SN 7.75s

Sanchez Energy Corporation

Credit, Energy


Presented:02/04/2015
Price:$13.43
Cap:$0.75B
Current Price:$107.93
Cap:$15.10B

Presented

Date02/04/2015
Price$13.43
Market Cap$0.75B
Ent Value$1.90B
P/E Ratio39.81x
Book Value$19.32
Div YieldN/A
Shares O/S55.84M
Ave Daily Vol3,900,000
Short Int3.51%

Current

Price$107.93
Market Cap$15.10B
Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition, exploration, and development of unconventional oil and natural gas resources in the onshore U.S. Gulf Coast. As of March 5, 2014, it had approximately 120,000 net leasehold acres in the oil and condensate, or black oil and volatile oil, windows of the Eagle Ford Shale in South Texas; approximately 57,000 net acres targeting the Tuscaloosa Marine Shale in Mississippi and Louisiana. The company was founded in 2011 and is based in Houston, Texas.

Publicly traded companies mentioned herein: Sanchez Energy Corporation (SN)

Highlights

The presenter is concerned about Sanchez Energy Corporation’s (SN) future liquidity, and is short the June 15, 2021 7.75 debentures (~98). Based on his model, the risk/ reward appears to be favorable as SN could run out of liquidity in the second quarter of 2016, and the fear of such an event which would likely trigger a roughly 15-20 point drop in the price of the debt. However, in a recovery scenario, upside should be relatively limited.

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Idea Discussion

Commentor 1 - 2 weeks ago

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