Sanchez Energy Corp Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 225% to $0.13 in the quarter versus EPS of $0.04 in the year-earlier quarter.
Revenue: Rose 302.61% to $30.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.13 per share. By that measure, the company missed the mean analyst estimate of $0.16. It beat the average revenue estimate of $30.56 million.
Quoting Management: Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy, commented: “Production and revenues grew substantially this quarter as a result of our new well completions, continued strong oil prices and the start of natural gas processing in both our Palmetto and Marquis areas. We exited the first quarter with 36 gross producing wells and have brought another 13 gross wells on line since that time. Our current daily net production is now in excess of 7,500 boe/d with nine additional gross wells either drilling, waiting on completion or undergoing completion. As a result of this growth in production, which started late in the first quarter, we foresee ongoing improvements in our key financial metrics in the second quarter and beyond.
We are on schedule to close the announced acquisition of the Cotulla area properties during the second quarter of this year. That acquisition is expected to add approximately 4,000 to 5,000 boe/d of production resulting in an expected pro forma second quarter production exit rate in excess of 12,000 boe/d. Upon closing of the transaction, or shortly thereafter, we will provide more specific, updated guidance pertaining to 2013 production and capital spending forecasts.”
Key Stats (on next page)…
Revenue increased 84.43% from $16.7 million in the previous quarter. EPS increased 160% from $0.05 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.35 to a profit $0.3. For the current year, the average estimate has moved down from a profit of $1.5 to a profit of $1.48 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)