Stone Energy Earnings: Here’s Why Shares are Up Now

Stone Energy Corp. (NYSE:SGY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.79%.

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Stone Energy Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 20.39% to $0.82 in the quarter versus EPS of $1.03 in the year-earlier quarter.

Revenue: Decreased 4.92% to $232.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stone Energy Corp. reported adjusted EPS income of $0.82 per share. By that measure, the company beat the mean analyst estimate of $0.7. It beat the average revenue estimate of $221.74 million.

Quoting Management: Chairman, President and Chief Executive Officer David Welch stated, “We have taken a significant step in our deep water efforts by securing the Diamond Ocean Victory rig and the ENSCO 8500 series rig. The rigs will be used to drill the Amethyst exploration prospect and the Cardona and Cardona South development wells. If successful, these wells will be produced through the Stone-operated Pompano deep water platform, with Cardona and Cardona South production projected for late 2014 and Amethyst production projected for 2015. In addition to our Stone-operated deep water program, we plan to accelerate our participation in non-operated deep water wells with 5-7 exploration prospects being drilled in 2013 and 2014. In our liquids rich Deep Gas area, initial production from the third well at La Cantera is projected by June 2013 and is expected to increase gross field volumes to over 100 MMcfe per day (over 25 MMcfe per day net). In Appalachia, third party pipeline repairs around our Mary field have been made, allowing Marcellus net volumes to reach over 60 MMcfe per day again. Our conventional shelf drilling program for 2013 will start in May with several low risk development wells scheduled in the second and third quarters. Finally, with over $250 million in cash, an undrawn $400 million credit facility and cash flow from operations, we are well positioned to fund our 2013 capital program.”

Key Stats (on next page)…

Revenue decreased 8.62% from $254.87 million in the previous quarter. EPS decreased 10.87% from $0.92 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.54 to a profit $0.68. For the current year, the average estimate has moved up from a profit of $2.09 to a profit of $2.64 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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