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Stone Energy (SGY) Posts Wider-than-Expected Loss in Q3
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Stone Energy Corp. posted third-quarter 2016 loss of $7.40 per share, substantially wider than the Zacks Consensus Estimate of a loss of $5.31. The quarterly loss was also wider than a loss of $1.50 per share incurred in the year-earlier quarter. Lower production and commodity prices led to the underperformance.
Total operating revenue fell to $94.4 million in the quarter from $132.2 million in the year-ago period. The top line, however, beat the Zacks Consensus Estimate of $86 million.
Operational Highlights
During the quarter, production averaged 39.1 thousand barrels of oil equivalent per day (MBoe/D) compared with 39.8 MBoe/D in the third quarter of 2015. Of the total production, natural gas accounted for 38%, oil constituted 43% and natural gas liquids made up the remaining 19%.
Overall realization, on a per Boe basis, was $23.82 in the reported quarter compared with $24.15 in third-quarter 2015. Natural gas price of $1.63 per Mcf was below $1.65 in the year-ago quarter. NGL price increased to $9.72 per barrel from $7.82 in the year-ago period. Oil price plunged to $42.10 per barrel from $45.51 in the year-ago quarter.
On the cost front, unit lease operating expenses decreased to $4.72 per Boe from $6.62 in the year-earlier quarter. Depreciation, depletion and amortization were $16.08 per Boe compared with $16.60. Salaries, general and administrative expenses came in at $4.29 per Boe compared with $5.34 in the prior-year period.
Liquidity
As of Sep 30, 2016, Stone Energy had approximately $182.4 million in cash. The company had long-term debt of $292.8 million as of Sep 30, 2016.
Guidance
For the fourth quarter, the company expects net daily production of 41−43 MBoe. For 2016, it anticipates total volume in the range of 35−37 Mboe per day. Stone Energy reiterated capital outlay projection for 2016 in the range of $160–$170 million.
Zacks Rank and Key Stock Picks
Stone Energy currently has a Zacks Rank #4 (Sell). Some better-ranked players in the energy sector are Ultra Petroleum Corp. , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
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Stone Energy (SGY) Posts Wider-than-Expected Loss in Q3
Stone Energy Corp. posted third-quarter 2016 loss of $7.40 per share, substantially wider than the Zacks Consensus Estimate of a loss of $5.31. The quarterly loss was also wider than a loss of $1.50 per share incurred in the year-earlier quarter. Lower production and commodity prices led to the underperformance.
Total operating revenue fell to $94.4 million in the quarter from $132.2 million in the year-ago period. The top line, however, beat the Zacks Consensus Estimate of $86 million.
Operational Highlights
During the quarter, production averaged 39.1 thousand barrels of oil equivalent per day (MBoe/D) compared with 39.8 MBoe/D in the third quarter of 2015. Of the total production, natural gas accounted for 38%, oil constituted 43% and natural gas liquids made up the remaining 19%.
Overall realization, on a per Boe basis, was $23.82 in the reported quarter compared with $24.15 in third-quarter 2015. Natural gas price of $1.63 per Mcf was below $1.65 in the year-ago quarter. NGL price increased to $9.72 per barrel from $7.82 in the year-ago period. Oil price plunged to $42.10 per barrel from $45.51 in the year-ago quarter.
On the cost front, unit lease operating expenses decreased to $4.72 per Boe from $6.62 in the year-earlier quarter. Depreciation, depletion and amortization were $16.08 per Boe compared with $16.60. Salaries, general and administrative expenses came in at $4.29 per Boe compared with $5.34 in the prior-year period.
Liquidity
As of Sep 30, 2016, Stone Energy had approximately $182.4 million in cash. The company had long-term debt of $292.8 million as of Sep 30, 2016.
Guidance
For the fourth quarter, the company expects net daily production of 41−43 MBoe. For 2016, it anticipates total volume in the range of 35−37 Mboe per day. Stone Energy reiterated capital outlay projection for 2016 in the range of $160–$170 million.
Zacks Rank and Key Stock Picks
Stone Energy currently has a Zacks Rank #4 (Sell). Some better-ranked players in the energy sector are Ultra Petroleum Corp. , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
Ultra Petroleum is likely to witness year-over-year earnings growth of 425.8% in the current year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EQT Midstream is projected to witness year-over-year earnings growth of almost 12% in the current year. It has a Zacks Rank #2 (Buy).
Helix Energy posted an average positive earnings surprise of 56.42% in the last four quarters. The company has a Zacks Rank #2.
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Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>