Management Presenters Tony Sanchez, III President and Chief Executive Officer Michael Long Executive Vice President, Chief Financial Officer Christopher Heinson Senior Vice President, Chief Operating Officer Market Cap (1)…
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 392 Alexander Ranch Briggs…
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 hold…
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 Ranch…
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 area…
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…
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…
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…
Appendix 19 2014 Sanchez Energy Corporation
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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