Sanchez Energy (SN)

[dan_s]

This is very good news for SN. It tells us that their year-end reserve report is going to be quite impressive. My Fair Value Estimate for SN is $37.80, compared to First Call's Price Target of $32.63. Liquidity is VERY IMPORTANT for an E&P company in the early growth stage like this one. - Dan

HOUSTON, Nov. 20, 2014 /PRNewswire/ -- Sanchez Energy Corporation (NYSE: SN) ("Sanchez Energy" or the "Company") announced today that is has received commitments from its lending group to increase its available borrowing base under its $1.5 billion first lien revolving credit facility from $362.5 million to $650 million with an elected commitment of $300 million, effective immediately.

Michael G. Long, Sanchez Energy's Executive Vice President and Chief Financial Officer, reported, "We have significantly expanded our available borrowing base under our revolving credit facility as a result of strong reserve growth through the drill-bit and acquisition activity as well as through converting proved undeveloped and probable reserves into proved developed reserves. The available amount has increased from $362.5 million to $650 million. We have decided to maintain our elected $300 million commitment amount, knowing we have immediate ability to access the much higher approved borrowing base. The Company's liquidity, as of September 30, 2014, was approximately $900 million, consisting of $600 million of cash and cash equivalents plus the $300 million elected commitment. We have strong financial flexibility and have the option to further enhance our liquidity if needed by electing the full $650 million borrowing base, increasing our liquidity to over $1.2 billion. We expect to fully fund our 2015 capital program through cash and cash equivalents on hand and cash flow from operations without drawing down on the Company's revolving credit facility, assuming average oil prices of $80 per barrel and natural gas prices of $3.75 per MMBtu."

About Sanchez Energy Corporation

Sanchez Energy Corporation is an independent exploration and production company focused on the acquisition and development of unconventional resources in the onshore U.S. Gulf Coast with a current focus on the Eagle Ford Shale in South Texas where it has assembled approximately 226,000 net acres and the Tuscaloosa Marine Shale in Mississippi and Louisiana where it has assembled approximately 61,000 net acres. For more information about Sanchez Energy Corporation, please visit its website: www.sanchezenergycorp.com