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Stone Energy (SGY) Posts Wider-than-Expected Loss in Q3

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Stone Energy Corp. (SGY - Free Report) 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. (UPLMQ - Free Report) , EQT Midstream Partners, LP (EQM - Free Report) 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.

STONE ENERGY CP Price, Consensus and EPS Surprise

 

STONE ENERGY CP Price, Consensus and EPS Surprise | STONE ENERGY CP Quote

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