Sanchez Energy Corp. (NYSE: SN) said Dec. 4 it has engaged Moelis & Co. LLC as financial adviser to explore strategic alternatives to strengthen its balance sheet and maximize the value of the Eagle Ford-focused company.
So far this year, Sanchez has faced three straight quarters of production declines and analysts with Capital One Securities recently said the company appears to be insolvent with about $3.1 billion of asset value and roughly $3.7 billion of net liabilities and corporate overhead.
Tony Sanchez III, president and CEO of Sanchez Energy, said the company has 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,” Sanchez said in a statement.
Sanchez Energy and its management are evaluating strategic alternatives to help provide the company with financial stability, but no assurances can be given as to the outcome or timing of the process, according to the company press release.
The company does not intend to make any future announcements concerning this process unless and until the company otherwise determines that disclosures are necessary or appropriate, the release said.
Recommended Reading
FLNG Floats into its Niche, Sparing Production Headaches
2025-05-08 - While floating LNG projects can’t match the production of land-based sites, the sector is still growing because of the convenience it offers operators, says a developer at Black & Veatch.
Freeport LNG Export Plant in Texas On Track to Exit Outage, LSEG Data Shows
2025-05-07 - In a report to Texas environmental regulators late on May 6, Freeport said the three liquefaction trains at the export plant shut that morning due to an incoming power feed interruption.
Arc Resources to Supply Exxon with LNG Offtake from Cedar LNG
2025-03-11 - Exxon Mobil Asia Pacific Pte. Ltd. has agreed to buy 1.5 million tonnes per annum of ARC Resources’ LNG offtake from the Cedar LNG Project when the facility begins commercial operations.
Canadian Government to Fund Portion of Cedar LNG’s $5.96B Development Cost
2025-03-24 - The Government of Canada has pledged to contribute up to $200 million to help the Haisla Nation and Pembina Pipeline Corp. develop the $5.96 billion Cedar LNG Project
LNG Leads the Way of ‘Energy Pragmatism’ as Gas Demand Rises
2025-03-20 - Coastal natural gas storage is likely to become a high-valued asset, said analyst Amol Wayangankar at Hart Energy’s DUG Gas Conference.