Why Sanchez Energy Is Headed Even Higher
Following the release of a major deal to purchase producing acreage in the Eagle Ford, Sanchez Energy Corp. (NYSE: SN ) surged to record highs. The stock had seen solid gains in the last year following mediocre returns after an IPO at the end of 2011. While the stock has surged nearly $10 following the deal in late May, to reach $38, there are several reasons the stock could head much higher.
Prior to the deal to buy Eagle Ford assets from Royal Dutch Shell Plc (NYSE: RDS-B ) , Sanchez Energy was producing significant growth from its own Eagle Ford assets. Besides the strong Eagle Ford position, the company has a solid position in the up-and-coming Tuscaloosa Marine Shale, which gives it a strong foothold for building production.
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