- Stone Energy (SGY +31.1%) surges following Q3 results that saw its net loss narrow to $89.6M from a $292M loss in the year-ago period, and Q3 production volumes of 39K boe/day exceeded the upper end of company guidance.
- SGY says it is continuing to work towards a restructuring support agreement that would position it for a pre-packaged bankruptcy filing and eliminate ~$850M in outstanding debt.
- SGY says it was in compliance with all covenants under its amended bank credit facility as of Sept. 30, but the minimum liquidity requirement and other restrictions may prevent it from meeting its Q4 interest payment obligation on its notes due 2022.
- SGY also said it has proposed to the U.S. Bureau of Ocean Energy Management a tailored plan that would call for $30M-$40M in bonding to cover its obligations for plugging and abandonment in the Gulf of Mexico.