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Stone Energy (SGY) Swings to Profit in Q3, Revenues Fall Y/Y

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Stone Energy Corp. posted third-quarter 2017 earnings of 6 cents per share, which compared favorably with the Zacks Consensus Estimate of a loss of 31 cents. The company had incurred a loss of $7.40 in the year-ago quarter.

Total operating revenues declined to $80 million in the quarter from $94.4 million in the year-ago quarter.

Higher realized prices led to the outperformance, which was partially offset by lower production.
 

Stone Energy Corporation Price, Consensus and EPS Surprise

 

Stone Energy Corporation Price, Consensus and EPS Surprise | Stone Energy Corporation Quote

Operational Highlights

During the quarter, production averaged 19.2 thousand barrels of oil equivalent per day (MBoe/D) compared with 39.1 MBoe/D in third-quarter 2016. Of the total production, natural gas accounted for 21%, oil constituted 73% and natural gas liquids comprised the remaining 6%.

Overall realization, on a Boe basis, was $39.44 in the reported quarter compared with $25.95 in the year-ago period. Natural gas price of $2.46 per Mcf was above $1.93 in the year-ago quarter. NGL price increased to $21.69 per barrel from $9.72 in the year-ago period. Oil price jumped to $48.13 a barrel from $45.51 in the year-ago quarter.

On the cost front, unit lease operating expenses increased to $6.66 per Boe from $4.72 in the year-ago quarter. Depreciation, depletion and amortization were $15.10 per Boe compared with $16.08. Salaries, general and administrative expenses were $8.98 per Boe compared with $4.29 in the prior-year quarter.

Liquidity

As of Sep 30, 2017, Stone Energy had approximately $245.7 million in cash. The company had long-term debt of $236 million as of Sep 30.

Q3 Price Performance

The pricing chart reveals that the company’s shares have outperformed the industry in the last three months. During this period, the company’s shares have returned 58.1% compared with the industry’s rally of 5%.

Zacks Rank & Key Picks

Stone Energy currently has a Zacks Rank #4 (Sell). A few better-ranked players in the energy sector are Braskem SA (BAK - Free Report) , ConocoPhillips (COP - Free Report) and SunCoke Energy Inc (SXC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The largest petrochemical operator in Latin America, Braskem, delivered a positive earnings surprise of 68.54% in the preceding quarter.

ConocoPhillips, based in Houston, TX, is a major global exploration and production company. It delivered an average positive earnings surprise of 152.34% in the last four quarters.

SunCoke Energy produces metallurgical coke in the United States. The company delivered an average positive earnings surprise of 113.52% in the last four quarters.

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