years) 1.4 1.1 0.9 ROI 2.7x…
  23. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 23
    Alexander Ranch Area Type Curves & Economics 900 500 MBoe EUR 5.5 MM Capex Oil Price ( / Bbl) 80.00 90.00 100.00 NPV10 (MM) 4.4 5.8 7.3 750 Average Monthly Production (Boe/d) IRR 55% 76% 101% Payout (Years) 1.5 1.2 1.0 ROI…
  24. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 24
    Marquis Area Type Curves & Economics 1,200 550 MBoe EUR 8.0 MM Capex Oil Price ( / Bbl) 80.00 90.00 100.00 NPV10 (MM) 5.4 7.4 9.4 1,000 Average Monthly Production (Boe/d) IRR 48% 67% 90% Payout (Years) 1.7 1.3 1.1 ROI 2.5x…
  25. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 25
    Palmetto Area Type Curves & Economics 1,500 750 MBoe EUR 7.0 MM Capex Oil Price ( / Bbl) 80.00 90.00 100.00 NPV10 (MM) 10.9 13.6 16.2 1,250 Average Monthly Production (Boe/d) IRR 149% 205% 273% Payout (Years) 0.8 0.7 0.6 ROI…
  26. May 2014 Corporate Presentation – Sanchez Energy Corp – slide 26
    TMS Area Type Curves & Economics TMS Area Single Well Economics TMS Area Development Well Economics 800 MBoe EUR 15.0 MM Capex 800 MBoe EUR 10.0 MM Capex Oil Price ( / Bbl) 80.00 90.00 100.00 Oil Price ( / Bbl) 80.00 90.00 100.00…

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