Stone Energy Ramps Up Marcellus Again in 2Q16, Loses $196M

Stone EnergyStone Energy, an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana drills mainly in the Gulf of Mexico but also has a presence in the Marcellus/Utica Shale with 75,000 90,000 acres of leases. Last year Stone 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). In June Stone cut a new midstream gathering agreement with Williams to return some of their shut-in Marcellus wells to full production (see Stone Energy Opens Marcellus Spigots Again; New Midstream Deal). Although threatened with de-listing by the New York Stock Exchange and under threat of bankruptcy, Stone has (so far) managed to avoid both fates. They’re scrappy! And they continue to impress. Yesterday Stone issued their second quarter 2016 update, in which they confirm bringing their “Mary” field in the Marcellus back online in June. Stone has worked out deals with several major debtors to keep them out of bankruptcy court and they live to fight another day. Hats off to Stone. The company did, however, lose $196 million in 2Q16 (versus losing $153 million in 2Q15). While they live to fight another day, there are still storm clouds on the horizon…

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