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Stone Energy Corporation, Company Intelligence Report - Product Image

Stone Energy Corporation, Company Intelligence Report

  • ID: 2075284
  • May 2014
  • 179 pages
  • GlobalData

Stone Energy Corporation, Company Intelligence Report

Summary

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 READ MORE >

1 Table of Contents
1 Table of Contents
1.1 List of Tables
1.2 List of Figures
2 Stone Energy Corporation, Company Overview
3 Stone Energy Corporation, Key Highlights
3.1 Exploration and Development Opportunities to Facilitate Future Growth Plans
3.1.1 Gulf of Mexico
3.1.2 Appalachia
3.2 Leveraging on Existing Infrastructure to Support Development Objectives
3.3 Financial Liquidity
4 Stone Energy Corporation, SWOT Analysis
4.1 Strengths
4.1.1 Balanced Commodity Mix in Production and Reserves
4.1.2 Growth in Reserves through Organic Route
4.2 Weaknesses
4.2.1 Limited Geographical Presence
4.2.2 High Operating Expenses
4.2.3 High Dependence on Few Customers
4.3 Opportunities
4.3.1 Development of Liquid-Rich Unconventional Assets; Opportunity to Increase Profitability
4.4 Threats
4.4.1 Regulatory and Permitting Procedures Could Negatively Affect the Company’s Drilling Program
4.4.2 Impact of Tropical Cyclones upon Production Volumes
4.4.3 Intense Competition
5 Stone Energy Corporation, Goals and Strategies
5.1 Unlocked Potential of Assets Portfolio to Profitably Expand Reserves and Production
5.2 Strategic Divesture of Non-Core Properties in the Gulf of Mexico
5.3 Diversification of Proved Reserve Base
6 Stone Energy Corporation, Production Overview
6.1 Production Profile
6.2 Assets Portfolio
6.2.1 Gulf of Mexico
6.2.2 Appalachia
7 Stone Energy Corporation, Capital Expenditure
7.1 Costs Incurred
8 Stone Energy Corporation, Acreage
9 Stone Energy Corporation, Exploration and Development Overview
9.1 Gulf of Mexico
9.1.1 Gulf of Mexico Deepwater
9.1.2 Gulf of Mexico Deep gas
9.1.3 Gulf of Mexico Conventional Shelf
9.2 Appalachia
9.2.1 Appalachia: Marcellus Shale
9.2.2 Appalachia: Utica Shale
9.2.3 Appalachia: Upper Devonian
10 Stone Energy Corporation, Forecast Production and Financial Statements
10.1 Income Statement (2011-2018)
10.2 Balance Sheet (2011-2018)
10.3 Cash Flow Statement (2011-2018)
11 Stone Energy Corporation, Valuation
11.1 Net Asset Value
12 Stone Energy Corporation, Peer Comparison
12.1 Share Price Performance
12.2 Operational and Financial Performance
12.3 Key Financial and Operational Ratio
13 Stone Energy Corporation, Production and Reserves Trends
13.1 Total Oil and Gas, Reserves and Production
13.1.1 Total Crude Oil and Natural Gas Production and Reserves Trend, 2009-2013
13.1.2 Total Crude Oil & Natural Gas Production and Reserves By Country/Region, 2009-2013
13.1.3 Total Crude Oil and Natural Gas Reserve Changes, 2009-2013
13.2 Crude Oil/Liquids Production and Reserve
13.2.1 Crude Oil/Liquids Production and Reserve Trend, 2009-2013
13.2.2 Crude Oil Production and Reserves by Country/Region, 2009-2013
13.2.3 Crude Oil/Liquids Reserve Changes, 2009-2013
13.3 Natural Gas Production and Reserve
13.3.1 Natural Gas Production and Reserve Trend, 2009-2013
13.3.2 Natural Gas Production and Reserves, By Country/Region, 2009-2013
13.3.3 Natural Gas Reserve Changes, 2009-2013
13.4 Total Crude Oil and Natural Gas Reserves Life Index
13.4.1 Total Crude Oil and Natural Gas Reserves Life Index, 2009-2013
13.4.2 Total Crude Oil and Natural Gas Reserves Life Index, By Country/Region, 2009-2013
14 Stone Energy Corporation, E&P Costs Trends
14.1 Allocation of the Upstream Capital Expenditure
14.1.1 Upstream Capital Expenditure, 2009-2013
14.1.2 Acquisition Costs by Country/Region, 2009-2013
14.1.3 Exploration and Development Costs, By Country/Region, 2009-2013
14.2 Oil and Gas Cost Per boe, US$/boe
14.2.1 Oil and Gas Cost Per boe, US$/boe, 2009-2013
14.2.2 Oil and Gas Cost Per boe, US$/boe, By Country/Region, 2009-2013
15 Stone Energy Corporation, Reserve Replacement Ratio
15.1 Oil and Gas Production Replacement Ratio
15.1.1 Oil and Gas Production Replacement Ratio, 2009-2013
15.1.2 Oil and Gas Production Replacement Ratio, By Country/Region, 2009-2013
16 Stone Energy Corporation, Results of Oil & Gas Operations Trend
16.1 Oil and Gas Revenue and Expenses
16.1.1 Oil and Gas Revenue and Expenses, 2009-2013
16.1.2 Oil and Gas Revenue and Expenses, By Country/Region, 2009-2013
16.2 Oil and Gas Revenue and Expenses, per boe
16.2.1 Oil and Gas Revenue and Expenses, by boe, 2009-2013
16.2.2 Oil and Gas Revenue and Expenses Per boe, By Country/Region, 2009-2013
16.3 Oil and Gas Performance Metrics
17 Stone Energy Corporation, Land Holdings and Well Data
17.1 Developed and Undeveloped Acreage
17.1.1 Gross and Net Developed and Undeveloped Acreage, 2009-2013
17.1.2 Gross and Net Developed and Undeveloped Acreage, By Country/Region, 2009-2013
17.2 Well Statistics
17.2.1 Producible Oil and Gas Well, 2009-2013
17.2.2 Producible Oil and Gas Well, By Country/Region, 2009-2013
17.2.3 Exploration and Development Wells Drilled, 2009-2013
17.2.4 Exploration and Development Wells Drilled, By Country/Region, 2009-2013
18 Appendix
18.1 Abbreviations
18.2 Sources
18.3 Methodology
18.3.1 Coverage
18.3.2 Secondary Research
18.3.3 Primary Research
18.4 Disclaimer

1.1 List of Tables
Table 1: Stone Energy Corporation, Total Net Acreage (Acres), 2013
Table 2: Stone Energy Corporation, Total Oil and Gas Production, 2011-2018
Table 3: Stone Energy Corporation, Deepwater Pompano Field, Oil and Gas Production, 2012-2013
Table 4: Stone Energy Corporation, Costs Incurred (US$ mil), 2009-2013
Table 5: Stone Energy Corporation, Reserve Replacement Ratio and Finding and Development Costs Incurred (per boe), 2010-2013
Table 6: Stone Energy Corporation, Total Developed and Undeveloped Acreage (Acres), 2013
Table 7: Stone Energy Corporation, Capital Budget Allocation (US$ mil), 2014
Table 8:Stone Energy Corporation, Five Year Plan, 2014-2017
Table 9: Stone Energy Corporation, Marcellus Shale Key Operational Parameters, Latest Reported, 2014
Table 10: Stone Energy Corporation, Marcellus Shale Key Operational Parameters, 2009-2013
Table 11: Stone Energy Corporation, Utica Shale Key Operational Parameters, Latest Reported, 2014
Table 12: Stone Energy Corporation, Total Oil and Gas Production, 2011-2018
Table 13: GlobalData, Price Forecasts, 2014-2018
Table 14: Stone Energy Corporation, Income Statement (US$ mil), 2011-2018
Table 15: Stone Energy Corporation, Balance Sheet (US$ mil), 2011-2018
Table 16: Stone Energy Corporation, Cash Flow Statement (US$ mil), 2011-2018
Table 17: Stone Energy Corporation, Net Asset Value, 2013
Table 18: Stone Energy Corporation, Peer Group Comparison, Operational and Financial Performance, 2013
Table 19: Stone Energy Corporation, Peer Group Comparison, Total Reserves and Production (mmboe), 2013
Table 20: Stone Energy Corporation, Peer Group Comparison, Financial and Operational Ratios, 2013
Table 21: Stone Energy Corporation, Total Crude Oil and Natural Gas, Production and Reserves, mmboe, 2009-2013
Table 22: Stone Energy Corporation, Total Crude Oil & Natural Gas Production and Reserves, By Country/Region, mmboe, 2009-2013
Table 23: Stone Energy Corporation, Total Crude Oil and Natural Gas Reserve Changes, mmboe, 2009-2013
Table 24: Stone Energy Corporation, Crude Oil Production and Reserves Metrics, mmbbl, 2009-2013
Table 25: Stone Energy Corporation, Crude Oil Production and Reserves, By Country/Region, mmbbl, 2009-2013
Table 26: Stone Energy Corporation, Crude Oil Reserve Changes, mmbbl, 2009-2013
Table 27: Stone Energy Corporation, Natural Gas Production and Reserves Metrics, bcf, 2009-2013
Table 28: Stone Energy Corporation, Natural Gas Production and Reserves, By Country/Region, bcf, 2009-2013
Table 29: Stone Energy Corporation, Natural Gas Reserve Changes, bcf, 2009-2013
Table 30: Stone Energy Corporation, Oil and Gas Reserves Life Index, Years, 2009-2013
Table 31: Stone Energy Corporation, Oil and Gas Reserves Life Index, By Country/Region, Years, 2009-2013
Table 32: Stone Energy Corporation, Upstream Capital Expenditure, US$ mil, 2009-2013
Table 33: Stone Energy Corporation, Proved and Unproved Acquisition Costs, By Country/Region, US$ mil, 2009-2013
Table 34: Stone Energy Corporation, Exploration and Development Costs, By Country/Region, US$ mil, 2009-2013
Table 35: Stone Energy Corporation, Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, US$/boe, 2009-2013
Table 36: Stone Energy Corporation, Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, US$/boe, By Country/Region, 2009-2013
Table 37: Stone Energy Corporation, Oil and Gas Production Replacement Ratio, %, 2009-2013
Table 38: Stone Energy Corporation, 3-Year Wt.Avg. Oil and Gas Production Replacement Ratio, By Country/Region, %, 2009-2013
Table 39: Stone Energy Corporation, Revenue and Expenses, US$ mil, 2009-2013
Table 40: Stone Energy Corporation, Revenue and Expenses, By Country/Region, US$ mil, 2009-2013
Table 41: Stone Energy Corporation, Oil and Gas Revenue and Expenses, US$/boe, 2009-2013
Table 42: Stone Energy Corporation, Oil and Gas Revenue and Expenses, US$/boe, By Country/Region, 2009-2013
Table 43: Stone Energy Corporation, Oil and Gas Performance Metrics, 2009-2013
Table 44: Stone Energy Corporation, Land Holdings (Developed and Undeveloped Acreage), Acres, 2009-2013
Table 45: Stone Energy Corporation, Land Holdings (Developed and Undeveloped Acreage), By Country/Region, Acres, 2009-2013
Table 46: Stone Energy Corporation, Producible Oil and Gas Wells, 2009-2013
Table 47: Stone Energy Corporation, Producible Oil and Gas Wells, By Country/Region, 2009-2013
Table 48: Stone Energy Corporation, Exploratory and Developed Wells, 2009-2013
Table 49: Stone Energy Corporation, Exploratory and Developed Wells, By Country/Region, 2009-2013

1.2 List of Figures
Figure 1: Stone Energy Corporation, Operational Map, US, 2014
Figure 2: Stone Energy Corporation, Financial and Operational Overview, 2010-2013
Figure 3: Stone Energy Corporation, Share Performance, May 2013-April 2014
Figure 4: Stone Energy Corporation, GoM Deepwater, Exploration and Development Portfolio, 2014
Figure 5: Stone Energy Corporation, GoM Deep Gas, Exploration and Development Portfolio, 2014
Figure 6: Stone Energy Corporation, Appalachia, 2013
Figure 7: Stone Energy Corporation, Marcellus Shale Enhancements, 2014
Figure 8: Stone Energy Corporation, Utica Shale Exploration, 2014
Figure 9: Stone Energy Corporation, Gulf of Mexico Deepwater Production Platforms, 2014
Figure 10: Stone Energy Corporation, Gulf of Mexico Deepwater, Cardona Tie-back to Pompano, 2014
Figure 11: Stone Energy Corporation, Gulf of Mexico Deepwater, Amethyst Tie-back to Pompano, 2014
Figure 12: Stone Energy Corporation, Gulf of Mexico Deep Gas, Tomcat Prospect, 2013
Figure 13: Stone Energy Corporation, Cash and Cash Equivalents, 2010-2013
Figure 14: Stone Energy Corporation, Current and Quick Ratio (X), 2010-2013
Figure 15: Stone Energy Corporation, Total Reserves by Commodity (%), 2009-2013
Figure 16: Stone Energy Corporation, Total Production by Commodity (%), 2009-2013
Figure 17: Stone Energy Corporation, Organic Reserve Additions (mmboe), 2010-2013
Figure 18: Stone Energy Corporation, Total Oil and Gas Production (mmboe), 2011-2018
Figure 19: Stone Energy Corporation, Production Mix (%), 2011-2018
Figure 20: Stone Energy Corporation, Production Mix by Area (%), 2013
Figure 21: Stone Energy Corporation, Mississippi Canyon Block 109, Oil and Gas Production (mmboe), 2010-2013
Figure 22: Stone Energy Corporation, GoM Deepwater, Estimated Production (boed), 2014-2017
Figure 23: Stone Energy Corporation, GoM Deep Gas, Estimated Production (mcfed), 2014-2017
Figure 24: Stone Energy Corporation, GoM Conventional Shelf, Estimated Production (boed), 2012-2014
Figure 25: Stone Energy Corporation, GoM Conventional Shelf, Production by Field (mmboe), 2010-2013
Figure 26: Stone Energy Corporation, Appalachia, Production (mmcfed), 2010-2018e
Figure 27: Stone Energy Corporation, Appalachia, Production by Field (mmboe), 2011-2013
Figure 28: Stone Energy Corporation, Capital Expenditure Program, 2014
Figure 29: Stone Energy Corporation, Capital Expenditure (US$ mil), 2014-2018
Figure 30: Stone Energy Corporation, Capital Expenditure (US$ mil), 2009-2013
Figure 31: Stone Energy Corporation, Costs Incurred (US$ mil), 2009-2013
Figure 32: Stone Energy Corporation, Reserve Replacement Ratio (%) and Finding and Development Costs Incurred (US$/boe), 2010-2013
Figure 33: Stone Energy Corporation, Net Developed and Undeveloped Acreage (Million Acres), 2010-2013
Figure 34: Stone Energy Corporation, Versus Peers, Net Acreage (Million Acres), 2013
Figure 35: Stone Energy Corporation, Versus Peers Acreage Comparison, 2010-2013
Figure 36: Stone Energy Corporation, Net Productive and Dry Exploratory and Development Wells (Number of Wells), 2009-2013
Figure 37: Stone Energy Corporation, Net/Gross Oil and Gas Ratio for Wells (%), 2009-2013
Figure 38: Stone Energy Corporation, Gulf of Mexico, Operations Map, 2014
Figure 39: Stone Energy Corporation, Gulf of Mexico Deepwater Platforms, 2014
Figure 40: Stone Energy Corporation, Gulf of Mexico Deepwater Exploration Program, 2014
Figure 41: Stone Energy Corporation, Gulf of Mexico Deepwater Amethyst Discovery, 2014
Figure 42: Stone Energy Corporation, Gulf of Mexico Deepwater Cardona and Cardona South, 2014
Figure 43: Stone Energy Corporation, Gulf of Mexico Deepwater, Projected Wells, 2014
Figure 44: Stone Energy Corporation, Gulf of Mexico Deepwater, Projected Wells, 2015-2017
Figure 45: Stone Energy Corporation, Gulf of Mexico Deep gas, Exploratory Prospects, 2014-2016
Figure 46: Stone Energy Corporation, Gulf of Mexico Deep Gas, Exploratory Prospects, 2014
Figure 47: Stone Energy Corporation, Appalachia, 2014
Figure 48: Stone Energy Corporation, Utica Shale Exploration, 2014
Figure 49: Stone Energy Corporation., Peer Comparison Relative Share Price Performance (%), May 2013-April 2014
Figure 50: Stone Energy Corporation., Peer Group Comparison of Financial and Operational Parameters (US$/boe), 2013
Figure 51: Stone Energy Corporation, Peer Group Comparison of F&D Cost and Reserve Replacement Comparison, 2013
Figure 52: Stone Energy Corporation, Peer Group Comparison, Total Reserves and Production (mmboe), 2013
Figure 53: Stone Energy Corporation, and Peer Group, Reserve Life Index (Years), 2013
Figure 54: Stone Energy Corporation, Peer Group Comparison, Valuation Ratios, 2013
Figure 55: Stone Energy Corporation, Total Crude Oil and Natural Gas, Production and Reserves, mmboe, 2009-2013
Figure 56: Stone Energy Corporation, Total Oil & Gas Reserves, End of Period, By Country/Region, mmboe, 2009-2013
Figure 57: Stone Energy Corporation, Total Oil & Gas Production, By Country/Region, mmboe, 2009-2013
Figure 58: Stone Energy Corporation, Total Crude Oil and Natural Gas Reserve Changes, mmboe, 2013
Figure 59: Stone Energy Corporation, Crude Oil Production and Reserves Metrics, mmbbl, 2009-2013
Figure 60: Stone Energy Corporation, Oil Reserves, End of Period, By Country/Region, mmbbl, 2009-2013
Figure 61: Stone Energy Corporation, Oil Production, By Country/Region, mmbbl, 2009-2013
Figure 62: Stone Energy Corporation, Crude Oil Reserve Changes, mmbbl, 2013
Figure 63: Stone Energy Corporation, Natural Gas Production and Reserves Metrics, bcf, 2009-2013
Figure 64: Stone Energy Corporation, Gas Reserves, End of Period, By Country/Region, bcf, 2009-2013
Figure 65: Stone Energy Corporation, Gas Production, By Country/Region, bcf, 2009-2013
Figure 66: Stone Energy Corporation, Natural Gas Reserve Changes, bcf, 2013
Figure 67: Stone Energy Corporation, Oil and Gas Reserves Life Index, Years, 2009-2013
Figure 68: Stone Energy Corporation, Gas Reserve Life Index, By Country/Region, Ratio, 2009-2013
Figure 69: Stone Energy Corporation, Oil & Gas Reserve Life Index, By Country/Region, Ratio, 2009-2013
Figure 70: Stone Energy Corporation, Oil Reserve Life Index, By Country/Region, Ratio, 2009-2013
Figure 71: Stone Energy Corporation, Upstream Capital Expenditure, US$ mil, 2009-2013
Figure 72: Stone Energy Corporation, Development Costs, By Country/Region, US$ mil, 2009-2013
Figure 73: Stone Energy Corporation, Exploration Costs, By Country/Region, US$ mil, 2009-2013
Figure 74: Stone Energy Corporation, 3-Year Wt.Avg., Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, US$/boe, 2009-2013
Figure 75: Stone Energy Corporation, Oil & Gas Finding & Development Cost/boe, 3-Year Average, By Country/Region, $/boe, 2009-2013
Figure 76: Stone Energy Corporation, Oil & Gas Finding Cost per boe, 3-Year Average, By Country/Region, $/Boe, 2009-2013
Figure 77: Stone Energy Corporation, Reserve Replacement Cost per boe, 3-Year Average, By Country/Region, $/boe, 2009-2013
Figure 78: Stone Energy Corporation, 3-Year Wt.Avg., Oil and Gas Production Replacement Ratio, %, 2009-2013
Figure 79: Stone Energy Corporation, 3-Year Wt. Avg. Gas F&D Production Replacement, By Country/Region, %, 2009-2013
Figure 80: Stone Energy Corporation, 3-Year Wt. Avg. Gas RRC Production Replacement, By Country/Region, %, 2009-2013
Figure 81: Stone Energy Corporation, 3-Year Wt. Avg. Oil & Gas F&D Production Replacement, By Country/Region, %, 2009-2013
Figure 82: Stone Energy Corporation, 3-Year Wt. Avg. Oil & Gas RRC Production Replacement, By Country/Region, %, 2009-2013
Figure 83: Stone Energy Corporation, 3-Year Wt. Avg. Oil F&D Production Replacement, By Country/Region, %, 2009-2013
Figure 84: Stone Energy Corporation, 3-Year Wt. Avg. Oil RRC Production Replacement, By Country/Region, %, 2009-2013
Figure 85: Stone Energy Corporation, Revenue and Expenses, US$ mil, 2009-2013
Figure 86: Stone Energy Corporation, Depreciation, Depletion and Amortization From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013
Figure 87: Stone Energy Corporation, Income Tax Provision (Benefit) From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013
Figure 88: Stone Energy Corporation, Net Income/ Loss From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013
Figure 89: Stone Energy Corporation, Oil & Gas Revenue, By Country/Region, US$ mil, 2009-2013
Figure 90: Stone Energy Corporation, Profit (loss) Before Taxation From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013
Figure 91: Stone Energy Corporation, Production Costs, By Country/Region, US$ mil, 2009-2013
Figure 92: Stone Energy Corporation, Total Expenses From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013
Figure 93: Stone Energy Corporation, Oil and Gas Revenue and Expenses, US$/boe, 2009-2013
Figure 94: Stone Energy Corporation, Income Tax/(Benefit) per boe, By Country/Region, $/boe, 2009-2013
Figure 95: Stone Energy Corporation, Lifting Cost per boe, By Country/Region, $/boe, 2009-2013
Figure 96: Stone Energy Corporation, Annual Net Income per boe, By Country/Region, $/boe, 2009-2013
Figure 97: Stone Energy Corporation, Oil & Gas Revenue per boe, By Country/Region, $/boe, 2009-2013
Figure 98: Stone Energy Corporation, Total DD&A per boe, By Country/Region, $/boe, 2009-2013
Figure 99: Stone Energy Corporation, Total Revenue per boe, By Country/Region, $/boe, 2009-2013
Figure 100: Stone Energy Corporation, Oil and Gas Performance Metrics, 2009-2013
Figure 101: Stone Energy Corporation, Land Holdings (Developed and Undeveloped Acreage), Acres, 2009-2013
Figure 102: Stone Energy Corporation, Total Gross Undeveloped Acreage, By Country/Region, Acres, 2009-2013
Figure 103: Stone Energy Corporation, Total Net Undeveloped Acreage, By Country/Region, Acres, 2009-2013
Figure 104: Stone Energy Corporation, Total Gross Developed Acreage, By Country/Region, Acres, 2009-2013
Figure 105: Stone Energy Corporation, Total Net Developed Acreage, By Country/Region, Acres, 2009-2013
Figure 106: Stone Energy Corporation, Producible Oil and Gas Wells, 2009-2013
Figure 107: Stone Energy Corporation, Gross Productive Gas Wells, By Country/Region, Number, 2009-2013
Figure 108: Stone Energy Corporation, Gross Productive Oil & Gas Wells, By Country/Region, Number, 2009-2013
Figure 109: Stone Energy Corporation, Gross Productive Oil Wells, By Country/Region, Number, 2009-2013
Figure 110: Stone Energy Corporation, Net/Gross Oil & Gas Ratio, By Country/Region, %, 2009-2013
Figure 111: Stone Energy Corporation, Net Productive Gas Wells, By Country/Region, Number, 2009-2013
Figure 112: Stone Energy Corporation, Net Productive Oil & Gas Wells, By Country/Region, Number, 2009-2013
Figure 113: Stone Energy Corporation, Net Productive Oil Wells, By Country/Region, Number, 2009-2013
Figure 114: Stone Energy Corporation, Exploratory and Developed Wells, 2009-2013

Strategically Aligning Operational Focus to Boost Cash Flows

Stone’s major operating activities are located in the conventional shelf, deep gas and deepwater areas in the GoM and the Marcellus Shale in the Appalachian Basin. Until 2011, the majority of its production was driven by the GoM shelf area, which contributed 89.3% towards its total production in the year; however, going forward, it plans to diversify production sources through increased focus on other areas such as deepwater and deep gas areas of the GoM, and the Marcellus Shale. In line with this, Stone acquired the deepwater assets in the Pompano field and other areas during 2011–2012 in a series of transactions. Apart from diversifying its geographic footprints to other areas, the company also shifted the capital investment to areas other than GoM shelf in 2012 as compared to 2011. The company invested 44% of its 2011 capex towards the GoM; however, it has allocated only 36% of its 2012 capex towards this area. This shift in the capital allocation is due to the company’s strategic prioritization of operational areas. Going forward, it plans to maintain steady production and cash flows from its legacy assets in the GoM shelf, and utilizing the cash flows in accelerating the development of its future growth assets in the deepwater areas of the GoM and the Marcellus Shale. This operational realignment will help the company to offset the decline from the legacy assets and add new production centers, thereby reducing dependence on GoM and ensuring long-term growth simultaneously.

In line with this strategy, Stone acquired deepwater assets in a series of transactions during 2011–2012. In Q4 2011, the company acquired BP’s 75% interest in the deepwater Pompano field in the Mississippi Canyon, a 51% interest in Mississippi Canyon’s block 29, a 50% interest in the Mica field, which is tied back to the Pompano platform, and interests in 23 deepwater exploration leases located near the Pompano field. This acquisition entitled Stone to 3,300 Thousand Barrels of Oil Equivalent per Day (mboe/d) of production capacity and 17mmboe of proved reserves. These proved reserves consisted of 83% crude oil and 17% natural gas. These assets were acquired near the end of the year, and thus their contribution was very low in 2011; however, this is expected to increase in the future. Moreover, the company also completed another transaction in Q2 2012, when it acquired the remaining 25% interest from Anadarko Petroleum Corporation. This acquisition entitled Stone to its remaining 25% interest in the deepwater Pompano field in the Mississippi Canyon, a 22% working interest in Mississippi Canyon’s block 29, and a 10% working interest in portions of block MC 72. Consequently, Stone expanded its reserve base by 5.9mmboe and production by more than 1,000boe/d. These assets mainly consisted of oil resources and as a result will support the company’s oil production in a scenario of high imparity between oil and gas prices, thereby strategically boosting its profitability in the near future and ensuring stronger cash flows.

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