Stone energy. Anyone with info

They are toast.
Making little money, have tons of debt that has to be paid back in a year.

frick me, maybe I can get out on a quick spike.

It's close to its 52 week low. It's a long term buy for me as I'm in at average of 2.00.

I am working on the Ensco 8503 that we (Apache) just picked up from Stone. All of the Stone guys out here when we picked it up said they didn't expect Stone to stick around much longer.

We got the rig at a very reduced day rate. Its a win win for us and Stone. Stones contract for the day rate is offset some by them farming it out to us.

Their balance sheet doesn't look good.

quote:

---

I was hearing better things before this thread as well, so I'm wondering what side of it is more toward the truth. If it hits 1.25 or lower I may need to buy in again.

---

Baw, stop paying attention to what people are saying in regards to the financials and look for yourself. It's a public company, so you can check their quarterly and annual financial statements for yourself. Here is the most recent 10-k; check page F-3 for the balance sheet. Liabilities exceed assets by nearly $40 million. Operating expenses exceed revenue, even after removing the write-down of oil and gas properties (which means they have a lot of properties that are not profitable to produce from).

And take a look at this (the most important stuff is in bold):

quote:

---

2016 Outlook.

Liquidity – The level of our indebtedness of approximately $1,137 million and the current commodity price environment will present challenges as they relate to our ability to comply with the covenants in the agreements governing our indebtedness. As of December 31, 2015, we were in compliance with all of our financial covenants under our bank credit facility and the indentures governing our outstanding notes. However, given the lower commodity prices and our reduced hedged position in 2016, we anticipate that we could exceed the Consolidated Funded Debt to consolidated EBITDA financial covenant of 3.75 to 1 set forth in our bank credit agreement at the end of the first quarter of 2016, which would require us to seek a waiver or amendment from our bank lenders. If we are unable to reach an agreement with our banks or find acceptable alternative financing, it may lead to an event of default under our bank credit facility. If following an event of default, the banks were to accelerate repayment under the bank credit facility, it may result in an event of default and an acceleration under our other debt instruments.

As of February 22, 2016, we had total indebtedness of $1,137 million, including $300 million face value of 2017 Convertible Notes and $775 million of 2022 Notes. We are actively reviewing various financing, asset sales and debt restructuring alternatives to provide additional and adequate longer term liquidity and to address the March 1, 2017 maturity of the 2017 Convertible Notes.

Although we are currently exempt from the existing federal supplemental bonding requirements imposed by the BOEM on our offshore abandonment obligations, we expect to lose that exemption in 2016, as suppressed commodity prices have negatively affected our net worth. If we cannot qualify for a waiver, we may need to obtain surety bonds or some other form of financial assurance, which could impact our liquidity. See "Known Trends and Uncertainties."

---

If you break a covenant of a debt agreeement, you typically have to pay back everything right then and there. And they plainly stated that they expect to break a covenant before summer arrives. They also have to pay $300 million for the 2017 convertible notes, the equivalent of 55% of last year's revenue (and, as mentioned earlier, their operating expenses exceed said revenue). Finally, if they don't get that BOEM waiver, which they expect to not get, they will need to take on more debt or sell equity, both of which fricks shareholders.

So, with everything I have said, the company expects to be in default within the next few months, equity is negative (assets - liabilities = equity, and since liabilities exceed assets, equity is negative for SGY), and so the stock is arguably worthless right now and will be in the event of bankruptcy. Pull your money out now and avoid further loss, because owning SGY stock is betting on 00 at the roulette table: there is a chance you could profit handsomely, but the odds point to you going broke.

Days are numbered. Get out.

I think some here look no farther than the price of the stock and figure "if it's low it has to go up right"

quote:

---

Total Cash (mrq): 10.76M
Total Debt (mrq): 1.06B

---