SN

[dan_s]

On February 13, 2014, Sanchez Energy Corporation (the "Company") entered into exchange agreements with holders of the Company's 4.875% Cumulative Perpetual Convertible Preferred Stock, Series A, par value $0.01 per share (the "Series A Preferred Stock"), and of the 6.500% Cumulative Perpetual Convertible Preferred Stock, Series B, par value $0.01 per share (the "Series B Preferred Stock"), pursuant to which such holders agreed to exchange an aggregate of (i) 947,490 shares of Series A Preferred Stock (and waive their rights to any accrued and unpaid dividends thereon) for 2,425,574 shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), and (ii) 356,850 shares of the Series B Preferred Stock (and waive their rights to any accrued and unpaid dividends thereon) for 955,466 shares of Common Stock. Closing is expected to occur on February 19, 2014, subject to satisfaction or waiver of customary closing conditions.

[dan_s]

On February 12, 2014, Sanchez Energy Corporation (the "Company") entered into an exchange agreement with a holder of the Company's 6.500% Cumulative Perpetual Convertible Preferred Stock, Series B, par value $0.01 per share (the "Series B Preferred Stock"), pursuant to which such holder agreed to exchange an aggregate of 400,000 shares of Series B Preferred Stock (and waive its rights to any accrued and unpaid dividends thereon) for 1,065,600 shares of the Company's common stock, par value $0.01 per share (the "Common Stock"). Closing is expected to occur on February 18, 2014, subject to satisfaction or waiver of customary closing conditions.

The offer and issuance of the shares of Common Stock to the holder of the Series B Preferred Stock has been and will be made pursuant to the exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), provided by Section 3(a)(9) of the Securities Act, on the basis that the shares of Common Stock will be issued to an existing holder in a privately negotiated transaction and no commission or other remuneration was paid or given directly or indirectly for soliciting the exchange.

[dan_s]

I don't see why these transactions would cause the big dip. I think they said something at EnerCom that caused someone with a lot of shares to sell.

[dan_s]

"Sanchez Energy, in slides accompanying a conference presentation, said it sees Q1 production of 18,000-20,000 Boe/d. The company also reiterated its 2014 production guidance for 21,000-23,000 Boe/d and for yearly capital expenditures of $650M-$700M, which it had given on January 15. Shares of Sanchez Energy remain down more than 9% in afternoon trade."

This is nothing new.

[jb2257]

Well I trust your opinion more than the panic sellers. It just seems something spooked the stock.

[setliff]

there were 1m shs sold in less than 2 minutes. it is recovering now.

[dan_s]

What I heard so far is that SN reported the Sante North test well came on at only 150 BOPD and someone hit the panic button. Management said not all of the plugs were drilled out and that calmed the market a bit but the sell orders kept coming due to stop loss orders.

The issue is that if the Marquis area is not very productive it is not good news. However, one well does not condemn an entire area. Plus, it may be a mechanical issue with the well.

This is all I have so far, which is not much. Hopefully some of our members were at EnerCom and they can give a better report.

Take a look at the YTD chart. SN was on a wild ride and this pullback is really not that big of a deal. Tomorrow's action will be more important.