Sanchez Energy Corporation (NYSE: SN) is an oil and gas exploration and development company. Sanchez focuses on acquiring territories with unconventional reserves, in particular, black oil and volatile oil. Further, Sanchez's assets are located largely in South Texas. The company spends most of its money on developing and expanding its existing reserves.
For the full year 2010, Sanchez reported a total revenue of $4.6M. For the same period, the company reported a net loss $2.8M. This loss was due to high levels of operating costs. For 2009, Sanchez reported a slight profit of $.05M.
The company's initial public offering of stock on the NYSE occurred on December 13, 2011. The company offered 10M shares each for $22. This was below the $24-$26 price range. The deal raised a total of $220M. The lead mangers of the deal were Johnson Rice & Co and Macquarie Capital.
Sanchez Energy is focused on drilling unconventional oil reserves. The higher cost of drilling such reserves is feasible during periods of elevated oil and gas prices. As a result, if prices continue to rise, then such assets will continue to grow in value. However, if prices drop, the reserves could become no longer profitable to drill.