UPDATE: Imperial Capital Initiates Coverage on Sanchez Energy on Good Market Position

In a report published Friday, Imperial Capital analyst Ann Kohler initiated coverage on Sanchez Energy Corp. SN with an In-Line rating and $30.00 price target. In the report, Imperial Capital noted, “We are initiating coverage of Sanchez Energy with an In-Line rating and a one-year price target of $30, approximately 10% above the recent share price. With approximately 140,000 net acres in the oil and condensate fairways of the Eagle Ford Shale (EFS), SN offers investors a small-cap, oil-focused producer benefiting from rapid production and reserve growth associated with the development of its EFS acreage. Also, on 8/16/13, SN established a position of about 40,000 net acres in the core of the emerging oil-focused Tuscaloosa Marine Shale (TMS). In order to establish its acreage positions in the Eagle Ford Shale and Tuscaloosa Marine Shale, the company has executed $608mn in acquisitions since the start of 2013, including the recently announced $220mn Wycross purchase. In order to finance the recent transaction, SN closed on debt and equity offerings, raising net proceeds of approximately $440mn on 9/13/13.” Sanchez Energy Corp. closed on Thursday at $26.99.