Pro Forma Sanchez Energy Overview Market Cap (1) 2,300 MM Enterprise Value 3,365 MM Eagle Ford Shale Net Acreage: 226,000 acres 1P Reserves: 119 MMBoe Production: 42,784 Boe/d Executing Strong Growth 1Q14 production grew 985%…
Catarina Acquisition Summary Seller: SWEPI LP and Shell Gulf of Mexico Inc. (Royal Dutch Shell plc subsidiaries) Purchase Price: 639 million (subject to usual and customary closing adjustments) Effective Date: January 1, 2014…
Strategic Rationale Highly Immediately accretive to EPS, CFPS, production per share and reserves per share Accretive & 10.65 per Boe based on Ryder Scott YE13 proved reserves Attractive Valuation 26,625 per 1Q14 production BOE/D and…
Pro Forma Reserves and Production Overview SN Proved Reserves (1) Catarina Proved Reserves (1) Pro Forma SN Proved Reserves (1) NGL 11% NGL 36% NGL 24% Oil 77% Oil 21% Oil 49% Gas 12% Gas 43% Gas 27% 59 MMBoe (42% PD) 60…
Pro Forma Eagle Ford Shale Position Pro Forma SN Eagle Ford Position Summary Net Acres 226,000 1Q14 Production (Boe/d) 42,784 2014 Planned Operated Rigs 2014 Planned Non-Operated Rigs Gross Producing Wells 404 Alexander…
Catarina Asset Overview Asset Summary Catarina 106,000 net acres in Dimmit, La Salle and Webb counties Eastern Operational control: 100% WI, 75% NRI, and one Catarina primary surface and mineral owner 176 producing wells which…
Western Catarina Offset Operator Performance APC Briscoe Ranch EUR: 600+ MBoe IRR: 70+% Anadarko Acreage Avg. EUR: 550 Mboe IRR: 50%+ Lewis Petroleum Swift Energy Private Operator Avg EUR: 675 Mboe IRR: 44-49% APC Stanley/Worthey…
Stacked Lateral Potential Western Catarina Type Log SN intends to target the Lower Eagle Ford (LEF) with additional infill potential in the Upper Eagle Ford (UEF) as a secondary target The majority of wells drilled in Catarina thus…
Acquisition Wells Exhibit Attractive Economics Western Catarina Area Lower Eagle Ford Type Curves and Well Economics (1) 1,200 700 MBoe EUR 6.5 MM Capex Gas Price ( / Mcf) 4.00 4.50 5.00 NPV-10 (MM) 4.4 4.8 5.2 1,000 IRR 47% 51%…
Eastern Catarina Potential Regional Cross Section of Lower Eagle Ford Potential A A Successful SN wells from Alexander Ranch and Alexander A Briggs Ranch have similar LEF core & log rock Ranch quality as the Eastern Catarina…
Sanchez Energy is a Low-Cost Operator Pad Drilling Efficiencies Cash Operating Cost / Boe We have experienced cost reductions with the move to pad drilling across all of our assets 45.06 10% cost reductions compared to single well…
Drilling & Completions Efficiency - Prost Average Days Spud to TD Technically challenging area of the Eagle 35 Ford shale play 32.3 30 Increased operational effectiveness has Number of Days (Spud to TD) 25 23.1 22.5 resulted…
Drilling & Completions Efficiency Alexander Ranch Average Days Spud to TD Increased operational effectiveness has 12 11.0 resulted in faster drilling and completions cycle times Number of Days (Spud to TD) 10 9.0 8 Reduced…
With a Track Record of Optimizing Assets Alexander Ranch SN has achieved substantially lower than expected well costs in Alexander Ranch The previous operator was drilling wells at an average cost of 8.8 million At the time of the…
Downspace Testing Across Portfolio Net PUD Reserve Current Locations Report Number of Development Booked Spacing 40 Acre Test Plan Spacing Utilizing 3D Seismic Area (12/31/13) (Acres) Wells (Acres) Microseismic Coverage Catarina 71…
Fully Funded Acquisition With Ample Liquidity Expected adjusted purchase price of Pro forma Capitalization Table & Liquidity (MM) 550 to 600 million after customary As of Pro Forma 3/31/2014 3/31/2014 closing adjustments Cash and…
Capital Expenditures Focused On Eagle Ford 2014 Capital Plan (MM) Gross % of % of Full Year Net Wells Net Wells Operating D&C Project Area Rig Count Spud Completed Capex Capital Plan Capital Plan Catarina 1.0 25 37 205 - 215 24% 26%…
Pro Forma Guidance (1) Preliminary Pro Forma Guidance (Assumed 6/30/14 Catarina Closing Date) Metrics 3Q14 4Q14 2014 2015 Production Guidance (BOE/D) Period Average 37,000 - 41,000 45,000 - 49,000 29,000 - 31,000 53,000 - 58,000…
Acquisition Highlights Immediately accretive to earnings and cash flow per share Attractive acquisition value metrics: 10.65 per BOE, 26,625 per 1Q14 production BOE/D, and 32,000 per May 2014 production BOE/D 1Q14 average production…
Standalone Eagle Ford Shale & Tuscaloosa Marine Shale 22 2014 Sanchez Energy Corporation
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…
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…
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…
Appendix 26 2014 Sanchez Energy Corporation
Capitalization Summary Revolving credit facility (due 2018) Pro forma revolving credit facility capacity of 650 million and a 300 million bridge facility available Restrictive covenant: Net Debt < 4.0x TTM EBITDA 600 MM of 7.75%…
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 of oil and 3.3 Bcf of gas hedged for…
NonGAAP Reconciliation and Measures Reconciliation of Net Income (Loss) To Reconciliation of PV-10 To Adjusted EBITDA (M) Standardized Measure (MM) SN Standalone SN Standalone SN Standalone Catarina Pro Forma SN Pro Forma Pro Forma…
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