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 1.83%.

Stone Energy Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 4.3% to $0.89 in the quarter versus EPS of $0.93 in the year-earlier quarter.

Revenue: Rose 15.41% to $254.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stone Energy Corp. reported adjusted EPS income of $0.89 per share. By that measure, the company beat the mean analyst estimate of $0.6. It beat the average revenue estimate of $240.62 million.

Quoting Management: Chief Executive Officer David Welch stated, “We are excited to show both production and reserves increasing for the third consecutive year. This achievement was driven by production and reserve growth in our Marcellus Shale, Deep Water and Deep Gas areas, highlighting the success of our diversification strategy as our proved reserves mix on a volume equivalent basis is now 44% Appalachia, 34% Deep Water, and 22% Conventional Shelf/Deep Gas with an estimated reserve life of over 8 years. Production and revenues from our lower risk, condensate rich Marcellus shale program and our successful Deep Gas program, combined with our legacy conventional shelf assets provide a base from which to launch our exploration efforts in the Deep Water area. In 2013, we expect to participate in several deep water exploration wells with working interests ranging from 20 to 40 percent, signifying a significant acceleration of our deep water exploration activity”.

Key Stats (on next page)…