Sanchez Energy Update - Feb 2

[dan_s]

Sanchez Energy Corporation (SN) released year-end 2017 proved reserves and operating results for the fourth quarter and full year 2017.
Highlights

Proved reserves increased by 88% during the year to approximately 363 MMBoe, with a reserve replacement ratio of roughly 762% in 2017
Fourth quarter 2017 production of nearly 7.5 MMBoe, or 81,977 BOEPD

The company’s production mix during the fourth quarter 2017 consisted of approximately 34% oil, 34% natural gas liquids and 32% natural gas

[mattreue]

Dan, what do you think of the $400 million in private placement notes? My other chat rooms see it as negative, but I really don't understand why. It moves the refinance from 2019 to 2023. I don't know what the terms are either.

[dan_s]

I don't see pushing the debt out another four years as a negative.

The thing to remember is that leverage works both ways. Yes, SN has a lot of debt. However, if debt is used wisely and matched up with assets properly, it is OK. The further out the maturity date on debt, closer it gets to being "equity".