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Stone Energy (SGY) Incurs Wider Loss In Q2; Revenues Fall

Published 08/03/2016, 11:06 PM
Updated 07/09/2023, 06:31 AM

Stone Energy Corp. (NYSE:SGY) posted second-quarter 2016 loss of $7.45 per share, substantially wider than the Zacks Consensus Estimate of a loss of $6.46. The loss was also wider than a loss of $1.70 per share incurred in the year-earlier quarter.

Total operating revenue fell to $89.3 million in the quarter from $149.5 million in the year-ago period. The top line, however, beat the Zacks Consensus Estimate of $76.0 million.

Operational Highlights

During the quarter, production averaged 174.0 million cubic feet of gas equivalent per day (MMcfe/d) compared with 207 MMcfe/d in the first quarter of 2016 and 291 MMcfe/d per day in the second quarter of 2015. Of the total production, natural gas accounted for 32%, oil constituted 59% and natural gas liquids made up the remaining 9%.

Overall realization, on a per Mcfe basis, was $5.05 in the reported quarter compared with $4.49 in second-quarter 2015. Natural gas price of $1.72 per Mcf was below $1.82 in the year-ago quarter. NGL price increased to $15.24 per barrel from $13.90 per barrel in the year-ago period. Oil price plunged to $43.66 per barrel from $55.55 per barrel in the year-ago quarter.

On the cost front, unit lease operating expenses increased to $1.19 per Mcfe from $1.03 in the year-ago quarter. Depreciation, depletion and amortization were $2.85 per Mcfe compared with $2.89, while salaries, general and administrative expenses came in at $1.26 per Mcfe compared with 62 cents in the year-ago period.

Liquidity

As of Jun 30, 2016, Stone Energy had approximately $169.2 million in cash. Also as of Jun 30, 2016, the current portion of long-term debt of $288.3 million consisted of $287.9 million of 2017 Convertible Notes and $0.4 million of principal payments due within one year on the building loan. Outstanding letters of credit totaled $18.3 million.

STONE ENERGY CP Price, Consensus and EPS Surprise

STONE ENERGY CP Price, Consensus and EPS Surprise | STONE ENERGY CP Quote

Guidance

For the third quarter, the company expects net daily production of 210−222 MMcfe. For 2016, it anticipates total volume in the range of 198−210 MMcfe per day. Stone Energy’s capital outlay projection for 2016 is in the range of $160–$170 million.

Ranks

Stone Energy carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the oil and gas sector include GeoPark Limited (NYSE:GPRK) , Sasol Ltd. (NYSE:SSL) and North Atlantic Drilling Limited (NYSE:NADL) . Each of these sports sports a Zacks Rank #1 (Strong Buy).



SASOL LTD -ADR (SSL): Free Stock Analysis Report

STONE ENERGY CP (SGY): Free Stock Analysis Report

GEOPARK LTD (GPRK): Free Stock Analysis Report

NORTH ATL DRILG (NADL): Free Stock Analysis Report

Original post

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