In a third quarter earnings call last week, Sanchez Energy reported a net loss of $421 million while boasting cost reductions and increased production.
Related: Sanchez Energy Reports Huge Q2 Losses
CEO Tony Sanchez acknowledged that the downturn is proving challenging, but that he believes the company has been performing exceptionally well. He emphasized that the company is positioning itself for even better performance once the market recovers.
“Better well performance and efficiency gains continue to drive our 2015 operating results. In the third quarter 2015, we achieved average daily production of approximately 52,844 BOE/D, well in excess of the top end of our production guidance, while continuing to reduce well costs.”
Sanchez reported substantial cost savings due to the company's supply chain initiatives, process improvements and a reduction in production costsby a $1 per BOE this year. The company also reduced costs for its recent pads to below 4 million each, representing a significant reduction in total costs relative to 2014.
Catarina remains Sanchez' focus in the Eagle Ford, with the Company planning to average two gross (two net) rigs for the remainder of 2015. In the third quarter 2015, the Company brought 27 gross (26.5 net) operated wells online. Other highlights include:
- Joint ventures with a midstream partner to enhance the marketing capability at Catarina
- Preliminary 2016 upstream capital spending guidance of $250 million to $300 million
- During the third quarter, the company brought 27 gross operated wells, 26.5 net
- Have a total of 592 gross producing wells online with 30 wells currently in the process of waiting on completion
Read more at sanchezenergycorp.com