uploads///SGY Q Cash Flow

Is Stone Energy’s Free Cash Flow Trending in the Right Direction?


Oct. 11 2020, Updated 12:14 p.m. ET

Stone Energy’s revenue and operating cash flow

In 1Q17, Stone Energy’s (SGY) total operating revenue was ~$95 million, ~17% higher than it was in 1Q16. The company’s higher operating revenue in 1Q17 was the direct result of higher realized prices for crude oil (SCO) and natural gas (UNG).

In 1Q17, SGY reported an OCF (operating cash flow) of ~$5 million, ~$24 million lower than its OCF of ~$29 million in 1Q16. The fall in its 1Q17 OCF was primarily due to its higher asset retirement obligations.

Article continues below advertisement

Stone Energy’s free cash flow trend

As we can see in the chart above, Stone Energy has reported negative FCF (free cash flow) since 1Q16. In 2Q16, Stone Energy reported its lowest FCF of ~-$182 million. In 1Q17, SGY reported a free cash flow of ~-$10 million. SGY’s peers Murphy Oil (MUR) and W&T Offshore (WTI) reported free cash flows of ~$94 million and ~$53 million, respectively, in 1Q17.

FCF helps companies to enhance their shareholder value. It can be used to pay dividends, buy back stock, or repay debt. FCF is calculated by subtracting capital expenditure (or capex) from OCF.

Stone Energy’s capex guidance

In 1Q17, SGY spent ~$14 million in capex, ~89% less than it spent in 1Q16. For 2017, Stone Energy expects capex of ~$181 million, 12% higher compared to its 2016 capex. Stone Energy’s capex guidance includes ~$27 million worth of exploration activities.


More From Market Realist

  • AMC advertisement in walkway
    Company & Industry Overviews
    Why It's Time for Most Investors to Sell AMC Entertainment Stock
  • 100 Thieves founder Matthew Haag
    Company & Industry Overviews
    Why Growing Esports Company 100 Thieves Isn't Publicly Traded
  • Bitski art and logo
    Company & Industry Overviews
    NFT Platform Provider Bitski Isn’t Publicly Traded
  • who are palantir customers
    Company & Industry Overviews
    Palantir Customers Are Large Defense and Commercial Institutions
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.