8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 21, 2012

SANCHEZ ENERGY CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	001-35372	45-3090102
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1111 Bagby Street

Suite 1600

Houston, Texas 77002

(Address of principal executive offices) (Zip Code)

(713) 783-8000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240-14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure

As previously announced, Sanchez Energy Corporation (the “Company”) is scheduled to present at EnerCom’s The Oil & Services Conference on February 21, 2012, at 10:05 a.m. Pacific time. In connection with this conference, the Company has prepared investor slides, which are furnished herewith as Exhibit 99.1 and are incorporated by reference herein. The slides will also be available on our website at www.sanchezenergycorp.com under Investor Relations.

The information presented herein under Item 7.01 shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as may be expressly set forth by specific reference in such a filing.

1

Item 9.01. Financial Statements and Exhibits

(d)    Exhibit 99.1 Presentation dated February 2012

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SANCHEZ ENERGY CORPORATION
Date: February 21, 2012	By:	/s/ Michael G. Long
		Michael G. Long
		Senior Vice President and
		Chief Financial Officer

3

EXHIBIT INDEX

Exhibits
99.1	Presentation dated February 2012

4

EX-99.1

Sanchez Energy Corporation

Corporate Presentation

February 2012

Exhibit 99.1

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and

Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in

this presentation that address activities, events or developments that the Company expects, believes or anticipates will or

may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking

statements contained in this presentation specifically include the expectations of plans, strategies, objectives and anticipated

financial and operating results of the Company, including the Company's drilling program, production, derivative

instruments, capital expenditure levels and other guidance included in this presentation. These statements are based on

certain assumptions made by the Company based on management's experience and perception of historical trends, current

conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a

number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause

actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are

not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital

expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results,

operational factors affecting the commencement or maintenance of

producing wells, the condition of the capital markets

generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and

uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the

Company's business and other important factors that could cause actual results to differ materially from those projected as

described in the Company's reports filed with the SEC.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no

obligation to correct or update any forward-looking statement, whether as a result of new information, future events or

otherwise, except as required by applicable law.

References to quantities of oil or natural gas may include amounts that the Company believes will ultimately be produced

but

that

are

not

yet

classified

as

“proved

reserves”

under

SEC

definitions.

Forward-Looking Statements

2

Sanchez Energy Corporation Overview

3

Financial Summary

Reserves And Resource Potential

Eagle Ford Acreage And Drilling Inventory

Production

1.

Management estimates based on ~120 acre spacing on the undeveloped portion of our acreage.

Eagle Ford Acres

~91,000

Eagle Ford Net Unrisked Drilling Locations

(1)

~750

Proved Reserves (MMBoe)

6.7

Oil % of Proved Reserves

84%

Undeveloped % of Proved Reserves

86%

Resource Potential (MMBoe)

~250

9 Months Ended 9/30/11 (Boe/d)

431

2011 Exit Rate (Boe/d)

1,350

2012E Exit Rate (Boe/d)

4,000 - 5,000

Market Capitalization ($MM)

~$650

Enterprise Value ($MM)

~$580

Debt / Enterprise Value

0%

High growth oil and gas producer with significant exposure to lower-risk drilling opportunities in the Eagle Ford

Shale trend of South Texas, one of the fastest growing shale plays in North America

~91,000 net acre position in oil portion of the Eagle Ford

Expect to aggressively grow undeveloped acreage position at attractive per acre valuations

Sanchez Group has a proven track record of identifying, acquiring, and executing large drilling programs ~40

years of operations

Sanchez

has

been

in

the

oil

and

gas

business

since

1972,

drilled

or

participated

in

over

900

wells,

invested

over

$1 billion in South Texas, and cultivated long-standing relationships with surface and mineral rights owners in

the Eagle Ford

Access to significant technological database including 3D seismic, 2D seismic, and well logs

Near-term growth leveraged to oil and liquids projects

Large

inventory

of

identified

lower

risk,

higher

return

drilling

opportunities

2012

capital

budget:

$136

–

$154

million

for

drilling

and

completions

of

16.5

net

Eagle

Ford

wells

plus

facilities, leasing, and seismic

Transforms

valuation

proposition

through

conversion

of

resource

to

production,

reserves,

and

cash

flow

Majority of Eagle Ford leases have full depth rights and we believe are prospective for the Buda Limestone,

Austin Chalk, and Pearsall Shale formations, among others

~1,200 net acre position in the core of the Haynesville Shale

~82,000 net acres

in

northern

Montana

prospective

for

the

Heath,

Three

Forks,

and

Bakken

Shales

Pure Play Eagle Ford

Company

Proven Track Record

Provides Platform for

Growth

Aggressive 2012

Growth Plan

Additional Upside

Summary Highlights

4

Volatile oil window (Gonzales, Fayette, & Lavaca Counties)

Black oil window (Zavala, Frio, & Atascosa Counties)

–

–

Directly involved in the energy business for over 12 years

Integral in identifying prospective areas and implementing leasing and drilling programs in the Eagle

Ford and other oil producing plays

Extensive experience drilling a broad range of conventional and unconventional wells

Prior experience includes JP Morgan Investment Banking (Mergers & Acquisitions) and Zix

Corporation, a Dallas based public technology firm where he continues to serve on the Board of

Directors

MBA, Harvard University; BBA Georgetown University (dual major in Accounting and Finance, minor

in Economics)

SVP and CFO of Edge Petroleum Corporation for 12 years; IPO and capital markets experience

VP Finance at W&T Offshore, a public E&P company (1996-1997)

17 years of oil & gas (commercial and investment) banking experience

MS (Economics); University of Illinois

30

years

of

successful

experience

in

oil

and

gas

exploration

and

development

Generated and drilled numerous prospects in the Gulf of Mexico and along the Gulf Coast Onshore

Exploration experience in the Cretaceous Carbonates along the Texas Gulf Coast

Managed successful exploration programs for over 14 years

BS Geology, Geophysics and Petroleum Engineering Minor; The University of Texas at Austin 1981

Graduate level coursework; University Texas at Dallas 1983

Managing Partner of Garcia Hamilton & Associates, L.P. since 2002

Prior experience includes Smith Graham & Company (Chief Investment Officer), Cisneros Asset

Management (President), and Salomon Brothers (mortgage-backed securities)

BA Economics; Yale University

Tony Sanchez III

Founder, Chairman & CEO

Michael G. Long

SVP & CFO

Management and Directors

5

Patrick Talamas

SVP of Geoscience

Gilbert Garcia

Director

~26,400 net acres

–

Zavala and Frio Counties, Texas –

Black oil window

2012 drilling plans

–

4.0 net operated wells:

$22 –

$28 million

Sanchez Energy Corporation Overview

~91,000 net acres in the Eagle Ford

–

3 primary project areas

–

Large contiguous blocks drive

efficiencies

Drilling inventory

(1)

–

~750

net unrisked Eagle Ford

locations

2012 drilling program

–

$126 –

$144 million to drill 16.5

net Eagle Ford wells

Positioned to expand core Eagle

Ford acreage position

–

~40 year relationships with

mineral and surface owners should

allow for rapid acreage growth

Maverick

1.

Management estimates based on ~120 acre spacing on the undeveloped portion of our acreage.

~9,400 net acres

–

Gonzales County, Texas –

Volatile

oil window

2012 drilling plans

–

6.5 net wells:

$52 –

$58 million

Company Overview

Eagle Ford Shale Area Map

Palmetto

~54,900 net acres

–

~48,600 net in SW Fayette & NE

Lavaca Counties, Texas –

Volatile

oil window

–

~6,300 net in Atascosa, Webb, and

DeWitt Counties, Texas

2012 drilling plans

–

6.0 net operated wells:

$52 –

$58 million

Marquis

6

Oil-Weighted Reserve & Production Growth

7

Reserves & Potential (MMBoe)

(1)

Average Daily Net Production (Boe/d)

Proved Reserves: 6.7 MMBoe (12/31/11)

1.

Per Ryder Scott as of 12/31/11. 3P reserves principally include the Palmetto area.

2.

Per management estimates.

3.

Exit rate for last day of 2011.

Multi-Year Inventory & 2012 Drilling Program

During

2012

Sanchez

anticipates

spending

$126

–

$144

million

to

drill

23

gross

(16.5

net)

wells

Sanchez

has

identified

a

multi-year

drilling

inventory

of

~750

total

net

unrisked

locations

in

the

Eagle

Ford

–

Additional upside identified in the Austin Chalk and Buda Limestone formations

9

Eagle

Ford

wells

currently

producing:

7

from

the

Eagle

Ford;

2

from

dual-completions

in

the

Austin

Chalk

and

Buda Limestone

1

additional

vertical

Eagle

Ford

well

awaiting

completion

with

first

production

expected

in

February

2012

Other 2012 capital spending of ~$10 million for facilities, leasing, and seismic

8

1.

Total identified drilling locations are calculated using ~120 acre spacing.

Net

Net

Unrisked

Planned

Project Area

Acres

Locations

(1)

Net Wells

Eagle Ford

Palmetto

9,416

75

6.5

$52

-

$58

Marquis

54,868

457

6.0

52

-

58

Maverick

26,410

218

4.0

22

-

28

Total Eagle Ford

90,694

750

16.5

$126

-

$144

2012E

($MM)

Drilling Budget

Eagle Ford Overview

9

10

Eagle Ford Structure Map

11

Eagle Ford Cross Section

Maverick Area Natural Fracturing

12

Eagle Ford Shale Overview Map

(1)

13

1.

Transaction information based on Management estimates.

Operational Overview

14

Eagle

Ford

Shale

–

Palmetto

Area

~9,400 net acres in Gonzales County

–

50% / 50% area of mutual interest with Marathon

–

~50% W.I.

–

~75 net identified unrisked locations / ~27

MMBoe

of

unrisked

potential

(1)

–

Exploring down spacing from 120 to 80 acres,

which will increase net identified unrisked

locations to 115 from 75

2012 drilling program

–

$52 –

$58 million committed to Palmetto

–

6.5 net wells planned in Palmetto

15

Palmetto Area Overview

Sensitivity Case Assumptions

(2)

Average

Type

Curve

/

Development

Economics

(2)

Undiscounted Payback and IRR

(2)

1.

Management estimates.

2.

Sensitivity cases, type curves, undiscounted paybacks, and IRRs are management estimates and are derived from operating experience, offset operator activity, and other published industry information.

3.

At $90 oil.

High

Base

Low

Gross Well Cost ($MM)

$8.5

$8.5

$8.5

24H IP (Boe/d)

1,388

1,125

871

Initial Decline (% / Year)

75%

75%

75%

B-Factor

1.0

1.0

1.0

EUR (MBoe)

750

600

450

PV-10 ($MM)

(3)

$14.0

$9.6

$5.3

Eagle

Ford

Shale

–

Marquis

Area

~54,900 net acres

–

~48,600 net acres in Southwest Fayette & Northeast

Lavaca Counties

–

~6,300 net acres in Atascosa, Webb, and DeWitt

Counties

–

100% W.I. / 100% Operated

–

~457 net identified unrisked locations / ~154 MMBoe

of unrisked potential

(1)

2012 drilling program

–

$52 -

$58 million committed to Marquis

–

6.0 net wells planned in Marquis Area

Marquis Area Overview

Sensitivity Case Assumptions

(2)

Average

Type

Curve

/

Development

Economics

(2)

Undiscounted Payback and IRR

(2)

1.

Management estimates.

2.

Sensitivity cases, type curves, undiscounted paybacks, and IRRs are management estimates and are derived from operating experience, offset operator activity, and other published industry information.

3.

Reflects well costs under a continuous development program; initial test wells may have higher costs.

4.

At $90 oil.

High

Base

Low

Gross Well Cost ($MM)

(3)

$7.5

$7.5

$7.5

24H IP (Boe/d)

1,200

1,000

800

Initial Decline (% / Year)

83%

83%

83%

B-Factor

1.3

1.3

1.3

EUR (MBoe)

550

450

350

PV-10 ($MM)

(4)

$9.0

$6.4

$3.3

16

Marquis Area Activity

17

Eagle Ford Shale –

Maverick Area

18

Maverick Area Overview

~26,400 net acres in Zavala and Frio

Counties

–

~80% W.I. / 100% operated

–

~218 net identified unrisked locations / ~58

MMBoe of unrisked potential

(1)

2012 drilling program

–

$22 -

$28 million committed to Maverick

–

4.0 net wells planned in Maverick Area

Sensitivity Case Assumptions

(2)

Average

Type

Curve

/

Development

Economics

(2)

Undiscounted Payback and IRR

(2)

1.

Management estimates.

2.

Sensitivity cases, type curves, undiscounted paybacks, and IRRs are management estimates and are derived from operating experience, offset operator activity, and other published industry information.

3.

At $90 oil.

High

Base

Low

Gross Well Cost ($MM)

$6.0

$6.0

$6.0

24H IP (Bbl/d)

600

500

400

Initial Decline (% / Year)

72%

74%

77%

B-Factor

1.3

1.3

1.3

EUR (MBoe)

450

350

250

PV-10 ($MM)

(1)

$9.1

$5.8

$2.3

Maverick Area Activity

19

High growth oil and gas producer with significant exposure to lower-risk drilling opportunities in the Eagle Ford

Shale trend of South Texas, one of the fastest growing shale plays in North America

~91,000 net acre position in oil portion of the Eagle Ford

Expect to aggressively grow undeveloped acreage position at attractive per acre valuations

Sanchez Group has a proven track record of identifying, acquiring, and executing large drilling programs ~40

years of operations

Sanchez

has

been

in

the

oil

and

gas

business

since

1972,

drilled

or

participated

in

over

900

wells,

invested

over

$1 billion in South Texas, and cultivated long-standing relationships with surface and mineral rights owners in

the Eagle Ford

Access to significant technological database including 3D seismic, 2D seismic, and well logs

Near-term growth leveraged to oil and liquids projects

Large

inventory

of

identified

lower

risk,

higher

return

drilling

opportunities

2012

capital

budget:

$136

–

$154

million

for

drilling

and

completions

of

16.5

net

Eagle

Ford

wells

plus

facilities, leasing, and seismic

Transforms

valuation

proposition

through

conversion

of

resource

to

production,

reserves,

and

cash

flow

Majority of Eagle Ford leases have full depth rights and we believe are prospective for the Buda Limestone,

Austin Chalk, and Pearsall Shale formations, among others

~1,200 net acre position in the core of the Haynesville Shale

~82,000 net

acres

in

northern

Montana

prospective

for

the

Heath,

Three

Forks,

and

Bakken

Shales

Pure Play Eagle Ford

Company

Proven Track Record

Provides Platform for

Growth

Aggressive 2012

Growth Plan

Additional Upside

Summary Highlights

20

Volatile oil window (Gonzales, Fayette, & Lavaca Counties)

Black oil window (Zavala, Frio, & Atascosa Counties)

–

–

Appendix

21

Haynesville Shale and Northern Montana

~1,200 net acres primarily in Natchitoches Parish

–

22% -

25% non-operated W.I.

–

14 net identified unrisked locations

Operated by Chesapeake

2012 drilling program

–

Do not plan on spending additional capital in the near-term

22

Haynesville Area Overview

Heath,

Three

Forks,

and

Bakken

–

Northern

Montana

Area

Overview

82,000 net acres in Lewis & Clark, Meagher, and Cascade Counties, Montana

Prospective for the Heath, Three Forks, and Bakken Shales

Five year lease terms with option to extend an additional five years for $10 per acre

2012 drilling program

–

Do not plan on spending additional capital in this area as we will allow industry activity to de-risk the play