For the first quarter of 2013, Stone Energy (NYSE: SGY) reported net income of $40.8 million, or 82 cents per share, on oil and gas revenue of $232.9 million. In the first quarter of 2012, the independent Lafayette-based exploration and production company earned $51 million, or $1.04 per share, on oil and gas revenue of $244.1 million.
Discretionary cash flow totaled $159.1 million during the first quarter of 2013, the company announced Monday, as compared to $175.1 million during the first quarter of 2012.
First quarter 2013 production was negatively impacted by third party pipeline interruptions in Appalachia, according to the company’s earnings report. First quarter 2013 production mix was 46 percent oil, 6 percent natural gas liquids, and 48 percent natural gas.
Prices realized during the first quarter of 2013 averaged $109.41 per barrel of oil, $42.49 per barrel of natural gas liquids and $3.17 per Mcf of natural gas. Average realized prices for the first quarter of 2012 were $111.49 per barrel of oil, $67.26 per barrel of NGLs and $2.41 per Mcf of natural gas.
Some of the highlights include:
- Two deep water drilling rig contracts were secured for the Stone operated projects in the proximity of its Pompano platform. The Diamond Ocean Victory is scheduled to drill the Amethyst exploration prospect starting in September 2013, and an ENSCO 8500 series rig is anticipated to commence drilling the Cardona and Cardona South development wells starting in the first quarter of 2014.
- Production volumes slightly exceeded the upper end of first quarter guidance. In Appalachia, volumes have been substantially restored from the third party pipeline interruptions that affected production from January through April 2013.
- Stone was awarded the prestigious Safety in Seas Award from the National Ocean Industries Association. The company was recognized for innovative safety leadership in pioneering a new decommissioning method that resulted in a four-fold increase in the volume of work with zero OSHA recordable incidents.
“We have taken a significant step in our deep water efforts by securing the Diamond Ocean Victory rig and the ENSCO 8500 series rig," David Welch, Stone’s chairman, president and CEO, said in the announcement. “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 five-seven exploration prospects being drilled in 2013 and 2014.”
Read more from Welch and view the company’s release here