Sanchez Production announces $137 million loss in 2015

Sanchez recorded net loss of $44.5 million in Q4 2015, net loss of $137 million for full year 2015

SanchezHOUSTON, Texas – Sanchez Production Partners LP today reported fourth quarter and full year 2015 results.

“Despite a number of significant headwinds, we executed a plan to transform SPP in 2015 and exited the year with a well-positioned master limited partnership and arguably one of the most compelling investment opportunities in the energy space,” said Gerald F. Willinger, CEO of SPP’s general partner.

Report highlights:

  • Sanchez successfully closed and financed two transactions valued at approximately $430 million, including the acquisition of the Western Catarina midstream assets from Sanchez Energy Corporation for approximately $345 million, which closed in Oct. 2015
  • Sanchez Energy

    Tony Sanchez III, CEO of Sanchez Energy.

    Cash distribution of $0.4060 per unit ($1.624 per unit annualized) related to Q4 2015 activity, which represents a 1.5% increase over the Sanchez’s Q3 2015 distribution

  • Total revenue of $26.1 million during the Q4 2015, which includes revenue from midstream sales of $11.7 million during the quarter
  • Full year 2015 production of 1,428 MBOE, which includes net oil and liquids production for the full year 2015 of 1,180 barrels per day, an increase of approximately 21% compared to full year 2014
  • Adjusted EBITDA for Q4 2015 of approximately $12 million, which compares to $3.7 million in Q3 2015 (after adjustments for non-recurring items), and $25.8 million for  full year 2015 (after adjustments for non-recurring items), which compares to full year 2014 Adjusted EBITDA of $25.4 million (after adjustments for non-recurring items)
  • Updated base case 2016 forecast shows the Sanchez’s Adjusted EBITDA ranging from $54 million to $60 million, with common unit distribution coverage of 2.3x at the midpoint of this range
  • Q4 2015 production totaled 336 MBOE for average net production of 3,650 BOE per day during the quarter.
  • Net oil and liquids production for Q4 2015, which accounted for approximately 31% of total production during the quarter, was 1,149 barrels per day, down approximately 12% from Q3 2015
  • As of March 30, 2016, $109 million in debt outstanding under its credit facility, which has a borrowing base of $200 million. Sanchez’s borrowing base is scheduled for redetermination by the lenders in Q2 2016
  • Capital spending during Q4 2015 totaled approximately $2.7 million, $4 million for full year 2015

Posted in: Energy Financial

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