Here's Why Sanchez Energy Corp.'s Stock Is Soaring Today
Shares of Sanchez Energy (NYSE: SN) soared on Wednesday and were up more than 11% at 3:00 p.m. EDT.
Fueling Sanchez Energy's rally was its solid second-quarter results. The Eagle Ford Shale-focused driller reported a 43% increase in production over last quarter, in part because of the addition of its Comanche assets, which it acquired from Anadarko Petroleum (NYSE: APC) at the beginning of March. The company also noted that recently completed wells on the former Anadarko assets are performing well. For example, the Stumberg Ranch 55H well achieved an initial 24-hour production rate of 3,800 barrels of oil equivalent (BOE/d), which puts that well on pace to deliver a full payout in only 12 months at current oil and gas prices. Meanwhile, the former Anadarko assets helped fuel a 68% increase in the company's adjusted EBITDA from the year-ago quarter.
Image source: Anadarko Petroleum.
Source: Fool.com