Sanchez Energy Ends Year Strong

2015 Spending Focuses on Eagle Ford's Catarina
Sanchez Energy Eagle Ford Acreage Map

Sanchez Energy Eagle Ford Acreage Map | Click to Enlarge

This week, Sanchez Energy announced fourth quarter and full year results for 2014 and updated the company’s capital spending plan for the new year.

In spite of dropping crude prices throughout the fall months, Sanchez reported fourth quarter revenues that were up 33% over the same period in 2013 and hit a record $172.5 million. The company also reported record production production averaging of 43,897 BOE/D.

Sanchez Energy has approximately 226,000 net acres in the Eagle Ford Shale in South Texas and includes 106,0000 acres in Catalina that were purchased in May 2014. This Dimmitt County property has proved to be a smart investment and is responsible for much of the company’s 2014 success.

Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy, commented: “Throughout the past year, we achieved significant production and reserves growth through both the transformative acquisition of the Catarina asset as well as the ongoing development of our legacy Eagle Ford assets. Revenues, production, and proved reserves all more than doubled in 2014”

Related: Sanchez Energy Reports Record Revenue in Q2 2014

Looking to 2015, Sanchez re-affirmed its capital plan at $600 – $650 million with production expected to average 40,000 to 44,000 BOE/DThe company will continue to focus on the Catarina property that continues to produce high rates of returns even in this lower commodity price environment. Company executives expect Catarina to produce the same high returns for the next 10 years.

Read the full report at sanchezenergycorp.com

Pioneer Resources Reveals Q4 & 2015 Capex

Company Responds to Crude Prices by Reducing Spending in 2015
Pioneer Resources Map EFS

Pioneer Resources in the Eagle Ford

Pioneer Natural Resources, an Irving-based independent oil and gas company, announced its 2014 fourth quarter financials this week and revealed it will slash 2015 capex by 45%. Like many energy companies, Pioneer is making tough choices in order to ride out the current pricing storm.

Pioneer ended the year with a net income of of $431 million and strong production numbers including an 8% increase in oil production (up 15 MBOEPD) from the third quarter. 2014 Eagle Ford highlights include placing 16 horizontal wells on production exporting approximately 10 MBOEPD gross of Eagle Ford Shale condensate.

Related: Comstock Resources Q4 Report

Related: ConocoPhillips Reports Q4 Losses

Looking to the new year, the company estimates that of its $1.85 billion budget, $1.6 billion will be earmarked for drilling. The remainder of the funds will focus on infrastructure.

“In response to the current low oil price environment and reduced margins, we are preserving our strong cash position and balance sheet by reducing drilling activity and related infrastructure spending until margins improve significantly. Even with this slowdown, we will be able to continue to prudently develop and grow our industry-leading positions in the Spraberry/Wolfcamp and Eagle Ford Shale plays during 2015 by focusing our drilling activity in the best areas of both plays.”

Pioneer’s Eagle Ford Highlights for 2015

  • Approximately 20 MBOEPD gross (7 MBOEPD net) of Eagle Ford Shale condensate has been committed for export during 2015.
  • Part of the cuts in 2015 will include reducing horizontal drilling activity in Eagle Ford by six rigs. The company hopes to add horizontal rigs later in 2015 if conditions improve.

Read the full report at pxd.com

MENU