Lafayette-based Stone Energy Corp. this week reported a third-quarter loss of $29.4 million or 54 cents per share, falling fall short of Wall Street expectations.
Lafayette-based Stone Energy Corp. (SGY) this week reported a third-quarter loss of $29.4 million or 54 cents per share.
The independent oil and gas exploration and production company recorded a pre-tax, non-cash charge of $47.1 million related to the impairment of oil and gas properties - which it says was primarily due to lower oil and gas prices.
Without the non-cash charge, earnings were $700,000 or 1 cent per share on oil and gas revenues of $175 million, falling far short of Wall Street expectations. According to the Associated Press, the average estimate of analysts surveyed by Zacks Investment Research was for earnings of 10 cents per share.
The third quarter loss is compared to net income of $4.4 million, or 8 cents per share, on oil and natural gas revenue of $205 million in the second quarter of 2014, and compared to net income of $36.1 million, or 72 cents per share, on oil and natural gas revenue of $255.8 million in the third quarter of 2013. Lower realized oil and natural gas prices and lower production due to the sale of non-core properties were the primary causes of the reduced earnings in the third quarter of 2014 compared to the second quarter of 2014.
Stone Energy shares have tumbled 38 percent since the beginning of the year. The stock price fell 9 cents, to $24.21, after Monday's earnings announcement and dipped another 16 percent Tuesday, closing at $20.52.
Read the full earnings report here.