Aug. 9 (UPI) -- U.S. shale exploration and production company Sanchez Energy said its output increased more than 40 percent over the first quarter of the year.
Sanchez is one of the larger operators in the Eagle Ford shale basin in Texas and added more than 300,000 acres to its portfolio through a March acquisition from rival shale player Anadarko Petroleum.
With the assets entrenched in its portfolio, Sanchez said its second quarter production of around 6.7 million barrels of oil equivalent was 43 percent higher than the first quarter. Revenue for the second quarter increased over the first by 31 percent to $175.7 million.
CEO Tony Sanchez III said second quarter performance was driven in large part by the newly-acquired assets, adding discipline was still the primary focus.
"Given the current operating environment, we remain focused on maintaining adequate liquidity to execute our drilling plans," he said in a statement.
As of June 30, the company said it drilled 68 wells, passing its previous annual well commitment. The company spent nearly all of its $129.6 million in capital expenditures on drilling and related costs and only 11 percent on leasing and business development.
In statements from the same time last year, Sanchez said capital spending plans would have a "meaningful impact on 2018 production."
Shale oil and gas operators are becoming more efficient in an era where crude oil prices are about half what they were three years ago. The company's drilling progress comes as it realized a second quarter price for oil at $47.79 per barrel, about $2 lower than the level posted early Wednesday.
Much of the focus for Sanchez is in the Catarina section of the Eagle Ford shale reserve area in Texas. The company's production is mixed more or less evenly between oil, natural gas liquids and natural gas.