Sanchez Energy Corp (NYSE:SN) Gains More Than 40% In Just Two Sessions


Dallas, Texas 12/18/2014 (FINANCIALSTRENDS) – Sanchez Energy Corp (NYSE:SN) reported strong gains of 28% on Wednesday and more than 12% on Tuesday. More than 7.7 million shares changed hands in Wednesday’s session compared to its 30-day average trading volume of 3.75 million shares.

The recovery in stock prices was driven by a rally in crude prices amid the reports of declining crude inventories. The decline of 800,000 barrels in crude inventories during the week ended December 12, 2014, was enough to push Brent crude 4% up to $62.36 per barrel. West Texas Intermediate also rallied 3.5% to $57.88.

Financial Updates

Amid the volatility in the crude prices, bearish short to medium term outlook and uncertainty in energy equity markets, Sanchez Energy Corp (NYSE:SN) considered it important to provide shareholder update.

The company reported total liquidity of $1,180 million as of December 7, 2014, comprised of $530 million in cash and $650 million of undrawn borrowings under its revolving credit facility. The company noted that it has an attractive maturity profile with revolver maturing in 2019 and senior notes beginning to mature in 2021.

Operational Updates

Sanchez Energy reported a record production of 45,000 BOE per day. In addition, the company is also expecting to bring eight wells online before the year-end. The company enjoys significant flexibility for its capital spending, driven by substantial acreage held by production and long-term leases. Hence, the company’s significant capital commitment is limited to Catarina’s continuous drilling provision.

Tony Sanchez, III, President and CEO of Sanchez Energy Corp (NYSE:SN), mentioned that the company is poised to adapt to a lower commodity price environment. The company has adequate financial flexibility and the option to boost its liquidity if required. The company is anticipating funding its 2015 capital program without drawing from its revolving facility. It will mainly fund through cash on hand and cash flow from operations.

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