Boston, MA 05/06/2014 (wallstreetpr) – Stone Energy Corporation (NYSE:SGY) is a $2.5 billion oil and gas company. The company released Q12014 earnings results Monday where it reported earnings and revenue that exceeded Wall Street expectations. The company also updated on key deepwater drilling operations.
In Q1 Stone Energy Corporation (NYSE:SGY) earned 52 cents per share, 12 cents better than Wall Street estimate of 40 cents per share for the quarter. Revenue in the quarter came in at $222.6 million compared with the consensus estimate of $218.26 million.
The beating figures came as a result of increased production that continue to offset the poor prices. The company expects to significantly increase production by 2015 where key deepwater oilfield is expected to commence production.
Gulf of Mexico deepwater oilfield
Stone Energy Corporation (NYSE:SGY) plans to start commercial production at the Cordona South deepwater oilfield less than a year after it started drilling activities in the area. The well in Gulf of Mexico should be up and running for commercial production by 2015. Drilling operations of the first well in Cordona area started earlier this year, and the company expects to drill at least two more wells to add to an existing one in the Cordona area.
Stone Energy expects production at Cordona South to double its deepwater oil production. The company produced average of 46,000 barrels per day of oil equivalent in 2013.
Platform acquisition
Stone Energy Corporation (NYSE:SGY) acquired the Pompano production platform in 2011 from BP for $204 million. The asset included interests in Mica and Pompano deepwater oilfields. The two oilfields were up and running even before the acquisition from BP whereby Mica field started production in 2001 and Pompano started production in 1994.
In the efforts to improve production volumes and efficiency, the company seeks to tie the new Cordona wells back to its Pompano platform that is about 120 miles southeast of New Orleans.
Stone Energy Corporation (NYSE:SGY) expects higher product levels to attract higher revenue and offset price impacts to support bottom-line improvement.
