Past year: ▼ 89%(0.80c – 7.50c USD)
Each one in plain English, with the numbers worked through for a shareholder.
7 Oct 2016material agreement● NeutralMajor
Sanchez sold its half of the Carnero processing plant to the affiliated partnership for $47.7 million plus $32.3 million of assumed commitments, completing the transfer of its midstream interests out of the company.
23 Aug 2016dividend declaration▼ Bad
The second quarterly preferred dividend of the year, again paid in shares rather than cash.
3 Aug 2016director officer appointment● Neutral
Robert V. Nelson III joined the board.
6 July 2016material agreement● Neutral
Sanchez sold its Carnero gathering business to the affiliated partnership for about $37 million plus the assumption of $7.4 million of remaining commitments - another midstream asset monetised within the family group.
23 May 2016dividend declaration▼ Bad
Sanchez declared its quarterly preferred dividends but elected to pay them entirely in common stock rather than cash. Preserving cash at the cost of diluting the common holders - a choice it would repeat every quarter that year.
21 Mar 2016material agreement▼ BadMajor
The seventh credit amendment is where the lenders took control of the cash: account control agreements over every deposit account, a requirement to sweep any cash above $35 million into repayment, and half a point more interest. Sanchez was now being managed to the banks' comfort, not its own.
8 Mar 2016director officer appointment▼ Bad
Garrick Hill was made interim co-chief financial officer - a shared, temporary finance role at the low point of the price cycle.
25 Jan 2016material agreement▼ BadMajor
The banks cut Sanchez's borrowing base from $500 million to $425 million as oil bottomed near $30. The first hard reduction in the company's available credit, and it would not be the last.
16 Dec 2015material agreement● Neutral
Gregory Kopel joined as general counsel, an appointment a company makes when it expects to need one.
4 Nov 2015material agreement● Neutral
A fifth credit amendment updated the loan documents for the disposal of Catarina Midstream.
20 Oct 2015asset acquisition disposition● NeutralMajor
The Catarina midstream sale closed, bringing in $345.8 million from the affiliated partnership. Sanchez keeps operating the system under long-term agreements - it has sold the asset but kept the cost.
6 Oct 2015director officer appointment● Neutral
Eduardo Sanchez was appointed president, adding another family member to the executive line alongside chief executive Antonio Sanchez III and board member A. R. Sanchez, Jr.
5 Oct 2015material agreement● Neutral
A fourth credit amendment tidied up the documentation around the midstream joint venture and raised the letter of credit limit ahead of the Catarina Midstream sale.
29 Sept 2015material agreement● NeutralMajor
Sanchez agreed to sell its Catarina gathering system to affiliate Sanchez Production Partners for $345.8 million - by far the largest of the related-party sales, and enough cash to matter against the debt taken on in 2014.
12 Aug 2015listing compliance notice▲ GoodMajor
the New York Stock Exchange certified Sanchez Energy Corp's securities for listing, clearing them to begin trading.
29 July 2015bylaws amendment▼ BadMajor
Sanchez adopted a shareholder rights plan to stop anyone accumulating enough stock to jeopardise its tax loss carryforwards. Companies only protect loss carryforwards when they have large ones, and only fear accumulation when the shares are cheap - both were now true.
24 July 2015material agreement● Neutral
The banks allowed Sanchez to invest up to $80 million in an unrestricted midstream subsidiary and joint venture - building gathering infrastructure it could later sell to the affiliated partnership, which is exactly what happened.
23 June 2015auditor change● Neutral
Sanchez replaced BDO with KPMG as auditor, moving to a Big Four firm as the accounting around its affiliate transactions and impairments grew more consequential.
8 May 2015director officer appointment● Neutral
Thomas Brian Carney joined the board.
6 Apr 2015asset acquisition disposition● NeutralMajor
The wellbore sale to the affiliated partnership closed for $81.6 million cash plus units in the buyer - real money in the door, from a counterparty Sanchez's own managers also run.
1 Apr 2015material agreement▼ BadMajor
With prices down and cash needed, Sanchez began selling assets to its own affiliate: partial working interests in 59 Palmetto wellbores went to Sanchez Production Partners, an entity in the same family group, on terms where the buyer's share escalates every year. A related-party sale is the easiest kind to complete, and the hardest for an outside shareholder to judge.
6 Nov 2014director officer appointment● Neutral
Sean Maher joined the board as oil prices were beginning to fall sharply.
15 Sept 2014debt financing▼ BadMajor
A further $300 million was added to the 6.125% notes at a premium, taking that bond to $1.15 billion. This is the last financing Sanchez completed before oil prices collapsed.
2 July 2014asset acquisition disposition● NeutralMajor
Sanchez closed the Catarina acquisition and issued $850 million of 6.125% senior notes due 2023 to pay for it. Total borrowings now approach $1.5 billion against a company that listed two and a half years earlier with no debt at all - and Catarina's value depends entirely on oil staying near $100.
16 June 2014material agreement● NeutralMajor
Sanchez sold 5 million shares at $35.25, its highest price ever and 60% above the IPO, to fund Catarina - and Sanchez Oil & Gas and A. R. Sanchez, Jr. sold shares alongside it. Insiders selling into the top of the company's history is worth noting on its own.
11 June 2014material agreement● Neutral
Sanchez published the financial groundwork for the Catarina purchase - audited revenues for the Shell assets, a Ryder Scott reserve report and pro formas combining Cotulla, Wycross and Catarina - and amended its credit agreement for the sixth time. This is the paperwork a company files immediately before raising the money.
30 May 2014capital raising announcement● Neutral
A third round of preferred-for-common exchanges across both series, on the same pattern: dividends waived, common shares issued.
22 May 2014agm notice▲ GoodMajor
This filing is typed as an annual meeting report, and the votes are in it - but the substance is that Sanchez agreed to buy Shell's Catarina assets in Dimmit, LaSalle and Webb Counties for about $639 million cash, with 60 million barrels of proved reserves, paying a $51 million deposit. Its largest deal yet, more than twice the Cotulla price.
6 Mar 2014director officer appointment● Neutral
Christopher Heinson became chief operating officer, succeeding Joseph DeDominic in a role that had turned over once already in fifteen months.
5 Mar 2014material agreement▲ Good
The banks raised Sanchez's borrowing base to $400 million, reflecting the reserves added by Cotulla and Wycross.
