Breaking News

Tweet TWEET

Sanchez Energy Announces 2014 Capital Plan and Guidance with Plans to Spend $650 million to $700 million and Deliver over 100%

 Sanchez Energy Announces 2014 Capital Plan and Guidance with Plans to Spend
  $650 million to $700 million and Deliver over 100% Total Production Growth
                               Compared to 2013

PR Newswire

HOUSTON, Jan. 15, 2014

HOUSTON, Jan. 15, 2014 /PRNewswire/ -- Sanchez Energy Corporation (NYSE: SN),
a rapidly growing independent oil and gas company targeting the on-shore U.S.
Gulf Coast oil resource plays with a current focus on the Eagle Ford Shale and
the Tuscaloosa Marine Shale, today provided an update on its 2014 capital plan
and a summary of its 2014 guidance.

Summary Highlights

  o2014 capital plan of approximately $650 to $700 million, allocated roughly
    95% to the drilling and completing of approximately 70 net wells with the
    remainder allocated to facilities, leasing and seismic. Approximately 90%
    of the estimated drilling and completion capital is allocated to our
    ongoing development of the Eagle Ford Shale.
  oEstimated 2014 average production rate range of 21,000 to 23,000 BOE/D
    which represents over 100% growth compared to 2013 through the
    continuation and expansion of development drilling across our Eagle Ford
    asset base with a production stream that is approximately 75% oil, 11%
    NGL's and 14% natural gas.
  o2014 capital plan is expected to be fully funded from a combination of
    internally generated cash flow, cash on hand and modest borrowings under
    our credit facility.

Management Comments

Tony Sanchez III, President and Chief Executive Officer, stated, "All of our
core Eagle Ford positions are performing at or above our expectations and are
in full scale development mode. We made tremendous strides last year
strategically and operationally. Our focus in 2014 is to sustain the momentum
generated from our successful transformation into a manufacturing focused
resource exploiter. That means strict attention to reducing costs, improving
efficiencies and meeting our targets.We plan to focus more of our capital
spending on our operated assets in 2014 where we can directly control the
pace and timing of our activities. Less than 25% of our total production is
planned to come from non-operated properties, down from over 35% in 2013. The
vast majority or our operations and expected results will come from our low
risk Eagle Ford development activities. We are not forecasting any material
production from our step-out activities in Tuscaloosa Marine Shale ("TMS")
this year, however, we remain excited about the potential that could start to
be developed in the TMS. Successful execution of our 2014 capital plan is
expected to result in significant year over year production growth. Our
estimated average production rate for 2014 is a range of 21,000 to 23,000
BOE/D and an overall year over year total production increase in excess of
100%.

"We plan to initiate our drilling activities in the TMS in 2014 and have
allocated approximately 10% of our operating capital to this rapidly emerging
play. Our drilling will be a combination of operated and non-operated wells,
with our first operated well expected to spud in the first half of 2014. We
expect the substantial increase in TMS industry activity during 2014 to
positively influence the well cost structure and overall knowledge of the
play."

2014 Operating and Financial Guidance

The following table provides a summary of Sanchez Energy's operating and
financial guidance for 2014:

Metrics                                                      Range
Production Guidance (BOE/D)
 Full Year 2014 Average                                    21,000 – 23,000
Full Year 2014 Operating Cost and Expense Guidance ($/BOE)
 Oil and natural gas production expenses                   $9.00  – $11.00
 Production and ad valorem taxes                           $5.00  – $6.00
 Cash G&A                                                  $4.00  – $5.00

Approximately 50% of expected 2014 oil production is hedged at an average swap
and/or floor price of $94 per barrel and approximately 50% of expected 2014
natural gas production is hedged at an average swap and/or floor price of
$4.15 per mmbtu.

Shares Outstanding

As of December 31, 2013, the Company had 46,464,879 shares of common stock
outstanding. Assuming full conversion of both series of Preferred Stock, the
Company would have 63,956,379 shares outstanding.

About Sanchez Energy Corporation

Sanchez Energy Corporation is an independent exploration and production
company focused on the acquisition and development of unconventional oil
resources in the onshore U.S. Gulf Coast, with a current focus on the Eagle
Ford Shale where we have assembled approximately 125,000 net acres. The
Company also has approximately 40,000 net acres targeting the Tuscaloosa
Marine Shale. For more information about Sanchez Energy Corporation, please
visit our website: www.sanchezenergycorp.com

Forward Looking Statements

This press release contains, and our officers and representatives may from
time to time make, forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. All statements, other than statements of historical facts,
included in this press release that address activities, events or developments
that Sanchez Energy expects, believes or anticipates will or may occur in the
future are forward-looking statements, including statements relating to the
funding of our capital budget and the allocation of our capital, our ability
to exploit our resources successfully and grow our production and reserves,
anticipated industry activity in the areas in which we operate, successfully
closing any announced acquisitions, the anticipated benefits of such
acquisitions, any planned takeover of operations, future down-spacing and
movement to pad drilling to further reduce costs and to produce additional
upside potential and other aspects of any proposed acquisitions. These
statements are based on certain assumptions, made by the Company based on
management's experience, perception of historical trends and technical
analyses, current conditions, anticipated future developments and other
factors believed to be appropriate and reasonable by management. When used in
this press release, the words "will," "potential," "believe," "estimate,"
"intend," "expect," "may," "should," "anticipate," "could," "plan," "predict,"
"project," "profile," "model," "strategy," "future," or their negatives, other
similar expressions or the statements that include these words, are intended
to identify forward-looking statements, although not all forward-looking
statements contain such identifying words.

Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of Sanchez Energy, and
which may cause actual results to differ materially from those implied or
expressed by such forward-looking statements, including, but not limited to,
the risk that our assets will not produce as anticipated, the risk that we
will fail to successfully integrate any acquired assets, the risks that we
will not continue to produce oil and gas at our historical rates, that our
costs of operations will be materially different than anticipated, that we
will encounter delays or other difficulties related to producing oil or gas,
that the price of oil or gas will be different than our expectations, that we
will encounter unforeseen difficulties in the marketing and sales of produced
oil and gas, that estimates made in evaluating our reserves will be erroneous
as well as risks and uncertainties related to competition, general economic
conditions and our ability to manage and continue our growth and all of the
other assumptions, risks and uncertainties described in Sanchez Energy's
Annual Report for the fiscal year ended December 31, 2012 and any updates to
those risk factors set forth in Sanchez Energy's Quarterly Reports on Form
10-Q. Further information on such assumptions, risks and uncertainties is
available in Sanchez Energy's filings with the Securities and Exchange
Commission ("SEC"). Sanchez Energy's filings with the SEC are available on its
website at www.sanchezenergycorp.com and on the SEC's website at www.sec.gov.
In light of these risks, uncertainties and assumptions, the events anticipated
by Sanchez Energy's forward-looking statements may not occur, and, if any of
such events do occur, Sanchez Energy may not have correctly anticipated the
timing of their occurrence or the extent of their impact on its actual
results. Accordingly, you should not place any undue reliance on any of
Sanchez Energy's forward-looking statements. Any forward-looking statement
speaks only as of the date on which such statement is made and Sanchez Energy
undertakes no obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise, except as
required by applicable law.

Cautionary Note to U.S. Investors

The SEC permits oil and gas companies, in their filings with the SEC, to
disclose only proved, probable and possible reserves. We may use certain
terms in our press releases, such as net resource potential and other
variations of the foregoing terms that the SEC's guidelines strictly prohibit
us from including in filings with the SEC. U.S. Investors are urged to
consider closely the reserves disclosures in our filings with the SEC
available on our website at www.sanchezenergycorp.com and the SEC's website at
www.sec.gov. You can also obtain this information from the SEC by calling its
general information line at 1-800-SEC-0330.

Company contacts:
Michael G. Long
Executive Vice President and Chief Financial Officer
Sanchez Energy Corporation
(713) 783-8000

Gleeson Van Riet
SVP, Capital Markets & IR
Sanchez Energy Corporation
(713) 783-8000

SOURCE Sanchez Energy Corporation

Website: http://www.sanchezenergycorp.com
 
Press spacebar to pause and continue. Press esc to stop.