I'm in with the targets SN has and Crmaer calling it "The Son of EOG" this is a too cheap
Commodities Trader is in: SN Long Position Update
SN, a GROWX name, is an onshore oil & gas exploration co focused on shale plays with a current focus on the Eagle Ford Shale in South Texas where the co has 120,000 net acres and the Tuscaloosa Marine Shale in Mississippi and Louisiana where it has 40,000 net acres.
SN was spun off from privately-held Sanchez Oil & Gas in late 2011.
About 77% of SN's reserves are oil with 12% natural gas and 11% NGLs. SN has been ramping production in recent quarters (1Q14 production jumped to 18,784 BOE/Day from 3,943 in 1Q13).
The stock jumped in mid-May when SN announced it would acquire additional Eagle Ford assets from Royal Dutch Shell for $640 mln (deal closed on June 30).
It's a large deal as it doubled SN's Eagle Ford acreage to 226,000 acres and doubled production to 42,800 BOE/D.
The deal is immediately accretive to earnings and it's expected to generate a "substantial amount of near term cash flow." Clearly, the market is pleased as most analysts believe it was a good price and it was quality acreage.