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Sanchez Energy Reports Q4 Earnings; Revenues Skyrocket

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Sanchez Energy (NYSE: SN) reported is fourth quarter and full-year results on Wednesday afternoon. The company reported record fourth quarter revenues, which rose 679 percent on 904 percent higher production.

Shares of the company are up about $0.36 per share, or 1.22 percent.

Sanchez Energy is a rapidly-growing independent oil and gas company, targeting onshore U.S. Gulf Coast oil resource plays with a current focus on the Eagle Ford Shale and the Tuscaloosa Marine Shale. Record revenues of $130.1 million were reported, an increase of 38 percent over the third quarter of 2013 and an increase of 679 percent over the same period a year ago.

Tony Sanchez, III, President and CEO of Sanchez Energy, commented on the earnings report: "We achieved many important milestones over the course of 2013, both financially and operationally. We delivered significant growth with respect to production, proved reserves and assets while maintaining a strong balance sheet and financial liquidity. During the year, production increased from an average of 1,900 BOE/d in the fourth quarter of 2012 to almost 19,000 BOE/d in the fourth quarter of 2013.

"We grew our base of reserves substantially during the same period, ending the year with proved reserves of 58.7 MMBOE, which have a PV-10 of $1.47 billion. We expect to steadily grow our production and reserves while preserving a strong financial foundation. In February, our lending banks completed a regularly scheduled borrowing base review of our revolving credit facility.

"Effective February 28, 2014, our borrowing base was increased to $400 million. We decided to elect a lower commitment of $325 million as we do not anticipate a need for a higher borrowing base at this time. However, we have the ability to increase the elected commitment up to $400 million should we determine it is appropriate to do so. This increase in our potential borrowing base is a result of our reserve growth and the growing percentage of our proved developed producing reserves as compared to total proved reserves."

Overall, the company is producing at an ever-expanding rate, and shares have rocketed 10 percent within a month's time period.

Posted-In: Earnings News Guidance


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