Huge Eagle Ford Acquisition is Game-Changer for Sanchez Energy (SN) - Cramer
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Energy Corp. (NYSE: SN) shares are comfortably higher on the session with high volume Thursday following an announcement earlier in the week of a significant Eagle Ford share purchase.
CEO Tony Sanchez III spoke with Jim Cramer Wednesday night, commenting that the acquisition of 43,000 acres would be "transformational" for his company. Sanchez noted that the pick-up would accelerate growth by at least 18 months. Sanchez also said his company is fully-funded for the next two years.
The Eagle Ford property has infrastructure fully in-place, meaning any oil that is drilled would be able to piped out to market quickly.
Currently, 75 percent of Sanchez Energy's production has been hedged at "great prices," and Sachez expects the same when this deal closes.
Nat gas has also been a great source of incremental revenue, Sanchez noted, with about 80 percent to 90 percent being sold to the market.
Cramer agreed that the deal was transformational for Sanchez, making it a major Eagle Ford player. He'd be a buyer of the stock at these levels.
Sanchez shares have close higher seven of the last nine sessions. The stock is up about 6.7 percent over the last quarter, but down 16 percent since last year. Forward P/E at 6.7 times makes it fairly valued. Short interest is currently 3.88 million shares, or 13.8 percent of float.
CEO Tony Sanchez III spoke with Jim Cramer Wednesday night, commenting that the acquisition of 43,000 acres would be "transformational" for his company. Sanchez noted that the pick-up would accelerate growth by at least 18 months. Sanchez also said his company is fully-funded for the next two years.
The Eagle Ford property has infrastructure fully in-place, meaning any oil that is drilled would be able to piped out to market quickly.
Currently, 75 percent of Sanchez Energy's production has been hedged at "great prices," and Sachez expects the same when this deal closes.
Nat gas has also been a great source of incremental revenue, Sanchez noted, with about 80 percent to 90 percent being sold to the market.
Cramer agreed that the deal was transformational for Sanchez, making it a major Eagle Ford player. He'd be a buyer of the stock at these levels.
Sanchez shares have close higher seven of the last nine sessions. The stock is up about 6.7 percent over the last quarter, but down 16 percent since last year. Forward P/E at 6.7 times makes it fairly valued. Short interest is currently 3.88 million shares, or 13.8 percent of float.
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