Sanchez Energy Corporation (SN), an independent exploration and production (E&P) company, declared the pricing of its $300 million offering. The offering, upsized from the earlier announcement of $250 million, was priced at 100.75% of the principal amount.
These notes carry an interest rate of 6.125% and are due to mature in 2023. The senior note offering has an expected closure on Sep 12. Sanchez Energy added that these notes will be part of an earlier outstanding offering that carried the same interest rate and had the same maturity date.
Sanchez Energy also mentioned that it intends to use the proceeds from the offering for working capital requirements and other corporate purposes.
Headquartered in Houston, TX, Sanchez Energy focuses on acquisition, exploration and development of oil and natural gas resources, primarily in the Eagle Ford Shale in South Texas.
Notably, the company has failed to impress investors with respect to earnings. It missed the Zacks Consensus Estimate in the trailing four quarters and has an average negative surprise of 63.19%. For the second quarter, Sanchez Energy reported earnings of 3 cents per share, significantly lower than the Zacks Consensus Estimate of 19 cents. Moreover, downward estimate revisions for the current quarter as well as the current year are indicative of bearish sentiment on the stock.
Currently, Sanchez Energy holds a Zacks Rank #4 (Sell), implying that it is expected to underperform the broader U.S. market in the next one to three months.
However, one can consider better-ranked players from the same industry like WPX Energy, Inc. (WPX), Halcon Resources Corp. (HK) and Whiting Petroleum Corp. (WLL). While WPX Energy sports a Zacks Rank #1 (Strong Buy), Halcon Resources and Whiting Petroleum hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment