•Net loss of $1.4 million after an unrealized loss on derivative activities of $2.0 million.
Adjusted EBITDA, as described in the statement of operations data below, was $2.1 million or $0.09 per share during the fourth quarter of 2011, as compared to $1.5 million, or $0.07 per share, in the fourth quarter of 2010.
Subsequent to December 31, 2011, Sanchez modified its oil derivative positions with both an optimization of its existing put spread transaction, an addition to the volumes covered in the second half of 2012 and an initial 2013 put spread transaction. The hedging positions are estimated to support approximately 50% of the Company's estimated 2012 production exit rate. Current hedging transactions are shown below.
January thru June 2012: Long $90 WTI Put/Short $70 WTI Put 1,000 B/D July thru December 2012: Long $90 WTI Put 1,000 B/D Long $100 WTI Put/Short $80 WTI Put 1,250 B/D January thru December 2013: Long $95 WTI Put/Short $75 WTI Put 1.000 B/D