Sanchez Energy Corporation (NYSE:SN) has changed its borrowing base for the $1.5 billion first lien credit facility to $500 million from the previous $550 million. The elected commitment has been fixed at $300 million as per an announcement by the company.
According to the company CFO Gleeson Van Riet, the firm was thankful for the support it had got from the banking syndicate and the Borrowing Base Redetermination for the 2015 fall season were overwhelming. He said that the banks group had always been an important decision making support for the company and the new borrowing base has been set up keeping in mind the redetermination results. He said that the $300 elected commitment was kept as the company had the capability of achieving a better borrowing base than approved.
Great Times For Sanchez
A strong liquidity, cash assets to the tune of $450 million and a yet to be used credit facility from banks is a positive aspect for the company. The company was confident of funding its 2016 capital program with their cash assets without using the bank credit facility with positive cash in hand balance in 2016.
Sanchez Energy has entered 4Q15 with some contracts for the gas production in the next two years and the company reported a crude production of around 6.6 million barrels on November 19. The gas production was anticipated at 35.3 Bcf or 12,471.7 MBOE for 2016.
3Q15 Results Are Good
Meanwhile, Sanchez Energy Corporation (NYSE:SN) announced the 3Q15 results recently. According to the report, the company had achieved 4,862 thousand barrels of oil equivalent production approximately in 3Q15 which saw an increase of 37 per cent from the same time last year. A 52,844 barrels of oil equivalent per day oil production was reported by the company which was higher that the estimated 46,000 to 50,000 BOE/D and even better than last year. The company also reported $154 million revenue including hedge settlements and the adjusted EBITDA was $94.3 million for the quarter. Sanchez Energy Corporation (NYSE:SN) was currently on the growth momentum and this promised a great entry into 2016.