Stone Energy chief executive outlined that the company is committed adding value to shareholders investment through dedication to work. The company aims to direct more investments in sea drilling to improve the potential for more cash flow into the company. Exploration at Mt. Providence Well and Derbio Well are some of the recent of expeditions by Stone Energy Corporation as it aims to improve its valuation in future. The net income for the company was $ 17.1 million for the quarter ending on December 2017. The average production was about 17.6 thousand barrel, which was efficient despite challenges to Hurricane Nate. The company also continued with production effectively despite a shutdown of one its platforms, which underwent replacement of the compressor engine.
Talos Energy Merges with Stone
The two companies completed the merger in November 2017 after the approval by the Board of Directors from the two sides to create a single entity as Talos Energy Inc. The stock of drilling and exploration company will trade under the symbol of TALO on the NYSE.
According to the results, transport, processing and other related costs for 2017 was $ 11 million. The depreciation expenses, as well as the amortization, had $133.8 million. The salaries and other general expenses for 2017 were $54.7 million a reduction by 2.55% from 2016, which stood at $58.9 million. Salaries expenses for the year also included restructuring costs pertaining to the reduction of employees in 2017. The net derivative costs rose in 2017 as compared to 2016 from $0.8 million to $15.20 million. The rise was due to Stones’ policy settling on the 2017-2019 commodity derivatives as a cash flow in 2017.
Company Liquidity and other Operations
One of the prospects of the company is the Derbio Deep Water Well, which the company hopes the project will be a success. Rampart Well portrays huge potential for over 107 feet rich in natural gas. Mt. Providence Well is another project providing the company with 153 net feet oil pays. The company has about $263.5 million cash at hand and a line of credit of $87.4 million. It has $ 18.7 million saved in company’s restrictive accounts for use in future operations. At end of 2017, the outstanding debt for Stone Energy was $235.9.