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Sanchez Energy Corporation (SN) |
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
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.[1]
Business Overview
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.[2]
New Updates
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.[3]
Trends & Forces
Higher Risk in Unconventional Oil
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. [4]
- ↑ SN S-1/A 2011 PROSPECTUS SUMMARY "Overview" pp. 1-2
- ↑ SN S-1/A 2011 PROSPECTUS SUMMARY "Summary Financial Data" pp. 14-15
- ↑ Renaissance Capital - IPO Home "Sanchez Energy prices IPO at $22, below the range" 14 Dec 2011
- ↑ SN S-1/A 2011 PROSPECTUS SUMMARY "RISK FACTORS" pp. 18-25
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