Sanchez Energy ended 2015 with record production in the Eagle Ford and $435 million in cash, despite the difficult downturn.
Related: Sanchez Reports Q3 Loss of $421 Million
While many producers in the oil and gas industry are struggling to stay afloat, Sanchez Energy Corporation has been able to position itself for strength during this difficult time. During a recent earnings call last week, company executives cited some core competitive advantages that have helped them move forward.
Highlights for 2015 include a record annual production of 19.2 MMBoe an increase of 72% over 2014 and a 37% reduction in capital expenditures over 2014.
“2015 was a strong year for Sanchez Energy despite the most challenging commodity environment we have faced as a Company,” said Tony Sanchez, III, Chief Executive Officer ofSanchez Energy. “In addition, our operations delivered exceptional results on all fronts in terms of both increased well productivity and continued cost reductions.”
2015 Eagle Ford Highlights
- Expanded inventory in our Catarina and Cotulla assets.
- Increase well performance through advancements in our completion designs
- Reduced well costs by more than 55%
- Catarina and Cotulla were now delivering total well costs of less than $3.5 million
- Record production of 5.3 million barrels of oil equivalent ("MMBoe")
- Phase 1 of the high-pressured gas gathering line is scheduled to be in service near the end of the first quarter
- Construction of the gas processing plant has also started and is still on track for an estimated completion in early 2017
In 2016, Sanchez has set a capital expenditure budget between $200 million to $250 million and plans to spend 89% on drilling and completions in the Eagle Ford. The company also plans to drill 52 net wells and complete 55 net wells in the region. The company expects to reduce the Eagle Ford rigs from three to one at the end of the second quarter.
“While we can’t control oil prices, we can control what we spend and where we drill and it’s something that is a daily focus for everyone in our organization.”