Sanchez Energy Corp. recently released an updated version of the company’s investor presentation concerning its sale of non-core producing assets to Sanchez Production Partners.
Sanchez Energy independently explores, produces, acquires and develops unconventional resources. Its main focus lies in the onshore U.S. Gulf Coast, specifically the Tuscaloosa Marine Shale in Louisiana and Mississippi and the Eagle Ford Shale in South Texas. The company has attained approximately 226,000 net acres in South Texas.
Sanchez Energy has outlined its new goals for focusing on low-cost, high-quality oil that will reduce costs and wasted resources. With its Eagle Ford goals, the company plans to work at development more in the Palmetto and Catarina areas.
Within the next few months, the company plans to decrease its initial budget allocated for 2015 to less than 50 percent of where it currently stands. These cuts will change the budget from $600 million to $650 million to $400 million to $450 million by its third quarter.
Company leaders have also outlined how they plan to balance Sanchez Energy's leverage, liquidity and growth. They plan to create more than 30 percent of what the company created at the midpoint of 2014. In the fourth quarter of 2014, they plan to liquidate $775 million in order to further improve the company’s liquidity by more than $1 billion.
The company is committed to reducing its costs and continue saving resources.
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