Sanchez Energy Corporation

Sanchez Energy — Corporate Update (March 2020)

47 slides from Sanchez Energy's corporate update, Mar 11, 2020

1. Slide 1: Sanchez Energy Business Plan

   CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY Results Driven. Manufacturing Focused. SUBJECT TO FRE 408 Sanchez Energy Business Plan March 2020 January 23, 2017 www.sanchezenergycorp.com

2. Slide 2: Management Representatives

   CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Management Representatives SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Mo Meghji Chief Restructuring Officer Cam George Executive Vice President and Chief Financial Officer Greg Kopel Executive Vice Pr

3. Slide 3: Table of Contents

   CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Table of Contents SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 I. Executive Summary 4 II. Business Plan and Financial Projections 8 III. Asset Development Plan 20 IV. Midstream 26 V. Corporate G&A 29 Ap

4. Slide 4: I. Executive Summary

   CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 I. Executive Summary 4 4

5. Slide 5: Business Plan Approach and Summary

   CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Business Plan Approach and Summary SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 The Sanchez Energy management team and advisors (“SN,” or the “Company”) have been working diligently on a revised busines

6. Slide 6: Business Plan Approach and Summary (continued)

   CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Business Plan Approach and Summary (continued) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408  Key Building Blocks (continued): 2. Midstream and Marketing  A contract-by-contract financial model was cre

7. Slide 7: Business Plan Approach and Summary (continued)

   CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Business Plan Approach and Summary (continued) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408  Preliminary Conclusions:  Preliminary analysis indicates higher asset value under the Option Preservation a

8. Slide 8: II. Business Plan and Financial Projections

   CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 II. Business Plan and Financial Projections 8 8

9. Slide 9: Business Plan Assumptions

   CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Business Plan Assumptions SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 The Company and its advisors have conducted a thorough review of business plan assumptions Assumption Commentary  Strip pricing as

10. Slide 10: NAV (PV-10) Analysis and Comparison

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS NAV (PV-10) Analysis and Comparison SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 $ millions Option Preservation Case Summary NAV Analysis(1) $50/$2.50 Strip(2) $60/$2.50 $70/$2.50 $80/$2.50 Asset Values

11. Slide 11: Illustrative and Preliminary NAV (PV-10) Sensitivities

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Illustrative and Preliminary NAV (PV-10) Sensitivities SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 PV-10 for Option Preservation Case, Accelerated Completions Case and PDP Case at Various Price Decks (

12. Slide 12: Option Preservation Case Financial Projections (Accrual)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Option Preservation Case Financial Projections (Accrual) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Pre- Post- Emergence Emergence Jan-May Jun-Dec Full Year $ millions 2017A 2018A 2019E(1) 2020E 2020E

13. Slide 13: Option Preservation Case 2020E Financial Projections (Accrual)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Option Preservation Case 2020E Financial Projections (Accrual) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 $ millions Jan 2020E Feb 2020E Mar 2020E Apr 2020E May 2020E Jun 2020E Jul 2020E Aug 2020E Sep

14. Slide 14: Accelerated Completions Case Financial Projections (Accrual)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Accelerated Completions Case Financial Projections (Accrual) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Pre- Post- Emergence Emergence Jan-May Jun-Dec Full Year $ millions 2017A 2018A 2019E(1) 2020E 2

15. Slide 15: Accelerated Completions Case 2020E Financial Projections (Accrual)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Accelerated Completions Case 2020E Financial Projections (Accrual) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 $ millions Jan 2020E Feb 2020E Mar 2020E Apr 2020E May 2020E Jun 2020E Jul 2020E Aug 2020E

16. Slide 16: Option Preservation Case Provides Commodity Price Upside

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Option Preservation Case Provides Commodity Price Upside SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 A going concern company best positions the assets for future rebound in commodity prices or monetiza

17. Slide 17: Key Ongoing Business Initiatives

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Key Ongoing Business Initiatives SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Immediate steps have been taken to delay capital spend, optimize operations and reduce costs; the Company is focused on key

18. Slide 18: Key Near Term Operational Decisions (2020)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Key Near Term Operational Decisions (2020) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Outlined below are key operational decisions over the next 12 months Category Decision Option Preservation  Drill

19. Slide 19: Potential Risks and Upsides to the Proposed Business Plan

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Potential Risks and Upsides to the Proposed Business Plan SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Risk/Considerations Commodity Prices  Further degradation in commodity prices, realizations or dif

20. Slide 20: III. Asset Development Plan

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 III. Asset Development Plan 20 20

21. Slide 21: Asset Development Approach and Overview

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Asset Development Approach and Overview SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 A comprehensive asset development assessment was completed since the last business plan presentation  Previous manda

22. Slide 22: Catarina Asset Overview

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Catarina Asset Overview SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Asset Map LeaseSummary  ~106,000 gross / net acres  2019 Production: ~35,000 Boe/d E35-E36 (East)  EF wet gas / condensate window

23. Slide 23: Comanche Asset Overview

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Comanche Asset Overview SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Asset Map  Lease Summary  ~250,000 gross / ~61,000 net acres  2019 Production: ~28,000 Boe/d  EF volatile oil / condensate gas wi

24. Slide 24: Palmetto Asset Overview

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Palmetto Asset Overview SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Asset Map Lease Summary Barnhart G Pad  ~15,500 gross / ~7,500 net acres  2019 Production: ~1,000 Boe/d  EF black oil window  Gro

25. Slide 25: Maverick Asset Overview

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Maverick Asset Overview SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Asset Map  Lease Summary  ~62,000 gross / ~40,000 net acres  2019 Production: ~2,600 Boe/d  ~24,316 net acres held by production

26. Slide 26: IV. Midstream

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 IV. Midstream 26 26

27. Slide 27: Illustrative Catarina Marketing Diagram

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Illustrative Catarina Marketing Diagram SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Diagrams below represent the flow of hydrocarbons from Catarina Gas Marketing Wellhead Gathering Gas Processing Trans

28. Slide 28: Illustrative Comanche Marketing Diagram

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Illustrative Comanche Marketing Diagram SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Diagrams below represent the flow of hydrocarbons from Comanche Gas Marketing Terminated Jan 2020 Wellhead Gathering

29. Slide 29: V. Corporate G&A

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 V. Corporate G&A 29 29

30. Slide 30: COPAS Overview

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS COPAS Overview SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 General Summary  The Council of Petroleum Accountants Societies (“COPAS”) is a non-profit professional organization established in 1961 that

31. Slide 31: Appendix

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Appendix 31 31

32. Slide 32: A. PDP Reference Case

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 A. PDP Reference Case 32 32

33. Slide 33: PDP Reference Case: Historical and Financial Projections (Accrual)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS PDP Reference Case: Historical and Financial Projections (Accrual) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Pre- Post- Emergence Emergence Jan-May Jun-Dec Full Year $ millions 2017A 2018A 2019E(1) 2

34. Slide 34: B. Other Supporting Items

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 B. Other Supporting Items 34 34

35. Slide 35: Historical EBITDAX Reconciliation – Restricted Group

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Historical EBITDAX Reconciliation – Restricted Group SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 2017 2018 (In Thousands) Consolidated SN Restricted Group (Model) Consolidated SN Restricted Group (Mode

36. Slide 36: Business Plan Assumptions (Option Preservation Case)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Business Plan Assumptions (Option Preservation Case) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Strip 2020 2021 2022 2023 2024 Pricing WTI Oil ($/Bbl) $51.27 $50.89 $50.96 $51.32 $51.69 (As of 2/11/20

37. Slide 37: Business Plan Assumptions (Option Preservation Case)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Business Plan Assumptions (Option Preservation Case) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Catarina Comanche Other 79 77 67 66 53 Gross Wells Drilling 55 Activity (SPUD) 77 67 66 53 24 2020 2021

38. Slide 38: Business Plan Assumptions (Option Preservation Case)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Business Plan Assumptions (Option Preservation Case) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Catarina Comanche Non D&C/Other $160 $149 $1 $140 $40 $113 $120 $1 $100 Capital ` $37 $ MM Expenditures

39. Slide 39: Business Plan Assumptions (Accelerated Completions Case)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Business Plan Assumptions (Accelerated Completions Case) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Strip 2020 2021 2022 2023 2024 Pricing WTI Oil ($/Bbl) $51.27 $50.89 $50.96 $51.32 $51.69 (As of 2/1

40. Slide 40: Business Plan Assumptions (Accelerated Completions Case)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Business Plan Assumptions (Accelerated Completions Case) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Catarina Comanche Other 77 67 66 56 53 Gross Wells Drilling Activity (SPUD) 77 67 66 55 53 1 2020 20

41. Slide 41: Business Plan Assumptions (Accelerated Completions Case)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Business Plan Assumptions (Accelerated Completions Case) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Catarina Comanche Non D&C/Other $140 $125 $120 $1 $100 $40 Capital ` $80 $ MM Expenditures $60 $50 $

42. Slide 42: Forecast Liquidity

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Forecast Liquidity SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Similar Liquidity Profile at Exit in Option Preservation, Accelerated Completions, and PDP Reference Scenarios Option Preservation Acceler

43. Slide 43: Sanchez Energy Organizational Structure (Pre-Petition)

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Sanchez Energy Organizational Structure (Pre-Petition) SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Services Agreement Sanchez Oil & Gas Corporation (“SOG”) Other Sanchez Group Public Sanchez Energy Cor

44. Slide 44: Comanche Ownership Structure

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Comanche Ownership Structure SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 Gavilan Venado KNOC Mitsui Sanchez Energy Corporation (Blackstone) ~25% (KKR) ~12.5% ~25% ~12.5% Restricted UnSub Comanche Coman

45. Slide 45: Annual NYMEX WTI Oil Strip Pricing

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Annual NYMEX WTI Oil Strip Pricing SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 $60.0 $57.5 Price ($ / Bbl) $55.0 $52.5 $50.0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Strip as of 11/30/201

46. Slide 46: Annual NYMEX Henry Hub Gas Strip Pricing

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Annual NYMEX Henry Hub Gas Strip Pricing SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 $3.25 $3.00 Price ($ / MBtu) $2.75 $2.50 $2.25 $2.00 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Strip as

47. Slide 47: Annual Mt. Belvieu Propane Strip Pricing

    CONFIDENTIAL SUBJECT TO CONFIDENTIALITY AGREEMENTS Annual Mt. Belvieu Propane Strip Pricing SUBJECT TO MATERIAL REVISION FOR SETTLEMENT AND DISCUSSION PURPOSES ONLY SUBJECT TO FRE 408 $24.0 Price ($ / Bbl) $21.0 $18.0 $15.0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Strip as of 11/30/201

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