CEO Tony Sanchez’s A&D Strategy: Go With The Cash Flow

DALLAS—CEO Tony Sanchez unabashedly admits the good and bad of Sanchez Energy Corp.’s (NYSE: SN) deal history—the luck, the mistakes and the audacity of assets bought, sold or overlooked.   The Houston-based company has taken risks while making a point to avoid a cash flow catastrophe by acquiring assets that immediately make money.   “We like to buy assets that we can protect our downside, and that comes in the form of a lot of producing wells with stable production cash flow, to underpin our analysis,” Sanchez told an audience at Oil and Gas Investor’s A&D Strategies and Opportunities conference. “So, if we are wrong, we have production to back us up.”   In contrast, the rash of Permian Basin deals that have commanded the oil industry’s attention has been acquisitions for undeveloped acreage. Only some included production of more than 10,000 barrels of oil equivalent per day (boe/d), according to Moody’s Investors Service.  
Source: Daily Dose of ShaleDirectories.com News

https://www.shaledirectories.com/blog/ceo-tony-sanchezs-aampampd-strategy-go-with-the-cash-flow/