The stock of Eagle Ford shale producer Sanchez Energy Corp. has been delisted from the New York Stock Exchange (NYSE), according to a company filing on Feb. 20.
Sanchez Energy formed in August 2011 and its stock has been trading on the NYSE following completion of its IPO a few months later. Concurrent with its IPO, Sanchez also acquired assets concentrated in the Eagle Ford Shale trend of South Texas as well as smaller positions in the Haynesville Shale and northern Montana, according to the company’s website.
Within the past year, though, Sanchez has faced challenges after three straight quarters of production declines. The company had been seeking to improve its financial flexibility, even hiring a financial adviser to explore strategic alternatives in early December.
RELATED: Sanchez Energy Hires Financial Adviser To Explore Strategic Alternatives
In a statement on Dec. 4, Sanchez Energy CEO Tony Sanchez said the company had been focused on taking critical steps throughout the year to stabilize its production profile and reduce the capital intensity of the business.
“However, these operational challenges, combined with volatility in the commodity markets and the company’s leverage, led the company to review opportunities to improve its financial flexibility for continued success in the future,” he continued.
These challenges eventually took a toll on Sanchez’s stock price. By late December, Sanchez received written notice from the NYSE that the company’s stock was trading below $1 and did not meet the minimum average closing price per share threshold needed to maintain listing. The company also received notice in early January that its total market capitalization was out of compliance as well.
Sanchez stock is now eligible for quotation on the over-the-counter markets and trading could commence as early as Feb. 21, according to the company’s filing with the U.S. Securities and Exchange Commission.
Utimco’s CEO on Energy Transition: ‘We’re Going in the Wrong Direction’
2023-03-08 - Britt Harris, Utimco CEO and an advisor to the New York Federal Reserve, addressed the “utopian” energy transition, said the Fed rate will probably go to 5% in March and said war with China could break out within the next 10 years.
What's Affecting Oil Prices This Week? (March 6, 2023)
2023-03-06 - The dynamic between the global economy and oil demand growth versus the ability of OPEC+ to align supply with demand is predicted to stay consistent.
EU Hires Firm to Launch Countries' Joint Gas Buying
2023-01-30 - The European Commission hopes joint gas buying will help Europe to refill depleted storage caverns before next winter and to negotiate lower prices by using EU countries' collective buying power.
What's Affecting Oil Prices This Week? (Jan. 30, 2023)
2023-01-30 - Imposition of Russian oil exports is set to take effect on Feb. 5, which is expected to negatively affect Europe's diesel market due to the region's dependence on diesel fuel imported from Russia.
Inpex CEO Plans to Accelerate Expansion of LNG Production, Sales
2023-01-12 - Inpex Corp, Japan's biggest oil and natural gas explorer, aims to accelerate its expansion of production and sales of LNG on the premise that LNG market will remain tight in the mid-term, its CEO said on Jan. 12.