We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stone Energy to Obey Listing Standard by Reverse Stock Split
Read MoreHide Full Article
Louisiana-based independent oil and gas explorer Stone Energy Corporation , in a smart move that would renew investor interest in the stock, completed a 1-for-10 reverse stock split on Jun 10, 2016. As a result of this, every 10 shares of Stone's issued and outstanding common stock were automatically converted into one share of common stock. Stone's common stock began trading on a split-adjusted basis from Jun 13, 2016.
The reverse stock split was intended to increase the market price per share of Stone Energy's common stock in order to comply with the NYSE’s continued listing standards relating to minimum price per share. Following the reverse stock split, the number of outstanding shares of Stone's common stock was reduced by a factor of ten. The number of authorized shares of common stock has also been proportionately decreased. The company’s shares will continue to trade on the New York Stock Exchange under the new CUSIP number 861642304.
Given the volatility in crude prices, the company’s stock has plummeted almost 76% over the past three months. We believe that the reverse stock split will give the stock a fresh lease of life.
Stone Energy holds an advantageous place in the industry with a huge, high-yielding inventory. The company also has an extensive capital project inventory. Although Stone Energy aims to apportion the capital across its portfolio, the focus will be on the Gulf of Mexico (GoM) shelf.
Growing exploration exposure to the mature, low reserve life and capital-intensive GoM shelf is expected to aggravate Stone Energy’s risk profile. Other threats faced by the company are changes in government regulations, dependence on individual well performance, the possibility of unsuccessful wells and a slowdown in the company's drilling pace.
Stone Energy carries a Zacks Rank #3 (Hold). Some better-ranked players from the same space are CVR Refining, LP , Braskem S.A. (BAK - Free Report) and North Atlantic Drilling Limited . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Stone Energy to Obey Listing Standard by Reverse Stock Split
Louisiana-based independent oil and gas explorer Stone Energy Corporation , in a smart move that would renew investor interest in the stock, completed a 1-for-10 reverse stock split on Jun 10, 2016. As a result of this, every 10 shares of Stone's issued and outstanding common stock were automatically converted into one share of common stock. Stone's common stock began trading on a split-adjusted basis from Jun 13, 2016.
The reverse stock split was intended to increase the market price per share of Stone Energy's common stock in order to comply with the NYSE’s continued listing standards relating to minimum price per share. Following the reverse stock split, the number of outstanding shares of Stone's common stock was reduced by a factor of ten. The number of authorized shares of common stock has also been proportionately decreased. The company’s shares will continue to trade on the New York Stock Exchange under the new CUSIP number 861642304.
Given the volatility in crude prices, the company’s stock has plummeted almost 76% over the past three months. We believe that the reverse stock split will give the stock a fresh lease of life.
STONE ENERGY CP Price
STONE ENERGY CP Price | STONE ENERGY CP Quote
Stone Energy holds an advantageous place in the industry with a huge, high-yielding inventory. The company also has an extensive capital project inventory. Although Stone Energy aims to apportion the capital across its portfolio, the focus will be on the Gulf of Mexico (GoM) shelf.
Growing exploration exposure to the mature, low reserve life and capital-intensive GoM shelf is expected to aggravate Stone Energy’s risk profile. Other threats faced by the company are changes in government regulations, dependence on individual well performance, the possibility of unsuccessful wells and a slowdown in the company's drilling pace.
Stone Energy carries a Zacks Rank #3 (Hold). Some better-ranked players from the same space are CVR Refining, LP , Braskem S.A. (BAK - Free Report) and North Atlantic Drilling Limited . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>