Sabine Oil & Gas LLC has reported its fourth quarter and full year 2013 financial and operating results.

Key 2013 Results and Events:

  • Increased average daily production by 31% year-over-year to 175 MMcfe/d in 2013, up from 133 MMcfe/d in 2012. Oil production was 3,846 Bbl/d, a 343% increase over the prior year of 869 Bbl/d.
  • Oil and natural gas liquids production volumes comprised 54% of revenues and 31% of total production, (increase of 219% and 252%, respectively, over 2012).
  • Adjusted EBITDA for the year ended December 31, 2013 was $296.1 million, representing a 52% increase over 2012.
  • Added approximately 25,000 net acres in the Eagle Ford through acquisitions, joint ventures and grassroots leasing, resulting in a year end Eagle Ford position of approximately 34,000 net acres.
  • In the Eagle Ford Shale, completed two four-well pad in the Sugarkane block in southern DeWitt County, with an average rate per well of over 2,300 BOEPD for a 30-day period (IP30), with 18% oil and 56% liquids.
  • Also in the Eagle Ford Shale, completed ten wells in the Shiner Area in northern DeWitt County and southern Lavaca County, which averaged an IP30 of over 1,200 BOEPD, with 51% oil and 77% liquids.
  • In East Texas, completed five Cotton Valley horizontal wells which had an average IP30 of over 10 MMcfe/d, with 29% liquids.
  • Also in East Texas, completed seven of the 15 Haynesville Shale wells covered under a joint development agreement which averaged IP30 of over 9 MMcf/d. Plan is to complete the remaining eight wells during 2014.
  • In North Texas, completed five Granite Wash wells which had an average IP30 of over 1,100 BOEPD, with 67% oil and 77% liquids.
  • Closed on the sale of our interests in our Cleveland Sand assets for an adjusted price of approximately $177 million. The sale closed in December and was accounted for as an adjustment to the full cost pool with no gain or loss recognized.

Production volumes during the three months ended December 31, 2013 were 19.4 Bcfe, an increase of 8.4 Bcfe or approximately 77% from fourth quarter 2012 production. The increase in production is primarily due to an increase in oil and natural gas liquids production attributable to the North Texas and South Texas acquisitions and the company's active and successful development program in these regions.

Production volumes during the year ended December 31, 2013 were 63.8 Bcfe, an increase of 15.1 Bcfe or 31% compared to production of 48.6 Bcfe during the year ended December 31, 2012. The increase in production is primarily due to the North Texas and South Texas acquisitions and the company's active and successful development program in these regions.