Stone Energy Corporation
) has cut its production forecast for the upcoming quarter due to
last week's Hurricane Isaac.
While providing an update on the impact of Hurricane Isaac,
Lafayette, Louisiana-based energy company stressed that its
facilities across the Gulf of Mexico (GoM) appear to be little
affected with no major issues or problems. However, shutting-in and
de-manning of the platforms in the GoM region in response to
Hurricane Isaac compelled the company to lower its production
estimates by approximately 2,000 - 4,000 barrels of oil equivalent
per day (BOE/d).
Stone Energy now expects its third quarter production to be between
38,000 and 40,000 BOE/d versus its previous expectation of 41,000
and 43,000 BOE/d. Accordingly, the company now expects its full
year production to be on the lower end of the guided range of
41,000 - 43,000 BOE/d, or 245-260 million cubic feet per day.
Before Hurricane Isaac, Stone Energy used to produce approximately
35,000 BOE/d and 8,500 BOE/d from the GoM and Appalachia region,
respectively. Current daily production was at about 18,000 BOE in
the GoM as of September 3. The company is dependent on third party
facilities to bring the remaining production on line. The Amberjack
and Pompano fields are expected to re-start its production within a
few days awaiting onshore processing facilities.
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 GoM. Growing exploration
exposure to the mature, low reserve life and capital intensive GoM
shelf is expected to aggravate Stone Energy's risk profile.
As the company is primarily engaged in the GoM region, it remains
prone to region-specific environmental threats, like Hurricane
Isaac, that can potentially affect the company's earnings.
Recently, Stone Energy has entered into a purchase agreement with
independent energy giant
Anadarko Petroleum Corporation
) for a working interest in a U.S. Gulf field. The purchase by
Stone Energy comprises Anadarko's 25% working interest in the five
block deepwater Pompano field in Mississippi Canyon, 22% in
Mississippi Canyon Block 29, and another 10% in portions of
Mississippi Canyon Block 72. This new acquisition will aid the
company to grow and maintain steady cash.
The company retains a Zacks #3 Rank, equivalent to a short-term
ANADARKO PETROL (APC): Free Stock Analysis
STONE ENERGY CP (SGY): Free Stock Analysis
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