SGY ... Stone Energy Corp

[Aufan 1983]

***The comments below are my opinion and should not be considered a suggestion to buy or sell. As with most stocks these days THIS IS A HIGH RISK PLAY. Do your own DD before making any decisions


Bought in today for 500 shares but I'm REALLY liking SGY. This stock hit its 52 high last may @ 73.96. It has since been on a free fall but how much lower can she go?
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52 week high = 73.96 (5-21-08) 52 week low = 1.55 (3-06-09)

Shares: 40.075 Million

Float: 32.796 Million

Short Interest: 2,855,405.000


http://www.stoneenergy.com/


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Now the interesting part.

March 9, 2009

8:03AM
Stone Energy announces unwinding of 2009 hedge positions resulting in proceeds of $113 mln and provides operational update (SGY) 1.81 :

Co announces that it unwound most of its 2009 crude oil and natural gas hedges. Proceeds from the terminated contracts, which had contract prices well in excess of current market levels, were approximately $113 mln. Stone intends to use the substantial portion of the proceeds to build its cash position and reduce bank borrowings. In addition, Stone may use some of the proceeds to reduce outstanding public debt and/or repurchase Stone common shares. Stone also re-hedged a portion of its 2009 volumes and will continue to evaluate hedging opportunities. Co also announces, that "Operationally, we successfully drilled and completed our Apoc prospect at Ewing Banks 305 and expect this well on production before the end of the month. We are also finalizing arrangements to resume barging oil volumes at Mississippi Canyon 109 (Amberjack) at the end of this month. We have completed a workover and sidetrack at Vermilion 255, which should boost field production when pipeline repairs are completed next quarter. We are currently drilling a prospect at East Cameron 96 (Kingfisher), which is to be followed by the drilling of two prospects at Vermilion 96."

From 2008 10K:

On September 24, 2007, our Board of Directors authorized a share repurchase program for an aggregate amount of up to $100 million. The shares may be repurchased from time to time in the open market or through privately negotiated transactions. The repurchase program is subject to business and market conditions, and may be suspended or discontinued at any time. Through December 31, 2008, 200,000 shares had been repurchased under this program at a total cost of $6.7 million.

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Ok now more of my opinion and it may or may not be correct.

Notice on the 10k from 2008 that they had a plan to buy back shares with a cost of up to 100 million. As of the end of 2008 they had only bought back 200,000 shares with an average pps of about 33.50.

Now my second thought is today they announced unwinding of hedge positions resulting in 113 million. Now with a float of only 32.79 million they could repurchase the entire float for only 74.10 million . Todays volume was 3,765,218 which is three times the average volume.

What better time to repurchase shares than at their 52 week low?


Now my second thought is the market cap is only at 90.57 million and remember they announced today proceeds of 113 million. Also look at todays announcement that they have completed drilling at Ewing Banks and expect well production by the end of the month. They are also expecting to be barging oil at the Mississippi Canyon by the end of March.

[BadThad]

I'd say some DD is in order! Thanks for the info!

[BadThad]

WOW, all time low from what I see on the chart. Stock is trading below 1994 levels.

SGY - Stone Energy Corporation - Google Finance

[Aufan 1983]

Originally Posted by BadThad

I'd say some DD is in order! Thanks for the info!

NP... Here is a little more.

Company Overview

Stone Energy Corporation (Stone Energy), is an independent oil and natural gas company engaged in the acquisition and subsequent exploration, development, and operation of oil and gas properties located primarily in the Gulf of Mexico (GOM). The Company also has operations in the Appalachia region. On August 28, 2008, the Company completed the acquisition of Bois d’Arc Energy, Inc. (Bois d’Arc). As of February 23, 2009, it has secured leasehold interests in approximately 24,000 net acres and has two wells which are on production.

Company Contact
Address 625 East Kaliste Saloom Road
Lafayette, LA 70508
Telephone (337) 237-0410
Fax (318) 237-0426
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more info:

On 2/17/2009, SGY reported full year 2008 earnings of $6.63 per share. This result beat the +$5.80 consensus of the 5 analysts covering the companyand missed last year's results by -1.6%. The next earnings announcement is expected on 05/04/2009.

[Aufan 1983]

MORE INFO:



Stone Energy: Undervalued, But Watch the Price of Crude 1 comment
by: Mammad Sharifzadeh December 23, 2008 | about stocks: SGY
Mammad Sharifzadeh

Stone Energy Corporation (SGY) (hereinafter called “SGY” or the “Company”) is an independent exploration and development (E&P) oil and natural gas company with corporate headquarters located in Lafayette, Louisiana. SGY’s line of business is the acquisition and subsequent exploration, development, operation, and production of oil and gas properties located primarily in the Gulf of Mexico (“GOM”).

The company also had significant operations in the Rocky Mountain Basins and the Williston Basin (Rocky Mountain Region). Almost all these Rocky Mountain Region properties were sold to Newfield Exploration Company (NFX) on June 29, 2007. The properties SGY maintained in the Rocky Mountain Region include working interests in several undeveloped plays which totaled approximately 96,000 net acres as of February 11, 2008.

Currently, the company’s strategic focus is on the Gulf of Mexico conventional shelf properties. The company is also pursuing exploration opportunities in the deepwater and in the deep shelf of the GOM. During 2007, SGY began securing leasehold interests in Pennsylvania (Appalachia). As of February 11, 2008, the company had secured leasehold interests in approximately 20,000 net acres. Additionally, SGY is also engaged in an exploratory joint venture in Bohai Bay, China.

On August 28, 2008, SGY completed acquisition of Bois d'Arc Energy, Inc., paying approximately $935 million in cash and issuing approximately 11.3 million shares. BDX properties are located in the outer continental shelf of the Gulf of Mexico, with estimated oil and natural gas proved reserves of 398 Bcfe as of December 31, 2007. According to SGY’s December 17 press release with the acquisition of BDX the Company estimates its year end 2008 proved reserves to be slightly under 600 Bcfe, up from 402.6 Bcfe as of December 31, 2007.

According to the Company’s October 8, 2008 corporate presentation, SGY also has 590 Bcfe of probable and possible reserves. The estimate was provided by Netherland Sewell and Associates as of December 31, 2007 and not available for post BDX acquisition.

SGY is a profitable oil and gas E&P company. For the nine months ended September 30, 2008, the company generated $634.9 million revenues and reported $6.08 earning per basic share. However, due to the severe drop in the price of oil and gas in the fourth quarter 2008 the company might be required to report significant non-cash ceiling test write-down to its full cost pool in its year end 2008 financials. If the size of the write-down would be too large, the company might be reporting a net loss for the year 2008; but even if this be the case we think the company will resume profitability in the first quarter 2009.

SGY has a sound liquidity base. As of September 30, 2008 the company had $172.6 million in cash and cash equivalents and $109.2 million in net working capital. Moreover, SGY has secured a revolving bank credit facility of $700 million maturing on July 1, 2011. However, in early December 2008 the bank group reduced the credit facility to $625 million, leaving $153.9 million of borrowings available under the credit facility as of December 17, 2008.

SGY has low debt leverage. As of September 30, 2008, the company’s total long-term debt was $825 million; which was 20.3% of its total assets.

The company’s common shares trade on the New York Stock Exchange under the symbol SGY. The company does not pay dividends.

[BadThad]

Small time....I picked up 200 shares as a speculative play today.

Thanks AUF!

[Aufan 1983]

Originally Posted by BadThad

Small time....I picked up 200 shares as a speculative play today.

Thanks AUF!

Nothing wrong with that. Glad you are on board.

I have beat the bushes high and low but have yet to find anything to cause this type of fall. I think we have a winner and over time this should make us some spending money. Lord knows I need it with the market killing me the last 4 months.

[Aufan 1983]

Check out this info from Yahoo. Some very eye raising bits of info below such as.

A joint venture in China

Oil and Natural Gas reserves of 402.6 BILLION cubic feet

48 active properties

72 term leases in the Gulf Coast Basin


SGY employees 224 full time workers.


Stone Energy Corporation engages in the acquisition, exploration, development, operation, and production of oil and gas properties located in the Gulf of Mexico, the Rocky Mountain Basins, and the Williston Basin in the United States. It also involves in an exploratory joint venture in Bohai Bay, the People’s Republic of china. The company has an estimated proved oil and gas reserves of 402.6 billion cubic feet of natural gas equivalent. As of February 11, 2008, its property portfolio consisted of 48 active properties and 72 primary term leases in the Gulf Coast Basin. Stone Energy Corporation was founded in 1993 and is headquartered in Lafayette, Louisiana with additional offices in New Orleans, Louisiana and Houston, Texas.

[BadThad]

Originally Posted by Aufan 1983

Nothing wrong with that. Glad you are on board.

I have beat the bushes high and low but have yet to find anything to cause this type of fall. I think we have a winner and over time this should make us some spending money. Lord knows I need it with the market killing me the last 4 months.

Indeed...I did my DD and bought, this is a good company. The valuation is just insane!

[Aufan 1983]

Originally Posted by BadThad

Indeed...I did my DD and bought, this is a good company. The valuation is just insane!

I agree 110%. I got so desperate to find something negative I went to yahoo forum and still nothing big enough to explain this crazy pps.

I would love to add some more but most funds are tied up. I could grab a few more but if I get what I want I will have to sell something or wire more money...