Sanchez Energy CorporationNYSE
Sanchez Energy: The Midstream Leverage
Wed, Nov. 30, 7:30 PM
- Analysts say today's agreement to curb oil production will elevate prices through at least H1 2017, and the first to pounce on higher prices by expanding drilling will be U.S. shale explorers.
- In shale fields across the U.S., production costs have been cut roughly in half since 2014, when Saudi Arabia raised output in an attempt to drive higher-cost shale producers out of the market, but instead of killing the U.S. shale industry, the ensuing price war made shale a leaner and meaner rival.
- As an example, Concho Resources (NYSE:CXO) CEO Tim Leach says his company is on track to raise production 5% by year’s end, even though it is spending 7% less than originally budgeted for 2016.
- Continental Resources' (NYSE:CLR) Harold Hamm says U.S. oil production will rise in the wake of OPEC’s cut, and rising prices could unlock some of the thousands of drilled but uncompleted wells in the U.S.; some of CLR's ~175 uncompleted wells now will be completed in light of OPEC’s decision and the improved price outlook but the company will not add rigs.
- “As you move up the price curve and you get more confident of the outlook for future pricing, we’ll be able to add activity as cash flows grow," says Newfield Exploration (NYSE:NFX) CEO Lee Boothby.
- Among other shale-focused companies that enjoyed huge gains today: WLL, PE, OAS, SN, CRC, FANG, RSPP, PXD, XEC, EPE, WPX.
Wed, Nov. 30, 12:45 PM
Wed, Nov. 30, 9:23 AM
- Gainers: SCON +71%. CRC +32%. ORIG +16%. DNR +16%. GST +16%. OAS +17%. LEI +16%. WTI +14%. SM +13%. AREX +13%. SN +13%. CPE +13%. SDRL +13%. CIE +13%. HHS +13%. SGY +13%. LPI +12%. SYRG +12%. WLL +11%. ATW +11%. GTE +11%. CLR +11%. WPX +11%. ESV +11%. NE +10%. CRZO +10%. DO +10%. NBR +10%. BTE +10%. MRO +10%.
- Losers: ARWR -61%. CERC -47%. CMRE -14%. AEO -10%. GLBS -9%.
Thu, Nov. 17, 8:49 AM
- Sanchez Production Partners (NYSE:SPP) -16% premarket after pricing its previously announced public offering of more than 6.55M common units plus a separate, concurrent private placement of 2.27M units to Sanchez Energy (NYSE:SN) at $11/unit.
- SPP plans to use the proceeds, together with $28M in borrowings, toward an $80M purchase of a 50% equity interest in Carnero Processing from SN and $24.9M for certain wellbores and escalating working interests and other production assets that it intends to acquire from SN; it will use $25M from the private placement to repay borrowings outstanding under its credit facility.
Thu, Nov. 10, 7:59 AM
- Sanchez Production Partners (NYSE:SPP) -1.9% premarket after announcing a public offering of more than 8.8M common units at an anticipated price of $16-$18/unit, with an underwriters option to purchase up to an additional ~1.32M units.
- SPP says it plans to use the proceeds to purchase a 50% equity interest in Carnero Processing from Sanchez Energy (NYSE:SN), to pay for certain wellbores and escalating working interests and other production assets that SPP intends to acquire from SN, and to repay borrowings.
Mon, Nov. 7, 6:32 AM
Sun, Nov. 6, 5:30 PM| Sun, Nov. 6, 5:30 PM | 5 Comments
Thu, Oct. 27, 3:37 PM
- Sanchez Energy (SN +2.7%) is in talks to partner with Blackstone (BX +1%) on a deal to purchase Anadarko Petroleum's (APC +1.5%) south Texas oil and gas assets for $3B-$3.5B, WSJ reports.
- Blackstone and the P-E firm’s GSO Capital Partners credit arm likely would fund or participate in the purchase, although the details are not known, according to the report.
- Sanchez reportedly also has been in talks with Apollo Global Management (APO +1.5%) and energy-focused P-E firm EIG Global Energy Partners to participate in the bid.
Mon, Oct. 24, 5:25 PM
- Carrizo Oil & Gas (NASDAQ:CRZO) -1% AH after agreeing to acquire Eagle Ford Shale properties from Sanchez Energy (NYSE:SN) for $181M.
- The deal includes ~15K net bolt-on acres located primarily in the volatile oil window of the Eagle Ford Shale, with estimated net production during September of ~3,100 boe/day (61% oil) from 93 net wells; following the closing of the deal, CRZO will hold more than 100K net acres in the Eagle Ford.
- CRZO also provides Q3 production guidance of 40,762 boe/day, +13% Y/Y, primarily due to stronger than expected results from its Eagle Ford and Delaware Basin assets.
- To help fund the deal, CRZO launches a 5M-share public offering, with an underwriters option to purchase up to an additional 750K common shares.
Thu, Oct. 13, 7:15 PM
- The biggest threat to the rally in oil stocks might be more production from E&P companies drilling in the U.S. shale, Credit Suisse analysts say.
- A clear benefit of the price cycle has been the vastly improved efficiency and productivity of shale, but shale "may ultimately be too productive as WTI approaches $70/bbl," the firm says as it lowers its long-term WTI forecast to $62.50/bbl from $67.50.
- Credit Suisse says names that continue to demonstrate resource improvement at the low-end of the cost curve, namely in the Permian and STACK plays, remain attractive, such as Concho Resources (NYSE:CXO), Devon Energy (NYSE:DVN), Newfield Exploration (NYSE:NFX) and Pioneer Natural Resources (NYSE:PXD).
- The firm downgrades Carrizo Oil & Gas (NASDAQ:CRZO) and Sanchez Energy (NYSE:SN) to Neutral from Outperform, and Laredo Petroleum (NYSE:LPI) to Underperform from Neutral, following relative outperformance vs. peers.
Mon, Oct. 10, 5:51 PM| Mon, Oct. 10, 5:51 PM | 1 Comment
Wed, Aug. 24, 2:57 PM
- Sanchez Energy (SN -1.6%) is seeking buyers for some of its acreage in the Eagle Ford Shale region in south Texas, as it looks to raise cash for developing its best prospects, Bloomberg reports.
- SN is soliciting offers for ~25K net acres on three patches of land within the basin, and the assets are expected to fetch less than $500M, according to the report.
- SN has been monetizing parts of its oil and gas pipeline network as it focuses on drilling on the lucrative Catarina patch of the Eagle Ford.
Mon, Aug. 8, 2:04 PM
Mon, Aug. 8, 12:50 PM
Mon, Aug. 8, 6:48 AM
Sun, Aug. 7, 5:30 PM