Stone Energy Corporation
) priced a registered underwritten public offering of 5,000,000
shares of its common stock at a price of $41.00 per share to the
public. Stone has granted the underwriters a 30-day option to
purchase 750,000 additional shares of its common stock. The
offering is expected to close on or about May 14, subject to
customary closing conditions.
Stone intends to use the net proceeds from the offering for general
corporate purposes, which may include development of the Amethyst
discovery, drilling of a second well at Cardona South, Utica Shale
development and the acquisition of additional Appalachian acreage.
Lafayette, LA-based Stone Energy is an independent oil and gas
exploration and production company engaged in the acquisition and
subsequent exploration, development, operation and production of
oil and gas properties, located primarily in the Gulf of Mexico
Currently, the company is well positioned in the industry, with
widespread high-yielding inventory. Notably, it boasts an extensive
capital project line-up. Moreover, Stone Energy is generating
surplus cash flow with no bank debt. Although the company aims to
apportion the capital across its portfolio, its focus will be on
the GoM and Marcellus region.
However, as is the case with independent exploration and production
companies, results of Stone Energy are directly exposed to oil and
gas prices, which are inherently volatile and subject to complex
For the second quarter the company expects net daily production of
261−273 MMcfe. For full-year 2014, it anticipates total volume of
258−282 MMcfe per day. Stone Energy's capital outlay projection for
full-year 2014 is $825 million.
At present, Stone Energy has a Zacks Rank #3 (Hold). Investors
interested in the oil and gas sector could consider stocks like
Athlon Energy Inc.
Callon Petroleum Co.
Pembina Pipeline Corp.
). All these carry a Zacks Rank #1 (Strong Buy).
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ATHLON ENERGY (ATHL): Free Stock Analysis
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