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Sanchez Energy
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September 2018 Corporate Presentation
| Tony Sanchez | Page 2 of 11 |
June 07, 2025
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"September 2018 Corporate Presentation"
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© 2018 Sanchez Energy Corporation 2 Legal Disclaimers Forward Looking Statements This presentation contains, and our officers and representatives may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this presentation that address activities, events, conditions or developments that Sanchez Energy expects, estimates, believes or anticipates will or may occur or exist in the future are forward-looking statements. These statements are based on certain assumptions made by the Company based on management’s experience, perception of historical trends andtechnical analyses, current conditions,anticipatedfuturedevelopments andother factors believedto be appropriate andreasonablebymanagement. Whenusedinthis presentation,words such as “will,” “potential,” “believe,” “estimate,” “intend,” “expect,” “may,” “should,” “anticipate,” “could,” “plan,” “predict,” “forecast”, “budget”, “guidance”, “project,” “profile,” “model,” “strategy,” “future” or their negatives or the statements that include these words or other words that convey the uncertainty of future events or outcomes, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. In particular, statements, express or implied, concerning Sanchez Energy’s future operating results and returns, Sanchez Energy’s strategy and plans or view of the market, or Sanchez Energy’s ability to replace or increase reserves, increase production, generate income or cash flows, operational and commercial benefits of our partnerships, expected benefits from acquisitions, including the transactions we closed in the first quarter of 2017 whereby we, along with an entity controlled by The Blackstone Group, L.P., GavilanResources, LLC, acquired assets from Anadarko E&P Onshore LLC and Kerr-McGee Oil and Gas Onshore LP (the “Comanche Acquisition”), and our strategic relationship with Sanchez Midstream Partners LP (“SNMP” formerly Sanchez Production Partners LP) are forward-looking statements. Forward-looking statementsarenotguarantees ofperformance.Suchstatementsaresubjectto anumber ofassumptions,risksanduncertainties,manyofwhicharebeyondour control.AlthoughSanchezEnergybelievesthattheexpectations reflectedinitsforward -lookingstatementsarereasonableandarebasedonreasonableassumptions,no assurancecanbegiventhattheseassumptionsareaccurateor thatanyoftheseexpectationswillbeachieved(infullor at all) or will prove to have been correct. Important factors that could cause Sanchez Energy’s actual results to differ materially from the expectations reflected in its forward-looking statements include, among others: the timing and extent of changes in prices for, and demand for, crude oil and condensate, natural gas liquids (“NGLs”), natural gas and related commodities; our ability to successfully execute our business and financial strategies; our ability to utilize the services, personnel and other assets of Sanchez Oil & Gas Corporation pursuant to existing management services agreements; our ability to replace the reserves we produce through drilling and property acquisitions; the realized benefits of the acreage acquired in our various acquisitions, including the Comanche Acquisition, and other assets and liabilities assumed in connection therewith; our ability to successfully integrate our various acquired assets, includingassets acquiredin the Comanche Acquisition into our operations, fullyidentifyexistingandpotential problems with respect to such properties andaccurately estimate reserves, productionandcostswith respect to suchproperties; the realizedbenefits of our partnershipsandjoint ventures,includingourpartnershipwithaffiliatesofTheBlackstoneGroup,L.P.;the realizedbenefitsof ourtransactions withSNMP;theextenttowhichourdrillingplansaresuccessfulineconomicallydevelopingouracreage,producingreservesandachievinganticipatedproductionlevels;theaccuracyofreserveestimates,whichbytheirnature involve the exercise of professional judgment and may, therefore, be imprecise; the extent to which we can optimize reserve recovery and economically develop our plays utilizing horizontal and vertical drilling, advanced completion technologies and hydraulic fracturing; our ability to successfully execute our hedging strategy and the resulting realized prices therefrom; the creditworthiness and performance of our counterparties, including financial institutions, operating partners and other parties; competition in the oil and natural gas exploration and production industry in the marketing of crude oil, natural gas and NGLs and for the acquisition of leases and properties, employees andother personnel, equipment, materials andservices and, related thereto, the availability and cost of employees and other personnel, equipment, materials andservices; our ability to compete with other companies in the oil and natural gas industry; our ability to access the credit and capital markets to obtain financing on terms we deem acceptable, if at all, and to otherwise satisfy our capital expenditure and other funding requirements; the availability, proximity and capacity of, and costs associated with, gathering, processing, compression and transportation facilities; the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations, environmental laws and regulations relating to air emissions, waste disposal, hydraulic fracturing and access to and use of water, laws and regulations imposing conditions and restrictionsondrillingandcompletionoperationsandlawsandregulationswithrespect toderivativesandhedgingactivities;developments inoil-producingandnatural gas-producingcountries, theactions of theOrganization of Petroleum Exporting Countries and other factors affecting the supply and pricing of oil and natural gas; our ability to effectively integrate acquired crude oil and natural gas properties into our operations, fully identify existingandpotentialproblems withrespect to suchpropertiesandaccuratelyestimate reserves,productionandcosts withrespect to suchproperties; theextent to whichour crudeoil andnatural gasproperties operatedby others are operated successfullyandeconomically; theuse of competingenergysources, thedevelopment of alternativeenergysources andpotential economicimplicationsandother effects therefrom;our abilityto convert from the full cost to successful efforts method of accounting on a timely basis, or at all; unexpected results of litigation filed against us; the extent to which we incur uninsured losses and liabilities or losses and liabilities in excess of our insurance coverage; andtheother factors describedunderITEM1A,“RiskFactors,”inSanchezEnergy’sAnnualReportonForm10-Kfor thefiscal year endedDecember 31,2017andanyupdatesto thosefactors setforthinits subsequentQuarterlyReportsonForm 10-Qor CurrentReportsonForm 8-K. Inlightoftheserisks,uncertaintiesandassumptions,theeventsanticipatedbySanchezEnergy’sforward-lookingstatements maynotoccur,and,ifanyofsucheventsdo,SanchezEnergymaynothavecorrectlyanticipatedthe timingoftheir occurrenceor theextentoftheirimpactonitsactual results.Accordingly,youshouldnotplaceanyunduerelianceonanyof SanchezEnergy’sforward-lookingstatements.Anyforward-lookingstatementspeaks only as of the date on which such statement is made, and Sanchez Energy undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, exceptasrequiredbyapplicablelaw.Thesecautionarystatements qualifyallforward-lookingstatements attributable to usor persons actingonour behalf. OilandGasReservesTheSecuritiesandExchangeCommission(“SEC”)requiresoilandgascompanies,intheirfilingswiththeSEC,todisclose“provedoilandgasreserves”(i.e.,quantitiesofoilandgasthatareestimatedwith reasonable certainty to be economically producible) and permits oil and gas companies to disclose “probable reserves” (i.e., quantities of oil and gas that are as likely as not to be recovered) and “possible reserves” (i.e., additionalquantitiesofoilandgasthat mightberecovered,butwithalowerprobabilitythanprobablereserves).We mayusecertaintermsinthispresentation,suchas“resourcepotential”or “EURs”thattheSEC’s guidelines strictly prohibit us from including in filings with the SEC. The calculation of resource potential, EURs and any other estimates of reserves and resources that are not proved, probable or possible reserves are not necessarily calculated inaccordance withSECguidelines.Investorsare urgedto consider closelythedisclosureinSanchezEnergy’sAnnualReportonForm 10-Kfor thefiscalyear endedDecember 31,2017. Non-GAAPMeasuresIncludedinthispresentationare certainnon-GAAPfinancial measuresas definedunderSECRegulationG.Investors areurgedto consider closelythedisclosureinSanchezEnergy’sAnnualReportonForm 10-KforthefiscalyearendedDecember 31,2016,QuarterlyReportsonForm 10-QandCurrent ReportsonForm 8-Kandanyreconciliation toGAAPmeasures providedinthispresentation.