It has been about a month since the last earnings report for Stone Energy Corporation . Shares have added about 2.9% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is SGY due for a pullback? 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 drivers.
Fourth-Quarter 2017 Results
Stone Energy posted fourth-quarter 2017 earnings of 12 cents per share (excluding impairment charges), lagging the Zacks Consensus Estimate of 22 cents. However, the company had posted loss of $27.68 in the year-earlier quarter. Nonetheless, a considerable improvement in the period under review is attributed to higher oil and gas prices realizations, partially offset by significantly hefty salaries and increase in general and administrative expenses.
Total operating revenues fell to $76.3 million in the reported quarter from $113.1 million a year ago.
During the fourth quarter of 2017, production averaged 17.6 thousand barrels of oil equivalent per day (MBoe/D) compared with 43.7 MBoe/D in the fourth quarter of 2016. Of the total production, natural gas accounted for 20%, oil constituted 73% and natural gas liquids made up the remaining 7%.
Overall realization on a per Boe basis was $47.01 in the reported quarter compared with $27.92 in fourth-quarter 2016. Natural gas price of $2.31 per Mcf was above $2.26 in the prior-year quarter. NGL price increased to $30.42 per barrel from $15.49 in the comparable period last year. Oil price rose to $58.07 per barrel from $49.39 a year ago.
On the cost front, unit lease operating expenses increased to $10.26 per Boe from $6.05 in the year-earlier quarter. Depreciation, depletion and amortization were $13.90 per Boe compared with $13.02. Salaries, general and administrative expenses came in at $6.23 per Boe compared with $2.67.
As of Dec 31, 2017, Stone Energy had approximately $263.5 million in cash. The company had long-term debt of $235.5 million.
The company, engaged in upstream operations, had proved reserves of 32.5 million barrels of oil equivalent (MMBoe) as of Dec 31, 2017 compared with 35.4 MMBoe at the end of 2016. Of the total proved reserves, oil, natural gas and NGL comprised 67%, 26% and 7%, respectively.
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.
At this time, SGY has a subpar Growth Score of D. Its Momentum is doing a lot better with an A. 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.
Our style scores indicate that the stock is more suitable for momentum investors than value investors.
SGY has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.