Sanchez Energy Q2 Net Loss Widens On Hefty Charge; Lifts Production View

(RTTNews) - Sanchez Energy Corp. (SN), an exploration and production company focused in the onshore U.S. Gulf Coast, reported Monday that its second-quarter net loss attributable to common stockholders was $566.9 million or $9.91 per share, sharply wider than last year's loss of $19.29 million or $0.38 per share.

The latest results included a non-cash after tax impairment charge of $468.9 million and a non-cash mark-to-market loss on the value of the Company's hedge portfolio of $61.9 million, offset by $28.1 million in hedge settlements.

Adjusted net loss was $24.41 million, compared to adjusted net income of $11.5 million a year ago.

Adjusted EBITDA, a key earnings metric, was $111.9 million, a 1 percent decrease over the second quarter 2014.

Total revenues declined 7 percent to $141.13 million from $151.66 million last year. Revenues were $169.3 million inclusive of hedge settlements.

The lower revenues reflected a 56 percent decrease in the average sales price per BOE, inclusive of realized hedge gains, over that period. The effect of the decrease in commodity prices was partially offset by higher production due to the addition of 152 gross new wells since the second quarter 2014.

Total production was 4,907 thousand barrels of oil equivalent, up 164 percent from last year. Average production of 53,923 barrels of oil equivalent per day significantly exceeded the high end of the production guidance.

Further, the company said it increased full year 2015 production guidance by 4 percent to 46,000 to 50,000 BOE/D.