Stone Energy Corporation (SGY - Free Report) announced successful drilling at Mt. Providence development well, located in Mississippi Canyon. In the Gulf of Mexico (GoM) deep water well, the upstream energy player has 100% working interest.
The drilling outcome has surpassed Stone Energy’s expectations. In the well, the company found roughly 153 net feet of premium oil pay without any visible level of water. It is to be noted that Stone Energy anticipates the commencement of the well’s completion works by the April-to-June quarter of 2018. The well will likely produce the first oil by the July-to-September quarter of the year.
Stone Energy expects the well to yield initial daily output between 3,000 and 5,000 barrels of oil equivalent. The company believes that successful drilling will pave the way for incremental production which in turn will drive cash flow.
The company also provided updates related to the Derbio well. By late January, Stone Energy is anticipated to spud the well. The upstream firm expects the drilling results by early second quarter of this year.
Headquartered in Lafayette, LA, Stone Energy is primarily involved in exploration and production activities in prominent oil and gas resources. The partial recovery of both crude and natural gas prices is highly favorable for the company’s upstream businesses.
However, the pricing scenario seems unimpressive. Over the past year, the company has lost 14.8% compared with the industry’s12.6% decline.
As a result, Stone Energy carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy sector include Chevron Corporation (CVX - Free Report) , Denbury Resources Inc. (DNR - Free Report) and Cabot Oil & Gas Corporation (COG - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
San Ramon, CA-based Chevron is a leading integrated energy player. The company is expected to post year-over-year earnings growth of 335% in 2017.
Headquartered in Plano, TX, Denbury is an upstream energy player. The company’s 2017 earnings are estimated to grow 125%.
Headquartered in Houston, TX, Cabot is involved in the exploration of oil and gas. The stock will likely report earnings growth of 357.1% in 2017.
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