Sanchez Energy (SN)

[dan_s]

Total production was slightly below my forecast model, but more liquids than natural gas, so EPS and CFPS should be close. I will post an updated forecast model under the Sweet 16 in about 30 minutes. - Dan

HOUSTON, April 28, 2014 /PRNewswire/ -- Sanchez Energy Corporation (SN) ("Sanchez Energy" or the "Company") today provided an update on its first quarter 2014 production and operations.

Summary Highlights
•Sanchez Energy reported first quarter 2014 production of approximately 1,691 MBOE (18,784 BOE/D), an increase of 376% compared to the same period a year ago
•Reported production volumes consisted of 72% oil, 15% NGLs, and 13% natural gas
•Current production is approximately 21,000 BOE/D with 13 gross wells in various stages of completion

Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy, commented: "Our ability to more than triple our first quarter production year over year reflects positively on both the quality of our assets and the efficiency of our operations. Moving forward, we will continue to leverage our proprietary systems and drilling processes to drive down costs per well, reduce drill time and enhance our capital efficiencies. This strategy already has effectively reduced drill time by 40%, doubled the number of frac stages pumped per day and decreased total well costs by 30% across our Eagle Ford operations."

Production Overview

"Production of 18,784 BOE/D for the first quarter of 2014 is within our guidance range of 18,000 to 20,000 BOE/D and at the high end of our recent guidance updates. We were able to accelerate some completions that were originally planned for early 2014 into last year's fourth quarter, resulting in the majority of the 20 gross (14 net) new wells for the quarter coming online in late February and March."

"We have advanced our operations to include much more pad drilling, which helped raise our current production to approximately 21,000 BOE/D. Moving forward, we expect strong – if a bit uneven – production growth, which is customary with more aggressive pad drilling. We view this as a welcome trade-off, as this more efficient drilling practice is a significant driver of our reported cost savings. That noted, we reiterate our full year 2014 production guidance range of 21,000 to 23,000 BOE/D."

[dan_s]

An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab. My Fair Value Estimate is unchanged at $42.50/share.