Sanchez Energy announces fourth quarter and full year 2011 operating and financial results
Friday, Mar 30, 2012
HOUSTON, March 28, 2012 /PRNewswire/ -- Sanchez Energy Corporation (NYSE: SN), a fast growing independent oil and gas company focused on the liquids rich Eagle Ford formation in Texas, today announced the Company's operating and financial results for the fourth quarter and full-year 2011, which included the following highlights:
HIGHLIGHTS FOURTH QUARTER 2011
- Production of 56,007 BOE, an increase of 16,346 BOE or 41% over the previous quarter and an increase of 38% over the same period a year ago.
Revenues of $4.6 million, 97% oil, condensate and NGLs, an increase of 50% over the same period a year ago.
Adjusted earnings before interest, income tax, depletion, depreciation and amortization, and unrealized derivative losses (Adjusted EBITDA), a non-GAAP term, of $2.1 million. A reconciliation of Adjusted EBITDA to net income is presented on page 10 of this release.
Net loss of $1.4 million after an unrealized loss on derivative activities of $2.0 million.
RESULTS FOR THREE MONTHS ENDED, 2011
Production volumes for the three months ended December 31, 2011 (fourth quarter 2011) were 56,007 BOE, an increase of 38% over the fourth quarter of 2010. The production increases in 2011 were due to the drilling and completing of four new wells during 2011, partially offset by normal production declines. Sanchez had one well awaiting completion and three wells drilling at the end of the first quarter of 2012.
Revenues were $4.6 million for the fourth quarter of 2011, which includes oil and condensate revenues of$4.5 million. This represents a 50% increase over fourth quarter 2010 revenues of $3.1 million. The Company's realized oil and condensate price, before the effects of derivatives, was $102.32 per barrel during the fourth quarter of 2011 compared to $83.19 for the same period a year ago. The realized price for natural gas was $2.37 per Mcf compared to $4.68 for the same period a year ago. Overall, the average realized price the Company received was $82.97 per BOE during the fourth quarter of 2011 as compared to $75.99 for the same period a year ago. The impact of the unrealized loss on derivatives was $36.40 per BOE. The Company had no derivative activities in 2010.
Lease operating expenses ("LOE") were $419,393, or $7.49 per BOE, for the fourth quarter of 2011, as compared to $321,198, or $7.90 per BOE, for the fourth quarter of 2010. Production and ad valorem taxes were $278,876, or $4.98 per BOE, for the fourth quarter of 2011, as compared to $146,579, or $3.61 per BOE, for the fourth quarter of 2010.
General and administrative (G&A) expense was $1.9 million for the fourth quarter of 2011 as compared to$1.2 million for the fourth quarter of 2010. General and administrative expense was higher due to professional fees late in 2011 related to the establishment of corporate policies and a long-term incentive plan associated with the new public entity, not directly attributable to the IPO.
Adjusted EBITDA, as described in the statement of operations data below, was $2.1 million or $0.09 per share during the fourth quarter of 2011, as compared to $1.5 million, or $0.07 per share, in the fourth quarter of 2010.
Depletion, depreciation and amortization ("DD&A") expense for the fourth quarter of 2011 was $1.5 million, or $26.52 per BOE, as compared to $1.1 million, or $27.16 per BOE, for the fourth quarter of 2010.
The Company reported a net loss of $1.4 million, or $0.06 per share, for the fourth quarter of 2011 compared to net income of $360,731, or $0.02 per share, for the same period in 2010.
SOURCE Sanchez Energy Corporation
To access over 2,700 of the latest oil projects from across the world visit Projects OGP for free trial today