Is Stone Energy Corporation (NYSE:SGY) a sleeping stock that could fly higher, the way its neighboring McMoRan Explorationflew when it was acquired by Freeport-McMoRan few weeks ago? Although I can’t know if Stone is an acquisition target, I know that it is very undervalued currently, and now is the time to get greedy.
Strengths
Production Growth: Although the production for 2013 is expected to remain relatively flat, with 2012 production at 41,000-44,000 boepd (~54% oil and liquids), the projected production in 2014 and 2015 is expected to grow, exceeding 50,000 boepd as longer-term projects from the Deep Water area are developed.
Proved Reserves Growth: After the latest independent reserves report in early 2013, the proved reserves climbed up to 129 Mmboe (49% oil and liquids), as compared with 100 Mmboe at year-end 2011, representing a 28% increase in its estimated proved reserves. That was the third consecutive year of reserve growth in 2012. From all sources, Stone replaced approximately 288% of production in 2012.
Reserve Life Extension: The reserve life for this Louisiana-based producer has grown from 5.2 years in 2009 to approximately 8.5 years currently.
Funds from Operations (FFO) Stability: Stone has been maintaining stable and positive operating cash flows for four consecutive years. Additionally, most of the operating cash flow for 2013 is protected because Stone has completed its active hedging program for 2013, while the programs for 2014 & 2015 are in progress.
Earnings Stability: The company has been profitable for ten consecutive quartersand it trades with a low P/E of 7 based on the estimated earnings for 2012.
Debt/FFO (annualized): The company has a significant safety cushion in place, as the D/CF (annualized) ratio is below 2. The 2013 capital program is expected to be funded by projected cash flow and cash on hand without hurting the debt line. The borrowing base of $400 million under the bank credit facility remains undrawn, with $379 million available after accounting for outstanding letters of credit of $21 million.
Liquidity: The current ratio (short-term assets/ short-term liabilities) is in safe territory and the company doesn’t face any cash shortfall as this ratio currently hovers well above 1. Actually Stone’s current cash position is over $200 million after the recent issuance of the $300 million Senior Notes due 2022, and after the completion of the tender offer, redemption and retirement of all the $200 million Senior Subordinated Notes due 2014.
Pricing: Stone has high margins and strong free cash flow because it receives Louisiana sweet crude pricing, which is very close to Brent pricing.
Land and 2P Reserves Diversification: Stone has a balanced portfolio of assets with three core areas. Its operations extend from the liquids-rich Marcellus shale to the conventional shelf and the deep water areas of the Gulf of Mexico (GOM). The corporate 2P reserves are also very diversified.
Weaknesses
The Gulf Coast effects: Due to the fact that Stone produces more than 50% of its oil and natural gas from GOM, it incurs high seasonal maintenance costs for its platforms, which are exposed to hurricanes. For instance, Stone’s production was impacted by shut-ins due to Hurricane Isaac in Q3 2012.
The Operating Hiccups: Stone will lose production in Q1 2013 from the Mary field. This field has been shut-in since December 2012 due to a third party pipeline repair issue impacting 8,350 boepd. The repair will be completed by Feb. 2013. However, the company expects to replace part of the lost production from the La Cantera #3 well that came on stream in Q3 2012.
Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!
It’s the revolution reshaping every industry on the planet.
From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.
Here’s why this is the prime moment to jump on the AI bandwagon:
Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.
Imagine every sector, from healthcare to finance, infused with superhuman intelligence.
We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.
This isn’t a maybe – it’s an inevitability.
Early investors will be the ones positioned to ride the wave of this technological tsunami.
Ground Floor Opportunity: Remember the early days of the internet?
Those who saw the potential of tech giants back then are sitting pretty today.
AI is at a similar inflection point.
We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.
This is your chance to get in before the rockets take off!
Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.
AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.
The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.
As an investor, you want to be on the side of the winners, and AI is the winning ticket.
The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.
From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.
This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.
By investing in AI, you’re essentially backing the future.
The future is powered by artificial intelligence, and the time to invest is NOW.
Don’t be a spectator in this technological revolution.
Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.
This isn’t just about making money – it’s about being part of the future.
So, buckle up and get ready for the ride of your investment life!
Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)
The AI revolution is upon us, and savvy investors stand to make a fortune.
But with so many choices, how do you find the hidden gem – the company poised for explosive growth?
That’s where our expertise comes in.
We’ve got the answer, but there’s a twist…
Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.
That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!
Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.
This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.
It’s like having a race car on a go-kart track.
They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.
Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.
We want to make sure none of our valued readers miss out on this groundbreaking opportunity!
That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.
For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!
Here’s why this is a deal you can’t afford to pass up:
• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
• Bonus Reports: Premium access to members-only fund manager video interviews
• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.
Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.
Here’s what to do next:
1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.
2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.
Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!
No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!
I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.
We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…
Should I put my money in Artificial Intelligence?
Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.
Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…
But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.
That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…
And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.
He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.
