Stone Energy Corp. Announces Unaudited Consolidated Earnings and Operating Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Production Guidance for the First Quarter of 2014 and Production and Financial Guidance for the Full Year 2014
Feb 24 14
Stone Energy Corp. announced unaudited consolidated earnings and operating results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported net income of $1,752,000 or $0.04 per share compared to $44,246,000 or $0.89 per share for the same period a year ago. Total oil, gas and NGLs revenue was $234,104,000 compared to $253,562,000 for the same period a year ago. Total operating revenue was $239,253,000 compared to $254,871,000 for the same period a year ago. Income from operations was $37,206,000 compared to $78,397,000 for the same period a year ago. Income before taxes was $4,303,000 compared to $68,106,000 for the same period a year ago. Net cash provided by operating activities was $154,695,000 compared to $135,836,000 for the same period a year ago. Adjusted net income was $27,268,000 and net income per share before one-time charges was $0.56.
For the full year, the company reported net income of $117,634,000 or $2.36 per share compared to $149,426,000 or $3.03 per share for the same period a year ago. Total oil, gas and NGLs revenue was $966,371,000 compared to $944,541,000 for the same period a year ago. Total operating revenue was $974,179,000 compared to $951,489,000 for the same period a year ago. Income from operations was $241,981,000 compared to $263,965,000 for the same period a year ago. Income before taxes was $186,359,000 compared to $234,023,000 for the same period a year ago. Net cash provided by operating activities was $594,205,000 compared to $509,749,000 for the same period a year ago. Adjusted net income was $143,150,000 and net income per share before one-time charges was $2.88. Capital expenditures on oil and gas properties for 2013 were $695 million, which included $83.9 million in normal and hurricane abandonment expenditures. This is compared to capital expenditures on oil and gas properties during 2012 of $582.8 million, which included $65.6 million in normal and hurricane abandonment expenditures.
For the quarter, the company produced oil of 1,651 MBbls compared to 1,846 MBbls for the same period a year ago. Gas production was 14,160 MMcf compared to 11,538 MMcf for the same period a year ago. Natural gas liquids production was 555 MBbls compared to 369 MBbls for the same period a year ago. Oil, gas and NGLs was 4,566 MBoe compared to 4,138 MBoe for the same period a year ago.
For the full year, the company produced oil of 6,894 MBbls compared to 7,135 MBbls for the same period a year ago. Gas production was 50,129 MMcf compared to 42,569 MMcf for the same period a year ago. Natural gas liquids production was 1,603 MBbls compared to 1,163 MBbls for the same period a year ago. Oil, gas and NGLs was 16,852 MBoe compared to 15,393 MBoe for the same period a year ago.
Average daily production for the first quarter of 2014 is expected to be 43.5 MBoe to 45.0 MBoe (261 MMcfe to 270 MMcfe) per day. Production for the first quarter of 2014 has been negatively impacted by weather-related downtime in Appalachia affecting approximately 15 MMcfe per day of projected volumes for January and most of February. Additionally, during the first quarter of 2014, downtime at Main Pass 288 has lasted approximately 8 weeks due to a plugged pipeline affecting approximately 1,800 Boe per day while Ship Shoal 113 experienced unscheduled downtime for four days impacting approximately 5,000 Boe per day. Finally, approximately 2,500 Boe per day of production was associated with properties divested in the fourth quarter of 2013 and January 2014.
Updated production guidance for the full year 2014 remains at 43 MBoe to 47 MBoe (258 MMcfe to 282 MMcfe) with just over 50% projected as natural gas.
For the year, the company expected depreciation, depletion & amortization per MBoe expected to be $22.50. Corporate tax rate expected to be in the range of 36% to 38%. Capital expenditure budget (excluding acquisitions) expected to be $825 million.
Stone Energy Corporation Announces Exploration Discoveries
Feb 18 14
Stone Energy Corporation announced exploration discoveries at its deep water Amethyst and deep gas Tomcat prospects. Stone operates and owns a 100% working interest in both discoveries. The deep water Amethyst exploration well in Mississippi Canyon block 26 encountered approximately 90 feet of net hydrocarbon pay in one interval which suggests a commercial discovery. Analysis of logging, coring and fluid data confirmed the existence of natural gas, condensate and natural gas liquids in the pay zone (an estimated yield of 60-80 barrels of liquids per million cubic foot of natural gas). The interval has been placed safely behind pipe for a future completion. A full evaluation, including seismic and subsurface data integration, is needed before hydrocarbon quantities can be estimated and a specific development plan is sanctioned. A single or multi-well tie-back to Stone's Pompano platform, located less than 5 miles from the discovery, is a likely development option. The results at the deep gas Tomcat exploration prospect at West Cameron block 76 also suggest a commercial discovery with approximately 30 feet of net hydrocarbon pay in the Camerina interval. Well log analysis, combined with offset Camerina production history, would suggest the zone should produce rich natural gas with approximately 60 barrels of condensate per million cubic feet of natural gas as well as additional natural gas liquids volumes. Initial development plans call for a tie-back to a nearby Stone operated East Cameron block 64 production platform with production estimated to commence in second half of 2014.