Sanchez Energy Corporation Prices Initial Public Offering of Common Stock

HOUSTON, Dec. 13, 2011 /PRNewswire/ -- Sanchez Energy Corporation ("Sanchez") announced today the pricing of the initial public offering of 10,000,000 shares of its common stock at $22.00 per share for net proceeds, after underwriting discounts and commissions and estimated offering expenses, of approximately $203 million. The shares are expected to begin trading on the New York Stock Exchange on December 14, 2011 under the ticker symbol "SN." In addition, Sanchez granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of common stock, on the same terms and conditions, to cover over-allotments, if any.  The offering is expected to close on December 19, 2011, subject to customary closing conditions.

Sanchez intends to use $50 million of the net proceeds from the offering as partial consideration (together with its issuance to Sanchez Energy Partners I, LP of approximately 22.1 million shares of its common stock) for the contribution by Sanchez Energy Partners I, LP of the limited liability company interests in SEP Holdings III, LLC and approximately $89 million of the net proceeds as partial consideration (together with its issuance of approximately 909,000 shares of its common stock) for the acquisition of the limited liability company interests in SN Marquis LLC.  Sanchez intends to use the remaining net proceeds of approximately $64 million to fund its capital expenditures, and, in particular, its drilling, exploration and acquisition programs through December 2013, its other operating expenses, and for general corporate purposes. 

Johnson Rice & Company L.L.C. and Macquarie Capital (USA) Inc. are acting as joint book-running managers.  Simmons & Company International, Canaccord Genuity Inc., Capital One Southcoast, Inc., Cowen and Company, LLC and Stifel, Nicolaus & Company, Incorporated are acting as co-managers for the offering.  This offering of common stock will be made only by means of a prospectus. A written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, when available, may be obtained from the offices of:

Johnson Rice & Company L.L.C.
Attn: Corporate Finance Department
639 Loyola Avenue, Suite 2775
New Orleans, Louisiana 70113
Email: [email protected]
Telephone: (504) 584-1231

Macquarie Capital (USA) Inc.
Attn: Prospectus Department
125 West 55th St, 22nd Floor
New York, New York 10019
Email: [email protected]
Telephone: (212) 231-0528

A registration statement relating to these securities has been filed with, and declared effective by, the Securities and Exchange Commission (the "SEC"). The registration statement is available on the SEC's website at http://www.sec.gov under "Sanchez Energy Corp".  This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Sanchez 

Sanchez is an independent oil and gas exploration and production company focused on the exploration, acquisition and development of unconventional oil and natural gas resources, primarily in the Eagle Ford Shale in South Texas. Sanchez was formed in 2011 and is headquartered in Houston, Texas.

Forward-Looking Statements

This press release includes "forward-looking statements" – that is, statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate," "believe," "intend," "expect," "plan" or "will" or other similar words. These forward-looking statements involve certain risks and uncertainties and ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. For further discussion of risks and uncertainties, you should refer to Sanchez's SEC filings. Sanchez undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release, except as required by law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Contacts
Sanchez Energy Corporation
Attn: Michael G. Long
Office: (713) 783-8000
Fax: (713) 756-2784
[email protected]

SOURCE Sanchez Energy Corporation

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