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Stone Energy (SGY) Incurs Wider-than-Expected Loss in Q4
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Oil and gas producer Stone Energy Corp. posted fourth-quarter 2016 loss of $4.88 per share (excluding impairment charges), substantially wider than the Zacks Consensus Estimate of a loss of $3.91. In the year-earlier comparable quarter, the company had posted profit of 4 cents per share. Considerably low oil and gas prices realizations resulted in the underperformance.
Total operating revenue improved to $113.1 million in the quarter from $110.5 million in the year-ago period. The top line also beat the Zacks Consensus Estimate of $92 million. The improvement on the revenue front was supported by higher production than the company-guided output range.
Operational Highlights
During the quarter, production averaged 43.7 thousand barrels of oil equivalent per day (MBoe/D) compared with 24.1 MBoe/D in the fourth quarter of 2015. Of the total production, natural gas accounted for 39%, oil constituted 39% and natural gas liquids made up the remaining 22%.
Overall realization, on a per Boe basis, was $27.92 in the reported quarter compared with $47.92 in fourth-quarter 2015. Natural gas price of $2.26 per Mcf was below $2.48 in the year-ago quarter. NGL price decreased to $15.49 per barrel from $18.51 in the year-earlier period. Oil price plunged to $49.39 per barrel from $69.68 in the prior-year quarter.
On the cost front, unit lease operating expenses decreased to $6.05 per Boe from $9.42 in the year-earlier quarter. Depreciation, depletion and amortization were $13.02 per Boe compared with $24.47. Salaries, general and administrative expenses came in at $2.67 per Boe as against $7.40.
Fourth-Quarter Price Performance
During October–December quarter of 2016, Stone Energy shares significantly underperformed the Zacks categorized Oil & Gas-U.S Exploration & Production industry. Through the aforesaid period, the company’s shares lost 40.5%, whereas the broader industry gained 0.6%.
Liquidity
As of Dec 31, 2016, Stone Energy had approximately $190.6 million in cash. The company had long-term debt of $352.4 million.
Reserves
The company, which is engaged in upstream operations, had proved reserves of 53 million barrels of oil equivalent (MMBoe) as of Dec 31, 2016. It has recorded proved reserves of 57 MMBoe at the end of 2015.
Zacks Rank and Other Stock to Consider
Stone Energy currently has a Zacks Rank #2 (Buy). Other energy stocks that warrant a look include Ultra Petroleum Corp. , Cheniere Energy Inc. (LNG - Free Report) and W&T Offshore Inc. (WTI - Free Report) . While Ultra Petroleum sports a Zacks Rank #1, both Cheniere Energy and W&T Offshore carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ultra Petroleum is expected to report revenue growth of almost 57% in 2017.
In 2017, Cheniere Energy is likely to report year-over-year growth of almost 287.5% and 76.9% in revenues and earnings, respectively.
W&T Offshore reported a positive earnings surprise in each of the last four quarters with an average beat of 31.49%.
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Stone Energy (SGY) Incurs Wider-than-Expected Loss in Q4
Oil and gas producer Stone Energy Corp. posted fourth-quarter 2016 loss of $4.88 per share (excluding impairment charges), substantially wider than the Zacks Consensus Estimate of a loss of $3.91. In the year-earlier comparable quarter, the company had posted profit of 4 cents per share. Considerably low oil and gas prices realizations resulted in the underperformance.
Total operating revenue improved to $113.1 million in the quarter from $110.5 million in the year-ago period. The top line also beat the Zacks Consensus Estimate of $92 million. The improvement on the revenue front was supported by higher production than the company-guided output range.
Operational Highlights
During the quarter, production averaged 43.7 thousand barrels of oil equivalent per day (MBoe/D) compared with 24.1 MBoe/D in the fourth quarter of 2015. Of the total production, natural gas accounted for 39%, oil constituted 39% and natural gas liquids made up the remaining 22%.
Overall realization, on a per Boe basis, was $27.92 in the reported quarter compared with $47.92 in fourth-quarter 2015. Natural gas price of $2.26 per Mcf was below $2.48 in the year-ago quarter. NGL price decreased to $15.49 per barrel from $18.51 in the year-earlier period. Oil price plunged to $49.39 per barrel from $69.68 in the prior-year quarter.
On the cost front, unit lease operating expenses decreased to $6.05 per Boe from $9.42 in the year-earlier quarter. Depreciation, depletion and amortization were $13.02 per Boe compared with $24.47. Salaries, general and administrative expenses came in at $2.67 per Boe as against $7.40.
Fourth-Quarter Price Performance
During October–December quarter of 2016, Stone Energy shares significantly underperformed the Zacks categorized Oil & Gas-U.S Exploration & Production industry. Through the aforesaid period, the company’s shares lost 40.5%, whereas the broader industry gained 0.6%.
Liquidity
As of Dec 31, 2016, Stone Energy had approximately $190.6 million in cash. The company had long-term debt of $352.4 million.
Reserves
The company, which is engaged in upstream operations, had proved reserves of 53 million barrels of oil equivalent (MMBoe) as of Dec 31, 2016. It has recorded proved reserves of 57 MMBoe at the end of 2015.
Zacks Rank and Other Stock to Consider
Stone Energy currently has a Zacks Rank #2 (Buy). Other energy stocks that warrant a look include Ultra Petroleum Corp. , Cheniere Energy Inc. (LNG - Free Report) and W&T Offshore Inc. (WTI - Free Report) . While Ultra Petroleum sports a Zacks Rank #1, both Cheniere Energy and W&T Offshore carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ultra Petroleum is expected to report revenue growth of almost 57% in 2017.
In 2017, Cheniere Energy is likely to report year-over-year growth of almost 287.5% and 76.9% in revenues and earnings, respectively.
W&T Offshore reported a positive earnings surprise in each of the last four quarters with an average beat of 31.49%.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>