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Sanchez Energy Announces Results Of Its Borrowing Base Redetermination HOUSTON

The following excerpt is from the company's SEC filing.

(Marketwired)November 19, 2015Sanchez Energy Corporation (NYSE: SN) (Sanchez Energy, the Company, we, our, us, or similar terms), today announced that it has received commitments from its lending group to change the borrowing base under its $1.5 billion first lien revolving credit facility from $550 million to $500 million with an unchanged elected commitment of $300 million, effective today. With nothing drawn on the borrowing base, the Company has significant headroom to its 2.25x senior secured leverage covenant.

Gleeson Van Riet, Sanchez Energys Chief Financial Officer, reported, We are pleased with the results of our Fall 2015 Borrowing Base Redetermination and are grateful for the continued support of our entire bank group. Our banking syndicate has consistently assisted us in our efforts to create value for our shareholders. Our new approved $500 million borrowing base takes into account our reserve growth since our last redetermination, slightly offset by the change in bank credit price decks and the Western Catarina Midstream sale. We have decided to maintain our $300 million elected commitment amount knowing we have the ability to access the much higher approved borrowing base. The Companys liquidity remains strong with a current cash position in excess of $450 million in addition to this completely unused bank credit facility. We expect to fully fund our 2016 capital program through cash on hand and cash flow from operations without drawing down on the Companys revolving credit facility and would expect to enter 2017 with a positive cash balance.

In addition, during the fourth quarter Sanchez Energy entered into additional derivative contracts covering anticipated future gas production in 2016 and 2017. As of November 19, 2015, Sanchez Energy has approximately 6.6 million barrels of anticipated crude production and 35.3 Bcf of gas production for 2016 hedged, or approximately 12,471.7 MBOE (34,076 BOE/D), which represents approximately 68% of its anticipated total 2016 production at the mid-point of its 4Q 2015 guidance range. Further detail regarding current hedges for anticipated future production is included herein.


The following table summarizes the Companys hedge contracts as of November 19, 2015:

Daily Volume




(Bbls / MMBtu)