Sanchez Energy Q4 Production Exceeds Guidance; Lowers 2016 Capital Budget

(RTTNews) - Sanchez Energy Corp. (SN) reported that its production for the fourth quarter of 2015 averaged approximately 58,115 BOE/D, significantly above the high end of its guidance range of 48,000 to 52,000 BOE/D for the quarter. The company said its results were driven by Catarina production of 46,030 BOE/D, the highest quarterly production level recorded to date from the asset, as well as strong performance from new wells in the Cotulla area. The company's fourth-quarter production represents an increase of approximately 32% when compared to fourth quarter of 2014 production.

For the full year 2015, average production was approximately 52,560 BOE/D, an increase of approximately 72% over 2014 average daily production.

The company said, based on the strength of its 2015 operating performance, it is reducing 2016 upstream capital spending guidance to a range of $200 million to $250 million, a $50 million reduction from previous estimates. The company said its 2016 upstream capital budget is expected to maintain production roughly equal to that of 2015.