Sanchez Energy (NYSE: SN) reported Q3 EPS of ($0.21), $0.24 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $277.7 million versus the consensus estimate of $254.05 million.

• Production of 7.0 million barrels of oil equivalent (“MMBoe”), or 75,750 barrels of oil equivalent per day (“Boe/d”);
• October 2018 production exceeded 80,000 Boe/d, as a focus on drilling the Lower Eagle Ford formation at Comanche, implementation of operational initiatives aimed at improving production results and continued drilling success at Catarina combined to yield production recovery and gains over the third quarter 2018;
• Revenues of approximately $277.7 million, a 50 percent increase compared to third quarter 2017;
• Net income of $5.6 million, which includes a non-cash mark-to-market hedging gain of $3.5 million, compared to net income of $35.8 million for third quarter 2017;
• Adjusted EBITDAX (a non-GAAP financial measure) of approximately $123.9 million, which includes $31.8 million in realized hedging losses and represents an increase of 25 percent compared to third quarter 2017;
• At Catarina, the company brought 16 wells online during third quarter 2018 with several of those wells reaching peak production in early October 2018, resulting in a production rate of approximately 48,900 Boe/d during the month of October 2018; and
• Drilling activity, which currently consists of four rigs and three completion crews, is expected to decrease to three rigs by the middle of fourth quarter 2018 as the company reduces capital spending levels.

For earnings history and earnings-related data on Sanchez Energy (SN) click here.