Public Companies

Stone Energy cuts capex budget in half

by Leslie Turk

Board authorizes capital expenditure budget of $450 million for 2015, about half of what was spent last year.

Stone Energy this week announced estimated year-end proved reserves and production volumes for 2014 and said its board-authorized capital expenditure budget is $450 million for this year. That's roughly half of the expected $875 million in final capex for 2014, most of which was spent in the Gulf.

Stone said year-end 2014 estimated proved reserves were 152 Mmboe, which represents a 5.5 percent increase compared to year-end 2013 estimated proved reserves. Fourth quarter 2014 production averaged approximately 42.5 MBoe per day (255 Mmcfe per day), and full year 2014 production averaged approximately 42.6 MBoe per day (256 Mmcfe per day), which included the impact of several divestitures of non-core assets during the year.

Stone’s share price (NYSE: SGY), which has fallen 67 percent since July 1, hit a new 52-week low of $12.07 Tuesday, closing at $12.44.

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