Stone 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 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). However, things changed for Stone in a big way in October when the company announced (a) it is selling its Marcellus/Utica assets to Tug Hill for $350 million, and (b) the company is preparing to file for bankruptcy (see Stone Energy Enters Bankruptcy, Sells Marc/Utica Assets for $350M). Stone’s bankruptcy plans are facing a challenge from it’s biggest shareholder. It seems investor Thomas Satterfield, who now owns 9.9% of the company’s stock, doesn’t want to see that stock turned into toilet paper by handing the keys over to debtholders, as is the typical route E&Ps have taken with bankruptcy filings over the past year or so…
