Stone Energy Corp. SGY posted third-quarter 2015 loss of 15 cents per share, wider than the Zacks Consensus Estimate of a loss of 12 cents. The bottom-line also compared unfavorably the year-earlier profit of 1 cent per share. Lower oil and gas prices affected the results.
Total operating revenue plunged 28% year over year to $132.2 million in the quarter from $183.2 million. However, quarterly revenues surpassed the Zacks Consensus Estimate of $109 million.
Operational Highlights
During the quarter, production averaged 238.8 million cubic feet of gas equivalent per day (MMcfe/d), up from the prior-year quarter level of 237.3 MMcfe/d. Of the total production, natural gas accounted for nearly 38%, oil constituted 41% and the remaining 21% was natural gas liquids (NGL).
Overall realization (including cash settlement for effective hedging transactions) on a per Mcfe basis was $5.84 in the reported quarter as against $8.01 in third-quarter 2014. Natural gas price of $2.09 per Mcf was below $2.77 per Mcf in the year-ago quarter. Also, natural gas liquids price came in at $7.82 per barrel, down from $42.45 per barrel over the year-earlier quarter. Oil price also decreased substantially to $69.59 per barrel from $93.15 per barrel in the prior-year quarter.
On the cost front, unit lease operating expenses decreased to $1.10 per Mcfe (as against $2.00 per Mcfe in the year-ago quarter). Depreciation, depletion and amortization was $2.77 per Mcfe (compared with $3.63 per Mcfe), salaries, general and administrative expenses came in at 89 cents per Mcfe (as against 75 cents per Mcfe) while Transportation, processing & gathering expenses were 83 cents per Mcfe (as against 77 cents per Mcfe).
Liquidity
At the end of the quarter, Stone Energy had approximately $74.5 million in cash and $1,052.2 million in long-term debt. Capital expenditures for the third quarter of 2015 were approximately $124.6 million, which included $23.9 million of plugging and abandonment expenditures.
Guidance
For the fourth quarter, the company expects net daily production of 150−156 MMcfe. For 2015, it anticipates total volume in the range of 234−236 MMcfe per day. The decline from the prior guidance for full-year volumes stemmed from the shut in of the Mary field in Appalachia and the assumption of it remaining shut in for the rest of the year.
Stone Energy reaffirmed capital outlay projection for 2015 at $450 million.
Zacks Rank and Other key Picks
Stone Energy currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the oil and gas exploration and production industry are Apache Corp. APA, Cimarex Energy Co. XEC and Callon Petroleum Company CPE. All these stocks hold a Zacks Rank #2 (Buy).
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