HOUSTON, Oct. 22 (UPI) -- Overall production from U.S. shale player Sanchez Energy was down, though the company said it was still producing more than expected in the weak market.
"During the third quarter 2015, we continued to realize operational success driven by strong production and declining well costs," Chief Executive Officer Tony Sanchez, III, said in a statement.
Oil production for Sanchez was down 1 percent year-on-year and down 13 percent from the second quarter. Natural gas production, meanwhile, was up 85 percent from third quarter 2014 and 10 percent from the second quarter. Overall, the company's production was up 37 percent year-on-year, but 1 percent less than during the previous quarter.
Nevertheless, Sanchez said production of 52.8 million barrels of oil equivalent per day was at the top end of its estimated range for the quarter. The company attributed the production success to increased well performance and efficiency.
"During the third quarter 2015, we continued to realize operational success driven by strong production and declining well costs," the CEO said.
The company received about $345 million in cash for the sale of its midstream, or transportation, assets in the western section of the Eagle Ford shale basin in Texas. In early October, it announced it entered into a joint venture with Targa Resources Partners to build a gas processing plant associated with its assets in the Eagle Ford shale.
Sanchez said the transaction would give it a chance to raise cash at a time when low crude oil prices are cutting into capital expenses.
The company earlier this year unveiled plans to cut capital spending by $50 million for the year, but still increase its production target by 4 percent, or about 2,000 barrels of oil equivalent per day.
