Stone Energy Q3 Profit Climbs, But Misses Estimates; Stock Down

(RTTNews) - Shares of Stone Energy Corp. (SGY) declined around 8 percent in the extended trading on Monday after the oil and natural gas company's third-quarter earnings missed analysts' estimates, despite a growth. Revenues increased on higher production and gas prices, while oil prices declined. Further, the company sees a decline in fourth-quarter production, while it raised fiscal 2013 production view.

For the third quarter, net income climbed to $36.10 million or $0.72 per share from $23.66 million or $0.48 per share in the same period last year.

On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.76 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues increased to $255.81 million from $226.72 million last year. Analysts expected revenues of $248.52 million.

Quarterly production for the third quarter of 2013 averaged 49.4 thousand barrels of oil equivalent or MBoe per day, an 18 percent increase from last year's 41.8 MBoe per day. The production mix was 40 percent oil, 9 percent NGLs and 51 percent natural gas.

Prices realized during the quarter averaged $103.16 per barrel of oil, $38.77 per barrel of NGLs and $3.80 per Mcf of natural gas. In the last year, average realized prices were $104.15 per barrel of oil, $34.93 per barrel of NGLs and $3.20 per Mcf of natural gas.

Looking ahead for the fourth quarter, the company expects production to decrease slightly to approximately 42.5-45.5 MBoe or 255-273 MMcfe per day due to Williams pipeline downtime in Appalachia during October, the sale of selected onshore Louisiana properties, downtime associated with Tropical Storm Karen, and unplanned downtime at Ship Shoal Block 113.

However, due to positive third quarter production results, the full-year production guidance has been increased to 44.5-45.5 Mboe or 267-273 MMcfe per day.

Stone Energy shares closed Monday's trading at $35.59, up $1.35 or 3.94 percent. In the after hours trading, shares declined $3 or 8.43 percent to $32.59.