Amid a drop in oil prices, Eagle Ford-focused Sanchez Energy, has seen a sharp dip in its stock price, falling nearly 35% in the past month to ~$18.50. According to the investment research firm, Zacks, the Houston-based company's earning picture suggests the slump may continue.
Despite its 30-day earnings consensus moving lower over the last 30-days, Sanchez returned excellent third quarter production results. During the reporting period, Sanchez's estimated portfolio wide production was 38,613 boe/d, an increase of 91% over the second quarter 2014 and an increase of 228% compared to the same period a year ago. The company reported total production volumes for the quarter of 47% oil, 27% NGLs, and 26% natural gas.
At the end of the second quarter, Sanchez Energy closed its massive $639-million Eagle Ford acreage deal with Royal Dutch Shell for 106,000 net Eagle Ford acres.
Read more: Eagle Ford Deal Closings
In the third quarter, Sanchez focused on assuming operations in its new 'Catarina' acquisition. According to officials, two rigs have been deployed on the western part of the asset drilling development wells targeting the Lower Eagle Ford, while a third rig has begun appraisal drilling on the eastern section of the asset, also targeting the Lower Eagle Ford. The company has also completed the first group of wells that were drilled by the previous operator in the Upper Eagle Ford, and they are now online and flowing to sales. The 9 Upper Eagle Ford wells had initial 24-hour average production rates ranging from 973 boe/d to 2,117 boe/d, with average production rates of 1,402 boe/d, with a 64% liquids cut.
Read more at sanchezenergycorp.com