UPDATE: MLV & Co Reiterates On Sanchez Energy Corp. Following Earnings Report

In a report published Thursday, MLV & Co analyst Chad Mabry reiterated a Buy rating on

, but lowered the price target from $40.00 to $33.00. In the report, MLV & Co noted, “SN is scaling back its activity in response to a less favorable oil price outlook. 2015 capex was reduced by ~25% to $850-$900 million (from $1,100-$1,200) in order to focus on core development drilling and de-emphasize step-out and appraisal work. In conjunction, 2015 guidance was lowered to ~50 MBoe/d (from 53-58 MBoe/d). We're adjusting our production model to reflect SN's revised drilling program which consists of 6.25 gross rigs (vs. 8.0 previously), with reductions at Marquis to 1 rig (vs. 2) and TMS to 0.25 rig (vs. 1.0). As a result, our 2015 production forecast declines to ~50 MBoe/d (from 55.6). The lower production forecast and impact of the reduced activity on our upside calculations combine to take our NAV-based target price to $33 (from $40). We reiterate our Buy rating on compelling valuation and see shares of SN outperforming as the company continues to demonstrate the upside of its portfolio, specifically at its newly-acquired Catarina asset. Near-term catalysts here include results from its initial Lower Eagle Ford wells and positive developments on condensate exports; both are expected in early 2015.” Sanchez Energy Corp. closed on Wednesday at $15.83.