SANCHEZ ENERGY CORPORATION (NYSE:SN) Files An 8-K Regulation FD DisclosureItem 7.01Regulation FD Disclosure.
On November 22, 2016, Sanchez Energy Corporation (“Sanchez Energy”) issued a press release relating to the transactions described in Item 8.01 of this Form 8-K. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing.
Item 8.01Other Events.
Carnero Processing Transaction
On November 22, 2016, Sanchez Energy and SN Midstream, LLC, a wholly-owned subsidiary of Sanchez Energy (“SNM”), consummated the disposition of 50% of the outstanding membership interests in Carnero Processing, LLC (“Carnero”) to the previously announced Purchase and Sale Agreement, dated October 6, 2016, among Sanchez Energy, SNM and Sanchez Production Partners LP (the “Partnership”). Carnero is constructing a cryogenic gas processing facility located in La Salle County, Texas. The Partnership paid aggregate cash consideration of $55.5 million and agreed to assume approximately $24.5 million of remaining estimated capital contribution commitments in connection with the acquisition, which purchase price was determined through arm’s length negotiations between the general partner of the Partnership and Sanchez Energy, including independent committees of both entities.
EWI Transaction
On November 22, 2016, SN Cotulla Assets, LLC and SN Palmetto, LLC (together, the “Seller”), each a wholly-owned subsidiary of Sanchez Energy, also consummated the disposition of working interests in 23 producing Eagle Ford wellbores located in Dimmit and Zavala counties in South Texas together with escalating working interests in an additional 11 producing wellbores located in the Palmetto Field in Gonzales County, Texas, to the previously announced Purchase and Sale Agreement, dated October 6, 2016, among the Seller, on the one hand, and the Partnership and SEP Holdings IV, LLC, a wholly-owned subsidiary of the Partnership, on the other hand. The Seller received aggregate cash consideration of $25.6 million after $1.4 million in normal and customary closing adjustments, which purchase price was determined through arm’s length negotiations between the general partner of the Partnership and Sanchez Energy, including independent committees of both entities.
