SN Management Change

[dan_s]

It is hard to predict what stuff like this means. My focus is on their exit rate. At 20,000 boepd they are setting up a very strong start to 2014. Q3 production was 11,774 boepd. - Dan

HOUSTON, Dec. 26, 2013 /PRNewswire/ -- Sanchez Energy Corporation (SN) today announced that Senior Vice President and Chief Operating Officer Joseph DeDominic has resigned to pursue a new opportunity. Chris Heinson, Senior Manager of Reservoir Engineering, will assume the role of COO on an interim basis. These management changes are effective at the beginning of January, 2014.

"We greatly appreciate Joe's valuable contributions to the company and wish him and his family all the best in his new endeavor," said Tony Sanchez Jr., Sanchez Energy's Executive Chairman.

Tony Sanchez III, Sanchez Energy's President and Chief Executive Officer, added: "I have enjoyed working with Joe and will miss his leadership and knowledge. One of our greatest accomplishments over the past year has been depth and quality of the team that we have built at Sanchez Energy and I am confident that we will not miss a beat as we transition the chief operating office role. Following on Joe's leadership and our record of accomplishments this year, we are in a strong position to achieve sustainable growth, both operationally and financially and we are looking forward to an outstanding 2014. Over the past several days our net production has been approximately 20,000 boepd and at this point, we expect that we will exceed the top end of our guidance for the current quarter, which speaks highly of the entire operations team and our asset base."

Joe DeDominic stated: "I am proud of the achievements in transforming Sanchez Energy Corporation over the past year and expect the foundations laid in 2013 to form the basis for continued growth."

Chris Heinson, an engineer by training, currently oversees reservoir engineering, business planning, and project management for Sanchez. Prior to joining Sanchez in March of this year, he worked for Occidental Petroleum Corporation in various planning and reservoir engineering positions. Chris has a strong technical background in unconventional oil resource plays and enhanced oil recovery and has held roles of increasing responsibility while at Occidental and Sanchez. Chris holds a Bachelor of Science in Petroleum Engineering from the University of Texas at Austin.

Sanchez Energy Corporation is an independent exploration and production company focused on the acquisition and development of unconventional oil resources in the onshore U.S. Gulf Coast. The current focus is on the Eagle Ford Shale, where Sanchez Energy has assembled approximately 125,000 net acres. The company also has approximately 40,000 net acres targeting the Tuscaloosa Marine Shale.

[dan_s]

An updated Net Income & Cash Flow Forecast model for SN has been posted under the Watch List Tab. They should report approximately 16,000 boepd in Q4, up from 11,774 boepd in Q3.

My 2014 forecast assumes 23,000 boepd, which may be too low if they exit this year over 20,000 boepd.