Stone Energy Corporation, Company Intelligence Report
Stone Energy is an independent energy company engaged in the acquisition, exploration, exploitation and development of oil and gas properties, primarily in the US. The company's Exploration and Production (E&P) operations are primarily located in the Gulf Coast Basin, where it possesses 47 active properties and 123 primary term leases as of February 25, 2014 and has been operating since their inception in 1993. Stone Energy’s reserve base is located not only in the conventional shelf of Gulf of Mexico (GoM), but is also located in the more prolific reserve basins of the GoM deepwater and deep gas areas. The company also actively pursues onshore opportunities through its presence in the Marcellus Shale in the Appalachia region, where it has exploratory interests in the Utica and the Upper Devonian formations. The company currently possesses four active properties in the Appalachian region, and also has interests in the Rocky Mountain region, one active property in the Eagle Ford Shale and undeveloped acreage in Canada.
The company’s headquarters are located in Lafayette, Louisiana with additional offices located in Houston, New Orleans, Texas, Louisiana, and Morgantown, West Virginia in the US.
Key Highlights: This section provides detailed analysis on the company’s overall oil and gas value chain, new projects, growth opportunities, new ventures, assets performance, Capex funding, geographical results of oil and gas operations.
Goals and Strategies: This section provides the upcoming goals and strategies of the company. The section mainly goals and strategies followed by the company in order to meet its upcoming goals.
SWOT: The report’s SWOT section provides the internal strength, weakness, opportunities and threats of company to reflect its strategic positions in the market.
Production and Development Overview: This section highlights the company’s crude oil and natural gas production forecast from its legacy and upcoming assets by region and commodity mix for next five years. The report also covers the detailed information and analysis on the company’s producing and development assets.
Exploration: This section includes detailed explanation and analysis on the company’s exploration assets resulted due to new discoveries, new drilling and other activities.
M&A trends: This section mainly provides information and analysis on the company’s recent assets transactions, joint ventures, acquisition, and divestment activities during the last one year. This section highlights the company’s status as a buyer or seller during the analyzed period.
Financial Forecast and Valuation: This section highlights the detailed financial statement forecast for next five years. With the financial statement forecast, this section also provides intrinsic value of the company by using Net Asset Valuation method.
Peer Group Analysis: This section compares the company’s performance with its peer group on the basis of share prices, financial ratios, operational and financial parameters and other related parameters.
Financial and Operational Metrics: This section covers the company’s historical performance on several financial and operational parameters such as Production and Reserves, Reserves Replacement, Costs Incurred, Acreage, Wells, F&D Costs, Oil and Gas Revenue and Expenses etc.
Reasons to buy
The report will enhance the decision-making capability in a more rapid and time sensitive manner. It will allow you to -
Provide detailed analysis to those who are interested in knowing the companies’ existing and future business strategies.
Provide in-depth analysis on the companies E&P profiles along with the exploration and M&A updates.
Provide valuable insights to those who are tracking oil and gas markets and wants to know the intrinsic value of the companies.
Use the analysis for strategy and planning, M&A identifications, and competitor analysis.
Significant Exploration and DevelopmentExposure in the Gulf of Mexico and theAppalachia to Facilitate Future Growth;Infrastructure Base to Support Developmental
Objectives Onshore and Offshore Drilling Opportunities toSupplement Growth of ProductionIn 2013, Stone Energy Corporation (Stone Energy)drilled a total of XX gross and XX net exploratoryand development wells across its assets portfolio,which is based primarily in the US. The majority ofdrilling activity took place in the Marcellus Shaleasset, which is located in the Appalachian regionwhere the company drilled approximately XX wells. In the Gulf of Mexico (GoM), the company isactively de-risking its acreage in deepwater anddeep gas areas. During Q4 2013, Stone Energy’sdeepwater Amethyst Well encountered XX–XXbarrels (bbl) of liquids for every million cubic feet(mmcf) of natural gas, signifying the presence ofnatural gas condensate and Natural Gas Liquid(NGL). The company’s Cardona deepwater well in theMississippi Canyon 29 block discovered a net oilpay zone of approximately XX feet (ft) (XX meters(m)). Stone Energy plans to connect this well to itsPompano production platform, and expectsproduction to commence in 2015. In 2014, thecompany plans to spud a number of otherdeepwater exploratory prospects such as MicaDeep, Harrier, and Goodfellow. A liquids-richnatural gas discovery of approximately XX bbl wasmade in the deep gas area by the Tomcatexploration well, which the company plans toconnect to the East Cameron XX productionplatform. Production from this well is expected tocommence in the latter half of 2014. In addition toits deep gas exploration, the company plans toexplore other prospects such as the Cayenne andSouth Erath Deep.
In the Appalachia, the company plans to de-riskthe Utica and Upper Devonian formations alongwith its legacy Marcellus Shale asset. In theMarcellus Shale the company plans to drill XX–XXwells and complete XX–XX wells in 2014. Thecompany also plans to spud its first Utica Shaletest well during Q2 2014 on its Mary field acreagein West Virginia, which the company plans tocomplete and test later during the same year.
Stone Energy’s exploratory and developmentprospects across its properties in the US areexpected to have, a positive impact on thecompany’s production volumes in the long run,depending upon their success.
Capitalizing on Existing Infrastructure toSupport Growth Programs
Stone Energy’s 2014 exploratory anddevelopmental plans are heavily dependent uponits existing production and transportationinfrastructure. The company’s development plansfor its Amethyst and Cardona wells in the GoMdeepwater include the tie-back of the wells to itsPompano production platform. In addition, thecompany’s development plan for its Tomcatprospect in the GoM deep gas area includes thetie-back of the well to its East Cameron 64production platform. Similarly, the company’s firstUtica Shale well shall utilize the infrastructure thatis already in place for the company’s MarcellusShale wells. Stone Energy therefore plans todevelop its future prospects by utilizing its existingproduction. Gathering infrastructure will not onlymake producing from these prospects moreeconomical, but will also give the company anedge over its competitors in the area.
In 2014, Stone Energy expects its total oil and gasproduction to be in the range of XX–XX millionbarrels of oil equivalent (mmboe). The companyalso plans to spend US$XX million on explorationand development activities in the GoM and theAppalachian region.