8-K

(State or other
jurisdiction of
incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

0000904080-16-000038.txt : 20160414 0000904080-16-000038.hdr.sgml : 20160414 20160414083533 ACCESSION NUMBER: 0000904080-16-000038 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20160414 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160414 DATE AS OF CHANGE: 20160414 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12074 FILM NUMBER: 161570509 BUSINESS ADDRESS: STREET 1: 625 E KALISTE SALOOM RD CITY: LAFAYETTE STATE: LA ZIP: 70508 BUSINESS PHONE: 3372370410 MAIL ADDRESS: STREET 1: 625 E KALISTLE SALOOM RD CITY: LAFAYETTE STATE: LA ZIP: 70508 8-K 1 f8k041416operationalborrow.htm FORM 8-K 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

April 13, 2016

Date of Report (Date of earliest event reported)

STONE ENERGY CORPORATION

(Exact name of registrant as specified in charter)



625 E. Kaliste Saloom Road Lafayette, Louisiana	70508
(Address of principal executive offices)	(Zip Code)


Registrant’s telephone number, including area code: (337) 237-0410

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:




[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On April 14, 2016, Stone Energy Corporation (“Stone”) issued a press release announcing an update on its first quarter operational activities and its bank borrowing redetermination. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

In accordance with General Instruction B.2 of Form 8-K, the information in this report, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information, including Exhibit 99.1, be deemed incorporated by reference in any filing under the Securities Act of 1933 (the "Securities Act") or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

On April 13, 2016, Stone received notice from Bank of America, N.A., as administrative agent and issuing bank under the Fourth Amended and Restated Credit Agreement dated June 24, 2014 (the “Credit Facility”), that its borrowing base had been reduced to $300 million from $500 million, effective April 13, 2016. On March 9, 2016, Stone borrowed $385 million under the Credit Facility, which represented substantially all of the remaining undrawn amount that was available under the Credit Facility. As of April 13, 2016, Stone had $457 million of outstanding borrowings and $18.3 million of outstanding letters of credit under the Credit Facility, or $175.3 million in excess of the redetermined borrowing base (referred to as a borrowing base deficiency). The Credit Facility provides that within 30 days after notification of a borrowing base deficiency, Stone must elect to cure the borrowing base deficiency through any combination of the following actions: (1) repay amounts outstanding sufficient to cure the deficiency within 10 days after Stone’s written election to do so; (2) add additional oil and gas properties acceptable to the banks to the borrowing base and take such actions necessary to grant the banks a mortgage in such oil and gas properties within 30 days after Stone’s written election to do so; and/or (3) arrange to pay the deficiency in six equal monthly installments. As of April 13, 2016, Stone had cash on hand of approximately $360 million. The new borrowing base will be in effect until Stone's next borrowing base redetermination for the Credit Facility.

Item 7.01. Regulation FD Disclosure.

On April 14, 2016, Stone issued a press release announcing an update on its first quarter operational activities and its bank borrowing redetermination. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 7.01.

In accordance with General Instruction B.2 of Form 8-K, the information in this report, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information, including Exhibit 99.1, be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits:

99.1 Press release dated April 14, 2016, “Stone Energy Corporation Provides Activity Update and

Bank Borrowing Redetermination”

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, Stone Energy Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

STONE ENERGY CORPORATION



Date: April 14, 2016	By:	/s/ Lisa S. Jaubert
		Lisa S. Jaubert Senior Vice President, General Counsel and Secretary

EXHIBIT INDEX



Exhibit Number	Description

99.1	Press release dated April 14, 2016, “Stone Energy Corporation Provides Activity Update and Bank Borrowing Redetermination”

EX-99.1 2 f8k041416ex991.htm EXHIBIT 99.1 Exhibit

STONE ENERGY CORPORATION

Provides Activity Update and Bank Borrowing Redetermination

LAFAYETTE, LA. April 14, 2016

Stone Energy Corporation (“Stone”) today announced an update on its first quarter operational activities and its borrowing base redetermination. First quarter results are expected to be reported in early May 2016.

Production for the first quarter of 2016 was approximately 34 MBoe (or 204 MMcfe) per day, above the first quarter production guidance of 32-33 MBoe per day provided by Stone in its earnings release for year-end 2015 results. Gross volumes from the Gulf of Mexico deep water benefited from approximately 17,400 Boe per day from the four-well Cardona field (65% working interest) and approximately 24 MMcfe per day from the new Amethyst well (100% w.i.) which commenced production in late December 2015. The fourth Cardona #7 well came on production on February 24, 2016 and is currently producing approximately 4,800 Boe per day gross (65% w.i.).

Production from the Mary field in Appalachia remained shut-in for the first quarter of 2016, while net production from other Appalachian fields averaged approximately 23 MMcfe per day.

Stone’s Pompano platform drilling program has completed one workover project, and Stone expects to finish the first well (Silverthrone) in May 2016. After the Silverthrone well has been completed, the utilization of the platform rig will be evaluated due to 2016 capital constraints.

The ENSCO 8503 deep water drilling rig was farmed out to a third party deep water operator in early February, 2016 and Stone expects the farm out to run until mid-April 2016. An agreement with a different operator regarding another farm out is expected to be executed later this month with an early May commencement date, which should extend the farm out position another 70 to 90 days. In the period between the farm out contracts, Stone plans to move the ENSCO 8503 to its Alaminos Canyon 943 lease to start drilling the top section of its Lamprey prospect.

In late March 2016, representatives of Stone met with representatives of the Bureau of Ocean Energy Management (“BOEM”) to propose Stone’s tailored plan for financial assurances relating to abandonment obligations. Currently Stone has an aggregate of approximately $220 million posted in surety bonds in favor of BOEM, third party bonds and letters of credit, all relating to its offshore abandonment obligations. Stone’s proposed tailored plan involves posting certain incremental surety bonds, and discussions on the implementation of this plan are continuing with BOEM.

On April 13, 2016, Stone was notified that the borrowing base under its bank credit agreement has been redetermined from $500 million to $300 million. Stone had outstanding borrowings of $457 million and letters of credit of $18.3 million under its credit agreement as of April 13, 2016, resulting in a borrowing base deficiency of $175.3 million. Stone had cash on hand of approximately $360 million as of April 13, 2016. The credit agreement provides that within 30 days after the agent delivers written notice to Stone of a borrowing base deficiency, Stone must elect to do one or more of the following: (a) repay the loan to eliminate the deficiency within 10 days, (b) add additional collateral to eliminate the deficiency within 30 days, or (c) pay the deficiency in six equal monthly installments to eliminate the deficiency within six months.

Stone Energy is an independent oil and natural gas exploration and production company headquartered in Lafayette, Louisiana, with additional offices in New Orleans, Houston and Morgantown, West Virginia. Stone is engaged in the acquisition, exploration, development and production of properties in the Gulf of Mexico and Appalachian basins. For additional information, contact Kenneth H. Beer, Chief Financial Officer, at 337-521-2210 phone, 337-521-9880 fax or via e-mail at CFO@StoneEnergy.com.