It has been about a month since the last earnings report for Stone Energy Corporation . Shares have lost about 40.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Stone Energy 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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Stone Energy's stock has a subpar Growth Score of 'D', however its Momentum is doing a lot better with a 'A'. Following a similar course, the stock was allocated a grade of 'B' on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is Stone Energy (SGY) Down 40.8% Since the Last Earnings Report?
It has been about a month since the last earnings report for Stone Energy Corporation . Shares have lost about 40.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Stone Energy 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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
Stone Energy Corporation Price and Consensus
Stone Energy Corporation Price and Consensus | Stone Energy Corporation Quote
VGM Scores
At this time, Stone Energy's stock has a subpar Growth Score of 'D', however its Momentum is doing a lot better with a 'A'. Following a similar course, the stock was allocated a grade of 'B' on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.