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Sanchez Energy Hires Financial Adviser To Explore Strategic Alternatives

Sanchez Energy Corp. (NYSE: SN) said Dec. 4 it has engaged Moelis & Co. LLC as financial adviser to explore strategic alternatives to strengthen its balance sheet and maximize the value of the Eagle Ford-focused company. So far this year, Sanchez has faced three straight quarters of production declines and analysts with Capital One Securities recently said the company appears to be insolvent with about $3.1 billion of asset value and roughly $3.7 billion of net liabilities and corporate overhead. Tony Sanchez III, president and CEO of Sanchez Energy, said the company has been focused on taking critical steps throughout the year to stabilize its production profile and reduce the capital intensity of the business. “However, these operational challenges, combined with volatility in the commodity markets and the company’s leverage, led the company to review opportunities to improve its financial flexibility for continued success in the future,” Sanchez said in a statement.
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