Stone Energy Corp. Announces Unaudited Consolidated Earnings and Operating Results for the Second Quarter and Six Months Ended June 30, 2015; Announces Impairment Charges for the Second Quarter of 2015; Revises Production Guidance for the Year 2015; Provides Production Guidance for the Third Quarter of 2015; Provides Capital Expenditure Guidance for the Years 2015 and 2016
Aug 6 15
Stone Energy Corp. announced unaudited consolidated earnings and operating results for the second quarter and six months ended June 30, 2015. The company's second quarter results showed an adjusted $9 million loss or a loss of about $0.17 per share before an after-tax noncash impairment charge of $144 million, which brought the reported loss to $153 million. The company's discretionary cash flow for the quarter was about $85 million or around $1.50 per share, driven primarily by greater-than-expected production and lower cost. Total operating revenue was $149,525,000 compared to $207,046,000 a year ago. Loss from operations was $228,161,000 compared to profit from operations of $16,613,000 a year ago. Loss before taxes was $237,954,000 compared to profit before taxes of $7,436,000 a year ago. Net loss was $152,906,000 compared to net income of $4,444,000 a year ago. Net cash provided by operating activities was $62,143,000 compared to $141,488,000 a year ago. Capital expenditures for the second quarter of 2015 were approximately $91.1 million, which includes $18.8 million of plugging and abandonment expenditures, and the sale of a deep water lease block for $10.1 million compared to second quarter 2014 capital expenditures of approximately $252.9 million, which includes $15.1 million of plugging and abandonment expenditures.
For the six months period, the company's total operating revenue was $301,954,000 compared to $430,664,000 a year ago. Loss from operations was $725,355,000 compared to profit from operations of $65,165,000 a year ago. Loss before taxes was $745,248,000 compared to profit before taxes of $48,481,000 a year ago. Net loss was $480,294,000 compared to net income of $30,387,000 a year ago. Net cash provided by operating activities was $145,665,000 compared to $256,960,000 a year ago. Adjusted net loss was $22,242,000 or $8.70 per share.
Production for the 2015 second quarter, excluding the previous period adjustment, was about 46,000-barrel equivalents a day or 274 million cubic feet equivalents per day.
The company announced after-tax noncash impairment charge of $144 million for the second quarter of 2015. The impairment charge was primarily due to lower oil, NGL and natural gas prices used in calculating the full cost ceiling and an impairment due to an unsuccessful exploration venture in Canada.
Overall, given the strong performance to date from its deep water Gulf of Mexico properties, its Appalachian volumes and the added working interest in Appalachia, the company is increasing its 2015 production guidance from the previous 39,000 to 43,000 barrel equivalents per day, up to 42,000 to 44,000 barrel equivalents per day.
The company also provided production guidance for the third quarter of 2015 at about 39,000 to 41,000 Boe per day, which carries a projected weather downtime and operational downtime in the quarter itself.
The company’s board has authorized its 2015 capital budget at $450 million.
The company expects 2016 capital budget to be lower than its 2015 budget.
Stone Energy Corp., Q2 2015 Earnings Call, Aug 06, 2015
Jul 30 15
Stone Energy Corp., Q2 2015 Earnings Call, Aug 06, 2015
Stone Energy Corp. Provides Drilling and Production Update; Provides Production Guidance for the Second Quarter of 2016
Jul 7 15
Stone Energy Corp. provided a drilling and production update. In the Gulf of Mexico deepwater, operations at the Cardona #6 development well, located in Mississippi Canyon block 29, have been proceeding ahead of schedule and below budget, and drilling has been completed through the targeted zones. The well encountered approximately 288 feet of net pay in two intervals, similar to the Cardona #5 net pay of 275 feet. Analysis of logging and pressure data confirmed the existence of oil in the pay zones. The well has been successfully cased and cemented across all productive zones, the subsea tree has been installed and completion operations have begun. The well will be tied into existing Cardona subsea infrastructure, which flows into Stone's Pompano platform. It is expected that gross production from Cardona #6 will reach approximately 5,000 Boe per day (65% working interest) from the lower completion by late September. The upper completion is expected to have a similar production rate and will be accessed in the future by hydraulically shifting sleeves between the upper and lower completions. Upon completion of the Cardona #6 well, the ENSCO 8503 deepwater drilling rig will be released for approximately 60 days to receive scheduled maintenance and to be outfitted with mooring capabilities. The rig will then be mobilized to Mississippi Canyon block 26 to finish the completion of the Amethyst discovery (100% working interest). Amethyst will also be tied back to the Pompano platform, where first production is expected early in the first quarter of 2016. Following the Amethyst completion, the rig is currently projected to drill the Cardona #7 development well and the Lamprey deep water exploration prospect.
Production for the second quarter of 2016, is expected to be at or above the high end of the previous guidance range of 246-258 Mmcfe per day. The increase is a result of reduced scheduled third-party pipeline downtime in the GOM deepwater and flatter than expected production declines in Appalachia.
Stone Energy Corp. Presents at EnerCom's Oil & Gas Conference 2015, Aug-17-2015 01:55 PM
Jul 1 15
Stone Energy Corp. Presents at EnerCom's Oil & Gas Conference 2015, Aug-17-2015 01:55 PM. Venue: The Westin Denver Downtown Hotel, 1672 Lawrence Street, Denver, Colorado, United States. Speakers: Kenneth H. Beer, Chief Financial Officer and Executive Vice President.