HOUSTON, TX--(Marketwired - May 23, 2016) - Sanchez Energy Corporation (
"We place a premium on liquidity in today's more challenging commodity price environment," said Tony Sanchez, III, Chief Executive Officer of Sanchez Energy. "Paying common stock dividends on our Convertible Perpetual Preferred Stock increases our discretionary cash flow by approximately $4.0 million per quarter, or approximately $16.0 million on an annualized basis, which equates to roughly 6% of our 2016 upstream capital spending guidance at midpoint. This option provides us with additional financial flexibility as we execute our 2016 program and plan for future development and other opportunities that may emerge as a result of distress in the industry."
The common shares issued as dividends on the Convertible Perpetual Preferred Stock will be listed and tradable on the New York Stock Exchange.
ABOUT SANCHEZ ENERGY CORPORATION
Sanchez Energy Corporation is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources in the onshore U.S. Gulf Coast, with a current focus on the Eagle Ford Shale in South Texas where we have assembled approximately 200,000 net acres, and the Tuscaloosa Marine Shale. For more information about Sanchez Energy Corporation, please visit our website: www.sanchezenergycorp.com.
Contact Information:
COMPANY CONTACT:
Garrick (Rick) Hill
Interim Chief Financial Officer
(877) 847-0009
General Inquiries:
(713) 783-8000
www.sanchezenergycorp.com