Sanchez Energy Corp. (NYSE: SN), an independent oil and gas company targeting onshore US Gulf Coast oil resource plays with a current focus on the Eagle Ford shale play, has received commitments from its lending group to increase its available borrowing base under its $500 million first-lien revolving credit facility from $175 million to $300 million.
Michael G. Long, Sanchez Energy's senior vice president and CFO, commented, "With no drawings under our revolving credit facility and approximately $270 million of cash on hand at September 30, 2013 (pro forma for closing the Wycross acquisition), we have approximately $570 million of liquidity, after the expansion of our revolving credit line. We anticipate being able to fund our previously announced preliminary 2014 capital program from cash, cash flows, and a modest usage of the revolver, while retaining significant liquidity, as our proved reserve base continues to grow. We have also increased our hedging program and now have between 55% and 60% of our anticipated 2014 production hedged with a combination of swaps and collars at an average swap or floor price of $94 per barrel."
In addition to its current focus on the Eagle Ford Shale, where the company has assembled 125,000 net acres, Sanchez Energy also has 40,000 net acres targeting the Tuscaloosa Marine Shale.