Sanchez Energy Closes Sale of Assets to Sanchez Production Partners
November 22 2016 - 4:45PM
Sanchez Energy Corporation (NYSE:SN) (“Sanchez Energy” or the
“Company”), today announced that it has closed on the previously
announced definitive agreement to sell the Company’s 50 percent
interest in Carnero Processing, LLC (“Carnero Processing”) to
Sanchez Production Partners LP (NYSE MKT:SPP) (“SPP”) for total
consideration of approximately $80 million. In conjunction
with the closing, the Company received cash consideration of $55.5
million and SPP assumed remaining capital commitments to Carnero
Processing, which are estimated at $24.5 million.
The Company also announced that it has closed on
the previously announced definitive agreement to sell certain
non-core producing oil and natural gas assets, located in South
Texas, to SPP for total consideration of approximately $27
million. After normal and customary closing adjustments, the
Company received cash consideration of $25.6 million from SPP in
conjunction with the sale.
The asset sales enhance the Company’s already
strong liquidity position which, as of the end of the third quarter
2016, totaled approximately $629 million, consisting of
approximately $329 million in cash and cash equivalents and an
undrawn bank credit facility with an elected commitment amount of
$300 million.
ABOUT SANCHEZ ENERGY
CORPORATIONSanchez Energy Corporation is an independent
exploration and production company focused on the acquisition and
development of unconventional oil and natural gas resources in the
onshore U.S. Gulf Coast, with a current focus on the horizontal
development of significant resource potential from the Eagle Ford
Shale in South Texas, where we have assembled over 200,000 net
acres, and the Tuscaloosa Marine Shale. For more information
about Sanchez Energy Corporation, please visit our website:
www.sanchezenergycorp.com.
COMPANY CONTACT:
Howard J. Thill
EVP & Chief Financial Officer
(713) 783-8000
General Inquiries: (713) 783-8000
www.sanchezenergycorp.com