14 May 2020listing compliance notice▼ BadMajor
Sanchez Energy Corp terminated the registration of a class of securities, ending its reporting obligation for them.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
6 May 2020bankruptcy or receivership▼ BadMajor
The court confirmed Sanchez's reorganisation plan on 30 April 2020, and it wiped out the shareholders completely: all 102.3 million common shares and both preferred series were cancelled for no distribution, with the reorganised company issued to creditors. The business survived under new ownership; every share bought since the $22 float in 2011 was worth nothing.
1 Apr 2020debt default or forbearance▼ BadMajor
Sanchez missed the deadline to file a reorganisation plan and its bankruptcy lenders declared a default, accelerating $150 million. Failing on the loan that exists to carry a company through bankruptcy, as oil prices collapsed in the first weeks of the pandemic, is close to the last line of defence.
3 Feb 2020debt financing▼ BadMajor
The bankruptcy financing was restructured and enlarged nearly six months into the case, with the secured noteholders still funding it. A case that was meant to be quick was not going well.
26 Sept 2019material agreement● Neutral
The bankruptcy lenders extended the deadline for final court approval of their loan - the first of several extensions in a case that took nine months longer than the original timetable allowed.
22 Aug 2019debt financing● NeutralMajor
Sanchez drew the first $50 million of its bankruptcy loan, with the remaining $125 million dependent on the court's final approval.
12 Aug 2019bankruptcy or receivership▼ BadMajor
Sanchez Energy and ten subsidiaries filed for Chapter 11 in Houston, with a $175 million debtor-in-possession loan from the holders of the 2018 secured notes. The company that spent $3 billion buying Eagle Ford acreage between 2013 and 2017 could no longer service what it borrowed to do it.
13 June 2019listing compliance notice▼ Bad
Sanchez Energy Corp withdrew a registration statement, abandoning the offering it covered.
8 Mar 2019listing compliance notice● NeutralMajor
Sanchez Energy Corp's exchange filed to remove a class of its securities from listing.
20 Feb 2019listing compliance notice▼ BadMajor
The NYSE began delisting proceedings and suspended trading immediately; Sanchez chose not to appeal. The shares moved to the over-the-counter market, ending the listing that began at $22 in December 2011.
8 Jan 2019listing compliance notice▼ BadMajor
A second NYSE breach two weeks after the first: Sanchez's entire market value had fallen below $50 million - against roughly $2 billion of debt.
21 Dec 2018listing compliance notice▼ BadMajor
The NYSE warned Sanchez that its shares had averaged under $1 for thirty trading days. Seven years after listing at $22, the stock was worth less than a dollar.
1 Nov 2018director officer appointment▼ BadMajor
Eugene Davis - a professional restructuring director who sits on boards of companies heading into bankruptcy - joined the board with Adam Zylman, and Cameron George took over as interim finance chief. Nine months before the Chapter 11 filing, this appointment is the clearest single signal in the whole record of where Sanchez was going.
1 Aug 2018material agreement▼ Bad
The 2015 rights plan protecting Sanchez's tax losses was extended three more years to 2021, confirming the losses were still large and unused.
15 May 2018material agreement● Neutral
The borrowing base of the unrestricted Comanche subsidiary was raised from $330 million to $380 million - credit was still available at the ring-fenced entity even as the parent tightened, a distinction that mattered enormously when the group failed.
20 Feb 2018debt financing▼ BadMajor
The $500 million secured notes closed. These are the notes whose holders would fund the bankruptcy eighteen months later and end up owning the company.
12 Feb 2018material agreement▼ BadMajor
Sanchez agreed to issue $500 million of 7.25% notes secured by a first lien on its assets. Moving from unsecured to secured borrowing is what a company does when unsecured lenders will no longer lend - and it subordinates every existing bondholder in the process.
23 Aug 2017material agreement▼ BadMajor
Sanchez sold more LaSalle and Webb County assets, this time to Vitruvian for about $105 million, continuing to sell producing property to service the debt taken on for Comanche.
25 May 2017material agreement▼ Bad
Sanchez set up a $75 million programme to sell shares into the market from time to time - a quiet, continuous form of dilution used when discrete offerings are no longer attractive.
24 Apr 2017material agreement● Neutral
The credit agreement was amended again to bring the new Comanche subsidiaries into the borrowing group after the acquisition closed.
19 Apr 2017asset acquisition disposition● Neutral
The final tranche of the Cotulla assets transferred to Carrizo, closing out the disposal that helped fund Comanche.
6 Mar 2017asset acquisition disposition● NeutralMajor
The Comanche acquisition closed, with Blackstone's Gavilan Resources taking the other half. Sanchez now operates a large acreage position it only half owns, alongside a private equity partner whose interests diverge from its own the moment prices disappoint - and it funded its share partly through a subsidiary deliberately held outside its bond covenants.
6 Feb 2017material agreement▼ BadMajor
Sanchez sold 11.5 million shares at $12.50 to help fund Comanche - a third of the $35.25 it got in 2014, so far more dilution for far less money.
17 Jan 2017capital raising announcement● NeutralMajor
Sanchez bet the company: it agreed to buy Anadarko's Comanche Eagle Ford assets - 318,000 gross acres - for $2.275 billion, splitting the cost 50/50 with a Blackstone vehicle and paying its own half partly through an unrestricted subsidiary deliberately placed outside its bond covenants. A deal five times the size of Catarina, done by a company whose borrowing base had just been cut to $350 million.
13 Jan 2017asset acquisition disposition▼ BadMajor
The Cotulla sale to Carrizo delivered about $160.6 million across two closings. Sanchez had paid $280 million for these assets in 2013 and sold them for roughly half that.
12 Dec 2016material agreement● Neutral
The banks agreed to leave the borrowing base at $350 million rather than cutting it again - a reprieve, though the base is now 30% below where it stood a year earlier.
21 Nov 2016dividend declaration▼ Bad
The third preferred dividend of 2016 paid in stock rather than cash, completing a year in which the preferred holders were paid entirely in a falling currency.
9 Nov 2016material agreement● Neutral
Patricio D. Sanchez was appointed an executive vice president, a third family member in the executive ranks.
25 Oct 2016material agreement● NeutralMajor
Sanchez agreed to sell the Cotulla assets it bought from Hess in 2013 to Carrizo Oil & Gas - the first sale of a core producing property to a genuine third party, made to raise cash for something much bigger.
12 Oct 2016director officer appointment▲ Good
Howard Thill was appointed chief financial officer, ending the interim co-CFO arrangement that had run since March.