-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VuDPm15iZPhU0yMONoPk8/5OvnyNvD5lx2k5xCIQLIRdPT3dP/aEOK3dN+Q1us9F P+8szUb+TMalimI5AIHN7Q== 0000950129-96-001837.txt : 19960816 0000950129-96-001837.hdr.sgml : 19960816 ACCESSION NUMBER: 0000950129-96-001837 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: STONE ENERGY CORP CENTRAL INDEX KEY: 0000904080 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 721235413 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-12074 FILM NUMBER: 96611453 BUSINESS ADDRESS: STREET 1: 625 E KALISTE SALOOM RD CITY: LAFAYETTE STATE: LA ZIP: 70508 BUSINESS PHONE: 3182370410 MAIL ADDRESS: STREET 1: 625 E KALISTLE SALOOM RD CITY: LAFAYETTE STATE: LA ZIP: 70508 10-Q 1 STONE ENERGY CORPORATION - DATED 06/30/96 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________ FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER 1-12074 _______________________________ STONE ENERGY CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 72-1235413 (State or other jurisdiction (I.R.S. employer of incorporation or organization) identification no.) 625 E. KALISTE SALOOM ROAD LAFAYETTE, LOUISIANA 70508 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code:(318) 237-0410 _______________________________ Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ___ As of August 9, 1996 there were 11,794,249 shares of the Registrant's Common Stock, par value $.01 per share, outstanding. 2 TABLE OF CONTENTS
PAGE ---- PART I Item 1. Financial Statements: Condensed Consolidated Balance Sheet as of June 30, 1996 and December 31, 1995 . . . . . . . . . . . . . . . . . . 1 Condensed Consolidated Statement of Operations for the Three and Six Month Periods Ended June 30, 1996 and 1995 . . . . . . . 2 Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . 3 Notes to Condensed Consolidated Financial Statements . . . . . . . . . . . . . . 4 Auditors' Review Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . 7 PART II Item 4. Submission of Matters to a Vote of Security Holders . . . . . . . . . . . . . . . . . . . 9 Item 5. Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
-i- 3 STONE ENERGY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (IN THOUSANDS)
June 30, December 31, ASSETS 1996 1995 ----------- ------------ (UNAUDITED) Current assets: Cash and cash equivalents . . . . . . . . . . . . . . . . $ 7,593 $ 6,286 Marketable securities, at market . . . . . . . . . . . . 15,992 10,232 Accounts receivable . . . . . . . . . . . . . . . . . . . 9,171 7,336 Other current assets . . . . . . . . . . . . . . . . . . 640 612 ---------- ---------- Total current assets . . . . . . . . . . . . . . . . . 33,396 24,466 Oil and gas properties, net: Proved . . . . . . . . . . . . . . . . . . . . . . . . . 115,997 108,820 Unevaluated . . . . . . . . . . . . . . . . . . . . . . . 9,085 2,428 Building and land, net of accumulated depreciation . . . . . 3,248 3,284 Other assets, net . . . . . . . . . . . . . . . . . . . . . . 568 462 ---------- ---------- Total assets . . . . . . . . . . . . . . . . . . . . . $162,294 $139,460 ========== ========== Liabilities and Equity Current liabilities - accounts payable and accrued liabilities . . . . . . . . . . . . . . . . . . . $ 27,113 $ 19,087 Long-term loans . . . . . . . . . . . . . . . . . . . . . . . 52,717 47,754 Deferred tax liability . . . . . . . . . . . . . . . . . . . 9,120 5,413 Other long-term liabilities . . . . . . . . . . . . . . . . . 266 279 ---------- ---------- Total liabilities . . . . . . . . . . . . . . . . . . . 89,216 72,533 ---------- ---------- Common stock . . . . . . . . . . . . . . . . . . . . . . . . 118 118 Additional paid in capital . . . . . . . . . . . . . . . . . 52,191 52,157 Retained earnings . . . . . . . . . . . . . . . . . . . . . . 20,769 14,652 ---------- ---------- Total equity . . . . . . . . . . . . . . . . . . . . . 73,078 66,927 ---------- ---------- Total liabilities and equity . . . . . . . . . . . . . $162,294 $139,460 ========== ==========
-1- 4 STONE ENERGY CORPORATION CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
Three Months Ended Six Months Ended June 30, June 30, --------------------- ----------------------- 1996 1995 1996 1995 ----- ----- ------ ------ REVENUES Oil and gas production . . . . . . . . $13,704 $ 9,907 $28,391 $17,722 Overhead reimbursements and management fees . . . . . . . . 189 110 365 211 Other income . . . . . . . . . . . . . 510 261 740 521 ------- ------- ------- ------- Total revenues . . . . . . . . . 14,403 10,278 29,496 18,454 ------- ------- ------- ------- EXPENSES Normal lease operating expenses . . . . 1,986 1,261 3,968 2,614 Major maintenance expenses . . . . . . - 49 260 72 Production taxes . . . . . . . . . . . 765 866 1,511 1,462 Depreciation, depletion and amortization . . . . . . . . . . . . 5,314 3,921 10,334 7,378 Interest . . . . . . . . . . . . . . . 747 492 1,537 909 Salaries, general and administrative . 810 971 1,662 1,802 Incentive compensation plan . . . . . . 139 141 278 281 ------- ------- ------- ------- Total expenses . . . . . . . . . 9,761 7,701 19,550 14,518 ------- ------- ------- ------- Net income before income taxes . . . . . . . . . . . . . 4,642 2,577 9,946 3,936 ------- ------- ------- ------- Provision for income taxes Current . . . . . . . . . . . . . . . . 61 - 122 - Deferred . . . . . . . . . . . . . . . 1,726 992 3,707 1,515 ------- ------- ------- ------- 1,787 992 3,829 1,515 ------- ------- ------- ------- Net income . . . . . . . . . . . . . . . $2,855 $1,585 $ 6,117 $ 2,421 ====== ====== ======== ======= Primary and fully diluted earnings per share: Net income per share . . . . . . . . $ 0.24 $ 0.13 $ 0.51 $ 0.20 ====== ====== ======== ======= Average shares outstanding . . . . . 11,954 11,817 11,954 11,830 ====== ====== ======== =======
-2- 5 STONE ENERGY CORPORATION CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (IN THOUSANDS) (UNAUDITED)
Six Months Ended June 30, ---------------------------- 1996 1995 ----- ---- Cash flows from operating activities: Net income . . . . . . . . . . . . . . . . . . . . . . . . $ 6,117 $ 2,421 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization . . . . . 10,334 7,378 Provision for deferred income taxes . . . . . . . . 3,707 1,515 ------- ------- 20,158 11,314 (Increase) decrease in marketable securities . . . (5,760) 996 (Increase) decrease in accounts receivable . . . . (1,835) 1,544 Increase in other current assets . . . . . . . . . (28) (662) Increase (decrease) in accounts payable and accrued liabilities . . . . . . . . . 300 (4,697) Other . . . . . . . . . . . . . . . . . . . . . . . (16) (67) ------- ------- Net cash provided by operating activities . . . . . . . . . . 12,819 8,428 ------- ------- Cash flows from investing activities: Investment in oil and gas properties . . . . . . . . . . . (16,321) (19,716) Other asset additions . . . . . . . . . . . . . . . . . . (191) (77) ------- ------- Net cash used in investing activities . . . . . . . . . . . . (16,512) (19,793) ------- ------- Cash flows from financing activities: Proceeds from borrowings . . . . . . . . . . . . . . . . . 9,000 15,600 Repayment of debt . . . . . . . . . . . . . . . . . . . . (4,034) (5,000) Exercise of stock options . . . . . . . . . . . . . . . . . 34 41 ------- -------- Net cash provided by financing activities . . . . . . . . . . 5,000 10,641 ------- -------- Net increase (decrease) in cash . . . . . . . . . . . . . . . 1,307 (724) Cash balance beginning of period . . . . . . . . . . . . . . 6,286 5,130 ------- ------- Cash balance end of period . . . . . . . . . . . . . . . . . $ 7,593 $ 4,406 ======= ======= Supplemental disclosures of cash flow information: Cash paid during the period for: Interest (net of amount capitalized) . . . . . . . . . . $ 1,496 $ 598 Income taxes . . . . . . . . . . . . . . . . . . . . . . 44 27 ------- ------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,540 $ 625 ======= ========
-3- 6 STONE ENERGY CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - INTERIM FINANCIAL STATEMENTS The condensed consolidated financial statements of Stone Energy Corporation (the "Company") at June 30, 1996 and for the three and six-month periods then ended are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim period. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management's discussion and analysis of financial condition and results of operations, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 1995. The results of operations for the three and six-month periods ended June 30, 1996 are not necessarily indicative of future financial results. NOTE 2 - HEDGING ACTIVITIES In order to reduce its exposure to the possibility of declining oil and gas prices, the Company hedges with third parties certain of its crude oil and natural gas production in various swap agreement contracts. The crude oil contracts are tied to the price of NYMEX light sweet crude oil futures and are settled monthly based on the differences between contract prices and the average NYMEX prices for that month applied to the contract volumes. Settlement for gas swap contracts is based on the average of the last three (3) days of trade on the NYMEX for each month of the swap. The Company's forward positions as of August 1, 1996, are summarized as follows:
Oil Gas ------------------------ ------------------------ Average Average MBbls Price Bbtu Price ------- -------- -------- -------- 1996 . . . . . . . . 169 $18.98 2,605 $2.129 1997 . . . . . . . . -- -- 2,415 $2.328 ------- ------ Total 169 $18.98 5,020 $2.225 ======= ======
For the three and six-month periods ended June 30, 1996, net oil and gas hedging losses amounted to $918,811 and $1,781,028, respectively, and were recorded in the accompanying condensed consolidated statement of operations as a reduction of revenues from oil and gas production. -4- 7 STONE ENERGY CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 3 - LONG-TERM LOANS On March 28, 1996, the Company amended its revolving credit facility with NationsBank of Texas, N.A., as agent for a group of banks. The total amount of the facility is $80,000,000 of which $72,000,000 is available as described below. Interest is payable quarterly and the principal balance of each of two tranches is due at their maturities. The outstanding balance of the Revolving A Borrowings is due on April 1, 1999 and provides for a limitation on total outstanding borrowings based on a borrowing base amount established by the banks for the Company's oil and gas properties, which is currently $60,000,000. At the option of the Company, the outstanding balance of the Revolving A Borrowings will bear interest at the NationsBank base rate, or at LIBOR plus 1% or 1.25%, depending upon total outstanding borrowings. At June 30, 1996, the outstanding principal balance of the Revolving A Borrowings was $49,573,000 which had a weighted average annual interest rate of 6.86%, and letters of credit totalling $4,827,000 had been issued pursuant to the facility. The Revolving B Borrowings of the amended facility, which mature on October 1, 1997, have a borrowing availability of $12,000,000. Utilization of this tranche would allow the bank group to receive a mortgage on the Company's properties comprising at least 80% of its total reserve value, and drawdown fees ranging from 1.5% to 4.5% would apply to such borrowings. The interest rate applicable to the outstanding balance of the Revolving B Borrowings, at the Company's option and depending upon the total borrowings outstanding, would range from the NationsBank base rate plus 0.75% to base rate plus 3.75%, or from LIBOR plus 2% to LIBOR plus 5%. At June 30, 1996, no borrowings had been made pursuant to this facility. NOTE 4- SUBSEQUENT EVENT The Company purchased a 100% working interest in the Lake Hermitage Field, located in Plaquemines Parish, Louisiana, on August 1, 1996, which is also the effective date of the transaction. A maximum of 25% of the acquired interest may be assigned to two partnerships managed by the Company. The total purchase price was $6.5 million. -5- 8 AUDITORS' REVIEW REPORT TO THE STOCKHOLDERS OF STONE ENERGY CORPORATION: We have reviewed the accompanying condensed consolidated balance sheet of Stone Energy Corporation (a Delaware corporation) as of June 30, 1996 and the related condensed consolidated statements of operations for the three and six- month periods ended June 30, 1996 and 1995 and the related condensed consolidated statements of cash flows for the six- month periods ended June 30, 1996 and 1995. These financial statements are the responsibility of the Company's management. We conducted our reviews in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to the financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our reviews, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the balance sheet of Stone Energy Corporation as of December 31, 1995 (not presented herein) and in our report dated March 6, 1996, we expressed an unqualified opinion on that statement. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 1995, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived. ARTHUR ANDERSEN LLP New Orleans, Louisiana August 2, 1996 -6- 9 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL The Company was formed in March 1993 to become a holding company for The Stone Petroleum Corporation and its subsidiaries and certain interests in three of its managed partnerships. In July 1993, the Company sold for its account a total of 3,655,005 shares of newly issued Common Stock pursuant to its Initial Public Offering. The Company currently has a total of 11,794,249 shares of common stock and no shares of preferred stock outstanding. RESULTS OF OPERATIONS The following table sets forth certain operating information with respect to the oil and gas operations of the Company for the three and six-month periods ended June 30, 1996 and 1995.
Three Months Ended Six Months Ended June 30, June 30, -------------------- --------------------- 1996 1995 1996 1995 ----- ----- ---- ---- Production: Oil (MBbls) . . . . . . . . . . . . . 325 360 663 641 Gas (MMcf) . . . . . . . . . . . . . . 3,069 1,982 6,128 3,901 Oil and gas (MBOE) . . . . . . . . . . 837 690 1,684 1,291 Sales data (in thousands): Total oil sales . . . . . . . . . . . $6,514 $6,557 $13,091 $11,493 Total gas sales . . . . . . . . . . . 7,190 3,350 15,300 6,229 Average sales prices: Oil (per Bbl) . . . . . . . . . . . . $20.04 $18.21 $ 19.75 $ 17.93 Gas (per Mcf) . . . . . . . . . . . . 2.34 1.69 2.50 1.60 Per BOE . . . . . . . . . . . . . . . 16.37 14.36 16.86 13.73 Average costs (per BOE): Normal lease operating expenses (a) . . . . . . . . . . . $ 2.37 $ 1.83 $ 2.36 $ 2.02 General and administrative . . . . . . 0.97 1.41 0.99 1.40 Depreciation, depletion and amortization . . . . . . . . . 6.27 5.64 6.06 5.64
(a) Excludes major maintenance expenses -7- 10 Net income for the quarter ended June 30, 1996 was $2.9 million or $0.24 per share, an increase of 80% from 1995's second quarter amounts of $1.6 million or $0.13 per share. For the first six months of 1996, net income was $6.1 million, which represents an increase of 153% over the comparable period of 1995. Total oil and gas revenues for the second quarter of 1996 were $13.7 million, an increase of 38% over the same period in 1995. Compared to the quarter ended June 30, 1995, gas production volumes for 1996's second quarter increased 55%, while oil production decreased 10% due to expected decline at the Weeks Island Field. Average oil and gas prices received increased 10% and 39%, respectively, in the second quarter of 1996 from the comparable 1995 period. Overall production quantities for the first six months of 1996 (stated on a BOE basis) increased 30%, and total oil and gas revenues improved 60%, from the first half of 1995. Operating expenses per BOE for the second quarter of 1996 were $2.37. Although this amount is higher than the comparable 1995 figure, it is well within the Company's budgeted range for these costs. For the first six months of 1996, general and administrative expenses decreased slightly in total and declined 29% per BOE to $0.99 from $1.40 for the first half of 1995. Interest expense increased to $1.5 million for the six months ended June 30, 1996 from $0.9 million for the comparable 1995 period due to higher levels of long term debt. Depreciation, depletion and amortization expense increased $1.4 million in 1996's second quarter from the same period in 1995 primarily due to increased production rates, higher unit revenues and higher finding costs. LIQUIDITY AND CAPITAL RESOURCES WORKING CAPITAL AND CASH FLOW. Working capital at June 30, 1996 was $6.3 million. The Company believes that this capital plus the expected cash flow from operations and borrowings under its bank credit facility will be sufficient to fund its operations and development activities for the foreseeable future. Net cash flow from operations before working capital changes for the second quarter of 1996 was $9.9 million or $0.83 per share, an improvement of 52% from the comparable amounts reported for the quarter ended June 30, 1995 of $6.5 million or $0.55 per share. For the first six months of 1996, net cash flow from operations before working capital changes was $20.2 million, an increase of 78% from the first half of 1995. During the second quarter of 1996, the Company invested $17.8 million in its oil and gas properties, primarily in drilling, completion and platform construction activities. In the first half of 1996, the Company invested $24.0 million in its oil and gas properties, which includes $1.2 million of capitalized general and administrative and interest costs. These investments were financed from cash flow from operations and borrowings under the Company's bank credit facility. -8- 11 LONG-TERM FINANCING. During the last two quarters of 1996, the Company expects to invest $35 million in oil and gas properties it now owns. Significant investments are planned for Eugene Island Block 243, South Pelto Block 23 and Lake Hermitage Fields. The planned development operations include projects that seek to increase cash flow from proved reserves and provide additions to the Company's reserve base. It is anticipated that these investments will also be funded from a combination of available working capital, cash flow from operations and borrowings under the bank credit facility. On March 28, 1996, the Company amended its revolving credit facility with NationsBank of Texas, N.A., as agent for a group of banks that currently includes the First National Bank of Commerce, Hibernia National Bank and the Bank of Boston. The total facility size was increased to $80 million, of which $72 million is currently available. At August 9, 1996, the outstanding principal balance was $49.6 million, which had a weighted average annual interest rate of 6.9%, and letters of credit totaling $4.8 million had been issued pursuant to the facility. The Company has a number of outstanding bids for property acquisitions, and is in the process of evaluating a number of other opportunities to acquire reserves, although no future acquisitions can be assured. One or a combination of certain of these possible transactions could fully utilize the sources of capital currently available to the Company. If these opportunities materialize, the Company intends to explore a variety of options to finance these new projects, including an increase in its bank facility, raising additional equity capital, nonrecourse financing, sales of non- strategic properties and joint venture financing. FORWARD-LOOKING STATEMENTS. The foregoing discussion of Liquidity and Capital Resources includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements herein include the timing and extent of changes in commodity prices for oil and gas, the need to develop and replace reserves, environmental risks, drilling and operating risks, risks related to exploration and development, uncertainties about the estimates of reserves, competition, government regulations and the ability of the Company to meet its stated business goals. PART II ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS At the annual meeting of stockholders held May 16, 1996, the following actions were taken: Three Class III Directors, Robert A. Bernhard, Joe R. Klutts and James H. Stone, were elected to serve until the 1999 annual meeting of stockholders. Messrs. Bernhard, Klutts and Stone each received the vote of 9,274,624 shares, and the vote of 32,100 shares for each nominee was withheld. No other Director was standing for election. B.J. Duplantis, John P. Laborde and Michael L. Finch are Class II Directors whose terms expire with the 1998 annual meeting of -9- 12 stockholders. D. Peter Canty, Raymond B. Gary and David R. Voelker are Class I Directors whose terms expire with the 1997 annual meeting of stockholders. The proposal to ratify the appointment of Arthur Andersen LLP by the Board of Directors as independent auditors to the company for the year 1996 was approved. The vote was 9,304,324 shares for, 500 shares against and 1,900 shares abstained. ITEM 5. OTHER INFORMATION The following is a summary of certain of the Company's recent acquisition and development activities. In two announcements dated June 25 and July 23, 1996, Stone Energy reported that its OCS-G 1238 No. 22 Well had encountered a total of 90 feet of pay in five sands. The well was drilled and evaluated to a total depth of 15,680 feet at South Pelto Block 23 Field in federal waters offshore Louisiana. The Company is currently evaluating information from the No. 22 Well to assist in the determination of further development plans for this area of the block. The drilling schedule could also impact the design of production facilities and therefore the timing of first production from this well, which could be as early as the fourth quarter of 1996. The Company owns a 98% working interest in the block. On August 2, 1996, the Company announced that it had purchased a 100% working interest in approximately 6,400 acres in the Lake Hermitage Field for $6.5 million. The Lake Hermitage Field is located in Plaquemines Parish, Louisiana, approximately 25 miles south southeast of New Orleans. In January 1994, the Company acquired the right to drill wells in designated areas of the field in a farmout transaction with the working interest owner. The purchase closed on August 1, 1996, which is also the effective date of the transaction. The Company acquired an interest in four productive wells which are producing at the combined daily rates of approximately 100 barrels of oil and 0.4 million cubic feet of gas. A maximum of 25% of the acquired interest may be assigned to two partnerships managed by the Company. Also on August 2, 1996, the Company tested the most recent well drilled in the Lake Hermitage Field, the dually-completed LLDSB No. 2, at the combined daily rates of 660 barrels of oil and 2.4 million cubic feet of gas. The well was spudded on May 18, 1996, and was drilled to a total depth of 11,645 feet. Based on electric log and core analysis, a total of 185 feet of pay was determined to be productive in eight sands. First sales from the well are expected in October 1996. On July 19, 1996, the Company spudded the LLDSB No. 6 Well, a 2,500-foot offset to the No. 2 Well, which is drilling toward a proposed total depth of 10,500 feet. Stone Energy owns working and revenue interests in both the LLDSB No. 2 and No. 6 Wells of approximately 75% and 60%, respectively. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibit 27 Financial Data Schedule -10- 13 (b) There were no reports on Form 8-K filed for the three months ended June 30, 1996. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. STONE ENERGY CORPORATION Date: August 13, 1996 By: /s/ MICHAEL L. FINCH -------------------------------- Michael L. Finch Executive Vice President and Chief Financial Officer (Authorized Officer and Principal Financial Officer) -11- 14 INDEX TO EXHIBITS Ex 27 Financial Data Schedule EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED CONSOLIDATED BALANCE SHEET OF STONE ENERGY CORPORATION (THE "COMPANY") AS OF JUNE 30, 1996 AND THE RELATED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS INCLUDED IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996. 1,000 6-MOS DEC-31-1996 JAN-01-1996 JUN-30-1996 7,593 15,992 9,171 0 0 33,396 8,116 4,300 162,294 27,113 0 118 0 0 72,960 162,294 28,391 29,496 0 16,073 1,940 0 1,537 9,946 3,829 6,117 0 0 0 6,117 0.51 0.51
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