Past year: ▼ 89%(0.80c – 7.50c USD)
Each one in plain English, with the numbers worked through for a shareholder.
22 May 2014agm notice▲ GoodMajor
This filing is typed as an annual meeting report, and the votes are in it - but the substance is that Sanchez agreed to buy Shell's Catarina assets in Dimmit, LaSalle and Webb Counties for about $639 million cash, with 60 million barrels of proved reserves, paying a $51 million deposit. Its largest deal yet, more than twice the Cotulla price.
6 Mar 2014director officer appointment● Neutral
Christopher Heinson became chief operating officer, succeeding Joseph DeDominic in a role that had turned over once already in fifteen months.
5 Mar 2014material agreement▲ Good
The banks raised Sanchez's borrowing base to $400 million, reflecting the reserves added by Cotulla and Wycross.
14 Feb 2014capital raising announcement● Neutral
More of the same the next day: holders of both preferred series exchanged into common, again waiving accrued dividends. Each swap removes a dividend obligation and adds to the common share count.
13 Feb 2014capital raising announcement● Neutral
A preferred holder swapped 400,000 Series B shares for 1.07 million common shares, giving up accrued dividends. Sanchez is quietly converting its preferred obligations into common stock while the share price is high.
10 Oct 2013asset acquisition disposition▲ GoodMajor
The Wycross acquisition closed at $230.1 million, funded from the September share sale and the note add-on. Sanchez has spent over $500 million on acquisitions in five months.
19 Sept 2013debt financing● NeutralMajor
Sanchez added $200 million to its 7.75% notes at 96.5 cents on the dollar, taking the bond to $600 million. Equity and debt were both being used to buy the same asset.
18 Sept 2013material agreement▲ GoodMajor
Sanchez sold 9.6 million shares at $23.00 - a share price back above its IPO level - to help fund the Wycross purchase.
12 Sept 2013material agreement● Neutral
The lenders lifted the cap on senior unsecured notes from $400 million to $600 million, clearing the way for Sanchez to borrow more in the bond market to pay for Wycross.
9 Sept 2013material agreement▲ GoodMajor
Sanchez agreed to buy Rock Oil's Wycross Eagle Ford assets for about $220 million in cash - its third acquisition of the year, three months after closing Cotulla and a month after buying into the Tuscaloosa Marine Shale.
13 Aug 2013capital raising announcement● NeutralMajor
Sanchez agreed to buy into the Tuscaloosa Marine Shale alongside its own affiliate, Sanchez Resources - about 40,000 net acres for cash, stock and a three-well drilling carry, ending with half of a 115,000-acre area of mutual interest. A related-party entry into an unproven play, and the only significant move Sanchez ever made outside the Eagle Ford.
14 June 2013debt financing● NeutralMajor
Sanchez issued $400 million of 7.75% senior notes due 2021 and used the proceeds to clear its revolver. Its first bond, and the start of the unsecured debt that would eventually decide the company's fate.
3 June 2013asset acquisition disposition▲ GoodMajor
Sanchez completed its first large acquisition - Hess Corporation's Cotulla Eagle Ford assets for $280.4 million - and doubled its revolver to $500 million with RBC to carry it. The company has gone from a 55,000-acre startup to a real Eagle Ford operator inside eighteen months.
21 Mar 2013capital raising announcement● NeutralMajor
Sanchez's lenders agreed to let it issue more preferred stock, and it placed a second series paying 6.5% to help fund a newly announced Eagle Ford acquisition. The preferred stack is being used as the acquisition currency, and the dividend rate has risen from 4.875% to 6.5% in six months.
3 Dec 2012director officer appointment● NeutralMajor
A. R. Sanchez, Jr. joined the board alongside Alan Jackson, and Joseph DeDominic became chief operating officer. The family patriarch taking a board seat makes explicit what the services agreement already implied about who controls the company.
23 Nov 2012debt financing● NeutralMajor
Sanchez signed a $250 million first lien revolver led by Capital One, with an initial borrowing base of $27.5 million, and a $250 million second lien term loan from Macquarie, with a $50 million initial commitment. No amounts had been drawn.
18 Sept 2012capital raising announcement▲ GoodMajor
Sanchez raised $150 million selling 3 million convertible preferred shares paying 4.875%. Cheaper than debt and it does not count against the credit facility - the first layer of what became a large preferred stack.
22 June 2012other material event● NeutralMajor
Sanchez Energy Partners I distributed about 21.8 million Sanchez Energy shares (65.2% of the stock) to its partners for no consideration. The company ceased to be a NYSE controlled company, so it formed new committees and split its board into three classes.
14 Mar 2012director officer appointment● Neutral
Greg Colvin joined the board and Kirsten Hink became principal accounting officer, the first additions to a very thin management layer three months after listing.
23 Dec 2011asset acquisition disposition● NeutralMajor
The structure behind the float: family partnership Sanchez Energy Partners I contributed its Eagle Ford interests, Sanchez paid Ross Exploration about $89 million cash and 909,091 shares for 55,000 net undeveloped acres across five South Texas counties, and it signed a services agreement under which Sanchez Oil & Gas supplies all the people who actually run it. Every element of the later story - family control, external management, acreage bought with fresh capital - is set here.
19 Dec 2011director officer appointment▲ GoodMajor
Sanchez Energy floated on the NYSE at $22 a share, raising money to develop Eagle Ford acreage contributed by the Sanchez family's private partnership, and appointed Gilbert Garcia as an independent director in the same filing. The company starts life with capital, family control and no employees of its own.
12 Dec 2011listing compliance notice▲ GoodMajor
the New York Stock Exchange certified Sanchez Energy Corp's securities for listing, clearing them to begin trading.
