This beat my forecast. - Dan
Sanchez Energy Announces Fourth Quarter Production of 1,731 MBOE, an Increase of 60% Over the Third Quarter of 2013, and 2013 Year-End Proved Reserves of 58.9 MMBOE, an Increase of 178% Compared to Year-End 2012
Sanchez Energy (SN)
Sanchez Energy (SN)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Sanchez Energy (SN)
I am updating my forecast model for SN and will have it posted to the website tonight. - Dan
Summary Highlights
•Sanchez Energy reported fourth quarter 2013 production of approximately 1,731 MBOE (18,810 BOE/D), an increase of 60% over the third quarter of 2013 and an increase of 905% compared to the same period a year ago. Fourth quarter 2013 reported production included approximately 70 MBOE (750 BOE/D) of positive prior period adjustments, largely in natural gas liquids (NGLs) and natural gas volumes. Daily average production, excluding 750 BOE/D associated with the positive prior period adjustments, was 18,060 BOE/D, exceeding the previously set forth guidance range of 15,000 to 17,000 BOE/D.
•Reported production volumes consisted of 73% oil (75% before the prior period adjustments), 13% NGLs, and 14% natural gas.
•2013 year-end proved reserves increased to 58.9 MMBOE, an increase of 178% compared to year-end 2012.
•Current production of approximately 19,000 BOE/D with 15 gross wells in various stages of drilling and completion.
Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy, commented: "2013 was a transformative year for the Company. Our production and reserves grew tremendously as a result of successfully executing our 2013 capital plan and completing several acquisitions. We also entered into the Tuscaloosa Marine Shale, providing significant upside potential without reallocating substantial resources from the Eagle Ford Shale. Our focus in 2014 will be to continue to execute on our Eagle Ford development program, increasing efficiency and further reducing costs.
Summary Highlights
•Sanchez Energy reported fourth quarter 2013 production of approximately 1,731 MBOE (18,810 BOE/D), an increase of 60% over the third quarter of 2013 and an increase of 905% compared to the same period a year ago. Fourth quarter 2013 reported production included approximately 70 MBOE (750 BOE/D) of positive prior period adjustments, largely in natural gas liquids (NGLs) and natural gas volumes. Daily average production, excluding 750 BOE/D associated with the positive prior period adjustments, was 18,060 BOE/D, exceeding the previously set forth guidance range of 15,000 to 17,000 BOE/D.
•Reported production volumes consisted of 73% oil (75% before the prior period adjustments), 13% NGLs, and 14% natural gas.
•2013 year-end proved reserves increased to 58.9 MMBOE, an increase of 178% compared to year-end 2012.
•Current production of approximately 19,000 BOE/D with 15 gross wells in various stages of drilling and completion.
Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy, commented: "2013 was a transformative year for the Company. Our production and reserves grew tremendously as a result of successfully executing our 2013 capital plan and completing several acquisitions. We also entered into the Tuscaloosa Marine Shale, providing significant upside potential without reallocating substantial resources from the Eagle Ford Shale. Our focus in 2014 will be to continue to execute on our Eagle Ford development program, increasing efficiency and further reducing costs.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Sanchez Energy (SN)
Sanchez Energy Corp. (SN): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.
My Fair Value Estimate has been increased to $36.40/share. First Call's Price Target is currently $32.00, but that should be going up. Based on today's press release, there is a very good chance that SN will soundly beat the First Call 4th quarter earnings per share estimate of $0.34.
Note that Q4 production included a prior period adjustment. 1st quarter production should be slightly higher (~19,000 boepd), but they should complete a bunch of wells in March & April that will give 2nd quarter production a nice boost. Increasing NGL prices could push my valuation quite a bit higher.
My Fair Value Estimate has been increased to $36.40/share. First Call's Price Target is currently $32.00, but that should be going up. Based on today's press release, there is a very good chance that SN will soundly beat the First Call 4th quarter earnings per share estimate of $0.34.
Note that Q4 production included a prior period adjustment. 1st quarter production should be slightly higher (~19,000 boepd), but they should complete a bunch of wells in March & April that will give 2nd quarter production a nice boost. Increasing NGL prices could push my valuation quite a bit higher.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group