Stone Energy Borrows $385M, Maxes Out Credit Line

Stone Energy is an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana, drilling mainly in the Gulf of Mexico but also with a presence in the Marcellus/Utica Shale. Last year they quit drilling in the northeast and actually shut-in part of their production due to low prices (see Stone Energy 3Q15: Shut Down 110 Mmcfe/d of Marcellus Production). Last year the company lost over $1 billion (see Stone Energy 2015: $1.1 Billion Loss, Quit Drilling in Marcellus). Last Thursday Stone announced they’ve maxed out their credit cards. That is, they have now borrowed as much as they can borrow on their existing line of credit from the bank–grabbing another $385 million. The borrowed money (which now totals $477 million) will be used for “general corporate purposes.” That is, to pay salaries and keep the lights on…

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