10-Q

UNITED STATES

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, 2015

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 of incorporation or organization)	(I.R.S. Employer Identification No.)
625 E. Kaliste Saloom Road
Lafayette, Louisiana	70508
(Address of principal executive offices)	(Zip Code)

(337) 237-0410

(Registrant’s telephone number, including area code)

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  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ¨    No  x

As of August 5, 2015, there were 57,249,506 shares of the registrant’s common stock, par value $.01 per share, outstanding.

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Condensed Consolidated Balance Sheet as of June 30, 2015 and December 31, 2014		1
	Condensed Consolidated Statement of Operations for the Three and Six Months Ended June 30, 2015 and 2014		2
	Condensed Consolidated Statement of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2015 and 2014		3
	Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2015 and 2014		4
	Notes to Condensed Consolidated Financial Statements		5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		30
Item 4.	Controls and Procedures		30
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings		32
Item 1A.	Risk Factors		33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		33
Item 6.	Exhibits		34
	Signatures		35
	Exhibit Index		36

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

STONE ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands of dollars)

	June 30,			December 31,
	2015			2014
	(Unaudited)			(Note 1)
Assets
Current assets:
Cash and cash equivalents	$	141,655		$	74,488
Restricted cash		—			177,647
Accounts receivable		68,706			120,359
Fair value of derivative contracts		74,319			139,179
Current income tax receivable		6			7,212
Inventory		3,709			3,709
Other current assets		10,076			8,118
Total current assets		298,471			530,712
Oil and gas properties, full cost method of accounting:
Proved		9,074,425			8,817,268
Less: accumulated depreciation, depletion and amortization		(7,846,343	)		(6,970,631	)
Net proved oil and gas properties		1,228,082			1,846,637
Unevaluated		529,589			567,365
Other property and equipment, net		30,736			32,340
Fair value of derivative contracts		8,231			14,333
Other assets, net		28,082			27,224
Total assets	$	2,123,191		$	3,018,611
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	69,423		$	132,629
Undistributed oil and gas proceeds		17,000			23,232
Accrued interest		9,027			9,022
Deferred taxes		7,065			20,119
Asset retirement obligations		56,176			69,400
Other current liabilities		46,780			49,505
Total current liabilities		205,471			303,907
Long-term debt		1,048,406			1,041,035
Deferred taxes		11,752			286,343
Asset retirement obligations		240,613			247,009
Other long-term liabilities		32,213			38,714
Total liabilities		1,538,455			1,917,008
Commitments and contingencies
Stockholders’ equity:
Common stock, $.01 par value; authorized 150,000,000 shares; issued 55,283,825 and 54,884,542 shares, respectively		553			549
Treasury stock (16,582 shares, at cost)		(860	)		(860	)
Additional paid-in capital		1,639,389			1,633,307
Accumulated deficit		(1,095,002	)		(614,708	)
Accumulated other comprehensive income		40,656			83,315
Total stockholders’ equity		584,736			1,101,603
Total liabilities and stockholders’ equity	$	2,123,191		$	3,018,611

The accompanying notes are an integral part of this balance sheet.

1

STONE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Operating revenue:
Oil production	$	111,585		$	142,393		$	219,092		$	280,682
Natural gas production		26,907			46,667			55,244			103,029
Natural gas liquids production		11,033			15,936			23,399			43,906
Other operational income		—			2,050			1,792			3,047
Derivative income, net		—			—			2,427			—
Total operating revenue		149,525			207,046			301,954			430,664
Operating expenses:
Lease operating expenses		27,429			49,454			55,006			96,357
Transportation, processing and gathering expenses		19,940			14,098			37,643			28,724
Production taxes		1,827			3,257			4,342			6,319
Depreciation, depletion and amortization		77,951			92,835			164,373			175,481
Write-down of oil and gas properties		224,294			—			715,706			—
Accretion expense		6,408			7,733			12,817			15,288
Salaries, general and administrative expenses		16,418			16,637			33,425			32,966
Incentive compensation expense		1,264			3,903			2,827			7,037
Other operational expenses		1,454			—			1,170			212
Derivative expense, net		701			2,516			—			3,115
Total operating expenses		377,686			190,433			1,027,309			365,499
Income (loss) from operations		(228,161	)		16,613			(725,355	)		65,165
Other (income) expenses:
Interest expense		10,472			9,913			20,837			18,270
Interest income		(66	)		(193	)		(188	)		(336	)
Other income		(613	)		(722	)		(756	)		(1,429	)
Other expense		—			179			—			179
Total other expenses		9,793			9,177			19,893			16,684
Income (loss) before income taxes		(237,954	)		7,436			(745,248	)		48,481
Provision (benefit) for income taxes:
Deferred		(85,048	)		2,992			(264,954	)		18,094
Total income taxes		(85,048	)		2,992			(264,954	)		18,094
Net income (loss)	($	152,906	)	$	4,444		($	480,294	)	$	30,387
Basic earnings (loss) per share	($	2.77	)	$	0.08		($	8.70	)	$	0.59
Diluted earnings (loss) per share	($	2.77	)	$	0.08		($	8.70	)	$	0.59
Average shares outstanding		55,251			52,050			55,216			50,540
Average shares outstanding assuming dilution		55,251			52,373			55,216			50,727

The accompanying notes are an integral part of this statement.

2

STONE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Net income (loss)	($	152,906	)	$	4,444		($	480,294	)	$	30,387
Other comprehensive income (loss), net of tax effect:
Derivatives		(31,480	)		(9,765	)		(40,338	)		(16,355	)
Foreign currency translation		1,324			755			(2,321	)		256
Comprehensive income (loss)	($	183,062	)	($	4,566	)	($	522,953	)	$	14,288

The accompanying notes are an integral part of this statement.

3

STONE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2015			2014
Cash flows from operating activities:
Net income (loss)	($	480,294	)	$	30,387
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		164,373			175,481
Write-down of oil and gas properties		715,706			—
Accretion expense		12,817			15,288
Deferred income tax (benefit) provision		(264,954	)		18,094
Settlement of asset retirement obligations		(35,923	)		(24,915	)
Non-cash stock compensation expense		6,028			5,358
Non-cash derivative expense		7,931			2,697
Non-cash interest expense		8,737			8,229
Change in current income taxes		7,206			(6	)
(Increase) decrease in accounts receivable		23,047			(25,524	)
Increase in other current assets		(1,959	)		(82	)
Increase (decrease) in accounts payable		(7,826	)		1,843
Increase (decrease) in other current liabilities		(8,720	)		50,785
Other		(504	)		(675	)
Net cash provided by operating activities		145,665			256,960
Cash flows from investing activities:
Investment in oil and gas properties		(264,355	)		(517,904	)
Proceeds from sale of oil and gas properties, net of expenses		10,100			51,955
Investment in fixed and other assets		(727	)		(3,896	)
Change in restricted funds		179,475			(356	)
Net cash used in investing activities		(75,507	)		(470,201	)
Cash flows from financing activities:
Proceeds from bank borrowings		5,000			—
Repayment of bank borrowings		(5,000	)		—
Net proceeds from issuance of common stock		—			226,036
Deferred financing costs		—			(3,167	)
Net payments for share-based compensation		(3,069	)		(6,948	)
Net cash provided by (used in) financing activities		(3,069	)		215,921
Effect of exchange rate changes on cash		78			(18	)
Net change in cash and cash equivalents		67,167			2,662
Cash and cash equivalents, beginning of period		74,488			331,224
Cash and cash equivalents, end of period	$	141,655		$	333,886

The accompanying notes are an integral part of this statement.

4

STONE ENERGY CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 – Interim Financial Statements

The condensed consolidated financial statements of Stone Energy Corporation (“Stone”) and its subsidiaries as of June 30, 2015 and for the three and six month periods ended June 30, 2015 and 2014 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 periods. The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited financial statements as of that date contained in our Annual Report on Form 10-K for the year ended December 31, 2014 (our “2014 Annual Report on Form 10-K”). 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 our 2014 Annual Report on Form 10-K. The results of operations for the three and six month periods ended June 30, 2015 are not necessarily indicative of future financial results.

Note 2 – Earnings Per Share

The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands, except per share data)
Income (numerator):
Basic:
Net income (loss)	($	152,906	)	$	4,444		($	480,294	)	$	30,387
Net income attributable to participating securities		—			(111	)		—			(698	)
Net income (loss) attributable to common stock - basic	($	152,906	)	$	4,333		($	480,294	)	$	29,689
Diluted:
Net income (loss)	($	152,906	)	$	4,444		($	480,294	)	$	30,387
Net income attributable to participating securities		—			(111	)		—			(697	)
Net income (loss) attributable to common stock - diluted	($	152,906	)	$	4,333		($	480,294	)	$	29,690
Weighted average shares (denominator):
Weighted average shares - basic		55,251			52,050			55,216			50,540
Dilutive effect of stock options		—			58			—			54
Dilutive effect of convertible notes		—			265			—			133
Weighted average shares - diluted		55,251			52,373			55,216			50,727
Basic earnings (loss) per share	($	2.77	)	$	0.08		($	8.70	)	$	0.59
Diluted earnings (loss) per share	($	2.77	)	$	0.08		($	8.70	)	$	0.59

All outstanding stock options were considered antidilutive during the three and six months ended June 30, 2015 (approximately 174,000 shares) because we had a net loss for such periods. Stock options that were considered antidilutive because the exercise price of the options exceeded the average price of our common stock totaled approximately 120,000 shares and 131,000 shares, respectively, during the three and six months ended June 30, 2014.

During the three months ended June 30, 2015 and 2014, approximately 29,000 shares and 40,000 shares of our common stock, respectively, were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock by employees and nonemployee directors. During the six months ended June 30, 2015 and 2014, approximately 399,000 shares and 372,000 shares of our common stock, respectively, were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock by employees and nonemployee directors. In May 2014, 5,750,000 shares of our common stock were issued in a public offering.

Because it is management’s stated intention to redeem the principal amount of our 1 ³⁄₄% Senior Convertible Notes due 2017 (the “2017 Convertible Notes”) (see Note 4 – Long-Term Debt) in cash, we have used the treasury method for determining dilution in the diluted earnings per share computation. For the three and six months ended June 30, 2015, there was no dilutive

5

effect on the diluted earnings per share computation because we had a net loss for such periods. For the three months ended June 30, 2014, the average price of our common stock exceeded the effective conversion price for such notes, resulting in a dilutive effect on the diluted earnings per share computation for the three and six months ended June 30, 2014. For all periods presented, the average price of our common stock was less than the strike price of the Sold Warrants (as defined in Note 4 – Long-Term Debt) and therefore, such warrants were not dilutive for such periods. Based on the terms of the Purchased Call Options (as defined in Note 4 – Long-Term Debt), such call options are antidilutive and therefore were not included in the calculation of diluted earnings per share.

Note 3 – Derivative Instruments and Hedging Activities

Our hedging strategy is designed to protect our near and intermediate term cash flows from future declines in oil and natural gas prices. This protection is essential to capital budget planning, which is sensitive to expenditures that must be committed to in advance, such as rig contracts and the purchase of tubular goods. We enter into derivative transactions to secure a commodity price for a portion of our expected future production that is acceptable at the time of the transaction. These derivatives are generally designated as cash flow hedges upon entering into the contracts. We do not enter into derivative transactions for trading purposes. We have no fair value hedges.

The nature of a derivative instrument must be evaluated to determine if it qualifies as a hedging instrument. If the instrument qualifies as a hedging instrument, it is recorded as either an asset or liability measured at fair value and subsequent changes in the derivative’s fair value are recognized in stockholders’ equity through other comprehensive income (loss), net of related taxes, to the extent the hedge is considered effective. Monthly settlements of effective hedges are reflected in revenue from oil and gas production and cash flows from operating activities. Instruments not qualifying as hedging instruments are recorded in our balance sheet at fair value, and changes in fair value are recognized in earnings through derivative expense (income). Monthly settlements of ineffective hedges and derivative instruments not qualifying as hedging instruments are recognized in earnings through derivative expense (income) and cash flows from operating activities.

We have entered into fixed-price swaps with various counterparties for a portion of our expected 2015 and 2016 oil and natural gas production from the Gulf Coast Basin. Our fixed-price oil swap settlements are based on an average of the New York Mercantile Exchange (“NYMEX”) closing price for West Texas Intermediate crude oil during the entire calendar month. Our fixed-price gas swap settlements are based on the NYMEX price for the last day of a respective contract month. Swaps typically provide for monthly payments by us if prices rise above the swap price or monthly payments to us if prices fall below the swap price. Our fixed-price swap contracts are with The Toronto-Dominion Bank, Barclays Bank PLC, The Bank of Nova Scotia, Bank of America and Natixis.

The following table illustrates our derivative positions for calendar years 2015 and 2016 as of August 5, 2015:

	Fixed-Price Swaps (NYMEX)
	Natural Gas				Oil
	Daily Volume (MMBtus/d)		Swap Price ($)		Daily Volume (Bbls/d)		Swap Price ($)
2015		10,000		4.005		1,000		89.00
2015		10,000		4.120		1,000		90.00
2015		10,000		4.150		1,000		90.25
2015		10,000		4.165		1,000		90.40
2015		10,000		4.220		1,000		91.05
2015		10,000		4.255		1,000		93.28
2015						1,000		93.37
2015						1,000		94.85
2015						1,000		95.00
2016		10,000		4.110		1,000		90.00
2016		10,000		4.120

During 2014, certain of our natural gas derivative instruments no longer qualified as cash flow hedges, as it was no longer probable, subsequent to the sale of our non-core Gulf of Mexico (“GOM”) conventional shelf properties (see Note 6 – Divestitures), that GOM natural gas production would be sufficient to cover the GOM volumes hedged. Accordingly, we discontinued hedge accounting for three natural gas contracts for the months of January through December 2015. Additionally, a small portion of our cash flow hedges are typically determined to be ineffective because oil and natural gas price changes in the markets in which we sell our products are not 100% correlative to changes in the underlying price basis indicative in the derivative contract. At June 30, 2015, we had accumulated other comprehensive income of $46.5 million, net of tax, related to the fair value of our effective cash flow hedges that were outstanding as of June 30, 2015. We believe that approximately $41.4 million, net of tax, of accumulated other comprehensive income will be reclassified into earnings in the next 12 months.

6

Derivatives qualifying as hedging instruments:

The following tables disclose the location and fair value amounts of derivatives qualifying as hedging instruments, as reported in our balance sheet, at June 30, 2015 and December 31, 2014:

Fair Value of Derivatives Qualifying as Hedging Instruments at June 30, 2015 (In millions)
	Asset Derivatives			Liability Derivatives
Description	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity contracts	Current assets: Fair value of derivative contracts	$	67.5	Current liabilities: Fair value of derivative contracts	$	—
	Long-term assets: Fair value of derivative contracts		8.2	Long-term liabilities: Fair value of derivative contracts		—
		$	75.7		$	—
Fair Value of Derivatives Qualifying as Hedging Instruments at December 31, 2014 (In millions)
	Asset Derivatives			Liability Derivatives
Description	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity contracts	Current assets: Fair value of derivative contracts	$	127.0	Current liabilities: Fair value of derivative contracts	$	—
	Long-term assets: Fair value of derivative contracts		14.3	Long-term liabilities: Fair value of derivative contracts		—
		$	141.3		$	—

The following tables disclose the before tax effect of derivatives qualifying as hedging instruments, as reported in the statement of operations, for the three and six months ended June 30, 2015 and 2014:

Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Three Months Ended June 30, 2015 and 2014 (In millions)
Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives						Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a)						Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion)
	2015			2014			Location	2015		2014			Location	2015			2014
Commodity contracts	($	18.8	)	($	26.0	)	Operating revenue - oil/gas production	$	30.4	($	9.2	)	Derivative income (expense), net	($	0.4	)	($	1.0	)
Total	($	18.8	)	($	26.0	)		$	30.4	($	9.2	)		($	0.4	)	($	1.0	)

(a) For the three months ended June 30, 2015, effective hedging contracts increased oil revenue by $26.4 million and increased gas revenue by $4.0 million. For the three months ended June 30, 2014, effective hedging contracts decreased oil revenue by $6.1 million and decreased gas revenue by $3.1 million.

Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Six Months Ended June 30, 2015 and 2014 (In millions)
Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives					Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a)						Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion)
	2015		2014			Location	2015		2014			Location	2015		2014
Commodity contracts	$	4.1	($	43.4	)	Operating revenue - oil/gas production	$	67.2	($	16.3	)	Derivative income (expense), net	$	0.5	($	1.6	)
Total	$	4.1	($	43.4	)		$	67.2	($	16.3	)		$	0.5	($	1.6	)

(a) For the six months ended June 30, 2015, effective hedging contracts increased oil revenue by $60.4 million and increased gas revenue by $6.8 million. For the six months ended June 30, 2014, effective hedging contracts decreased oil revenue by $8.6 million and decreased gas revenue by $7.7 million.

7

Derivatives not qualifying as hedging instruments:

The following table discloses the location and fair value amounts of our derivatives not qualifying as hedging instruments, as reported in our balance sheet, at June 30, 2015 and December 31, 2014:

Fair Value of Derivatives Not Qualifying as Hedging Instruments (In millions)
Description	Balance Sheet Location	June 30, 2015		December 31, 2014
Commodity contracts	Current assets: Fair value of derivative contracts	$	6.8	$	12.1

Gains or losses related to changes in fair value and cash settlements for derivatives not qualifying as hedging instruments are recorded as derivative income (expense) in the statement of operations. The following table discloses the before tax effect of our derivatives not qualifying as hedging instruments on the statement of operations, for the three and six months ended June 30, 2015 and 2014.

Amount of Gain (Loss) Recognized in Derivative Income (Expense) (In millions)
	Three Months Ended June 30,						Six Months Ended June 30,
Description	2015			2014			2015			2014
Commodity contracts:
Cash settlements	$	4.1		$	—		$	7.2		$	—
Change in fair value		(4.4	)		(1.5	)		(5.3	)		(1.5	)
Total gains (losses) on non-qualifying hedges	($	0.3	)	($	1.5	)	$	1.9		($	1.5	)

Offsetting of derivative assets and liabilities:

Our derivative contracts are subject to netting arrangements. It is our policy to not offset our derivative contracts in presenting the fair value of these contracts as assets and liabilities in our balance sheet. As of June 30, 2015 and December 31, 2014, all of our derivative contracts were in an asset position and therefore, there was no potential impact of the rights of offset.

Note 4 – Long-Term Debt

Long-term debt consisted of the following at:

	June 30, 2015		December 31, 2014
	(In millions)
1 3⁄4% Senior Convertible Notes due 2017	$	273.4	$	266.0
7 1⁄2% Senior Notes due 2022		775.0		775.0
Bank debt		—		—
Total long-term debt	$	1,048.4	$	1,041.0

Bank Debt. On June 24, 2014, we entered into an amended and restated revolving credit facility with commitments totaling $900 million (subject to borrowing base limitations) through a syndicated bank group, replacing our previous facility. The bank credit facility matures on July 1, 2019. On May 1, 2015, our borrowing base under the bank credit facility was reaffirmed at $500 million. The next redetermination of our borrowing base under the bank credit facility is expected in October 2015. As of June 30 and August 5, 2015, we had no outstanding borrowings under the bank credit facility, and $19.2 million of letters of credit had been issued pursuant to the bank credit facility, leaving $480.8 million of availability under the bank credit facility. Subject to certain exceptions, the bank credit facility is required to be guaranteed by all of our material domestic direct and indirect subsidiaries. As of June 30, 2015, the bank credit facility was guaranteed by Stone Energy Offshore, L.L.C. (“Stone Offshore”), SEO A LLC and SEO B LLC (collectively, the “Guarantor Subsidiaries”).

The borrowing base under the bank credit facility is redetermined semi-annually, typically in May and November, by the lenders, taking into consideration the estimated loan value of our oil and gas properties and those of our subsidiaries that guarantee the bank credit facility in accordance with the lenders’ customary practices for oil and gas loans. In addition, we and the lenders each have discretion at any time, but not more than two additional times in any calendar year, to have the borrowing base redetermined. If a reduction in our borrowing base were to fall below any outstanding balances under the bank credit facility plus any outstanding letters of credit, our agreement with the banks allows us one or more of three options to cure the borrowing base deficiency. We may (1) repay amounts outstanding sufficient to cure the deficiency within 10 days after our written election

8

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 the properties within 30 days after our written election to do so; and/or (3) arrange to pay the deficiency in six equal monthly installments.

The bank credit facility is collateralized by substantially all of the assets of Stone and its material subsidiaries. They are required to mortgage, and grant a security interest in, their oil and natural gas reserves representing at least 80% of the discounted present value of the future net cash flows from their proved oil and natural gas reserves reviewed in determining the borrowing base. Interest on loans under the bank credit facility is calculated using the London Interbank Offering (“LIBOR”) rate or the base rate, at the election of Stone. The margin for loans at the LIBOR rate is determined based on borrowing base utilization and ranges from 1.500% to 2.500%. The bank credit facility provides for optional and mandatory prepayments and affirmative and negative covenants, including interest coverage ratio and leverage ratio maintenance covenants. We were in compliance with all covenants as of June 30, 2015.

2017 Convertible Notes. On March 6, 2012, we issued in a private offering $300 million in aggregate principal amount of the 2017 Convertible Notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The 2017 Convertible Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, based on an initial conversion rate of 23.4449 shares of our common stock per $1,000 principal amount of 2017 Convertible Notes, which corresponds to an initial conversion price of approximately $42.65 per share of our common stock. On June 30, 2015, our closing share price was $12.59. The conversion rate, and thus the conversion price, may be adjusted under certain circumstances as described in the indenture related to the 2017 Convertible Notes. Upon conversion, we will be obligated to pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. Prior to December 1, 2016, the 2017 Convertible Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date.

In connection with the offering, we entered into convertible note hedge transactions with respect to our common stock (the “Purchased Call Options”) with Barclays Capital Inc., acting as agent for Barclays Bank PLC and Bank of America, N.A. (the “Dealers”). We paid an aggregate amount of approximately $70.8 million to the Dealers for the Purchased Call Options. The Purchased Call Options cover, subject to customary antidilution adjustments, approximately 7,033,470 shares of our common stock at a strike price that corresponds to the initial conversion price of the 2017 Convertible Notes, also subject to adjustment, and are exercisable upon conversion of the 2017 Convertible Notes.

We also entered into separate warrant transactions whereby, in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act, we sold to the Dealers warrants to acquire, subject to customary antidilution adjustments, approximately 7,033,470 shares of our common stock (the “Sold Warrants”) at a strike price of $55.91 per share of our common stock. We received aggregate proceeds of approximately $40.1 million from the sale of the Sold Warrants to the Dealers. If, upon expiration of the Sold Warrants, the price per share of our common stock, as measured under the Sold Warrants, is greater than the strike price of the Sold Warrants, we will be required to issue, without further consideration, under each Sold Warrant a number of shares of our common stock with a value equal to the amount of such difference.

As of June 30, 2015, the carrying amount of the liability component of the 2017 Convertible Notes was $273.4 million. During the three and six months ended June 30, 2015, we recognized $3.7 million and $7.4 million, respectively, of interest expense for the amortization of the discount and $0.4 million and $0.7 million, respectively, of interest expense for the amortization of deferred financing costs related to the 2017 Convertible Notes. During the three and six months ended June 30, 2014, we recognized $3.5 million and $6.8 million, respectively, of interest expense for the amortization of the discount and $0.3 million and $0.6 million, respectively, of interest expense for the amortization of deferred financing costs related to the 2017 Convertible Notes. During the three and six months ended June 30, 2015, we recognized $1.3 million and $2.6 million, respectively, of interest expense related to the contractual interest coupon on the 2017 Convertible Notes. During the three and six months ended June 30, 2014, we recognized $1.3 million and $2.6 million, respectively, of interest expense related to the contractual interest coupon on the 2017 Convertible Notes.

9

Note 5 – Asset Retirement Obligations

The change in our asset retirement obligations during the six months ended June 30, 2015 is set forth below:

	Six Months Ended June 30, 2015
	(In millions)
Asset retirement obligations as of the beginning of the period, including current portion	$	316.4
Liabilities incurred		3.5
Liabilities settled		(35.9	)
Accretion expense		12.8
Asset retirement obligations as of the end of the period, including current portion	$	296.8

Note 6 – Divestitures

On July 31, 2014, we completed the sale of certain of our non-core properties in the GOM conventional shelf for cash consideration of approximately $177.6 million, after giving effect to preliminary purchase price adjustments. All of the proceeds from this sale were deposited with a Qualified Intermediary (under the terms of a Qualified Trust Agreement and Exchange Agreement) for potential reinvestment in like-kind replacement property as defined under Section 1031 of the Internal Revenue Code and were included in our balance sheet as restricted cash at December 31, 2014. Compliance with provisions under the Qualified Trust Agreement and Exchange Agreement provided for deferral of taxable gain on these sales proceeds. We identified qualified replacement properties and had until January 27, 2015 to close on an acquisition of such properties in order to achieve deferral of our taxable gain. We did not close on such a transaction by January 27, 2015, and the funds were released from restrictions and reclassified to cash and cash equivalents at such date.

Note 7 – Fair Value Measurements

U.S. Generally Accepted Accounting Principles establish a fair value hierarchy that has three levels based on the reliability of the inputs used to determine the fair value. These levels include: Level 1, defined as inputs such as unadjusted quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for use when little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of June 30, 2015 and December 31, 2014, we held certain financial assets and liabilities that are required to be measured at fair value on a recurring basis, including our commodity derivative instruments and our investments in marketable securities. We utilize the services of an independent third party to assist us in valuing our derivative instruments. We used the income approach in determining the fair value of our derivative instruments utilizing a proprietary pricing model. The model accounts for our credit risk and the credit risk of our counterparties in the discount rate applied to estimated future cash inflows and outflows. Our swap contracts are included within the Level 2 fair value hierarchy. For a more detailed description of our derivative instruments, see Note 3 – Derivative Instruments and Hedging Activities. We used the market approach in determining the fair value of our investments in marketable securities, which are included within the Level 1 fair value hierarchy.

The following tables present our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2015:

	Fair Value Measurements at June 30, 2015
Assets	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Marketable securities (Other assets)	$	8.8	$	8.8	$	—	$	—
Derivative contracts		82.6		—		82.6		—
Total	$	91.4	$	8.8	$	82.6	$	—

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	Fair Value Measurements at June 30, 2015
Liabilities	Total		Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Derivative contracts	$	—	$	—	$	—	$	—
Total	$	—	$	—	$	—	$	—

The following tables present our assets and liabilities that are measured at fair value on a recurring basis at December 31, 2014:

	Fair Value Measurements at December 31, 2014
Assets	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Marketable securities (Other assets)	$	8.4	$	8.4	$	—	$	—
Derivative contracts		153.5		—		153.5		—
Total	$	161.9	$	8.4	$	153.5	$	—

	Fair Value Measurements at December 31, 2014
Liabilities	Total		Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Derivative contracts	$	—	$	—	$	—	$	—
Total	$	—	$	—	$	—	$	—

The fair value of cash and cash equivalents approximated book value at June 30, 2015 and December 31, 2014. As of June 30, 2015 and December 31, 2014, the fair value of the liability component of the 2017 Convertible Notes was approximately $264.9 million and $252.6 million, respectively. As of June 30, 2015 and December 31, 2014, the fair value of the 7 ¹⁄₂% Senior Notes due 2022 (the “2022 Notes”) was approximately $685.9 million and $664.6 million, respectively.

The fair value of the 2022 Notes was determined based on quotes obtained from brokers, which represent Level 1 inputs. We applied fair value concepts in determining the liability component of the 2017 Convertible Notes (see Note 4 – Long-Term Debt) at inception, June 30, 2015 and December 31, 2014. The fair value of the liability was estimated using an income approach. The significant inputs in these determinations were market interest rates based on quotes obtained from brokers and represent Level 2 inputs.

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Note 8 – Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2015 were as follows (in millions):

	Cash Flow Hedges			Foreign Currency Items			Total
For the Three Months Ended June 30, 2015
Beginning balance, net of tax	$	77.9		($	7.1	)	$	70.8
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		(18.8	)		—			(18.8	)
Foreign currency translations		—			1.3			1.3
Income tax effect		6.9			—			6.9
Net of tax		(11.9	)		1.3			(10.6	)
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		30.4			—			30.4
Income tax effect		(10.9	)		—			(10.9	)
Net of tax		19.5			—			19.5
Other comprehensive income (loss), net of tax		(31.4	)		1.3			(30.1	)
Ending balance, net of tax	$	46.5		($	5.8	)	$	40.7

	Cash Flow Hedges			Foreign Currency Items			Total
For the Six Months Ended June 30, 2015
Beginning balance, net of tax	$	86.8		($	3.5	)	$	83.3
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		4.1			—			4.1
Foreign currency translations		—			(2.3	)		(2.3	)
Income tax effect		(1.3	)		—			(1.3	)
Net of tax		2.8			(2.3	)		0.5
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		67.2			—			67.2
Income tax effect		(24.1	)		—			(24.1	)
Net of tax		43.1			—			43.1
Other comprehensive income (loss), net of tax		(40.3	)		(2.3	)		(42.6	)
Ending balance, net of tax	$	46.5		($	5.8	)	$	40.7

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Changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2014, were as follows (in millions):

	Cash Flow Hedges			Foreign Currency Items			Total
For the Three Months Ended June 30, 2014
Beginning balance, net of tax	($	8.0	)	($	1.2	)	($	9.2	)
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		(26.0	)		—			(26.0	)
Foreign currency translations		—			0.8			0.8
Income tax effect		9.4			—			9.4
Net of tax		(16.6	)		0.8			(15.8	)
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		(9.2	)		—			(9.2	)
Derivative expense, net		(1.5	)		—			(1.5	)
Income tax effect		3.9			—			3.9
Net of tax		(6.8	)		—			(6.8	)
Other comprehensive income (loss), net of tax		(9.8	)		0.8			(9.0	)
Ending balance, net of tax	($	17.8	)	($	0.4	)	($	18.2	)

	Cash Flow Hedges			Foreign Currency Items			Total
For the Six Months Ended June 30, 2014
Beginning balance, net of tax	($	1.4	)	($	0.7	)	($	2.1	)
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		(43.4	)		—			(43.4	)
Foreign currency translations		—			0.3			0.3
Income tax effect		15.7			—			15.7
Net of tax		(27.7	)		0.3			(27.4	)
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		(16.3	)		—			(16.3	)
Derivative expense, net		(1.5	)		—			(1.5	)
Income tax effect		6.5			—			6.5
Net of tax		(11.3	)		—			(11.3	)
Other comprehensive income (loss), net of tax		(16.4	)		0.3			(16.1	)
Ending balance, net of tax	($	17.8	)	($	0.4	)	($	18.2	)

Note 9 – Investment in Oil and Gas Properties

Under the full cost method of accounting, we compare, at the end of each financial reporting period, the present value of estimated future net cash flows from proved reserves (adjusted for hedges and excluding cash flows related to estimated abandonment costs) to the net capitalized costs of proved oil and gas properties, net of related deferred taxes. We refer to this comparison as a ceiling test. If the net capitalized costs of proved oil and gas properties exceed the estimated discounted future net cash flows from proved reserves, we are required to write down the value of our oil and gas properties to the value of the discounted cash flows. At June 30, 2015, our ceiling test computation resulted in a write-down of our U.S. oil and gas properties of $179.1 million based on twelve month average prices, net of applicable differentials, of $68.68 per barrel of oil, $2.47 per Mcf of natural gas and $29.13 per barrel of natural gas liquids (“NGLs”). The write-down at June 30, 2015 was decreased by $47.8 million as a result of hedges. At March 31, 2015, our ceiling test computation resulted in a write-down of our U.S. oil and gas properties of $491.4 million based on twelve month average prices, net of applicable differentials, of $78.99 per barrel of oil, $2.96 per Mcf of natural gas and $28.82 per barrel of NGLs. The write-down at March 31, 2015 was decreased by $28.7 million as a result of hedges.

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In April 2013, we entered into an agreement to participate in the drilling of exploratory wells in Canada. Upon a more complete evaluation of this project and in response to the significant decline in commodity prices over the last several months, we have suspended our business development effort in Canada. Accordingly, at June 30, 2015, we recognized a write-down of our Canadian oil and gas properties of $45.2 million.

Note 10 – Commitments and Contingencies

We are named as a party in certain lawsuits and regulatory proceedings arising in the ordinary course of business. We do not expect that these matters, individually or in the aggregate, will have a material adverse effect on our financial condition.

On August 2, 2013, Kimmeridge Energy Exploration Fund, L.P. (“Kimmeridge”) filed a lawsuit against Stone in the 15^th Judicial District Court in Lafayette Parish, Louisiana seeking damages in the amount of $18,372,819 plus interest, costs and attorney fees. Kimmeridge alleged that Stone was obligated to pay Kimmeridge (1) $1,118,878 for brokerage costs incurred pursuant to a letter of understanding and (2) $17,253,941 pursuant to a letter of intent which, according to Kimmeridge’s pleadings, required Stone to negotiate in good faith and close an acquisition of mineral interests in the Illinois basin. The court granted summary judgment in favor of Stone, limiting damages on Kimmeridge’s $17,253,941 claim to $1,000,000 and reducing Stone’s exposure at trial for both claims to $2,118,878. During the three months ended June 30, 2015, Stone and Kimmeridge settled both claims for an amount within the previously disclosed range of loss (between $0 and $2,118,878).

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Note 11 – Guarantor Financial Statements

Our Guarantor Subsidiaries, Stone Offshore, SEO A LLC and SEO B LLC, are unconditional guarantors of the 2017 Convertible Notes and the 2022 Notes. Our other subsidiaries (the “Non-Guarantor Subsidiaries”) have not provided guarantees. The following presents unaudited condensed consolidating financial information as of June 30, 2015 and December 31, 2014 and for the three and six month periods ended June 30, 2015 and 2014 on an issuer (parent company), Guarantor Subsidiaries, Non-Guarantor Subsidiaries and consolidated basis. Elimination entries presented are necessary to combine the entities.

CONDENSED CONSOLIDATING BALANCE SHEET

JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	116,427		$	25,034		$	194		$	—		$	141,655
Accounts receivable		38,735			243,846			31			(213,906	)		68,706
Fair value of derivative contracts		—			74,319			—			—			74,319
Current income tax receivable		6			—			—			—			6
Inventory		3,426			283			—			—			3,709
Other current assets		10,007			—			69			—			10,076
Total current assets		168,601			343,482			294			(213,906	)		298,471
Oil and gas properties, full cost method:
Proved		1,778,480			7,251,498			44,447			—			9,074,425
Less: accumulated DD&A		(1,724,404	)		(6,077,492	)		(44,447	)		—			(7,846,343	)
Net proved oil and gas properties		54,076			1,174,006			—			—			1,228,082
Unevaluated		300,360			227,067			2,162			—			529,589
Other property and equipment, net		30,736			—			—			—			30,736
Fair value of derivative contracts		—			8,231			—			—			8,231
Deferred taxes *		—			—			16,266			(16,266	)		—
Other assets, net		25,149			1,385			1,548			—			28,082
Investment in subsidiary		1,057,810			—			20,083			(1,077,893	)		—
Total assets	$	1,636,732		$	1,754,171		$	40,353		($	1,308,065	)	$	2,123,191
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	56,763		$	216,834		$	9,732		($	213,906	)	$	69,423
Undistributed oil and gas proceeds		16,093			907			—			—			17,000
Accrued interest		9,027			—			—			—			9,027
Deferred taxes *		298			6,767			—			—			7,065
Asset retirement obligations		—			56,176			—			—			56,176
Other current liabilities		46,724			56			—			—			46,780
Total current liabilities		128,905			280,740			9,732			(213,906	)		205,471
Long-term debt		1,048,406			—			—			—			1,048,406
Deferred taxes *		(161,285	)		189,303			—			(16,266	)		11,752
Asset retirement obligations		3,757			236,856			—			—			240,613
Other long-term liabilities		32,213			—			—			—			32,213
Total liabilities		1,051,996			706,899			9,732			(230,172	)		1,538,455
Commitments and contingencies
Stockholders’ equity:
Common stock		553			—			—			—			553
Treasury stock		(860	)		—			—			—			(860	)
Additional paid-in capital		1,639,389			1,367,434			100,023			(1,467,457	)		1,639,389
Accumulated deficit		(1,095,002	)		(366,607	)		(57,824	)		424,431			(1,095,002	)
Accumulated other comprehensive income (loss)		40,656			46,445			(11,578	)		(34,867	)		40,656
Total stockholders’ equity		584,736			1,047,272			30,621			(1,077,893	)		584,736
Total liabilities and stockholders’ equity	$	1,636,732		$	1,754,171		$	40,353		($	1,308,065	)	$	2,123,191

* Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside.

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CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	72,886		$	1,450		$	152		$	—		$	74,488
Restricted cash		177,647			—			—			—			177,647
Accounts receivable		73,711			46,615			33			—			120,359
Fair value of derivative contracts		—			139,179			—			—			139,179
Current income tax receivable		7,212			—			—			—			7,212
Deferred taxes *		4,095			—			—			(4,095	)		—
Inventory		1,011			2,698			—			—			3,709
Other current assets		8,112			—			6			—			8,118
Total current assets		344,674			189,942			191			(4,095	)		530,712
Oil and gas properties, full cost method:
Proved		1,689,802			7,127,466			—			—			8,817,268
Less: accumulated DD&A		(970,387	)		(6,000,244	)		—			—			(6,970,631	)
Net proved oil and gas properties		719,415			1,127,222			—			—			1,846,637
Unevaluated		289,556			241,230			36,579			—			567,365
Other property and equipment, net		32,340			—			—			—			32,340
Fair value of derivative contracts		—			14,333			—			—			14,333
Other assets, net		20,857			1,360			5,007			—			27,224
Investment in subsidiary		1,050,546			—			41,638			(1,092,184	)		—
Total assets	$	2,457,388		$	1,574,087		$	83,415		($	1,096,279	)	$	3,018,611
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	74,756		$	57,873		$	—		$	—		$	132,629
Undistributed oil and gas proceeds		22,158			1,074			—			—			23,232
Accrued interest		9,022			—			—			—			9,022
Deferred taxes *		—			24,214			—			(4,095	)		20,119
Asset retirement obligations		—			69,400			—			—			69,400
Other current liabilities		49,306			199			—			—			49,505
Total current liabilities		155,242			152,760			—			(4,095	)		303,907
Long-term debt		1,041,035			—			—			—			1,041,035
Deferred taxes *		117,206			169,137			—			—			286,343
Asset retirement obligations		3,588			243,421			—			—			247,009
Other long-term liabilities		38,714			—			—			—			38,714
Total liabilities		1,355,785			565,318			—			(4,095	)		1,917,008
Commitments and contingencies
Stockholders’ equity:
Common stock		549			—			—			—			549
Treasury stock		(860	)		—			—			—			(860	)
Additional paid-in capital		1,633,307			1,362,684			90,339			(1,453,023	)		1,633,307
Accumulated earnings (deficit)		(614,708	)		(440,699	)		12			440,687			(614,708	)
Accumulated other comprehensive income (loss)		83,315			86,784			(6,936	)		(79,848	)		83,315
Total stockholders’ equity		1,101,603			1,008,769			83,415			(1,092,184	)		1,101,603
Total liabilities and stockholders’ equity	$	2,457,388		$	1,574,087		$	83,415		($	1,096,279	)	$	3,018,611

* Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside.

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CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	6,504		$	105,081		$	—		$	—		$	111,585
Natural gas production		15,647			11,260			—			—			26,907
Natural gas liquids production		8,077			2,956			—			—			11,033
Total operating revenue		30,228			119,297			—			—			149,525
Operating expenses:
Lease operating expenses		5,111			22,318			—			—			27,429
Transportation, processing and gathering expenses		17,974			1,966			—			—			19,940
Production taxes		1,436			391			—			—			1,827
Depreciation, depletion, amortization		44,052			33,899			—			—			77,951
Write-down of oil and gas properties		179,125			—			45,169			—			224,294
Accretion expense		91			6,317			—			—			6,408
Salaries, general and administrative		16,398			—			20			—			16,418
Incentive compensation expense		1,264			—			—			—			1,264
Other operational expense		1,454			—			—			—			1,454
Derivative expense, net		—			701			—			—			701
Total operating expenses		266,905			65,592			45,189			—			377,686
Income (loss) from operations		(236,677	)		53,705			(45,189	)		—			(228,161	)
Other (income) expenses:
Interest expense		10,472			—			—			—			10,472
Interest income		(46	)		(19	)		(1	)		—			(66	)
Other income		(187	)		(423	)		(3	)		—			(613	)
(Income) loss from investment in subsidiaries		(16,147	)		—			28,918			(12,771	)		—
Total other (income) expenses		(5,908	)		(442	)		28,914			(12,771	)		9,793
Income (loss) before taxes		(230,769	)		54,147			(74,103	)		12,771			(237,954	)
Provision (benefit) for income taxes:
Deferred		(77,863	)		9,082			(16,267	)		—			(85,048	)
Total income taxes		(77,863	)		9,082			(16,267	)		—			(85,048	)
Net income (loss)	($	152,906	)	$	45,065		($	57,836	)	$	12,771		($	152,906	)
Comprehensive income (loss)	($	183,062	)	$	45,065		($	57,836	)	$	12,771		($	183,062	)

17

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	5,854		$	136,539		$	—		$	—		$	142,393
Natural gas production		20,800			25,867			—			—			46,667
Natural gas liquids production		10,219			5,717			—			—			15,936
Other operational income		1,880			170			—			—			2,050
Total operating revenue		38,753			168,293			—			—			207,046
Operating expenses:
Lease operating expenses		5,046			44,408			—			—			49,454
Transportation, processing and gathering expenses		10,456			3,642			—			—			14,098
Production taxes		1,903			1,354			—			—			3,257
Depreciation, depletion, amortization		30,385			62,450			—			—			92,835
Accretion expense		61			7,672			—			—			7,733
Salaries, general and administrative		16,639			—			(2	)		—			16,637
Incentive compensation expense		3,903			—			—			—			3,903
Derivative expense, net		—			2,516			—			—			2,516
Total operating expenses		68,393			122,042			(2	)		—			190,433
Income (loss) from operations		(29,640	)		46,251			2			—			16,613
Other (income) expenses:
Interest expense		9,880			33			—			—			9,913
Interest income		(146	)		(41	)		(6	)		—			(193	)
Other income		(192	)		(530	)		—			—			(722	)
Other expense		179			—			—			—			179
Income from investment in subsidiaries		(29,947	)		—			(8	)		29,955			—
Total other (income) expenses		(20,226	)		(538	)		(14	)		29,955			9,177
Income (loss) before taxes		(9,414	)		46,789			16			(29,955	)		7,436
Provision (benefit) for income taxes:
Deferred		(13,858	)		16,850			—			—			2,992
Total income taxes		(13,858	)		16,850			—			—			2,992
Net income	$	4,444		$	29,939		$	16		($	29,955	)	$	4,444
Comprehensive income (loss)	($	4,566	)	$	29,939		$	16		($	29,955	)	($	4,566	)

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CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	10,854		$	208,238		$	—		$	—		$	219,092
Natural gas production		32,264			22,980			—			—			55,244
Natural gas liquids production		17,956			5,443			—			—			23,399
Other operational income		1,792			—			—			—			1,792
Derivative income, net		—			2,427			—			—			2,427
Total operating revenue		62,866			239,088			—			—			301,954
Operating expenses:
Lease operating expenses		10,087			44,919			—			—			55,006
Transportation, processing and gathering expenses		34,082			3,561			—			—			37,643
Production taxes		3,634			708			—			—			4,342
Depreciation, depletion, amortization		86,164			78,209			—			—			164,373
Write-down of oil and gas properties		670,537			—			45,169			—			715,706
Accretion expense		182			12,635			—			—			12,817
Salaries, general and administrative		33,399			1			25			—			33,425
Incentive compensation expense		2,827			—			—			—			2,827
Other operational expense		1,170			—			—			—			1,170
Total operating expenses		842,082			140,033			45,194			—			1,027,309
Income (loss) from operations		(779,216	)		99,055			(45,194	)		—			(725,355	)
Other (income) expenses:
Interest expense		20,816			21			—			—			20,837
Interest income		(147	)		(35	)		(6	)		—			(188	)
Other income		(320	)		(433	)		(3	)		—			(756	)
(Income) loss from investment in subsidiaries		(45,174	)		—			28,918			16,256			—
Total other (income) expenses		(24,825	)		(447	)		28,909			16,256			19,893
Income (loss) before taxes		(754,391	)		99,502			(74,103	)		(16,256	)		(745,248	)
Provision (benefit) for income taxes:
Deferred		(274,097	)		25,410			(16,267	)		—			(264,954	)
Total income taxes		(274,097	)		25,410			(16,267	)		—			(264,954	)
Net income (loss)	($	480,294	)	$	74,092		($	57,836	)	($	16,256	)	($	480,294	)
Comprehensive income (loss)	($	522,953	)	$	74,092		($	57,836	)	($	16,256	)	($	522,953	)

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CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	12,490		$	268,192		$	—		$	—		$	280,682
Gas production		49,639			53,390			—			—			103,029
Natural gas liquids production		28,473			15,433			—			—			43,906
Other operational income		2,704			343			—			—			3,047
Total operating revenue		93,306			337,358			—			—			430,664
Operating expenses:
Lease operating expenses		9,059			87,298			—			—			96,357
Transportation, processing and gathering expenses		20,773			7,951			—			—			28,724
Production taxes		3,584			2,735			—			—			6,319
Depreciation, depletion, amortization		58,440			117,041			—			—			175,481
Accretion expense		129			15,159			—			—			15,288
Salaries, general and administrative		32,964			2			—			—			32,966
Incentive compensation expense		7,037			—			—			—			7,037
Other operational expenses		176			36			—			—			212
Derivative expense, net		—			3,115			—			—			3,115
Total operating expenses		132,162			233,337			—			—			365,499
Income (loss) from operations		(38,856	)		104,021			—			—			65,165
Other (income) expenses:
Interest expense		18,233			37			—			—			18,270
Interest income		(225	)		(99	)		(12	)		—			(336	)
Other income		(373	)		(1,056	)		—			—			(1,429	)
Other expense		179			—			—			—			179
Income from investment in subsidiaries		(67,292	)		—			(12	)		67,304			—
Total other (income) expenses		(49,478	)		(1,118	)		(24	)		67,304			16,684
Income before taxes		10,622			105,139			24			(67,304	)		48,481
Provision (benefit) for income taxes:
Deferred		(19,765	)		37,859			—			—			18,094
Total income taxes		(19,765	)		37,859			—			—			18,094
Net income	$	30,387		$	67,280		$	24		($	67,304	)	$	30,387
Comprehensive income	$	14,288		$	67,280		$	24		($	67,304	)	$	14,288

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CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	($	480,294	)	$	74,092		($	57,836	)	($	16,256	)	($	480,294	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		86,164			78,209			—			—			164,373
Write-down of oil and gas properties		670,537			—			45,169			—			715,706
Accretion expense		182			12,635			—			—			12,817
Deferred income tax (benefit) provision		(274,097	)		25,410			(16,267	)		—			(264,954	)
Settlement of asset retirement obligations		(14	)		(35,909	)		—			—			(35,923	)
Non-cash stock compensation expense		6,028			—			—			—			6,028
Non-cash derivative expense		—			7,931			—			—			7,931
Non-cash interest expense		8,737			—			—			—			8,737
Change in current income taxes		7,206			—			—			—			7,206
Non-cash (income) expense from investment in subsidiaries		(45,174	)		—			28,918			16,256			—
Change in intercompany receivables/payables		15,070			(24,802	)		9,732			—			—
Decrease in accounts receivable		16,968			6,079			—			—			23,047
Increase in other current assets		(1,895	)		—			(64	)		—			(1,959	)
(Increase) decrease in inventory		(2,415	)		2,415			—			—			—
Decrease in accounts payable		(500	)		(7,326	)		—			—			(7,826	)
Decrease in other current liabilities		(8,409	)		(311	)		—			—			(8,720	)
Other		(71	)		(433	)		—			—			(504	)
Net cash (used in) provided by operating activities		(1,977	)		137,990			9,652			—			145,665
Cash flows from investing activities:
Investment in oil and gas properties		(128,333	)		(124,506	)		(11,516	)		—			(264,355	)
Proceeds from sale of oil and gas properties, net of expenses		—			10,100			—			—			10,100
Investment in fixed and other assets		(727	)		—			—			—			(727	)
Change in restricted funds		177,647			—			1,828			—			179,475
Investment in subsidiaries		—			—			(9,684	)		9,684			—
Net cash provided by (used in) investing activities		48,587			(114,406	)		(19,372	)		9,684			(75,507	)
Cash flows from financing activities:
Proceeds from bank borrowings		5,000			—			—			—			5,000
Repayments of bank borrowings		(5,000	)		—			—			—			(5,000	)
Equity proceeds from parent		—			—			9,684			(9,684	)		—
Net payments for share-based compensation		(3,069	)		—			—			—			(3,069	)
Net cash (used in) provided by financing activities		(3,069	)		—			9,684			(9,684	)		(3,069	)
Effect of exchange rate changes on cash		—			—			78			—			78
Net change in cash and cash equivalents		43,541			23,584			42			—			67,167
Cash and cash equivalents, beginning of period		72,886			1,450			152			—			74,488
Cash and cash equivalents, end of period	$	116,427		$	25,034		$	194		$	—		$	141,655

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CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	30,387		$	67,280		$	24		($	67,304	)	$	30,387
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		58,440			117,041			—			—			175,481
Accretion expense		129			15,159			—			—			15,288
Deferred income tax (benefit) provision		(19,765	)		37,859			—			—			18,094
Settlement of asset retirement obligations		(82	)		(24,833	)		—			—			(24,915	)
Non-cash stock compensation expense		5,358			—			—			—			5,358
Non-cash derivative expense		—			2,697			—			—			2,697
Non-cash interest expense		8,229			—			—			—			8,229
Change in current income taxes		(6	)		—			—			—			(6	)
Non-cash income from investment in subsidiaries		(67,292	)		—			(12	)		67,304			—
Change in intercompany receivables/payables		(126,526	)		114,841			11,685			—			—
(Increase) decrease in accounts receivable		(42,216	)		16,692			—			—			(25,524	)
Increase in other current assets		(82	)		—			—			—			(82	)
Increase (decrease) in accounts payable		2,052			(209	)		—			—			1,843
Increase in other current liabilities		48,987			1,798			—			—			50,785
Other		381			(1,056	)		—			—			(675	)
Net cash (used in) provided by operating activities		(102,006	)		347,269			11,697			—			256,960
Cash flows from investing activities:
Investment in oil and gas properties		(121,836	)		(384,349	)		(11,719	)		—			(517,904	)
Proceeds from sale of oil and gas properties, net of expenses		9,777			42,178			—			—			51,955
Investment in fixed and other assets		(3,896	)		—			—			—			(3,896	)
Change in restricted funds		—			—			(356	)		—			(356	)
Investment in subsidiaries		—			—			(12,176	)		12,176			—
Net cash used in investing activities		(115,955	)		(342,171	)		(24,251	)		12,176			(470,201	)
Cash flows from financing activities:
Net proceeds from issuance of common stock		226,036			—			—			—			226,036
Deferred financing costs		(3,167	)		—			—			—			(3,167	)
Equity proceeds from parent		—			—			12,176			(12,176	)		—
Net payments for share-based compensation		(6,948	)		—			—			—			(6,948	)
Net cash provided by financing activities		215,921			—			12,176			(12,176	)		215,921
Effect of exchange rate on cash		—			—			(18	)		—			(18	)
Net change in cash and cash equivalents		(2,040	)		5,098			(396	)		—			2,662
Cash and cash equivalents, beginning of period		246,294			84,290			640			—			331,224
Cash and cash equivalents, end of period	$	244,254		$	89,388		$	244		$	—		$	333,886

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

The information in this Quarterly Report on Form 10-Q (this “Form 10-Q”) includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical or current facts, that address activities, events, outcomes and other matters that we plan, expect, intend, assume, believe, budget, predict, forecast, project, estimate or anticipate (and other similar expressions) will, should or may occur in the future are forward-looking statements. These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements as described in our 2014 Annual Report on Form 10-K and in this Form 10-Q.

Forward-looking statements appear in a number of places in this Form 10-Q and include statements with respect to, among other things:

• any expected results or benefits associated with our acquisitions;

• expected results from risked weighted drilling success;

• estimates of our future oil and natural gas production, including estimates of any increases in oil and natural gas production;

• planned capital expenditures and the availability of capital resources to fund capital expenditures;

• our outlook on oil and natural gas prices;

• estimates of our oil and natural gas reserves;

• any estimates of future earnings growth;

• the impact of political and regulatory developments;

• our outlook on the resolution of pending litigation and government inquiry;

• estimates of the impact of new accounting pronouncements on earnings in future periods;

• our future financial condition or results of operations and our future revenues and expenses;

• the amount, nature and timing of any potential acquisition or divestiture transactions;

• our access to capital and our anticipated liquidity;

• estimates of future income taxes; and

• our business strategy and other plans and objectives for future operations.

We caution you that these forward-looking statements are subject to all of the risks and uncertainties, many of which are beyond our control, incident to the exploration for and development, production and marketing of oil and natural gas. These risks include, among other things:

• commodity price volatility, including further or sustained declines in the prices we receive for our oil and gas production;

• consequences of a catastrophic event like the Deepwater Horizon oil spill;

• domestic and worldwide economic conditions;

• the availability of capital on economic terms to fund our capital expenditures and acquisitions;

• our level of indebtedness, liquidity and compliance with debt covenants;

• declines in the value of our oil and gas properties resulting in a decrease in our borrowing base under our bank credit facility and impairments;

• our ability to replace and sustain production;

• the impact of a financial crisis on our business operations, financial condition and ability to raise capital;

• the ability of financial counterparties to perform or fulfill their obligations under existing agreements;

• third-party interruption of sales to market;

• inflation;

• lack of availability and cost of goods and services;

• market conditions relating to potential acquisition and divestiture transactions;

• regulatory and environmental risks associated with drilling and production activities;

• drilling and other operating risks;

• unsuccessful exploration and development drilling activities;

• hurricanes and other weather conditions;

• adverse effects of changes in applicable tax, environmental, derivatives and other regulatory legislation, including changes affecting our offshore and Appalachian operations;

23

• uncertainty inherent in estimating proved oil and natural gas reserves and in projecting future rates of production and timing of development expenditures; and

• other risks described in this Form 10-Q.

For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see (1) Part II, Item 1A. Risk Factors, of this Form 10-Q and (2) Part I, Item 1A, of our 2014 Annual Report on Form 10-K. Should one or more of the risks or uncertainties described above, in our 2014 Annual Report on Form 10-K or elsewhere in this Form 10-Q occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. We specifically disclaim all responsibility to publicly update any information contained in a forward-looking statement or any forward-looking statement in its entirety and therefore disclaim any resulting liability for potentially related damages. All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) contained in this Form 10-Q should be read in conjunction with the MD&A contained in our 2014 Annual Report on Form 10-K.

Overview

We are an independent oil and natural gas company engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties. We have been operating in the GOM Basin since our incorporation in 1993 and have established a technical and operational expertise in the area. We have leveraged our experience in the GOM conventional shelf and expanded our reserve base into the more prolific basins of the GOM deep water, Gulf Coast deep gas and the Marcellus Shale in Appalachia.

Critical Accounting Estimates

Our 2014 Annual Report on Form 10-K describes the accounting estimates that we believe are critical to the reporting of our financial position and operating results and that require management’s most difficult, subjective or complex judgments. Our most significant estimates are:

• remaining proved oil and natural gas reserve volumes and the timing of their production;

• estimated costs to develop and produce proved oil and natural gas reserves;

• accruals of exploration costs, development costs, operating costs and production revenue;

• timing and future costs to abandon our oil and gas properties;

• effectiveness and estimated fair value of derivative positions;

• classification of unevaluated property costs;

• capitalized general and administrative costs and interest;

• estimates of fair value in business combinations;

• current and deferred income taxes; and

• contingencies.

This Form 10-Q should be read together with the discussion contained in our 2014 Annual Report on Form 10-K regarding these critical accounting policies.

Other Factors Affecting Our Business and Financial Results

In addition to the matters discussed above, our business, financial condition and results of operations are affected by a number of other factors. This Form 10-Q should be read in conjunction with the discussion in Part I, Item 1A, of our 2014 Annual Report on Form 10-K and in this Form 10-Q under Part II, Item 1A. Risk Factors, regarding our known material risk factors.

Known Trends and Uncertainties

Declining Commodity Prices – We experienced a significant decline in oil and natural gas prices during the second half of 2014, with lower prices continuing throughout the first half of 2015, which has resulted in reduced revenue and cash flows and caused us to reduce our planned capital expenditures for 2015. Additionally, the decline in commodity prices has adversely affected the value and estimated quantities of our proved oil, natural gas and NGL reserves, which contributed to ceiling test write-downs of our oil and gas properties at December 31, 2014, March 31, 2015 and June 30, 2015.

24

Prolonged periods of depressed commodity prices significantly impact the value and estimated quantities of our proved reserve portfolio, assuming no other changes in our development plans. For example, using December 31, 2014 NYMEX 5-year forward strip prices, which were approximately 20% lower on an Mcfe basis than SEC-mandated prices, our December 31, 2014 estimated proved reserve volumes and the associated present value of future net revenues would have been lower by approximately 20% and 52%, respectively. Under SEC reserve reporting rules, prices are based on the historical 12-month average price based on closing prices on the first day of each month. We expect that additional periods of depressed commodity prices would continue to adversely affect our SEC-mandated prices, as higher 2014 prices would be replaced by lower 2015 prices in the computation of the 12-month average, resulting in further reductions of our estimated proved reserve volumes and estimated future net revenues. Accordingly, we expect to incur additional write-downs of our oil and gas properties in future periods should lower prices persist. Additionally, continued low commodity prices, further declines in commodity prices and/or widening negative price differentials (particularly in Appalachia) will likely have a material adverse impact on future cash flows, and could substantially reduce the available borrowings under our bank credit facility and constrain our capital budgets beyond 2015.

We are subject to evaluations by the Bureau of Ocean Energy Management for continuation of our current exemption from supplemental bonding on abandonment obligations. It is possible that future agency action or failure to meet the required levels of compliance as a result of declining commodity prices could result in a loss of exemption and could have a material adverse impact on our liquidity should we be required to post bonds or letters of credit.

Hurricanes – Since a large portion of our production originates in the GOM, we are particularly vulnerable to the effects of hurricanes on production. Additionally, affordable and practical insurance coverage for property damage to our facilities for hurricanes has been difficult to obtain for some time so we have eliminated our hurricane insurance coverage. Significant hurricane impacts could include reductions and/or deferrals of future oil and natural gas production and revenues, increased lease operating expenses for evacuations and repairs and possible increases to and/or acceleration of plugging and abandonment costs.

Deep Water Operations – We are currently operating two significant properties in the deep water of the GOM. Additionally, we engage in deep water drilling operations. Operations in the deep water can result in increased operational risks as has been demonstrated by the Deepwater Horizon disaster in 2010. Despite technological advances since this disaster, liabilities for environmental losses, personal injury and loss of life and significant regulatory fines in the event of a disaster could be well in excess of insured amounts and result in significant current losses on our statement of operations as well as going concern issues.

Liquidity and Capital Resources

As of August 5, 2015, we had cash on hand of approximately $90 million and $480.8 million of availability under our bank credit facility. The decline in commodity prices has adversely impacted the value of our estimated proved reserves and could result in a reduction of our borrowing base at the next redetermination, which is expected in October 2015. Our capital expenditure budget for 2015 has been set at $450 million, which assumes planned sales of minority working interests in certain targeted assets. The budget excludes material divestitures and acquisitions and capitalized salaries, general and administrative (“SG&A”) expenses and interest. Based on our current outlook of commodity prices and our estimated production, we expect our 2015 capital expenditures to exceed our cash flows from operating activities. We intend to finance our 2015 capital expenditures with cash flows from operating activities and cash on hand. However, if we are unable to successfully execute planned sales of minority working interests or defer certain expenditures, or if we experience continued low commodity prices or other factors, a portion of our 2015 capital expenditures will likely require financing from borrowings under our bank credit facility or other sources. Accordingly, we may consider accessing the public or private markets as funding sources to provide additional capital. Our ability to access the public or private markets on economic terms will be affected by general economic conditions, the domestic and global financial markets, our operational and financial performance, the value and performance of our debt or equity securities, prevailing commodity prices and other macroeconomic factors outside of our control.

Cash Flows and Working Capital. Net cash provided by operating activities totaled $145.7 million during the six months ended June 30, 2015 compared to $257.0 million during the comparable period in 2014.

Net cash used in investing activities totaled $75.5 million during the six months ended June 30, 2015, which primarily represents our investment in oil and gas properties of $264.4 million, offset by $179.5 million of previously restricted proceeds from the sale of oil and gas properties and $10.1 million of proceeds from the sale of oil and gas properties. Net cash used in investing activities totaled $470.2 million during the six months ended June 30, 2014, which primarily represents our investment in oil and gas properties of $517.9 million, offset by proceeds from the sale of oil and gas properties of $52.0 million.

Net cash used in financing activities totaled $3.1 million during the six months ended June 30, 2015, which primarily represents net payments for share-based compensation. During the six months ended June 30, 2015, we had $5.0 million in borrowings and $5.0 million in repayments of borrowings under our bank credit facility. Net cash provided by financing activities totaled $215.9 million during the six months ended June 30, 2014, which primarily represents net proceeds from the sale of common stock of approximately $226.0 million, offset by net payments for share-based compensation of approximately $6.9 million and deferred financing costs of approximately $3.2 million associated with our credit facility.

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We had working capital at June 30, 2015 of $93.0 million.

Capital Expenditures. During the three months ended June 30, 2015, additions to oil and gas property costs of $113.7 million included $2.0 million of lease and property acquisition costs, $7.4 million of capitalized SG&A expenses (inclusive of incentive compensation) and $10.8 million of capitalized interest. During the six months ended June 30, 2015, additions to oil and gas property costs of $219.4 million included $1.3 million of lease and property acquisition costs, $15.9 million of capitalized SG&A expenses (inclusive of incentive compensation) and $21.6 million of capitalized interest. These investments were financed with cash on hand and cash flows from operating activities.

Bank Credit Facility. On June 24, 2014, we entered into an amended and restated revolving credit facility with commitments totaling $900 million (subject to borrowing base limitations) through a syndicated bank group, replacing our previous facility. The bank credit facility matures on July 1, 2019. On May 1, 2015, our borrowing base under the bank credit facility was reaffirmed at $500 million. The next redetermination of our borrowing base under the bank credit facility is expected in October 2015. Continued low commodity prices, further declines in commodity prices and/or widening negative price differentials (particularly in Appalachia) will likely have a material adverse impact on the value of our estimated proved reserves and could result in a reduction of our borrowing base. As of June 30 and August 5, 2015, we had no outstanding borrowings under the bank credit facility, and $19.2 million of letters of credit had been issued pursuant to the bank credit facility, leaving $480.8 million of availability under the bank credit facility. The bank credit facility is guaranteed by our Guarantor Subsidiaries.

The borrowing base under the bank credit facility is redetermined semi-annually, typically in May and November, by the lenders, taking into consideration the estimated loan value of our oil and gas properties and those of our subsidiaries that guarantee the bank facility in accordance with the lenders’ customary practices for oil and gas loans. In addition, we and the lenders each have discretion at any time, but not more than two additional times in any calendar year, to have the borrowing base redetermined. The bank credit facility is collateralized by substantially all of the assets of Stone and its material subsidiaries. They are required to mortgage and grant a security interest in their oil and natural gas reserves representing at least 80% of the discounted present value of the future net cash flows from their proved oil and natural gas reserves reviewed in determining the borrowing base.

Interest on loans under the bank credit facility is calculated using the LIBOR rate or the base rate, at the election of Stone. The margin for loans at the LIBOR rate is determined based on borrowing base utilization and ranges from 1.500% to 2.500%. Under the financial covenants of our bank credit facility, we must (1) maintain a ratio of Consolidated Funded Debt to consolidated EBITDA, as defined in the credit agreement, for the preceding four quarterly periods of not greater than 3.75 to 1 and (2) maintain a ratio of consolidated EBITDA to consolidated Net Interest Expense, as defined in the credit agreement, for the preceding four quarterly periods of not less than 2.50 to 1. As of June 30, 2015, our Consolidated Funded Debt to consolidated EBITDA ratio was 2.78 to 1 and our consolidated EBITDA to consolidated Net Interest Expense ratio was approximately 9.20 to 1. In addition, our bank credit facility includes certain customary restrictions or requirements with respect to disposition of properties, incurrence of additional debt, change of control and reporting responsibilities. These covenants may limit or prohibit us from paying cash dividends but do allow for limited stock repurchases. These covenants also restrict our ability to prepay other indebtedness under certain circumstances. We were in compliance with all covenants as of June 30, 2015.

Contractual Obligations and Other Commitments

We have various contractual obligations and other commitments in the normal course of operations. For further information, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Contractual Obligations and Other Commitments” in our 2014 Annual Report on Form 10-K. There have been no material changes to this disclosure during the six months ended June 30, 2015.

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Results of Operations

The following tables set forth certain information with respect to our oil and gas operations:

	Three Months Ended June 30,
	2015		2014		Variance			% Change
Production:
Oil (MBbls)		1,534		1,481		53			4	%
Natural gas (MMcf)		12,581		12,363		218			2	%
NGLs (MBbls)		794		467		327			70	%
Oil, natural gas and NGLs (MMcfe)		26,549		24,051		2,498			10	%
Revenue data (in thousands): (1)
Oil revenue	$	111,585	$	142,393	($	30,808	)		(22	%)
Natural gas revenue		26,907		46,667		(19,760	)		(42	%)
NGLs revenue		11,033		15,936		(4,903	)		(31	%)
Total oil, natural gas and NGL revenue	$	149,525	$	204,996	($	55,471	)		(27	%)
Average prices:
Prior to the cash settlement of effective hedging contracts
Oil (per Bbl)	$	55.55	$	100.30	($	44.75	)		(45	%)
Natural gas (per Mcf)		1.82		4.03		(2.21	)		(55	%)
NGLs (per Bbl)		13.90		34.12		(20.22	)		(59	%)
Oil, natural gas and NGLs (per Mcfe)		4.49		8.91		(4.42	)		(50	%)
Including the cash settlement of effective hedging contracts
Oil (per Bbl)	$	72.74	$	96.15	($	23.41	)		(24	%)
Natural gas (per Mcf)		2.14		3.77		(1.63	)		(43	%)
NGLs (per Bbl)		13.90		34.12		(20.22	)		(59	%)
Oil, natural gas and NGLs (per Mcfe)		5.63		8.52		(2.89	)		(34	%)
Expenses (per Mcfe):
Lease operating expenses	$	1.03	$	2.06	($	1.03	)		(50	%)
Transportation, processing and gathering expenses		0.75		0.59		0.16			27	%
SG&A expenses (2)		0.62		0.69		(0.07	)		(10	%)
DD&A expense on oil and gas properties		2.89		3.82		(0.93	)		(24	%)

(1) Includes the cash settlement of effective hedging contracts.

(2) Excludes incentive compensation expense.

	Six Months Ended June 30,
	2015		2014		Variance			% Change
Production:
Oil (MBbls)		3,156		2,899		257			9	%
Natural gas (MMcf)		23,738		25,004		(1,266	)		(5	%)
NGLs (MBbls)		1,477		977		500			51	%
Oil, natural gas and NGLs (MMcfe)		51,536		48,260		3,276			7	%
Revenue data (in thousands): (1)
Oil revenue	$	219,092	$	280,682	($	61,590	)		(22	%)
Natural gas revenue		55,244		103,029		(47,785	)		(46	%)
NGLs revenue		23,399		43,906		(20,507	)		(47	%)
Total oil, natural gas and NGL revenue	$	297,735	$	427,617	($	129,882	)		(30	%)
Average prices:
Prior to the cash settlement of effective hedging contracts
Oil (per Bbl)	$	50.28	$	99.80	($	49.52	)		(50	%)
Natural gas (per Mcf)		2.04		4.43		(2.39	)		(54	%)
NGLs (per Bbl)		15.84		44.94		(29.10	)		(65	%)
Oil, natural gas and NGLs (per Mcfe)		4.47		9.20		(4.73	)		(51	%)
Including the cash settlement of effective hedging contracts
Oil (per Bbl)	$	69.42	$	96.82	($	27.40	)		(28	%)
Natural gas (per Mcf)		2.33		4.12		(1.79	)		(43	%)
NGLs (per Bbl)		15.84		44.94		(29.10	)		(65	%)
Oil, natural gas and NGLs (per Mcfe)		5.78		8.86		(3.08	)		(35	%)

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	Six Months Ended June 30,
	2015		2014		Variance			% Change
Expenses (per Mcfe):
Lease operating expenses	$	1.07	$	2.00	($	0.93	)		(47	%)
Transportation, processing and gathering expenses		0.73		0.60		0.13			22	%
SG&A expenses (2)		0.65		0.68		(0.03	)		(4	%)
DD&A expense on oil and gas properties		3.14		3.60		(0.46	)		(13	%)

(1) Includes the cash settlement of effective hedging contracts.

(2) Excludes incentive compensation expense.

Net Income. During the three months ended June 30, 2015, we reported a net loss totaling approximately $152.9 million, or $2.77 per share, compared to net income for the three months ended June 30, 2014 of $4.4 million, or $0.08 per share. During the six months ended June 30, 2015, we reported a net loss totaling approximately $480.3 million, or $8.70 per share, compared to net income for the six months ended June 30, 2014 of $30.4 million, or $0.59 per share. All per share amounts are on a diluted basis.

We follow the full cost method of accounting for oil and gas properties. At June 30, 2015, we recognized ceiling test write-downs of our U.S. and Canadian oil and gas properties totaling $224.3 million ($143.5 million after taxes). At March 31, 2015, we recognized a ceiling test write-down of our U.S. oil and gas properties totaling $491.4 million ($314.5 million after taxes). The write-downs did not impact our cash flows from operating activities but did reduce net income and stockholders’ equity.

The variance in the three and six month periods’ results was also due to the following components:

Production. During the three months ended June 30, 2015, total production volumes increased to 26.5 Bcfe compared to 24.1 Bcfe produced during the comparable 2014 period, representing a 10% increase. Oil production during the three months ended June 30, 2015 totaled approximately 1,534,000 Bbls compared to 1,481,000 Bbls produced during the comparable 2014 period. Natural gas production totaled 12.6 Bcf during the three months ended June 30, 2015 compared to 12.4 Bcf during the comparable 2014 period. NGL production during the three months ended June 30, 2015 totaled approximately 794,000 Bbls compared to 467,000 Bbls produced during the comparable 2014 period.

During the six months ended June 30, 2015, total production volumes increased to 51.5 Bcfe compared to 48.3 Bcfe produced during the comparable 2014 period, representing a 7% increase. Oil production during the six months ended June 30, 2015 totaled approximately 3,156,000 Bbls compared to 2,899,000 Bbls produced during the comparable 2014 period. Natural gas production totaled 23.7 Bcf during the six months ended June 30, 2015 compared to 25.0 Bcf during the comparable 2014 period. NGL production during the six months ended June 30, 2015 totaled approximately 1,477,000 Bbls compared to 977,000 Bbls produced during the comparable 2014 period.

During the three months ended June 30, 2015, we realized increases to our net revenue and working interests in multiple wells in the Mary field in Appalachia resulting from the finalization of participation elections made by partners and potential partners in certain units. Although we recognized approximately 1.7 Bcfe of incremental production volumes associated with increased interests, net operating income for the affected wells was only minimally impacted due to depressed commodity prices. The increase in oil volumes during the six months ended June 30, 2015 was also attributable to production from our deepwater Cardona wells, which began producing late in the fourth quarter of 2014. These increases in production volumes were partially offset by decreases in production resulting from the divestitures of certain of our non-core GOM conventional shelf properties during 2014. Additionally, production during the three months ended June 30, 2015 was negatively impacted by downtime at the Pompano platform for third-party pipeline maintenance.

Prices. Prices realized during the three months ended June 30, 2015 averaged $72.74 per Bbl of oil, $2.14 per Mcf of natural gas and $13.90 per Bbl of NGLs, or 34% lower, on an Mcfe basis, than average realized prices of $96.15 per Bbl of oil, $3.77 per Mcf of natural gas and $34.12 per Bbl of NGLs during the comparable 2014 period. Prices realized during the six months ended June 30, 2015 averaged $69.42 per Bbl of oil, $2.33 per Mcf of natural gas and $15.84 per Bbl of NGLs, or 35% lower, on an Mcfe basis, than average realized prices of $96.82 per Bbl of oil, $4.12 per Mcf of natural gas and $44.94 per Bbl of NGLs during the comparable 2014 period. All unit pricing amounts include the cash settlement of effective hedging contracts.

We enter into various derivative contracts in order to reduce our exposure to the possibility of declining oil and natural gas prices. Our effective hedging transactions increased our average realized natural gas price by $0.32 per Mcf and increased our average realized oil price by $17.19 per Bbl during the three months ended June 30, 2015. During the three months ended June 30, 2014, our effective hedging transactions decreased our average realized natural gas price by $0.26 per Mcf and decreased our average realized oil price by $4.15 per Bbl. During the six months eneded June 30, 2015, our effective hedging transactions increased our average realized natural gas price by $0.29 per Mcf and increased our average realized oil price by $19.14 per Bbl. During the six months ended June 30, 2014, our effective hedging transactions decreased our average realized natural gas price by $0.31 per Mcf and decreased our average realized oil price by $2.98 per Bbl.

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Revenue. Oil, natural gas and NGL revenue was $149.5 million during the three months ended June 30, 2015 compared to $205.0 million during the comparable period of 2014. For the six months ended June 30, 2015 and 2014, oil, natural gas and NGL revenue totaled $297.7 million and $427.6 million, respectively. The decrease in total revenue for the three and six months ended June 30, 2015 was primarily due to a 34% and 35% decrease, respectively, in average realized prices from the comparable periods of 2014. The decreases were also attributable to the divestitures of certain non-core GOM conventional shelf properties during 2014.

Derivative Income/Expense. Net derivative expense for the three months ended June 30, 2015 totaled $0.7 million, comprised of $5.7 million of income from cash settlements and $6.4 million of non-cash expense resulting from changes in the fair value of unsettled derivative instruments. For the three months ended June 30, 2014, net derivative expense totaled $2.5 million, comprised of $0.3 million of expense from cash settlements and $2.2 million of non-cash expense resulting from changes in the fair value of unsettled derivative instruments. Net derivative income for the six months ended June 30, 2015 totaled $2.4 million, comprised of $10.3 million of income from cash settlements and $7.9 million of non-cash expense resulting from changes in the fair value of unsettled derivative instruments. For the six months ended June 30, 2014, net derivative expense totaled $3.1 million, comprised of $0.4 million of expense from cash settlements and $2.7 million of non-cash expense resulting from changes in the fair value of unsettled derivative instruments.

Expenses. Lease operating expenses during the three months ended June 30, 2015 and 2014 totaled $27.4 million and $49.5 million, respectively. For the six months ended June 30, 2015 and 2014, lease operating expenses totaled $55.0 million and $96.4 million, respectively. On a unit of production basis, lease operating expenses were $1.03 per Mcfe and $2.06 per Mcfe for the three months ended June 30, 2015 and 2014, respectively, and $1.07 per Mcfe and $2.00 per Mcfe for the six months ended June 30, 2015 and 2014, respectively. The decrease in lease operating expenses during the three and six months ended June 30, 2015 was primarily attributable to the divestitures of certain non-core GOM conventional shelf properties during 2014 as well as service cost reductions.

Transportation, processing and gathering expenses during the three months ended June 30, 2015 and 2014 totaled $19.9 million and $14.1 million, respectively, or $0.75 per Mcfe and $0.59 per Mcfe, respectively. For the six months ended June 30, 2015 and 2014, transportation, processing and gathering expenses totaled $37.6 million and $28.7 million, respectively, or $0.73 per Mcfe and $0.60 per Mcfe, respectively. The increase was attributable to higher gas, NGL and condensate volumes in Appalachia, where processing and gathering costs are higher.

DD&A expense on oil and gas properties for the three months ended June 30, 2015 totaled $76.8 million compared to $91.9 million during the comparable period of 2014. For the six months ended June 30, 2015 and 2014, DD&A expense totaled $162.0 million and $173.7 million, respectively. On a unit of production basis, DD&A expense was $2.89 per Mcfe and $3.82 per Mcfe during the three months ended June 30, 2015 and 2014, respectively. For the six months ended June 30, 2015 and 2014, DD&A expense, on a unit of production basis, was $3.14 per Mcfe and $3.60 per Mcfe, respectively.

SG&A expenses (exclusive of incentive compensation) for the three months ended June 30, 2015 were $16.4 million compared to $16.6 million for the three months ended June 30, 2014. For the six months ended June 30, 2015 and 2014, SG&A expenses (exclusive of incentive compensation) totaled $33.4 million and $33.0 million, respectively. On a unit of production basis, SG&A expenses were $0.62 per Mcfe and $0.69 per Mcfe for the three months ended June 30, 2015 and 2014, respectively. For the six months ended June 30, 2015 and 2014, SG&A expenses, on a unit of production basis, were $0.65 per Mcfe and $0.68 per Mcfe, respectively.

For the three months ended June 30, 2015 and 2014, incentive compensation expense totaled $1.3 million and $3.9 million, respectively. For the six months ended June 30, 2015 and 2014, incentive compensation expense totaled $2.8 million and $7.0 million, respectively. These amounts related to the accrual of estimated incentive compensation bonuses, which are calculated based on the projected achievement of certain strategic objectives for each fiscal year.

Interest expense for the three months ended June 30, 2015 totaled $10.5 million, net of $10.8 million of capitalized interest, compared to interest expense of $9.9 million, net of $11.3 million of capitalized interest, during the comparable 2014 period. For the six months ended June 30, 2015, interest expense totaled $20.8 million, net of $21.6 million of capitalized interest, compared to interest expense of $18.3 million, net of $24.1 million of capitalized interest, during the comparable 2014 period. The increase in interest expense was primarily the result of a decrease in the amount of interest capitalized to oil and gas properties.

For the six months ended June 30, 2015 and 2014, we recorded an income tax (benefit) provision of ($265.0) million and $18.1 million, respectively. The income tax benefit recorded for the six months ended June 30, 2015 was a result of our loss before income taxes attributable to the ceiling test write-downs.

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Off-Balance Sheet Arrangements

None.

Recent Accounting Developments

None.

Defined Terms

Oil, condensate and NGLs are stated in barrels (“Bbls”) or thousand barrels (“MBbls”). Natural gas is stated in billion cubic feet (“Bcf”), million cubic feet (“MMcf”) or thousand cubic feet (“Mcf”). Oil, condensate and NGLs are converted to natural gas at a ratio of one barrel of liquids per six Mcf of gas. Bcfe, MMcfe and Mcfe represent one billion cubic feet, one million cubic feet and one thousand cubic feet of gas equivalent, respectively. MMBtu represents one million British Thermal Units. An active property is an oil and gas property with existing production. A primary term lease is an oil and gas property with no existing production, in which we have a specific time frame to establish production without losing the rights to explore the property. Liquidity is defined as the ability to obtain cash quickly either through the conversion of assets or incurrence of liabilities.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Commodity Price Risk

Our major market risk exposure continues to be the pricing applicable to our oil and natural gas production. Our revenues, profitability and future rate of growth depend substantially upon the market prices of oil and natural gas, which fluctuate widely. Oil and natural gas price declines and volatility could adversely affect our revenues, cash flows and profitability. Price volatility is expected to continue. For the six months ended June 30, 2015, a 10% fluctuation in realized oil and natural gas prices, including the effects of hedging contracts, would have had an approximate $6.7 million impact on our revenues. In order to manage our exposure to oil and natural gas price declines, we enter into oil and natural gas price hedging arrangements to secure a price for a portion of our expected future production.

Our hedging policy provides that not more than 50% of our estimated production quantities can be hedged for any given year without the consent of our board of directors. We believe that our hedging positions have hedged approximately 47% of our estimated 2015 production from estimated proved reserves and 12% of our estimated 2016 production from estimated proved reserves. Although we continue to monitor the marketplace for additional hedges for 2016 and beyond, continued weakness in commodity prices may impair our ability to secure hedges at prices we deem acceptable. See Part I, Item 1. Financial Statements – Note 3 – Derivative Instruments and Hedging Activities, of this Form 10-Q for a detailed discussion of hedges in place to manage our exposure to oil and natural gas price declines.

Since the filing of our 2014 Annual Report on Form 10-K, there have been no material changes in reported market risk as it relates to commodity prices.

Interest Rate Risk

We had total debt outstanding of $1,075 million at June 30, 2015, all of which bears interest at fixed rates. The $1,075 million of fixed-rate debt is comprised of $300 million face value of the 2017 Convertible Notes and $775 million of the 2022 Notes.

Our bank credit facility is subject to an adjustable interest rate. See Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources of this Form 10-Q. We had no outstanding borrowings under our bank credit facility as of June 30, 2015. If we borrow funds under our bank credit facility, we may be subject to increased sensitivity to interest rate movements.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) of the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Form 10-Q. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is

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accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of June 30, 2015 at the reasonable assurance level.

Changes in Internal Controls Over Financial Reporting

There has not been any change in our internal control over financial reporting that occurred during the quarter ended June 30, 2015 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are named as a party in certain lawsuits and regulatory proceedings arising in the ordinary course of business. We do not expect that these matters, individually or in the aggregate, will have a material adverse effect on our financial condition.

On November 11, 2013, two lawsuits were filed, and on November 12, 2013, a third lawsuit was filed, against Stone and other named co-defendants, by the Parish of Jefferson (“Jefferson Parish”), on behalf of Jefferson Parish and the State of Louisiana, in the 24th Judicial District Court for the Parish of Jefferson, State of Louisiana, alleging violations of the State and Local Coastal Resources Management Act of 1978, as amended, and the applicable regulations, rules, orders and ordinances thereunder (collectively, “the CRMA”), relating to certain of the defendants’ alleged oil and gas operations in Jefferson Parish, and seeking to recover alleged unspecified damages to the Jefferson Parish Coastal Zone and remedies, including unspecified monetary damages and declaratory relief, restoration of the Jefferson Parish Coastal Zone and related costs and attorney’s fees. In addition, on November 8, 2013, a lawsuit was filed against Stone and other named co-defendants by the Parish of Plaquemines (“Plaquemines Parish”), on behalf of Plaquemines Parish and the State of Louisiana, in the 25th Judicial District Court for the Parish of Plaquemines, State of Louisiana, alleging violations of the CRMA, relating to certain of the defendants’ alleged oil and gas operations in Plaquemines Parish, and seeking to recover alleged unspecified damages to the Plaquemines Parish Coastal Zone and remedies, including unspecified monetary damages and declaratory relief, restoration of the Plaquemines Parish Coastal Zone and related costs and attorney’s fees. Stone engaged counsel and removed the cases to federal court. The plaintiffs opposed removal. All four cases have been remanded to Louisiana state court. Stone is actively investigating and evaluating the allegations.

On July 26, 2012, we received a notice from the Bureau of Safety and Environmental Enforcement (“BSEE”) that it was initiating an enforcement proceeding with respect to an Incident of Non-Compliance observed at our Vermillion Block 255 Platform H in April 2012. We believe that the conditions observed were not actually violations of applicable rules and accordingly initiated discussions with BSEE to resolve the matter. Notwithstanding these discussions, by “Reviewing Officer’s Final Decision” dated July 9, 2013, BSEE assessed a penalty against Stone of $200,000 based on $25,000 per day for eight days of alleged improper venting of gas at the platform. An administrative appeal before IBLA is pending. We do not believe that this proceeding will have a material adverse effect on our financial condition or results of operations.

On August 2, 2013, Kimmeridge filed a lawsuit against Stone in the 15^th Judicial District Court in Lafayette Parish, Louisiana seeking damages in the amount of $18,372,819 plus interest, costs and attorney fees. Kimmeridge alleged that Stone was obligated to pay Kimmeridge (1) $1,118,878 for brokerage costs incurred pursuant to a letter of understanding, and (2) $17,253,941 pursuant to a letter of intent which, according to Kimmeridge’s pleadings, required Stone to negotiate in good faith and close an acquisition of mineral interests in the Illinois basin. The court granted summary judgment in favor of Stone, limiting damages on Kimmeridge’s $17,253,941 claim to $1,000,000 and reducing Stone’s exposure at trial for both claims to $2,118,878. During the three months ended June 30, 2015, Stone and Kimmeridge settled both claims for an amount within the previously disclosed range of loss (between $0 and $2,118,878).

On November 17, 2014, the Pennsylvania Department of Environmental Protection (“PADEP”) issued a Notice of Violation (“NOV”) to Stone alleging releases of production fluid and an improper closure of a drill cuttings pit at Stone’s Loomis No. 1 well site in Susquehanna County, Pennsylvania. In September 2014, Stone sold its interest in the Loomis No. 1 well site to Southwestern Energy Company (“Southwestern”), and PADEP approved the transfer on November 24, 2014, after Stone’s receipt of the NOV. Stone investigated the allegations found in the NOV and responded to PADEP on January 5, 2015. The PADEP may impose a penalty in this matter, but the amount of such penalty cannot be reasonably estimated at this time. Southwestern is conducting remediation activities at the well site, and Stone continues to monitor those activities.

Also on November 17, 2014, the Environmental Protection Agency (“EPA”) issued two administrative compliance orders relating, respectively, to Stone’s Conley and Tuttle Impoundment Sites in West Virginia. The EPA compliance orders (1) allege that Stone placed fill material in jurisdictional waters without first obtaining a Clean Water Act permit and (2) order Stone to submit a wetland and stream delineation report. On December 8, 2014, Stone received a request from the EPA for additional information about the sites. Stone responded to this request and submitted site delineations. Stone settled the enforcements action for the Conley and Tuttle Impoundment Sites for $135,647 and $141,245, respectively. The EPA has also approved Stone’s wetland and stream delineation report. Final settlement is subject to the execution of the applicable consent orders, which already have been negotiated. Stone is still required to submit its restoration plan for both sites, and upon approval by the EPA, complete restoration.

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Legal proceedings are subject to substantial uncertainties concerning the outcome of material factual and legal issues relating to the litigation. Accordingly, we cannot currently predict the manner and timing of the resolution of some of these matters and may be unable to estimate a range of possible losses or any minimum loss from such matters.

Item 1A. Risk Factors

There have been no material changes with respect to Stone’s risk factors previously reported in Part I, Item 1A, of our 2014 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On September 24, 2007, our board of directors authorized a share repurchase program for an aggregate amount of up to $100 million. The shares may be repurchased from time to time in the open market or through privately negotiated transactions. The repurchase program is subject to business and market conditions and may be suspended or discontinued at any time. Additionally, shares are sometimes withheld from certain employees and nonemployee directors to pay taxes associated with the vesting of restricted stock. These withheld shares are not issued or considered common stock repurchases under our authorized share repurchase program. The following table sets forth information regarding our repurchases or acquisitions of our common stock during the three months ended June 30, 2015:

Period	Total Number of Shares Purchased (1)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)		Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs
April 1 – April 30, 2015		—	$	—		—
May 1 – May 31, 2015		5,538		14.11		—
June 1 – June 30, 2015		—		—		—
		5,538	$	14.11		—	$	92,928,632

(1) Amount includes shares of our common stock withheld from employees and nonemployee directors upon the vesting of restricted stock in order to satisfy the required tax withholding obligations.

(2) There were no repurchases of our common stock under our repurchase program during the three months ended June 30, 2015.

33

Item 6. Exhibits

*3.1	Certificate of Incorporation of the Registrant, as amended.
3.2	Amended & Restated Bylaws of Stone Energy Corporation, dated December 19, 2013 (incorporated by reference to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2013 filed February 27, 2014 (File No. 001-12074)).
*10.1	Amendment No. 1 to Credit Agreement, dated as of May 1, 2015, among Stone Energy Corporation as Borrower, Bank of America, N.A. as Administrative Agent and Issuing Bank, and the financial institutions party to the Fourth Amended and Restated Credit Agreement.
*10.2	First Supplemental Indenture and Guarantee, dated as of May 7, 2015, among SEO A LLC, SEO B LLC, Stone Energy Corporation, Stone Energy Offshore LLC and The Bank of New York Mellon Trust Company, N.A., as trustee.
*10.3	Fourth Supplemental Indenture, dated as of May 7, 2015, among SEO A LLC, SEO B LLC, Stone Energy Corporation, Stone Energy Offshore LLC and The Bank of New York Mellon Trust Company, N.A. as trustee.
10.4	Second Amendment to the Stone Energy Corporation 2009 Amended and Restated Stock Incentive Plan (incorporated by reference to Appendix B to the Registrant’s Definitive Proxy Statement on Schedule 14A for Stone’s 2015 Annual Meeting of Stockholders (File No. 001-12074)).
10.5	Third Amendment to the Stone Energy Corporation 2009 Amended and Restated Stock Incentive Plan (incorporated by reference to Appendix B to the Registrant’s Definitive Proxy Statement on Schedule 14A for Stone’s 2015 Annual Meeting of Stockholders (File No. 001-12074)).
*31.1	Certification of Principal Executive Officer of Stone Energy Corporation as required by Rule 13a-14(a) of the Securities Exchange Act of 1934.
*31.2	Certification of Principal Financial Officer of Stone Energy Corporation as required by Rule 13a-14(a) of the Securities Exchange Act of 1934.
*#32.1	Certification of Chief Executive Officer and Chief Financial Officer of Stone Energy Corporation pursuant to 18 U.S.C. § 1350.
*101.INS	XBRL Instance Document
*101.SCH	XBRL Taxonomy Extension Schema Document
*101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
*101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
*101.LAB	XBRL Taxonomy Extension Label Linkbase Document
*101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed or furnished herewith.

# Not considered to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.

34

SIGNATURES

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 6, 2015	By:	/s/ Kenneth H. Beer
		Kenneth H. Beer
		Executive Vice President and Chief Financial Officer
		(On behalf of the Registrant and as
		Principal Financial Officer)

35

EXHIBIT INDEX

Exhibit Number	Description
*3.1	Certificate of Incorporation of the Registrant, as amended.
3.2	Amended & Restated Bylaws of Stone Energy Corporation, dated December 19, 2013 (incorporated by reference to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2013 filed February 27, 2014 (File No. 001-12074)).
*10.1	Amendment No. 1 to Credit Agreement, dated as of May 1, 2015, among Stone Energy Corporation as Borrower, Bank of America, N.A. as Administrative Agent and Issuing Bank, and the financial institutions party to the Fourth Amended and Restated Credit Agreement.
*10.2	First Supplemental Indenture and Guarantee, dated as of May 7, 2015, among SEO A LLC, SEO B LLC, Stone Energy Corporation, Stone Energy Offshore LLC and The Bank of New York Mellon Trust Company, N.A., as trustee.
*10.3	Fourth Supplemental Indenture, dated as of May 7, 2015, among SEO A LLC, SEO B LLC, Stone Energy Corporation, Stone Energy Offshore LLC and The Bank of New York Mellon Trust Company, N.A. as trustee.
10.4	Second Amendment to the Stone Energy Corporation 2009 Amended and Restated Stock Incentive Plan (incorporated by reference to Appendix B to the Registrant’s Definitive Proxy Statement on Schedule 14A for Stone’s 2015 Annual Meeting of Stockholders (File No. 001-12074)).
10.5	Third Amendment to the Stone Energy Corporation 2009 Amended and Restated Stock Incentive Plan (incorporated by reference to Appendix B to the Registrant’s Definitive Proxy Statement on Schedule 14A for Stone’s 2015 Annual Meeting of Stockholders (File No. 001-12074)).
*31.1	Certification of Principal Executive Officer of Stone Energy Corporation as required by Rule 13a-14(a) of the Securities Exchange Act of 1934.
*31.2	Certification of Principal Financial Officer of Stone Energy Corporation as required by Rule 13a-14(a) of the Securities Exchange Act of 1934.
*#32.1	Certification of Chief Executive Officer and Chief Financial Officer of Stone Energy Corporation pursuant to 18 U.S.C. § 1350.
*101.INS	XBRL Instance Document
*101.SCH	XBRL Taxonomy Extension Schema Document
*101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
*101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
*101.LAB	XBRL Taxonomy Extension Label Linkbase Document
*101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed or furnished herewith.

# Not considered to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.

36

EX-3.1

Exhibit 3.1

PAGE 1        

I, HARRIET SMITH WINDSOR, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED ARE TRUE AND CORRECT COPIES OF ALL DOCUMENTS ON FILE OF “STONE ENERGY CORPORATION” AS RECEIVED AND FILED IN THIS OFFICE.

THE FOLLOWING DOCUMENTS HAVE BEEN CERTIFIED:

CERTIFICATE OF INCORPORATION, FILED THE FIFTEENTH DAY OF MARCH, A.D. 1993, AT 10:25 O’CLOCK A.M.

CERTIFICATE OF AMENDMENT, FILED THE FOURTH DAY OF JUNE, A.D. 1993, AT 9 O’CLOCK A.M.

CERTIFICATE OF AMENDMENT, FILED THE FIRST DAY OF FEBRUARY, A.D. 2001, AT 2:59 O’CLOCK P.M.

CERTIFICATE OF OWNERSHIP, FILED THE NINETEENTH DAY OF FEBRUARY, A.D. 2002, AT 12 O’CLOCK P.M.

AND I DO HEREBY FURTHER CERTIFY THAT THE AFORESAID CERTIFICATES ARE THE ONLY CERTIFICATES ON RECORD OF THE AFORESAID CORPORATION, “STONE ENERGY CORPORATION”.

		/s/ Harriet Smith Windsor Harriet Smith Windsor, Secretary of State
2329102 8100H 060219694		AUTHENTICATION: 4608256                              DATE: 03–21–06

STATE OF DELAWARE

SECRETARY OF STATE

DIVISION OF CORPORATIONS

FILED 10: 25 AM 03/15/1993

930745230—2329102

CERTIFICATE OF INCORPORATION

OF

STONE ENERGY CORPORATION

FIRST: The name of the corporation is Stone Energy Corporation.

SECOND: The address of the registered office of the corporation in the State of Delaware is 1209 Orange Street, in the City of Wilmington, County of New Castle. The name of the registered agent of the corporation at such address is The Corporation Trust Company.

THIRD: The nature of the business or purposes to he conducted or promoted by the corporation is to engage in any lawful business, act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware.

FOURTH: The total number of shares of capital stock of the corporation shall be 1,000, which shall consist of 100 shares of Preferred Stock of the par value of $.01 per share and 900 shares of Common Stock of the par value of $.01 per share.

The following is a statement fixing certain of the designations and powers, voting powers, preferences, and relative, participating, optional or other rights of the Preferred Stock and the Common Stock of the corporation, and the qualifications, limitations or restrictions thereof, and the authority with respect thereto expressly granted to the Board of Directors of the corporation to fix any such provisions not fixed by this Certificate:

I. Preferred Stock

The Preferred Stock may be divided into and issued from time to time in one or more series as may be fixed and determined by the Board of Directors. The relative rights and preferences of the Preferred Stock of each series shall be such as shall be stated in any resolution or resolutions adopted by the Board of Directors setting forth the designations of the series and fixing and detemining the relative rights and preferences thereof, any such resolution or resolutions being herein called a “Preferred Stock Series Resolution”. The Board of Directors is hereby authorized to fix and determine such variations in the designations, preferences, and relative, participating, optional or other special rights (including, without limitation, special voting rights, preferential rights to receive dividends or assets upon liquidation, rights of conversion into Common Stock or other securities, redemption provisions or sinking fund provisions) as between series and as between the Preferred Stock or any series thereof and the Common Stock, and the

qualifications, limitations or restrictions of such rights, all as shall be stated in a Preferred Stock Series Resolution, and the shares of Preferred Stock or any series thereof may have full or limited voting powers, or be without voting powers, all as shall be stated in a Preferred Stock Series Resolution.

Any of the Series Terms, including voting rights, of any series may be made dependent upon facts ascertainable outside the Certificate of Incorporation and the Preferred Stock Series Resolution, provided that the manner in which such facts shall operate upon such Series Terms is clearly and expressly set forth in the Certificate of Incorporation or in the Preferred Stock Series Resolution.

Except in respect of characteristics of a particular series fixed by the Board of Directors, all shares of Preferred Stock shall be of equal rank and shall be identical. All shares of any one series of Preferred Stock so designated by the Board of Directors shall be alike in every particular, except that shares of any one series issued at different times may differ as to the dates from which dividends thereon shall be cumulative.

II. Common Stock

1. Dividends. Subject to the provisions of any Preferred Stock Series Resolution, the Board of Directors may, in its discretion, out of funds legally available for the payment of dividends and at such times and in such manner as determined by the Board of Directors, declare and pay dividends on the Common Stock of the corporation.

No dividend (other than a dividend in capital stock ranking on a parity with the Common Stock or cash in lieu of fractional shares with respect to such stock dividend) shall be declared or paid on any share or shares of any class of stock or series thereof ranking on a parity with the Common Stock in respect of payment of dividends for any dividend period unless there shall have been declared, for the same dividend period, like proportionate dividends on all shares of Common Stock then outstanding.

2. Liquidation. In the event of any liquidation, dissolution or winding up of the corporation, whether voluntary or involuntary, after payment or provision for payment of the debts and other liabilities of the corporation and payment or setting aside for payment of any preferential amount due to the holders of any other class or series of stock, the holders of the Common Stock shall be entitled to receive ratably any or all assets remaining to be paid or distributed.

3. Voting Rights. The holders of the Common Stock of the corporation shall be entitled to one vote for each share of such stock held by them.

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III. Prior, Parity or Junior Stock

Whenever reference is made in this Article Fourth to shares “ranking prior to” another class of stock or “on a parity with” another class of stock, such reference shall mean and include all other shares of the corporation in respect of which the rights of the holders thereof as to the payment of dividends or as to distributions in the event of a voluntary or involuntary liquidation, dissolution or winding up of the affairs of the corporation are given preference over, or rank on an equal basis with, as the case may be, the rights of the holders of such other class of stock. Whenever reference is made to shares “ranking junior to” another class of stock, such reference shall mean and include all shares of the corporation in respect of which the rights of the holders thereof as to the payment of dividends and as to distributions in the event of a voluntary or involuntary liquidation, dissolution or winding up of the affairs of the corporation are junior and subordinate to the rights of the holders of such class of stock.

Except as otherwise provided herein or in any Preferred Stock Series Resolution, each series of Preferred Stock ranks on a parity with each other and each ranks prior to the Common Stock. Common Stock ranks junior to Preferred Stock.

IV. Reservation and Retirement of Shares

The corporation shall at all times reserve and keep available, out of its authorized but unissued shares of Common Stock or out of shares of Common Stock held in its treasury, the full number of shares of Common Stock into which all shares of any series of Preferred Stock having conversion privileges from time to time outstanding are convertible.

Unless otherwise provided in a Preferred Stock Series Resolution with respect to a particular series of Preferred Stock, all shares of Preferred Stock redeemed or acquired (as a result of conversion or otherwise) shall be retired and restored to the status of authorized but unissued shares.

V. No Preemptive Rights

No holder of shares of stock of the corporation shall have any preemptive or other rights, except as such rights are expressly provided by contract, to purchase or subscribe for or receive any shares of any class, or series thereof, of stock of the corporation, whether now or hereafter authorized, or any warrants, options, bonds, debentures or other securities convertible into, exchangeable for or carrying any right to purchase any shares

-3-

of any class, or series thereof, of stock; but such additional shares of stock and such warrants, options, bonds, debentures or other securities convertible into, exchangeable for or carrying any right to purchase any shares of any class, or series thereof, of stock may be issued or disposed of by the Board of Directors to such persons, and on such terms and for such lawful consideration, as in its discretion it shall deem advisable or as to which the corporation shall have by binding contract agreed.

FIFTH: The incorporator of the corporation is P. Michelle Grace and her mailing address is c/o Vinson & Elkins, L.L.P., 2500 First City Tower, 1001 Fannin, Houston, Texas 77002-6760.

SIXTH: The names and mailing addresses of the persons who are to serve as directors of the corporation until the first annual meeting of stockholders and until their successors are elected and qualified are as follows:

Name	Mailing Address
James H. Stone	625 E. Kaliste Saloom Road Lafayette, LA 70508
D. Peter Canty	625 E. Kaliste Saloom Road Lafayette, LA 70508
Joe R. Klutts	625 E. Kaliste Saloom Road Lafayette, LA 70508
Michael L. Finch	625 E. Kaliste Saloom Road Lafayette, LA 70508
David R. Voelker	Johnson, Rice & Company 639 Loyola Avenue, Ste. 2775 New Orleans, LA 70113

The number of directors of the corporation shall be fixed as specified or provided for in the by-laws of the corporation. Election of directors need not be by written ballot unless the by-laws shall so provide. No holders of Preferred Stock or Common Stock of the corporation shall have any right to cumulate votes in the election of directors.

-4-

SEVENTH: Whenever a compromise or arrangement is proposed between this corporation and its creditors or any class of them or between this corporation and its stockholders or any class of them, any court of equitable jurisdiction within the State of Delaware may, on the application in a summary way of this corporation or of any creditor or stockholder thereof or on the application of any receiver or receivers appointed for this corporation under the provisions of §291 of the General Corporation Law of the State of Delaware or on the application of trustees in dissolution or of any receiver or receivers appointed for this corporation under the provisions of §279 of the General Corporation Law of the State of Delaware order a meeting of the creditors or class of creditors, or of the stockholders or class of stockholders of this corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in number representing three fourths in value of the creditors or class of creditors, or of the stockholders or class of stockholders of this corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this corporation as consequence of such compromise or arrangement, the compromise or arrangement and the reorganization shall, if sanctioned by the court to which the said application has been made, be binding on all the creditors or class of creditors, or on all the stockholders or class of stockholders, of this corporation, as the case may be, and also on this corporation.

EIGHTH: In furtherance of, and not in limitation of, the powers conferred by statute, the Board of Directors is expressly authorized to adopt, amend or repeal the by-laws of the corporation or adopt new by-laws, without any action on the part of the stockholders; provided, however, that no such adoption, amendment, or repeal shall be valid with respect to by-law provisions which have been adopted, amended, or repealed by the stockholders; and further provided, that by-laws adopted or amended by the Directors and any powers thereby conferred may be amended, altered, or repealed by the stockholders.

NINTH: A director of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except for such liability as is expressly not subject to limitation under the General Corporation Law of the State of Delaware, as the same exists or may hereafter be amended to further limit or eliminate such liability. Moreover, the corporation shall, to the fullest extent permitted by law, indemnify any and all officers and directors of the corporation, and may, to the fullest extent permitted by law or to such lesser extent as is determined in the discretion of the Board of Directors, indemnify any and all other persons whom it shall have power to indemnify, from and against all expenses, liabilities or other matters arising out of their status as such or their acts, omissions or services rendered in such capacities. The corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising out of his status as such, whether or not the corporation would have the power to indemnify him against such liability.

-5-

TENTH: The corporation shall have the right, subject to any express provisions or restrictions contained in the Certificate of Incorporation or by-laws of the corporation, from time to time, to amend the Certificate of Incorporation or any provision thereof in any manner now or hereafter provided by law, and all rights and powers of any kind conferred upon a director or stockholder of the corporation by the Certificate of Incorporation or any amendment thereof are conferred subject to such right.

ELEVENTH: Except as otherwise provided by statute, any action that might have been taken at a meeting of stockholders by a vote of the stockholders may be taken with the written consent of all of the stockholders that are entitled to vote on such proposed corporate action.

IN WITNESS WHEREOF, the undersigned has hereunto set her hand this 12th day of March, 1993.

/s/ P. Michelle Grace

P. Michelle Grace

-6-

STATE OF DELAWARE

SECRETARY OF STATE

DIVISION OF CORPORATIONS

FILED 09:00 AM 06/04/1993

931555255—2329102

CERTIFICATE OF AMENDMENT

OF

CERTIFICATE OF INCORPORATON

OF

STONE ENERGY CORPORATION

Stone Energy Corporation, a corporation organized and existing under and by virtue of the General Corporation Lew of the State of Delaware (the “Company”),

DOES HEREBY CERTIFY:

FIRST: That the Board of Directors of the Company duly adopted resolution setting forth a proposed amendment of the Certificate of Incorporation of the Company, which Certificate of Incorporation was filed with the Secretary of State of Delaware on March 15,1993, approving said amendment, declaring it to be advisable and recommending said amendment to the stockholder of the Company for approval thereof. The resolution setting forth the proposed amendment it as follows:

RESOLVED, that the Board of Directors hereby approves the amendment of Article FOURTH of the Certificate of Incorporation of the Company to increase the number of authorized shares of Common Stock and to increase the number of authorized shares of preferred stock of the Company in order to have a sufficient number of shares to effect the Exchange Offer and the Initial Public Offering and to take such other action as may be necessary or advisable to effect such amendment of the Company’s Certificate of Incorporation, and that the Board of Directors hereby proposes and declares to the stockholder of the Company the advisability of amending Article FOURTH and directs that such amendment be considered by the sole stockholder of the Company, such amendment to be made by deleting the language of the first paragraph of Article FOURTH and amending such first paragraph of Article FOURTH to read in its entirety as follows:

FOURTH: The total number of shares of capital stock of the corporation shall be 30,000,000, which shall consist of 5,000,000 shares of Preferred Stock of the par value of S.01 per share and 25,000,000 shares of Common Stock of the par value of $.01 per share. provided, however, that the right to withdraw such amendment prior to any vote at a special meeting is hereby reserved by the Board of Directors.

SECOND: That in lieu of a special meeting and vote of the sole stockholder, the sole stockholder of the Company, by written consent, approved, adopted and consented to said amendment in accordance with the provisions of Section 228 of the General Corporation Law of the State of Delaware.

THIRD: That said amendment was duly adopted in accordance with the provisions of Sections 242 and 228 of the General Corporation Law of the State of Delaware.

IN WITNESS WHEREOF, the Company has caused this certificate to be signed by James H. Stone, its President and attested by Thomas A. Stone, its Secretary, this 2nd day of June, 1993.

ATTEST:	STONE EXPLORATION CORPORATION
/s/ Thomas A. Stone	By	/s/ James H. Stone
Thomas A. Stone Secretary		James H. Stone             President

-2-

STATE OF DELAWARE

SECRETARY OF STATE

DIVISION OF CORPORATIONS

FILED 02:59 PM 02/01/2001

010053852—2329102

CERTIFICATE OF AMENDMENT OF THE CERTIFICATE

OF INCORPORATION OF STONE ENERGY

CORPORATION

Stone Energy Corporation (the “Company”), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, does hereby certify, in accordance with Section 242 of the Delaware General Corporation Law:

FIRST: That the Board of Directors of the Company duly adopted resolutions setting forth a proposed amendment of the Certificate of Incorporation of the Company, which Certificate of Incorporation was filed with the Secretary of State of Delaware on March 15, 1993, as amended by a Certificate of Amendment filed with the Secretary of State of Delaware on June 4, 1993, approving said amendment, declaring it to be advisable and recommending said amendment to the stockholders of the Company for approval thereof. The resolutions setting forth the proposed amendment are as follows:

RESOLVED, that this Board of Directors hereby determines that it is desirable and in the best interests of the Company and its stockholders to amend the Company’s Certificate of Incorporation, as amended, to increase the number of shares of authorized Common Stock (the “Certificate Amendment”):

RESOLVED, that, pursuant to Section 242 of the Delaware General Corporation Law (the “DGCL”), and authority granted to and vested in the Board of Directors by the provisions of the Company’s Certificate of Incorporation, as amended, the Board of Directors hereby approves the following proposed amendment to the Company’s Certificate of Incorporation, as amended, and directs that such amendment be submitted to the stockholders of the Company for approval at the Special Meeting provided for in these resolutions in the form set forth below:

“Resolved, that the first sentence of Article FOURTH of the Company’s Certificate of Incorporation, as amended, be, and it hereby is, amended to read as follows:

FOURTH: The total number of shares of capital stock of the corporation shall be 105.000,000, which shall consist of 5,000,000 shares of Preferred Stock, par value of $.01 per share, and 100,000,000 shares of Common Stock, par value of $.01 per share. “

RESOLVED, that, if the stockholders shall have voted for the Certificate Amendment, the Authorized Officers of the Company be, and each of them hereby is, authorized and directed, in the name and on behalf of the Company, to prepare, execute and file with the Secretary of State of the State of Delaware a certificate of amendment to the Certificate of Incorporation, as amended, in such form with such changes therein as the officers executing the same shall approve, the signature of such officers of the Company thereon to be conclusive evidence of the approval of such changes.

SECOND: That at a special meeting of stockholders held on February 1, 2001, the foregoing amendment was duly approved by more than a majority of the outstanding shares of Common Stock of the Company entitled to vote thereon, all in accordance with Section 242 of the Delaware General Corporation Law.

IN WITNESS WHEREOF, the Company has caused this certificate to be signed by D. Peter Canty, its President and Chief Executive Officer, and attested by Andrew L. Gates, III, its Secretary, this 1 st day of February. 2001.

ATTEST:	STONE ENERGY CORPORATION
/s/ Andrew L. Gates	By:	/s/ D. Peter Canty
Andrew L. Gates, III Secretary		D. Peter Canty             President and Chief Executive             Officer

STATE OF DELAWARE

SECRETARY OF STATE

DIVISION OF CORPORATIONS

FILED 12:00 PM 02/19/2002

02010 7226—2329102

CERTIFICATE OF OWNERSHIP AND MERGER

OF

CONOCO OFFSHORE INC.

(a Delaware corporation)

WITH AND INTO

STONE ENERGY CORPORATION

(a Delaware corporation)

It is hereby certified that:

1. Stone Energy Corporation (the “Corporation”) is a business corporation of the State of Delaware.

2. The Corporation is the owner of all of the outstanding shares of the stock of Conoco Offshore Inc. which is also a business corporation of the State of Delaware.

3. The Corporation hereby merges Conoco Offshore Inc. into the Corporation.

4. On February 15,2002, the Board of Directors of the Corporation adopted the following resolutions to merge Conoco Offshore Inc. into the Corporation:

RESOLVED that the Board of Directors finds it advisable and in the best interest of the Corporation that Conoco Offshore Inc. be merged into this Corporation, and that the merger contemplated therein of Conoco Offshore Inc. with and into the Corporation be, and hereby is, in all respects approved; and further

RESOLVED that Conoco Offshore Inc. be merged into this Corporation, and that all of the estate, property, rights, privileges, powers and franchises of Conoco Offshore Inc. be vested in and held and enjoyed by this Corporation as fully and entirely and without change or diminution as the same were before held and enjoyed by Conoco Offshore Inc. in its name; and further

RESOLVED that this Corporation shall assume all of the obligations of Conoco Offshore Inc.; and further

RESOLVED that this Corporation shall cause to be executed and filed and/or recorded the documents prescribed by the laws of the State of Delaware and by the laws of any other appropriate jurisdiction and will cause to be performed all necessary acts within the State of Delaware and within any other appropriate jurisdiction to effect the above resolutions.

Executed on: February 15, 2002

STONE ENERGY CORPORATION
By:	/s/ D. Pete Canty
Name:	D. Pete Canty
Title:	President and Chief Executive Officer

CERTIFICATE OF AMENDMENT

TO

CERTIFICATE OF INCORPORATION

OF

STONE ENERGY CORPORATION

Stone Energy Corporation (the “Company”), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, does hereby certify, in accordance with Section 242 of the Delaware General Corporation Law:

FIRST: That the Board of Directors of the Company duly adopted resolutions setting forth a proposed amendment of the Certificate of Incorporation of the Company, which Certificate of Incorporation was filed with the Secretary of the State of Delaware on March 15, 1993, as amended by a Certificate of Amendment filed with the Secretary of the State of Delaware on June 4, 1993, as further amended by a Certificate of Amendment filed with the Secretary of the State of Delaware on February 1, 2001, approving said amendment, declaring it to be advisable and recommending said amendment to the stockholders of the Company for approval thereof. The resolutions setting forth the proposed amendment are as follows:

RESOLVED, that this Board of Directors hereby determines that it is desirable and in the best interests of the Company and its stockholders to amend the Company’s Certificate of Incorporation, as amended, to increase the number of shares of authorized Common Stock (the “Certificate of Amendment”):

RESOLVED, that, pursuant to Section 242 of the Delaware General Corporation Law (the “DGCL”), and authority granted to and vested in the Board of Directors by the provisions of the Company’s Certificate of Incorporation, as amended, the Board of Directors hereby approves the following proposed amendment to the Company’s Certificate of Incorporation, as amended, and directs that such amendment be submitted to the stockholders of the Company for approval at the 2015 Annual Meeting of the Stockholders of the Company:

The first sentence of Article FOURTH of the Company’s Certificate of Incorporation, as amended, be, and it hereby is, amended to read as follows:

“FOURTH: The total number of shares of capital stock of the corporation shall be 155,000,000, which shall consist of 5,000,000 shares of Preferred Stock, par value of $.01 per share, and 150,000,000 shares of Common Stock, par value of $.01 per share.”

RESOLVED, that, if the stockholders shall have voted for the Certificate of Amendment in the form set forth herein above, the officers of the Company be, and each of them hereby is, authorized and directed, in the name and on behalf of the Company, to prepare, execute and file with the Secretary of State of the State of Delaware the Certificate of Amendment to the Certificate of Incorporation, as amended, in such form with such changes therein as the officers executing the same shall approve, the signature of such officers of the Company thereon to be conclusive evidence of the approval of such changes.

SECOND: That at the annual meeting of the stockholders held on May 21, 2015, the foregoing amendment was duly approved by more than a majority of the outstanding shares of Common Stock of the Company entitled to vote thereon, in accordance with Section 242 of the Delaware General Corporation Law.

IN WITNESS WHEREOF, the Company has caused this Certificate of Amendment to be executed by its duly authorized officer on this 21^st day of May, 2015.

STONE ENERGY CORPORATION
By:	/s/ Lisa S. Jaubert
		Lisa S. Jaubert
		Senior Vice President, General Counsel and Secretary

EX-10.1

Exhibit 10.1

Execution Version

AMENDMENT NO. 1 TO CREDIT AGREEMENT

This Amendment No. 1 to Credit Agreement dated as of May 1, 2015 (this “Agreement”) is among Stone Energy Corporation, a Delaware corporation (the “Borrower”), Stone Energy Offshore, LLC, a Delaware limited liability company (“Offshore”), SEO A L.L.C., a Delaware limited liability company (“SEO A”), SEO B LLC, a Delaware limited liability company (“SEO B” and, together with Offshore and SEO A, each a “Guarantor” and, collectively, the “Guarantors”), the financial institutions party to the Credit Agreement described below as Banks (the “Banks”), and Bank of America, N.A., as Agent for the Banks (the “Agent”) and as Issuing Bank (the “Issuing Bank”).

INTRODUCTION

A. The Borrower, the Banks, the Issuing Bank, and the Agent have entered into the Fourth Amended and Restated Credit Agreement dated as of June 24, 2014 (as amended, restated, amended and restated or otherwise modified, the “Credit Agreement”).

B. The Borrower wishes to amend, and the Majority Banks have agreed to amend, the Credit Agreement on the terms and subject to the conditions set forth below.

C. The Guarantors are parties to that certain Second Amended and Restated Guaranty dated as of June 24, 2014 (as amended, restated, amended and restated or otherwise modified, the “Guaranty”).

D. Each Guarantor wishes to reaffirm its guarantee of the Obligations as amended by this Agreement.

THEREFORE, in fulfillment of the foregoing, the Borrower, each Guarantor, the Agent, the Issuing Bank, and the Banks hereby agree as follows:

Section 1. Definitions; References. Unless otherwise defined in this Agreement, each term used in this Agreement which is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement.

Section 2. Amendments. Upon the satisfaction of the conditions specified in Section 6 of this Agreement, and, unless otherwise specified, effective as of the date set forth above, the Credit Agreement is amended as follows:

(a) Section 6.1(q) of the Credit Agreement is amended to replace the number “$5,000,000” with the number “$25,000,000”.

Section 3. Reaffirmation of Liens.

(a) Each of the Borrower and each Guarantor (i) is party to certain Security Documents securing and supporting the Borrower’s and Guarantors’ obligations under the Credit Documents, (ii) represents and warrants that it has no defenses to the enforcement of the Security Documents and that according to their terms the Security Documents will continue in full force

and effect to secure the Borrower’s and Guarantors’ obligations under the Credit Documents, as the same may be amended, supplemented, or otherwise modified, and (iii) acknowledges, represents, and warrants that the liens and security interests created by the Security Documents are valid and subsisting and create an Acceptable Security Interest in the Collateral to secure the Borrower’s and Guarantors’ obligations under the Credit Documents, as the same may be amended, supplemented, or otherwise modified.

(b) The delivery of this Agreement does not indicate or establish a requirement that any Guaranty or Security Document requires the Borrower’s or any Guarantors’ approval of amendments to the Credit Agreement.

Section 4. Representations and Warranties. Each of the Borrower and each Guarantor represents and warrants to the Agent and the Banks that:

(a) the representations and warranties set forth in the Credit Agreement and in the other Credit Documents are true and correct in all material respects as of the date of this Agreement (except to the extent such representations and warranties relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date); provided that such materiality qualifier shall not apply if such representation or warranty is already subject to a materiality qualifier in the Credit Agreement or such other Credit Document;

(b) (i) the execution, delivery, and performance of this Agreement are within the corporate or limited liability company power, as appropriate, and authority of the Borrower and each Guarantor and have been duly authorized by appropriate proceedings and (ii) this Agreement constitutes a legal, valid, and binding obligation of the Borrower and each Guarantor, enforceable against the Borrower and each Guarantor in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and general principles of equity; and

(c) as of the effectiveness of this Agreement and after giving effect thereto, no Default or Event of Default has occurred and is continuing.

Section 5. Reaffirmation of Guaranty. Each Guarantor hereby ratifies, confirms, and acknowledges that its obligations under the Guaranty are in full force and effect and that such Guarantor continues to unconditionally and irrevocably guarantee the full and punctual payment, when due, whether at stated maturity or earlier by acceleration or otherwise, of all of the Obligations (subject to the terms of the Guaranty), as such Obligations may have been amended by this Agreement. Each Guarantor hereby acknowledges that its execution and delivery of this Agreement do not indicate or establish an approval or consent requirement by any Guarantor under the Guaranty in connection with the execution and delivery of amendments, modifications or waivers to the Credit Agreement, the Notes or any of the other Credit Documents.

Section 6. Effectiveness. This Agreement shall become effective as of the date hereof, and the Credit Agreement shall be amended as provided herein, upon the occurrence of all of the following: (a) the Majority Banks’, the Borrower’s, and the Guarantors’ duly and validly executing originals of this Agreement and delivery thereof to the Agent; (b) the

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representations and warranties in this Agreement being true and correct in all material respects before and after giving effect to this Agreement; and (c) the Borrower’s having paid all costs, expenses, and fees which have been invoiced and are payable pursuant to Section 9.4 of the Credit Agreement or any other written agreement.

Section 7. Effect on Credit Documents. Except as amended herein, the Credit Agreement and the Credit Documents remain in full force and effect as originally executed, and nothing herein shall act as a waiver of any of the Agent’s or Banks’ rights under the Credit Documents, as amended. This Agreement is a Credit Document for the purposes of the provisions of the other Credit Documents. Without limiting the foregoing, any breach of representations, warranties, and covenants under this Agreement may be a Default or Event of Default under other Credit Documents.

Section 8. Choice of Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York.

Section 9. Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original.

[The remainder of this page has been left blank intentionally.]

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THIS WRITTEN AGREEMENT AND THE CREDIT DOCUMENTS, AS DEFINED IN THE CREDIT AGREEMENT, REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

EXECUTED as of the date first set forth above.

BORROWER:
STONE ENERGY CORPORATION
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer
GUARANTORS:
STONE ENERGY OFFSHORE, L.L.C.
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

SEO A LLC
Through its sole member,
STONE ENERGY CORPORATION
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer
SEO B LLC
Through its sole member,
STONE ENERGY CORPORATION
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

AGENT AND ISSUING BANK:
BANK OF AMERICA, N.A., as Agent and Issuing Bank
By:	/s/ DeWayne D. Reese
Name:	DeWayne D. Reese
Title:	Assistant Vice President
BANKS:
BANK OF AMERICA, N.A.
By:	/s/ Ronald E. McKaig
Name:	Ronald E. McKaig
Title:	Managing Director

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

WELLS FARGO BANK, NATIONAL ASSOCIATION
By:	/s/ Betsy Jocher
Name:	Betsy Jocher
Title:	Director

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

NATIXIS, NEW YORK BRANCH
By:	/s/ Louis P. Laville, III
Name:	Louis P. Laville, III
Title:	Managing Director
By:	/s/ Stuart Murray
Name:	Stuart Murray
Title:	Managing Director

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

THE BANK OF NOVA SCOTIA
By:	/s/ Alan Dawson
Name:	Alan Dawson
Title:	Director

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

CAPITAL ONE, N.A.
By:	/s/ Christopher Kuna
Name:	Christopher Kuna
Title:	Vice President

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

TORONTO DOMINION (NEW YORK) LLC
By:	Marie Fernandes
Name:	Marie Fernandes
Title:	Authorized Signatory

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

BARCLAYS BANK PLC
By:	/s/ May Huang
Name:	May Huang
Title:	Assistant Vice President

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

REGIONS BANK
By:	/s/ William A. Philipp
Name:	William A. Philipp
Title:	Senior Vice President

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

U.S. BANK NATIONAL ASSOCIATION
By:	/s/ Brad Johann
Name:	Brad Johann
Title:	Vice President

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

WHITNEY BANK
By:	/s/ William Jochetz
Name:	William Jochetz
Title:	Vice President

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

IBERIABANK
By:	/s/ Moni Collins
Name:	Moni Collins
Title:	Senior Vice President

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

SUMITOMO MITSUI BANKING CORPORATION
By:	/s/ James D. Weinstein
Name:	James D. Weinstein
Title:	Managing Director

[SIGNATURE PAGE TO AMD NO. 1 TO 4^th A&R CREDIT AGREEMENT]

EX-10.2

Exhibit 10.2

FIRST SUPPLEMENTAL INDENTURE AND GUARANTEE

This First Supplemental Indenture and Guarantee, dated as of May 7, 2015 (this “Supplemental Indenture” or “Guarantee”), among SEO A LLC, a Delaware limited liability company, and SEO B LLC, a Delaware limited liability company (each a “New Guarantor” and, together, the “New Guarantors”), Stone Energy Corporation, a Delaware Corporation (together with its successors and assigns, the “Company”), Stone Energy Offshore, L.L.C. (the “Existing Guarantor”) and The Bank of New York Mellon Trust Company, N.A., as Trustee, under such Indenture.

WITNESSETH:

WHEREAS, the Company, the Existing Guarantor and the Trustee have heretofore executed and delivered an Indenture, dated as of March 6, 2012 (as amended, supplemented, waived or otherwise modified, the “Indenture”), providing for the issuance of $300,000,000 aggregate principal amount of 1 3/4% Senior Convertible Notes due 2017 of the Company (the “Notes”);

WHEREAS, Section 4.11 of the Indenture provides that the Company will cause any Subsidiary of the Company, other than a Subsidiary Guarantor, that guarantees any Indebtedness of the Company under the Credit Facility, to execute and deliver a Subsidiary Guarantee with respect to the Notes on the same terms and conditions as those set forth in the Indenture.

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee, the Company and the Subsidiary Guarantor are authorized to execute and deliver this Supplemental Indenture to amend the Indenture, without the consent of any Holder to add an additional Guarantor.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the New Guarantors, the Company, the Existing Guarantor and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

ARTICLE I

Definitions

SECTION 1.1 Defined Terms. As used in this Supplemental Indenture, capitalized terms defined in the Indenture or in the preamble or recitals thereto are used herein as therein defined. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

ARTICLE II

Agreement to be Bound; Guarantee

SECTION 2.1 Agreement to be Bound. Each New Guarantor hereby becomes a party to the Indenture as a Subsidiary Guarantor and as such shall have all of the rights and be subject to all of the obligations and agreements of a Subsidiary Guarantor under the Indenture, but subject to all limitations and release provisions therein. Each New Guarantor agrees to be bound by all of the provisions of the Indenture applicable to a Subsidiary Guarantor and to perform all of the obligations and agreements of a Subsidiary Guarantor under the Indenture.

ARTICLE III

Miscellaneous

SECTION 3.1 Governing Law. This Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York.

SECTION 3.2 Severability Clause. In case any provision in this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability.

SECTION 3.3 Ratification of Indenture; Supplemental Indentures Part of Indenture; No Liability of Trustee. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of a Note heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture or the New Guarantors’ Subsidiary Guarantee. Additionally, the Trustee shall not be responsible in any manner whatsoever for or with respect to any of the recitals or statements contained herein, all of which recitals or statements are made solely by the Company, the New Guarantors and the Existing Guarantor, and the Trustee makes no representation with respect to any such matters.

SECTION 3.4 Counterparts. The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.

SECTION 3.5 Headings. The headings of the Articles and the sections in this Supplemental Indenture are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

[Signatures on following page]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

STONE ENERGY CORPORATION
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer
STONE ENERGY OFFSHORE, L.L.C.
Through its sole member,
STONE ENERGY CORPORATION
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer

Signature Page to First Supplemental Indenture and Guarantee

SEO A LLC, as a Subsidiary Guarantor,
Through its sole member,
STONE ENERGY CORPORATION
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer
SEO B LLC, as a Subsidiary Guarantor,
Through its sole member,
STONE ENERGY CORPORATION
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer

Signature Page to First Supplemental Indenture and Guarantee

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee
By:	/s/ Jonathan Glover
Name:	Jonathan Glover
Title:	Vice President

Signature Page to First Supplemental Indenture and Guarantee

EX-10.3

Exhibit 10.3

FOURTH SUPPLEMENTAL INDENTURE

FOURTH SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of May 7, 2015, among SEO A LLC, a Delaware limited liability company, and SEO B LLC, a Delaware limited liability company (each a “New Subsidiary Guarantor” and, together, the “New Subsidiary Guarantors”), each a subsidiary of Stone Energy Corporation, a Delaware corporation (the “Company”), the Company, the existing Subsidiary Guarantor (as defined in the Indenture referred to herein) and The Bank of New York Mellon Trust Company, N.A., as trustee under the Indenture referred to herein (the “Trustee”). The New Subsidiary Guarantors and the existing Subsidiary Guarantor are sometimes referred to collectively herein as the “Subsidiary Guarantors”, or individually as a “Subsidiary Guarantor.”

W I T N E S S E T H

WHEREAS, the Company and the existing Subsidiary Guarantor have heretofore executed and delivered to the Trustee an indenture, dated as of January 26, 2010, and a Second Supplemental Indenture (herein so called), dated as of November 8, 2012, relating to the 7.500% Senior Notes due 2022 (the “Securities”) of the Company;

WHEREAS, Section 1117 of the Second Supplemental Indenture obligates the Company to cause certain Restricted Subsidiaries to become Subsidiary Guarantors by executing a supplemental indenture as provided in such Section; and

WHEREAS, pursuant to Section 1001 of the Second Supplemental Indenture, the Company, the Subsidiary Guarantors and the Trustee are authorized to execute and deliver this Supplemental Indenture to amend or supplement the Indenture without the consent of any Holder;

NOW THEREFORE, to comply with the provisions of the Second Supplemental Indenture and in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the New Subsidiary Guarantors, the existing Subsidiary Guarantor, the Company and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Securities as follows:

1. CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Second Supplemental Indenture.

2. AGREEMENT TO GUARANTEE. Each New Subsidiary Guarantor hereby agrees, jointly and severally, with all other Subsidiary Guarantors, to fully and unconditionally Guarantee to each Holder and to the Trustee the Obligations, to the extent set forth in Article Sixteen of the Second Supplemental Indenture and subject to the provisions thereof. The obligations of the Subsidiary Guarantors to the Holders of Securities and to the Trustee pursuant to the Subsidiary Guarantees and the Indenture are expressly set forth in Article Sixteen of the Second Supplemental Indenture and reference is hereby made to such Article for the precise terms of the Subsidiary Guarantees.

3. NEW YORK LAW TO GOVERN. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE AND ENFORCE THIS SUPPLEMENTAL INDENTURE.

4. COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument.

5. EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof.

6. RECITALS AND THE EFFECT OF THIS SUPPLEMENTAL INDENTURE. The recitals contained herein shall be taken as statements of the New Subsidiary Guarantors, the Company and the existing Subsidiary Guarantor, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture. Except as specifically supplemented above, the Indenture, the Notes, and the Subsidiary Guarantees are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.

7. THE TRUSTEE. Except as otherwise expressly provided herein, no duties, responsibilities or liabilities are assumed, or shall be construed to be assumed, by the Trustee by reason of this Supplemental Indenture. This Supplemental Indenture is executed and accepted by the Trustee subject to all the terms and conditions set forth in the Indenture with the same force and effect as if those terms and conditions were repeated at length herein and made applicable to the Trustee with respect hereto.

[Signature Page Follows.]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.

STONE ENERGY CORPORATION
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer
STONE ENERGY OFFSHORE, L.L.C.
Through its sole member,
STONE ENERGY CORPORATION
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer

Signature Page to Fourth Supplemental Indenture

SEO A LLC, as a Subsidiary Guarantor,
Through its sole member,
STONE ENERGY CORPORATION
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer
SEO B LLC, as a Subsidiary Guarantor,
Through its sole member,
STONE ENERGY CORPORATION
By:	/s/ David H. Welch
Name:	David H. Welch
Title:	Chairman, President and Chief Executive Officer
By:	/s/ Kenneth H. Beer
Name:	Kenneth H. Beer
Title:	Executive Vice President and Chief Financial Officer

Signature Page to Fourth Supplemental Indenture

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee
By:	/s/ Jonathan Glover
Name:	Jonathan Glover
Title:	Vice President

Signature Page to Fourth Supplemental Indenture

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, David H. Welch, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Stone Energy Corporation (“registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ David H. Welch
August 6, 2015	David H. Welch
	President, Chief Executive Officer and Chairman of the Board

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Kenneth H. Beer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Stone Energy Corporation (“registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ Kenneth H. Beer
August 6, 2015	Kenneth H. Beer
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. § 1350 and in connection with the accompanying Quarterly Report on Form 10-Q of Stone Energy Corporation (the “Company”) for the quarterly period ended June 30, 2015 that is being filed concurrently with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company hereby certifies, to the best of his knowledge, that:

(i.) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii.) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 6, 2015

/s/ David H. Welch

David H. Welch

President, Chief Executive Officer

and Chairman of the Board

/s/ Kenneth H. Beer

Kenneth H. Beer

Executive Vice President and Chief Financial Officer

XML

Divestitures - Additional Information (Detail) $ in Millions	1 Months Ended
	Jul. 31, 2014 USD ($)
GOM Conventional Shelf [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration received on sale of interest	$ 177.6

XML

Guarantor Financial Statements - Condensed Consolidating Statement of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating revenue:
Oil production	$ 111,585	$ 142,393	$ 219,092	$ 280,682
Natural gas production	26,907	46,667	55,244	103,029
Natural gas liquids production	11,033	15,936	23,399	43,906
Other operational income		2,050	1,792	3,047
Derivative income, net			2,427
Total operating revenue	149,525	207,046	301,954	430,664
Operating expenses:
Lease operating expenses	27,429	49,454	55,006	96,357
Transportation, processing and gathering expenses	19,940	14,098	37,643	28,724
Production taxes	1,827	3,257	4,342	6,319
Depreciation, depletion, amortization	77,951	92,835	164,373	175,481
Write-down of oil and gas properties	224,294		715,706
Accretion expense	6,408	7,733	12,817	15,288
Salaries, general and administrative	16,418	16,637	33,425	32,966
Incentive compensation expense	1,264	3,903	2,827	7,037
Other operational expense	1,454		1,170	212
Derivative expense, net	701	2,516		3,115
Total operating expenses	377,686	190,433	1,027,309	365,499
Income (loss) from operations	(228,161)	16,613	(725,355)	65,165
Other (income) expenses:
Interest expense	10,472	9,913	20,837	18,270
Interest income	(66)	(193)	(188)	(336)
Other income	(613)	(722)	(756)	(1,429)
Other expense		179		179
Total other (income) expenses	9,793	9,177	19,893	16,684
Income (loss) before taxes	(237,954)	7,436	(745,248)	48,481
Provision (benefit) for income taxes:
Deferred	(85,048)	2,992	(264,954)	18,094
Total income taxes	(85,048)	2,992	(264,954)	18,094
Net income (loss)	(152,906)	4,444	(480,294)	30,387
Comprehensive income (loss)	(183,062)	(4,566)	(522,953)	14,288
Parent [Member]
Operating revenue:
Oil production	6,504	5,854	10,854	12,490
Natural gas production	15,647	20,800	32,264	49,639
Natural gas liquids production	8,077	10,219	17,956	28,473
Other operational income		1,880	1,792	2,704
Total operating revenue	30,228	38,753	62,866	93,306
Operating expenses:
Lease operating expenses	5,111	5,046	10,087	9,059
Transportation, processing and gathering expenses	17,974	10,456	34,082	20,773
Production taxes	1,436	1,903	3,634	3,584
Depreciation, depletion, amortization	44,052	30,385	86,164	58,440
Write-down of oil and gas properties	179,125		670,537
Accretion expense	91	61	182	129
Salaries, general and administrative	16,398	16,639	33,399	32,964
Incentive compensation expense	1,264	3,903	2,827	7,037
Other operational expense	1,454		1,170	176
Total operating expenses	266,905	68,393	842,082	132,162
Income (loss) from operations	(236,677)	(29,640)	(779,216)	(38,856)
Other (income) expenses:
Interest expense	10,472	9,880	20,816	18,233
Interest income	(46)	(146)	(147)	(225)
Other income	(187)	(192)	(320)	(373)
Other expense		179		179
(Income) loss from investment in subsidiaries	(16,147)	(29,947)	(45,174)	(67,292)
Total other (income) expenses	(5,908)	(20,226)	(24,825)	(49,478)
Income (loss) before taxes	(230,769)	(9,414)	(754,391)	10,622
Provision (benefit) for income taxes:
Deferred	(77,863)	(13,858)	(274,097)	(19,765)
Total income taxes	(77,863)	(13,858)	(274,097)	(19,765)
Net income (loss)	(152,906)	4,444	(480,294)	30,387
Comprehensive income (loss)	(183,062)	(4,566)	(522,953)	14,288
Guarantor Subsidiaries [Member]
Operating revenue:
Oil production	105,081	136,539	208,238	268,192
Natural gas production	11,260	25,867	22,980	53,390
Natural gas liquids production	2,956	5,717	5,443	15,433
Other operational income		170		343
Derivative income, net			2,427
Total operating revenue	119,297	168,293	239,088	337,358
Operating expenses:
Lease operating expenses	22,318	44,408	44,919	87,298
Transportation, processing and gathering expenses	1,966	3,642	3,561	7,951
Production taxes	391	1,354	708	2,735
Depreciation, depletion, amortization	33,899	62,450	78,209	117,041
Accretion expense	6,317	7,672	12,635	15,159
Salaries, general and administrative			1	2
Other operational expense				36
Derivative expense, net	701	2,516		3,115
Total operating expenses	65,592	122,042	140,033	233,337
Income (loss) from operations	53,705	46,251	99,055	104,021
Other (income) expenses:
Interest expense		33	21	37
Interest income	(19)	(41)	(35)	(99)
Other income	(423)	(530)	(433)	(1,056)
Total other (income) expenses	(442)	(538)	(447)	(1,118)
Income (loss) before taxes	54,147	46,789	99,502	105,139
Provision (benefit) for income taxes:
Deferred	9,082	16,850	25,410	37,859
Total income taxes	9,082	16,850	25,410	37,859
Net income (loss)	45,065	29,939	74,092	67,280
Comprehensive income (loss)	45,065	29,939	74,092	67,280
Non-Guarantor Subsidiaries [Member]
Operating expenses:
Write-down of oil and gas properties	45,169		45,169
Salaries, general and administrative	20	(2)	25
Total operating expenses	45,189	(2)	45,194
Income (loss) from operations	(45,189)	2	(45,194)
Other (income) expenses:
Interest income	(1)	(6)	(6)	(12)
Other income	(3)		(3)
(Income) loss from investment in subsidiaries	28,918	(8)	28,918	(12)
Total other (income) expenses	28,914	(14)	28,909	(24)
Income (loss) before taxes	(74,103)	16	(74,103)	24
Provision (benefit) for income taxes:
Deferred	(16,267)		(16,267)
Total income taxes	(16,267)		(16,267)
Net income (loss)	(57,836)	16	(57,836)	24
Comprehensive income (loss)	(57,836)	16	(57,836)	24
Eliminations [Member]
Other (income) expenses:
(Income) loss from investment in subsidiaries	(12,771)	29,955	16,256	67,304
Total other (income) expenses	(12,771)	29,955	16,256	67,304
Income (loss) before taxes	12,771	(29,955)	(16,256)	(67,304)
Provision (benefit) for income taxes:
Net income (loss)	12,771	(29,955)	(16,256)	(67,304)
Comprehensive income (loss)	$ 12,771	$ (29,955)	$ (16,256)	$ (67,304)

XML

Derivative Instruments and Hedging Activities - Location and Fair Value Amounts of Derivative Instruments Not Qualifying as Hedging Instruments Reported in Balance Sheet (Detail) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Commodity Contracts [Member] | Current Assets [Member]
Asset Derivatives
Fair Value of Derivative Instruments	$ 6.8	$ 12.1

XML

Guarantor Financial Statements (Tables)

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	116,427		$	25,034		$	194		$	—		$	141,655
Accounts receivable		38,735			243,846			31			(213,906	)		68,706
Fair value of derivative contracts		—			74,319			—			—			74,319
Current income tax receivable		6			—			—			—			6
Inventory		3,426			283			—			—			3,709
Other current assets		10,007			—			69			—			10,076
Total current assets		168,601			343,482			294			(213,906	)		298,471
Oil and gas properties, full cost method:
Proved		1,778,480			7,251,498			44,447			—			9,074,425
Less: accumulated DD&A		(1,724,404	)		(6,077,492	)		(44,447	)		—			(7,846,343	)
Net proved oil and gas properties		54,076			1,174,006			—			—			1,228,082
Unevaluated		300,360			227,067			2,162			—			529,589
Other property and equipment, net		30,736			—			—			—			30,736
Fair value of derivative contracts		—			8,231			—			—			8,231
Deferred taxes *		—			—			16,266			(16,266	)		—
Other assets, net		25,149			1,385			1,548			—			28,082
Investment in subsidiary		1,057,810			—			20,083			(1,077,893	)		—
Total assets	$	1,636,732		$	1,754,171		$	40,353		($	1,308,065	)	$	2,123,191
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	56,763		$	216,834		$	9,732		($	213,906	)	$	69,423
Undistributed oil and gas proceeds		16,093			907			—			—			17,000
Accrued interest		9,027			—			—			—			9,027
Deferred taxes *		298			6,767			—			—			7,065
Asset retirement obligations		—			56,176			—			—			56,176
Other current liabilities		46,724			56			—			—			46,780
Total current liabilities		128,905			280,740			9,732			(213,906	)		205,471
Long-term debt		1,048,406			—			—			—			1,048,406
Deferred taxes *		(161,285	)		189,303			—			(16,266	)		11,752
Asset retirement obligations		3,757			236,856			—			—			240,613
Other long-term liabilities		32,213			—			—			—			32,213
Total liabilities		1,051,996			706,899			9,732			(230,172	)		1,538,455
Commitments and contingencies
Stockholders’ equity:
Common stock		553			—			—			—			553
Treasury stock		(860	)		—			—			—			(860	)
Additional paid-in capital		1,639,389			1,367,434			100,023			(1,467,457	)		1,639,389
Accumulated deficit		(1,095,002	)		(366,607	)		(57,824	)		424,431			(1,095,002	)
Accumulated other comprehensive income (loss)		40,656			46,445			(11,578	)		(34,867	)		40,656
Total stockholders’ equity		584,736			1,047,272			30,621			(1,077,893	)		584,736
Total liabilities and stockholders’ equity	$	1,636,732		$	1,754,171		$	40,353		($	1,308,065	)	$	2,123,191

* Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	72,886		$	1,450		$	152		$	—		$	74,488
Restricted cash		177,647			—			—			—			177,647
Accounts receivable		73,711			46,615			33			—			120,359
Fair value of derivative contracts		—			139,179			—			—			139,179
Current income tax receivable		7,212			—			—			—			7,212
Deferred taxes *		4,095			—			—			(4,095	)		—
Inventory		1,011			2,698			—			—			3,709
Other current assets		8,112			—			6			—			8,118
Total current assets		344,674			189,942			191			(4,095	)		530,712
Oil and gas properties, full cost method:
Proved		1,689,802			7,127,466			—			—			8,817,268
Less: accumulated DD&A		(970,387	)		(6,000,244	)		—			—			(6,970,631	)
Net proved oil and gas properties		719,415			1,127,222			—			—			1,846,637
Unevaluated		289,556			241,230			36,579			—			567,365
Other property and equipment, net		32,340			—			—			—			32,340
Fair value of derivative contracts		—			14,333			—			—			14,333
Other assets, net		20,857			1,360			5,007			—			27,224
Investment in subsidiary		1,050,546			—			41,638			(1,092,184	)		—
Total assets	$	2,457,388		$	1,574,087		$	83,415		($	1,096,279	)	$	3,018,611
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	74,756		$	57,873		$	—		$	—		$	132,629
Undistributed oil and gas proceeds		22,158			1,074			—			—			23,232
Accrued interest		9,022			—			—			—			9,022
Deferred taxes *		—			24,214			—			(4,095	)		20,119
Asset retirement obligations		—			69,400			—			—			69,400
Other current liabilities		49,306			199			—			—			49,505
Total current liabilities		155,242			152,760			—			(4,095	)		303,907
Long-term debt		1,041,035			—			—			—			1,041,035
Deferred taxes *		117,206			169,137			—			—			286,343
Asset retirement obligations		3,588			243,421			—			—			247,009
Other long-term liabilities		38,714			—			—			—			38,714
Total liabilities		1,355,785			565,318			—			(4,095	)		1,917,008
Commitments and contingencies
Stockholders’ equity:
Common stock		549			—			—			—			549
Treasury stock		(860	)		—			—			—			(860	)
Additional paid-in capital		1,633,307			1,362,684			90,339			(1,453,023	)		1,633,307
Accumulated earnings (deficit)		(614,708	)		(440,699	)		12			440,687			(614,708	)
Accumulated other comprehensive income (loss)		83,315			86,784			(6,936	)		(79,848	)		83,315
Total stockholders’ equity		1,101,603			1,008,769			83,415			(1,092,184	)		1,101,603
Total liabilities and stockholders’ equity	$	2,457,388		$	1,574,087		$	83,415		($	1,096,279	)	$	3,018,611

* Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside.

Condensed Consolidating Statement of Operations

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	6,504		$	105,081		$	—		$	—		$	111,585
Natural gas production		15,647			11,260			—			—			26,907
Natural gas liquids production		8,077			2,956			—			—			11,033
Total operating revenue		30,228			119,297			—			—			149,525
Operating expenses:
Lease operating expenses		5,111			22,318			—			—			27,429
Transportation, processing and gathering expenses		17,974			1,966			—			—			19,940
Production taxes		1,436			391			—			—			1,827
Depreciation, depletion, amortization		44,052			33,899			—			—			77,951
Write-down of oil and gas properties		179,125			—			45,169			—			224,294
Accretion expense		91			6,317			—			—			6,408
Salaries, general and administrative		16,398			—			20			—			16,418
Incentive compensation expense		1,264			—			—			—			1,264
Other operational expense		1,454			—			—			—			1,454
Derivative expense, net		—			701			—			—			701
Total operating expenses		266,905			65,592			45,189			—			377,686
Income (loss) from operations		(236,677	)		53,705			(45,189	)		—			(228,161	)
Other (income) expenses:
Interest expense		10,472			—			—			—			10,472
Interest income		(46	)		(19	)		(1	)		—			(66	)
Other income		(187	)		(423	)		(3	)		—			(613	)
(Income) loss from investment in subsidiaries		(16,147	)		—			28,918			(12,771	)		—
Total other (income) expenses		(5,908	)		(442	)		28,914			(12,771	)		9,793
Income (loss) before taxes		(230,769	)		54,147			(74,103	)		12,771			(237,954	)
Provision (benefit) for income taxes:
Deferred		(77,863	)		9,082			(16,267	)		—			(85,048	)
Total income taxes		(77,863	)		9,082			(16,267	)		—			(85,048	)
Net income (loss)	($	152,906	)	$	45,065		($	57,836	)	$	12,771		($	152,906	)
Comprehensive income (loss)	($	183,062	)	$	45,065		($	57,836	)	$	12,771		($	183,062	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	5,854		$	136,539		$	—		$	—		$	142,393
Natural gas production		20,800			25,867			—			—			46,667
Natural gas liquids production		10,219			5,717			—			—			15,936
Other operational income		1,880			170			—			—			2,050
Total operating revenue		38,753			168,293			—			—			207,046
Operating expenses:
Lease operating expenses		5,046			44,408			—			—			49,454
Transportation, processing and gathering expenses		10,456			3,642			—			—			14,098
Production taxes		1,903			1,354			—			—			3,257
Depreciation, depletion, amortization		30,385			62,450			—			—			92,835
Accretion expense		61			7,672			—			—			7,733
Salaries, general and administrative		16,639			—			(2	)		—			16,637
Incentive compensation expense		3,903			—			—			—			3,903
Derivative expense, net		—			2,516			—			—			2,516
Total operating expenses		68,393			122,042			(2	)		—			190,433
Income (loss) from operations		(29,640	)		46,251			2			—			16,613
Other (income) expenses:
Interest expense		9,880			33			—			—			9,913
Interest income		(146	)		(41	)		(6	)		—			(193	)
Other income		(192	)		(530	)		—			—			(722	)
Other expense		179			—			—			—			179
Income from investment in subsidiaries		(29,947	)		—			(8	)		29,955			—
Total other (income) expenses		(20,226	)		(538	)		(14	)		29,955			9,177
Income (loss) before taxes		(9,414	)		46,789			16			(29,955	)		7,436
Provision (benefit) for income taxes:
Deferred		(13,858	)		16,850			—			—			2,992
Total income taxes		(13,858	)		16,850			—			—			2,992
Net income	$	4,444		$	29,939		$	16		($	29,955	)	$	4,444
Comprehensive income (loss)	($	4,566	)	$	29,939		$	16		($	29,955	)	($	4,566	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	10,854		$	208,238		$	—		$	—		$	219,092
Natural gas production		32,264			22,980			—			—			55,244
Natural gas liquids production		17,956			5,443			—			—			23,399
Other operational income		1,792			—			—			—			1,792
Derivative income, net		—			2,427			—			—			2,427
Total operating revenue		62,866			239,088			—			—			301,954
Operating expenses:
Lease operating expenses		10,087			44,919			—			—			55,006
Transportation, processing and gathering expenses		34,082			3,561			—			—			37,643
Production taxes		3,634			708			—			—			4,342
Depreciation, depletion, amortization		86,164			78,209			—			—			164,373
Write-down of oil and gas properties		670,537			—			45,169			—			715,706
Accretion expense		182			12,635			—			—			12,817
Salaries, general and administrative		33,399			1			25			—			33,425
Incentive compensation expense		2,827			—			—			—			2,827
Other operational expense		1,170			—			—			—			1,170
Total operating expenses		842,082			140,033			45,194			—			1,027,309
Income (loss) from operations		(779,216	)		99,055			(45,194	)		—			(725,355	)
Other (income) expenses:
Interest expense		20,816			21			—			—			20,837
Interest income		(147	)		(35	)		(6	)		—			(188	)
Other income		(320	)		(433	)		(3	)		—			(756	)
(Income) loss from investment in subsidiaries		(45,174	)		—			28,918			16,256			—
Total other (income) expenses		(24,825	)		(447	)		28,909			16,256			19,893
Income (loss) before taxes		(754,391	)		99,502			(74,103	)		(16,256	)		(745,248	)
Provision (benefit) for income taxes:
Deferred		(274,097	)		25,410			(16,267	)		—			(264,954	)
Total income taxes		(274,097	)		25,410			(16,267	)		—			(264,954	)
Net income (loss)	($	480,294	)	$	74,092		($	57,836	)	($	16,256	)	($	480,294	)
Comprehensive income (loss)	($	522,953	)	$	74,092		($	57,836	)	($	16,256	)	($	522,953	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	12,490		$	268,192		$	—		$	—		$	280,682
Gas production		49,639			53,390			—			—			103,029
Natural gas liquids production		28,473			15,433			—			—			43,906
Other operational income		2,704			343			—			—			3,047
Total operating revenue		93,306			337,358			—			—			430,664
Operating expenses:
Lease operating expenses		9,059			87,298			—			—			96,357
Transportation, processing and gathering expenses		20,773			7,951			—			—			28,724
Production taxes		3,584			2,735			—			—			6,319
Depreciation, depletion, amortization		58,440			117,041			—			—			175,481
Accretion expense		129			15,159			—			—			15,288
Salaries, general and administrative		32,964			2			—			—			32,966
Incentive compensation expense		7,037			—			—			—			7,037
Other operational expenses		176			36			—			—			212
Derivative expense, net		—			3,115			—			—			3,115
Total operating expenses		132,162			233,337			—			—			365,499
Income (loss) from operations		(38,856	)		104,021			—			—			65,165
Other (income) expenses:
Interest expense		18,233			37			—			—			18,270
Interest income		(225	)		(99	)		(12	)		—			(336	)
Other income		(373	)		(1,056	)		—			—			(1,429	)
Other expense		179			—			—			—			179
Income from investment in subsidiaries		(67,292	)		—			(12	)		67,304			—
Total other (income) expenses		(49,478	)		(1,118	)		(24	)		67,304			16,684
Income before taxes		10,622			105,139			24			(67,304	)		48,481
Provision (benefit) for income taxes:
Deferred		(19,765	)		37,859			—			—			18,094
Total income taxes		(19,765	)		37,859			—			—			18,094
Net income	$	30,387		$	67,280		$	24		($	67,304	)	$	30,387
Comprehensive income	$	14,288		$	67,280		$	24		($	67,304	)	$	14,288

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	($	480,294	)	$	74,092		($	57,836	)	($	16,256	)	($	480,294	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		86,164			78,209			—			—			164,373
Write-down of oil and gas properties		670,537			—			45,169			—			715,706
Accretion expense		182			12,635			—			—			12,817
Deferred income tax (benefit) provision		(274,097	)		25,410			(16,267	)		—			(264,954	)
Settlement of asset retirement obligations		(14	)		(35,909	)		—			—			(35,923	)
Non-cash stock compensation expense		6,028			—			—			—			6,028
Non-cash derivative expense		—			7,931			—			—			7,931
Non-cash interest expense		8,737			—			—			—			8,737
Change in current income taxes		7,206			—			—			—			7,206
Non-cash (income) expense from investment in subsidiaries		(45,174	)		—			28,918			16,256			—
Change in intercompany receivables/payables		15,070			(24,802	)		9,732			—			—
Decrease in accounts receivable		16,968			6,079			—			—			23,047
Increase in other current assets		(1,895	)		—			(64	)		—			(1,959	)
(Increase) decrease in inventory		(2,415	)		2,415			—			—			—
Decrease in accounts payable		(500	)		(7,326	)		—			—			(7,826	)
Decrease in other current liabilities		(8,409	)		(311	)		—			—			(8,720	)
Other		(71	)		(433	)		—			—			(504	)
Net cash (used in) provided by operating activities		(1,977	)		137,990			9,652			—			145,665
Cash flows from investing activities:
Investment in oil and gas properties		(128,333	)		(124,506	)		(11,516	)		—			(264,355	)
Proceeds from sale of oil and gas properties, net of expenses		—			10,100			—			—			10,100
Investment in fixed and other assets		(727	)		—			—			—			(727	)
Change in restricted funds		177,647			—			1,828			—			179,475
Investment in subsidiaries		—			—			(9,684	)		9,684			—
Net cash provided by (used in) investing activities		48,587			(114,406	)		(19,372	)		9,684			(75,507	)
Cash flows from financing activities:
Proceeds from bank borrowings		5,000			—			—			—			5,000
Repayments of bank borrowings		(5,000	)		—			—			—			(5,000	)
Equity proceeds from parent		—			—			9,684			(9,684	)		—
Net payments for share-based compensation		(3,069	)		—			—			—			(3,069	)
Net cash (used in) provided by financing activities		(3,069	)		—			9,684			(9,684	)		(3,069	)
Effect of exchange rate changes on cash		—			—			78			—			78
Net change in cash and cash equivalents		43,541			23,584			42			—			67,167
Cash and cash equivalents, beginning of period		72,886			1,450			152			—			74,488
Cash and cash equivalents, end of period	$	116,427		$	25,034		$	194		$	—		$	141,655

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	30,387		$	67,280		$	24		($	67,304	)	$	30,387
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		58,440			117,041			—			—			175,481
Accretion expense		129			15,159			—			—			15,288
Deferred income tax (benefit) provision		(19,765	)		37,859			—			—			18,094
Settlement of asset retirement obligations		(82	)		(24,833	)		—			—			(24,915	)
Non-cash stock compensation expense		5,358			—			—			—			5,358
Non-cash derivative expense		—			2,697			—			—			2,697
Non-cash interest expense		8,229			—			—			—			8,229
Change in current income taxes		(6	)		—			—			—			(6	)
Non-cash income from investment in subsidiaries		(67,292	)		—			(12	)		67,304			—
Change in intercompany receivables/payables		(126,526	)		114,841			11,685			—			—
(Increase) decrease in accounts receivable		(42,216	)		16,692			—			—			(25,524	)
Increase in other current assets		(82	)		—			—			—			(82	)
Increase (decrease) in accounts payable		2,052			(209	)		—			—			1,843
Increase in other current liabilities		48,987			1,798			—			—			50,785
Other		381			(1,056	)		—			—			(675	)
Net cash (used in) provided by operating activities		(102,006	)		347,269			11,697			—			256,960
Cash flows from investing activities:
Investment in oil and gas properties		(121,836	)		(384,349	)		(11,719	)		—			(517,904	)
Proceeds from sale of oil and gas properties, net of expenses		9,777			42,178			—			—			51,955
Investment in fixed and other assets		(3,896	)		—			—			—			(3,896	)
Change in restricted funds		—			—			(356	)		—			(356	)
Investment in subsidiaries		—			—			(12,176	)		12,176			—
Net cash used in investing activities		(115,955	)		(342,171	)		(24,251	)		12,176			(470,201	)
Cash flows from financing activities:
Net proceeds from issuance of common stock		226,036			—			—			—			226,036
Deferred financing costs		(3,167	)		—			—			—			(3,167	)
Equity proceeds from parent		—			—			12,176			(12,176	)		—
Net payments for share-based compensation		(6,948	)		—			—			—			(6,948	)
Net cash provided by financing activities		215,921			—			12,176			(12,176	)		215,921
Effect of exchange rate on cash		—			—			(18	)		—			(18	)
Net change in cash and cash equivalents		(2,040	)		5,098			(396	)		—			2,662
Cash and cash equivalents, beginning of period		246,294			84,290			640			—			331,224
Cash and cash equivalents, end of period	$	244,254		$	89,388		$	244		$	—		$	333,886

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Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, net of tax	$ 70,800	$ (9,200)	$ 83,315	$ (2,100)
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives	(18,800)	(26,000)	4,100	(43,400)
Foreign currency translations	1,300	800	(2,300)	300
Income tax effect	6,900	9,400	(1,300)	15,700
Net of tax	(10,600)	(15,800)	500	(27,400)
Amounts reclassified from accumulated other comprehensive income:
Net of tax	19,500	(6,800)	43,100	(11,300)
Other comprehensive income (loss), net of tax	(30,100)	(9,000)	(42,600)	(16,100)
Ending balance, net of tax	40,656	(18,200)	40,656	(18,200)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production	30,400	(9,200)	67,200	(16,300)
Derivative expense, net		(1,500)		(1,500)
Income tax effect	(10,900)	3,900	(24,100)	6,500
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, net of tax	77,900	(8,000)	86,800	(1,400)
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives	(18,800)	(26,000)	4,100	(43,400)
Income tax effect	6,900	9,400	(1,300)	15,700
Net of tax	(11,900)	(16,600)	2,800	(27,700)
Amounts reclassified from accumulated other comprehensive income:
Net of tax	19,500	(6,800)	43,100	(11,300)
Other comprehensive income (loss), net of tax	(31,400)	(9,800)	(40,300)	(16,400)
Ending balance, net of tax	46,500	(17,800)	46,500	(17,800)
Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production	30,400	(9,200)	67,200	(16,300)
Derivative expense, net		(1,500)		(1,500)
Income tax effect	(10,900)	3,900	(24,100)	6,500
Foreign Currency Items [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, net of tax	(7,100)	(1,200)	(3,500)	(700)
Other comprehensive income (loss) before reclassifications:
Foreign currency translations	1,300	800	(2,300)	300
Net of tax	1,300	800	(2,300)	300
Amounts reclassified from accumulated other comprehensive income:
Other comprehensive income (loss), net of tax	1,300	800	(2,300)	300
Ending balance, net of tax	$ (5,800)	$ (400)	$ (5,800)	$ (400)

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Long-Term Debt - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) $ / shares	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) $ / shares shares	Jun. 30, 2014 USD ($)	Aug. 05, 2015 USD ($)	May. 01, 2015 USD ($)	Dec. 31, 2014 USD ($)	Jun. 24, 2014 USD ($)	Mar. 06, 2012 USD ($)
Debt Instrument [Line Items]
Liability component of convertible note	$ 1,048,406,000		$ 1,048,406,000				$ 1,041,035,000
Minimum [Member]
Debt Instrument [Line Items]
Percentage of borrowing base utilization			1.50%
Maximum [Member]
Debt Instrument [Line Items]
Percentage of borrowing base utilization			2.50%
Letter of Credit [Member]
Debt Instrument [Line Items]
Outstanding borrowing under bank credit facility	$ 19,200,000		$ 19,200,000
Subsequent Event [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Outstanding borrowing under bank credit facility					$ 19,200,000
1.75% Senior Convertible Notes due 2017 [Member]
Debt Instrument [Line Items]
Aggregate principal amount of Senior Subordinated Notes									$ 300,000,000
Initial conversion rate of convertible note 2017			An initial conversion rate of 23.4449 shares of our common stock per $1,000 principal amount of 2017 Convertible Notes,
Initial conversion rate of common stock			23.4449
Principal amount of 2017 convertible notes | $ / shares	$ 1,000		$ 1,000
Initial conversion price of convertible note 2017 | $ / shares			42.65
Closing share price | $ / shares	$ 12.59		$ 12.59
Payment for call option			$ 70,800,000
Anti-dilution adjustments for purchases of call option | shares			7,033,470
Strike price per share | $ / shares			$ 55.91
Proceeds from sale of warrants			$ 40,100,000
Liability component of convertible note	$ 273,400,000		273,400,000
Interest expense related to amortization of discount	3,700,000	$ 3,500,000	7,400,000	$ 6,800,000
Amortization of deferred financing costs	400,000	300,000	700,000	600,000
Interest expense related to contractual interest coupon of convertible notes	1,300,000	$ 1,300,000	$ 2,600,000	$ 2,600,000
Bank Debt [Member]
Debt Instrument [Line Items]
Credit facility initial date			Jun. 24, 2014
Redetermined base borrowing and credit facility								$ 900,000,000
Maturity of new credit facility if note issue under 2004 indenture are retired on or before April 15, 2014			Jul. 01, 2019
Initial bank and availability under facility	480,800,000		$ 480,800,000			$ 500,000,000
Outstanding borrowing under bank credit facility	$ 0		$ 0
Period in which outstanding amount has to be repaid to cure deficiency			10 days
Period in which bank has to add new properties to borrowing base and has to grant mortgage to banks			30 days
Oil and gas reserve as proportion of discounted present value of future net cash flow, for mortgage			80.00%
Bank Debt [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Initial bank and availability under facility					480,800,000
Outstanding borrowing under bank credit facility					$ 0

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Guarantor Financial Statements - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (152,906)	$ 4,444	$ (480,294)	$ 30,387
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	77,951	92,835	164,373	175,481
Write-down of oil and gas properties	224,294		715,706
Accretion expense	6,408	7,733	12,817	15,288
Deferred income tax (benefit) provision	(85,048)	2,992	(264,954)	18,094
Settlement of asset retirement obligations			(35,923)	(24,915)
Non-cash stock compensation expense			6,028	5,358
Non-cash derivative expense			7,931	2,697
Non-cash interest expense			8,737	8,229
Change in current income taxes			7,206	(6)
(Increase) decrease in accounts receivable			23,047	(25,524)
Increase in other current assets			(1,959)	(82)
Increase (decrease) in accounts payable			(7,826)	1,843
Increase (decrease) in other current liabilities			(8,720)	50,785
Other			(504)	(675)
Net cash (used in) provided by operating activities			145,665	256,960
Cash flows from investing activities:
Investment in oil and gas properties			(264,355)	(517,904)
Proceeds from sale of oil and gas properties, net of expenses			10,100	51,955
Investment in fixed and other assets			(727)	(3,896)
Change in restricted funds			179,475	(356)
Net cash provided by (used in) investing activities			(75,507)	(470,201)
Cash flows from financing activities:
Proceeds from bank borrowings			5,000
Net proceeds from issuance of common stock				226,036
Repayments of bank borrowings			(5,000)
Deferred financing costs				(3,167)
Net payments for share-based compensation			(3,069)	(6,948)
Net cash provided by (used in) financing activities			(3,069)	215,921
Effect of exchange rate changes on cash			78	(18)
Net change in cash and cash equivalents			67,167	2,662
Cash and cash equivalents, beginning of period			74,488	331,224
Cash and cash equivalents, end of period	141,655	333,886	141,655	333,886
Parent [Member]
Cash flows from operating activities:
Net income (loss)	(152,906)	4,444	(480,294)	30,387
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	44,052	30,385	86,164	58,440
Write-down of oil and gas properties	179,125		670,537
Accretion expense	91	61	182	129
Deferred income tax (benefit) provision	(77,863)	(13,858)	(274,097)	(19,765)
Settlement of asset retirement obligations			(14)	(82)
Non-cash stock compensation expense			6,028	5,358
Non-cash interest expense			8,737	8,229
Change in current income taxes			7,206	(6)
Non-cash (income) expense from investment in subsidiaries			(45,174)	(67,292)
Change in intercompany receivables/payables			15,070	(126,526)
(Increase) decrease in accounts receivable			16,968	(42,216)
Increase in other current assets			(1,895)	(82)
(Increase) decrease in inventory			(2,415)
Increase (decrease) in accounts payable			(500)	2,052
Increase (decrease) in other current liabilities			(8,409)	48,987
Other			(71)	381
Net cash (used in) provided by operating activities			(1,977)	(102,006)
Cash flows from investing activities:
Investment in oil and gas properties			(128,333)	(121,836)
Proceeds from sale of oil and gas properties, net of expenses				9,777
Investment in fixed and other assets			(727)	(3,896)
Change in restricted funds			177,647
Net cash provided by (used in) investing activities			48,587	(115,955)
Cash flows from financing activities:
Proceeds from bank borrowings			5,000
Net proceeds from issuance of common stock				226,036
Repayments of bank borrowings			(5,000)
Deferred financing costs				(3,167)
Net payments for share-based compensation			(3,069)	(6,948)
Net cash provided by (used in) financing activities			(3,069)	215,921
Net change in cash and cash equivalents			43,541	(2,040)
Cash and cash equivalents, beginning of period			72,886	246,294
Cash and cash equivalents, end of period	116,427	244,254	116,427	244,254
Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net income (loss)	45,065	29,939	74,092	67,280
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	33,899	62,450	78,209	117,041
Accretion expense	6,317	7,672	12,635	15,159
Deferred income tax (benefit) provision	9,082	16,850	25,410	37,859
Settlement of asset retirement obligations			(35,909)	(24,833)
Non-cash derivative expense			7,931	2,697
Change in intercompany receivables/payables			(24,802)	114,841
(Increase) decrease in accounts receivable			6,079	16,692
(Increase) decrease in inventory			2,415
Increase (decrease) in accounts payable			(7,326)	(209)
Increase (decrease) in other current liabilities			(311)	1,798
Other			(433)	(1,056)
Net cash (used in) provided by operating activities			137,990	347,269
Cash flows from investing activities:
Investment in oil and gas properties			(124,506)	(384,349)
Proceeds from sale of oil and gas properties, net of expenses			10,100	42,178
Net cash provided by (used in) investing activities			(114,406)	(342,171)
Cash flows from financing activities:
Net change in cash and cash equivalents			23,584	5,098
Cash and cash equivalents, beginning of period			1,450	84,290
Cash and cash equivalents, end of period	25,034	89,388	25,034	89,388
Non-Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net income (loss)	(57,836)	16	(57,836)	24
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Write-down of oil and gas properties	45,169		45,169
Deferred income tax (benefit) provision	(16,267)		(16,267)
Non-cash (income) expense from investment in subsidiaries			28,918	(12)
Change in intercompany receivables/payables			9,732	11,685
Increase in other current assets			(64)
Net cash (used in) provided by operating activities			9,652	11,697
Cash flows from investing activities:
Investment in oil and gas properties			(11,516)	(11,719)
Change in restricted funds			1,828	(356)
Investment in subsidiaries			(9,684)	(12,176)
Net cash provided by (used in) investing activities			(19,372)	(24,251)
Cash flows from financing activities:
Equity proceeds from parent			9,684	12,176
Net cash provided by (used in) financing activities			9,684	12,176
Effect of exchange rate changes on cash			78	(18)
Net change in cash and cash equivalents			42	(396)
Cash and cash equivalents, beginning of period			152	640
Cash and cash equivalents, end of period	194	244	194	244
Eliminations [Member]
Cash flows from operating activities:
Net income (loss)	$ 12,771	$ (29,955)	(16,256)	(67,304)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Non-cash (income) expense from investment in subsidiaries			16,256	67,304
Cash flows from investing activities:
Investment in subsidiaries			9,684	12,176
Net cash provided by (used in) investing activities			9,684	12,176
Cash flows from financing activities:
Equity proceeds from parent			(9,684)	(12,176)
Net cash provided by (used in) financing activities			$ (9,684)	$ (12,176)

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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Note 3 – Derivative Instruments and Hedging Activities

Our hedging strategy is designed to protect our near and intermediate term cash flows from future declines in oil and natural gas prices. This protection is essential to capital budget planning, which is sensitive to expenditures that must be committed to in advance, such as rig contracts and the purchase of tubular goods. We enter into derivative transactions to secure a commodity price for a portion of our expected future production that is acceptable at the time of the transaction. These derivatives are generally designated as cash flow hedges upon entering into the contracts. We do not enter into derivative transactions for trading purposes. We have no fair value hedges.

The nature of a derivative instrument must be evaluated to determine if it qualifies as a hedging instrument. If the instrument qualifies as a hedging instrument, it is recorded as either an asset or liability measured at fair value and subsequent changes in the derivative’s fair value are recognized in stockholders’ equity through other comprehensive income (loss), net of related taxes, to the extent the hedge is considered effective. Monthly settlements of effective hedges are reflected in revenue from oil and gas production and cash flows from operating activities. Instruments not qualifying as hedging instruments are recorded in our balance sheet at fair value, and changes in fair value are recognized in earnings through derivative expense (income). Monthly settlements of ineffective hedges and derivative instruments not qualifying as hedging instruments are recognized in earnings through derivative expense (income) and cash flows from operating activities.

We have entered into fixed-price swaps with various counterparties for a portion of our expected 2015 and 2016 oil and natural gas production from the Gulf Coast Basin. Our fixed-price oil swap settlements are based on an average of the New York Mercantile Exchange (“NYMEX”) closing price for West Texas Intermediate crude oil during the entire calendar month. Our fixed-price gas swap settlements are based on the NYMEX price for the last day of a respective contract month. Swaps typically provide for monthly payments by us if prices rise above the swap price or monthly payments to us if prices fall below the swap price. Our fixed-price swap contracts are with The Toronto-Dominion Bank, Barclays Bank PLC, The Bank of Nova Scotia, Bank of America and Natixis.

The following table illustrates our derivative positions for calendar years 2015 and 2016 as of August 5, 2015:

	Fixed-Price Swaps (NYMEX)
	Natural Gas				Oil
	Daily Volume (MMBtus/d)		Swap Price ($)		Daily Volume (Bbls/d)		Swap Price ($)
2015		10,000		4.005		1,000		89.00
2015		10,000		4.120		1,000		90.00
2015		10,000		4.150		1,000		90.25
2015		10,000		4.165		1,000		90.40
2015		10,000		4.220		1,000		91.05
2015		10,000		4.255		1,000		93.28
2015						1,000		93.37
2015						1,000		94.85
2015						1,000		95.00
2016		10,000		4.110		1,000		90.00
2016		10,000		4.120

During 2014, certain of our natural gas derivative instruments no longer qualified as cash flow hedges, as it was no longer probable, subsequent to the sale of our non-core Gulf of Mexico (“GOM”) conventional shelf properties (see Note 6 – Divestitures), that GOM natural gas production would be sufficient to cover the GOM volumes hedged. Accordingly, we discontinued hedge accounting for three natural gas contracts for the months of January through December 2015. Additionally, a small portion of our cash flow hedges are typically determined to be ineffective because oil and natural gas price changes in the markets in which we sell our products are not 100% correlative to changes in the underlying price basis indicative in the derivative contract. At June 30, 2015, we had accumulated other comprehensive income of $46.5 million, net of tax, related to the fair value of our effective cash flow hedges that were outstanding as of June 30, 2015. We believe that approximately $41.4 million, net of tax, of accumulated other comprehensive income will be reclassified into earnings in the next 12 months.

Derivatives qualifying as hedging instruments:

The following tables disclose the location and fair value amounts of derivatives qualifying as hedging instruments, as reported in our balance sheet, at June 30, 2015 and December 31, 2014:

Fair Value of Derivatives Qualifying as Hedging Instruments at June 30, 2015 (In millions)
	Asset Derivatives			Liability Derivatives
Description	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity contracts	Current assets: Fair value of derivative contracts	$	67.5	Current liabilities: Fair value of derivative contracts	$	—
	Long-term assets: Fair value of derivative contracts		8.2	Long-term liabilities: Fair value of derivative contracts		—
		$	75.7		$	—
Fair Value of Derivatives Qualifying as Hedging Instruments at December 31, 2014 (In millions)
	Asset Derivatives			Liability Derivatives
Description	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity contracts	Current assets: Fair value of derivative contracts	$	127.0	Current liabilities: Fair value of derivative contracts	$	—
	Long-term assets: Fair value of derivative contracts		14.3	Long-term liabilities: Fair value of derivative contracts		—
		$	141.3		$	—

The following tables disclose the before tax effect of derivatives qualifying as hedging instruments, as reported in the statement of operations, for the three and six months ended June 30, 2015 and 2014:

Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Three Months Ended June 30, 2015 and 2014 (In millions)
Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives						Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a)						Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion)
	2015			2014			Location	2015		2014			Location	2015			2014
Commodity contracts	($	18.8	)	($	26.0	)	Operating revenue - oil/gas production	$	30.4	($	9.2	)	Derivative income (expense), net	($	0.4	)	($	1.0	)
Total	($	18.8	)	($	26.0	)		$	30.4	($	9.2	)		($	0.4	)	($	1.0	)

(a) For the three months ended June 30, 2015, effective hedging contracts increased oil revenue by $26.4 million and increased gas revenue by $4.0 million. For the three months ended June 30, 2014, effective hedging contracts decreased oil revenue by $6.1 million and decreased gas revenue by $3.1 million.

Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Six Months Ended June 30, 2015 and 2014 (In millions)
Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives					Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a)						Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion)
	2015		2014			Location	2015		2014			Location	2015		2014
Commodity contracts	$	4.1	($	43.4	)	Operating revenue - oil/gas production	$	67.2	($	16.3	)	Derivative income (expense), net	$	0.5	($	1.6	)
Total	$	4.1	($	43.4	)		$	67.2	($	16.3	)		$	0.5	($	1.6	)

(a) For the six months ended June 30, 2015, effective hedging contracts increased oil revenue by $60.4 million and increased gas revenue by $6.8 million. For the six months ended June 30, 2014, effective hedging contracts decreased oil revenue by $8.6 million and decreased gas revenue by $7.7 million.

Derivatives not qualifying as hedging instruments:

The following table discloses the location and fair value amounts of our derivatives not qualifying as hedging instruments, as reported in our balance sheet, at June 30, 2015 and December 31, 2014:

Fair Value of Derivatives Not Qualifying as Hedging Instruments (In millions)
Description	Balance Sheet Location	June 30, 2015		December 31, 2014
Commodity contracts	Current assets: Fair value of derivative contracts	$	6.8	$	12.1

Gains or losses related to changes in fair value and cash settlements for derivatives not qualifying as hedging instruments are recorded as derivative income (expense) in the statement of operations. The following table discloses the before tax effect of our derivatives not qualifying as hedging instruments on the statement of operations, for the three and six months ended June 30, 2015 and 2014.

Amount of Gain (Loss) Recognized in Derivative Income (Expense) (In millions)
	Three Months Ended June 30,						Six Months Ended June 30,
Description	2015			2014			2015			2014
Commodity contracts:
Cash settlements	$	4.1		$	—		$	7.2		$	—
Change in fair value		(4.4	)		(1.5	)		(5.3	)		(1.5	)
Total gains (losses) on non-qualifying hedges	($	0.3	)	($	1.5	)	$	1.9		($	1.5	)

Offsetting of derivative assets and liabilities:

Our derivative contracts are subject to netting arrangements. It is our policy to not offset our derivative contracts in presenting the fair value of these contracts as assets and liabilities in our balance sheet. As of June 30, 2015 and December 31, 2014, all of our derivative contracts were in an asset position and therefore, there was no potential impact of the rights of offset.

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Investment in Oil and Gas Properties - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) $ / bbl $ / Mcf $ / Bngl	Mar. 31, 2015 USD ($) $ / bbl $ / Mcf $ / Bngl	Jun. 30, 2015 USD ($) $ / bbl $ / Mcf $ / Bngl
Oil and Gas In Process Activities [Line Items]
Write-down of oil and gas properties	$ 224,294		$ 715,706
Average 12-month oil prices net of differentials | $ / bbl	68.68	78.99	68.68
Average 12-month gas prices net of differentials | $ / Mcf	2.47	2.96	2.47
Decrease in written down value of oil and gas properties		$ 28,700	$ 47,800
Canada [Member]
Oil and Gas In Process Activities [Line Items]
Write-down of oil and gas properties			45,200
Oil And Gas [Member]
Oil and Gas In Process Activities [Line Items]
Write-down of oil and gas properties		$ 491,400	$ 179,100
Natural Gas Liquids (MBbls) [Member]
Oil and Gas In Process Activities [Line Items]
Average 12-month gas prices net of differentials | $ / Bngl	29.13	28.82	29.13

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Derivative Instruments and Hedging Activities - Additional Information (Detail) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015 USD ($)	Dec. 31, 2015 Contract	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Maximum correlation between price of oil & natural gas in market and underlying price basis indicative in the derivative contract	100.00%
Accumulated other comprehensive income (loss)	$ 40,656		$ 70,800	$ 83,315	$ (18,200)	$ (9,200)	$ (2,100)
Accumulated other comprehensive income, to be reclassified into earnings in the next twelve months	41,400
Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Accumulated other comprehensive income (loss)	$ 46,500		$ 77,900	$ 86,800	$ (17,800)	$ (8,000)	$ (1,400)
Scenario, Forecast [Member] | Natural Gas (MMcfe) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Number of Contracts no longer qualifying as cash flow hedges | Contract		3

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Derivative Instruments and Hedging Activities - Hedging Positions (Detail) - Aug. 05, 2015 - Subsequent Event [Member]	MMBTU MBbls $ / MMBTU $ / bbl
Oil (MBbls) [Member] | 2015 Hedging Position One [Member]
Derivatives, Fair Value [Line Items]
Daily Volume	1,000
Swap Price | $ / bbl	89.00
Oil (MBbls) [Member] | 2015 Hedging Position Two [Member]
Derivatives, Fair Value [Line Items]
Daily Volume	1,000
Swap Price | $ / bbl	90.00
Oil (MBbls) [Member] | 2015 Hedging Position Three [Member]
Derivatives, Fair Value [Line Items]
Daily Volume	1,000
Swap Price | $ / bbl	90.25
Oil (MBbls) [Member] | 2015 Hedging Position Four [Member]
Derivatives, Fair Value [Line Items]
Daily Volume	1,000
Swap Price | $ / bbl	90.40
Oil (MBbls) [Member] | 2015 Hedging Position Five [Member]
Derivatives, Fair Value [Line Items]
Daily Volume	1,000
Swap Price | $ / bbl	91.05
Oil (MBbls) [Member] | 2015 Hedging Position Six [Member]
Derivatives, Fair Value [Line Items]
Daily Volume	1,000
Swap Price | $ / bbl	93.28
Oil (MBbls) [Member] | 2015 Hedging Position Seven [Member]
Derivatives, Fair Value [Line Items]
Daily Volume	1,000
Swap Price | $ / bbl	93.37
Oil (MBbls) [Member] | 2015 Hedging Position Eight [Member]
Derivatives, Fair Value [Line Items]
Daily Volume	1,000
Swap Price | $ / bbl	94.85
Oil (MBbls) [Member] | 2015 Hedging Position Nine [Member]
Derivatives, Fair Value [Line Items]
Daily Volume	1,000
Swap Price | $ / bbl	95.00
Oil (MBbls) [Member] | 2016 Hedging Position One [Member]
Derivatives, Fair Value [Line Items]
Daily Volume	1,000
Swap Price | $ / bbl	90.00
Natural Gas (MMcfe) [Member] | 2015 Hedging Position One [Member]
Derivatives, Fair Value [Line Items]
Daily Volume | MMBTU	10,000
Swap Price | $ / MMBTU	4.005
Natural Gas (MMcfe) [Member] | 2015 Hedging Position Two [Member]
Derivatives, Fair Value [Line Items]
Daily Volume | MMBTU	10,000
Swap Price | $ / MMBTU	4.120
Natural Gas (MMcfe) [Member] | 2015 Hedging Position Three [Member]
Derivatives, Fair Value [Line Items]
Daily Volume | MMBTU	10,000
Swap Price | $ / MMBTU	4.150
Natural Gas (MMcfe) [Member] | 2015 Hedging Position Four [Member]
Derivatives, Fair Value [Line Items]
Daily Volume | MMBTU	10,000
Swap Price | $ / MMBTU	4.165
Natural Gas (MMcfe) [Member] | 2015 Hedging Position Five [Member]
Derivatives, Fair Value [Line Items]
Daily Volume | MMBTU	10,000
Swap Price | $ / MMBTU	4.220
Natural Gas (MMcfe) [Member] | 2015 Hedging Position Six [Member]
Derivatives, Fair Value [Line Items]
Daily Volume | MMBTU	10,000
Swap Price | $ / MMBTU	4.255
Natural Gas (MMcfe) [Member] | 2016 Hedging Position One [Member]
Derivatives, Fair Value [Line Items]
Daily Volume | MMBTU	10,000
Swap Price | $ / MMBTU	4.110
Natural Gas (MMcfe) [Member] | 2016 Hedging Position Two [Member]
Derivatives, Fair Value [Line Items]
Daily Volume | MMBTU	10,000
Swap Price | $ / MMBTU	4.120

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Commitments and Contingencies - Additional Information (Detail) - USD ($)		6 Months Ended
	Aug. 02, 2013	Jun. 30, 2015
Loss Contingencies [Line Items]
Legal settlement	$ 18,372,819
Brokerage fee obligations	1,118,878
Acquisition amount owed	$ 17,253,941
Litigation settlement amount		$ 2,118,878
Minimum potential range contingency loss		0
Maximum potential range contingency loss		2,118,878
Second Claim [Member]
Loss Contingencies [Line Items]
Litigation settlement amount		$ 1,000,000

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Derivative Instruments and Hedging Activities - Location and Fair Value Amounts of Derivative Instruments Reported in Balance Sheet (Detail) - Commodity Contracts [Member] - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Asset Derivatives
Fair Value of Derivative Instruments, Assets	$ 75.7	$ 141.3
Liability Derivatives
Fair Value of Derivative Instruments, Liabilities	0.0	0.0
Current Liabilities [Member]
Liability Derivatives
Fair Value of Derivative Instruments, Liabilities	0.0	0.0
Long-Term Liabilities [Member]
Liability Derivatives
Fair Value of Derivative Instruments, Liabilities	0.0	0.0
Current Assets [Member]
Asset Derivatives
Fair Value of Derivative Instruments, Assets	67.5	127.0
Long-Term Assets [Member]
Asset Derivatives
Fair Value of Derivative Instruments, Assets	$ 8.2	$ 14.3

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Derivative Instruments and Hedging Activities - Before Tax Effect of Derivative Instruments in Statement of Operations (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion, Net, Total	$ (18.8)	$ (26.0)	$ 4.1	$ (43.4)
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion, Net, Total	(18.8)	(26.0)	4.1	(43.4)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net, Total	30.4	(9.2)	67.2	(16.3)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net, Total	(0.4)	(1.0)	0.5	(1.6)
Cash Flow Hedging [Member] | Operating Revenue - Oil/Gas Production [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net, Total	30.4	(9.2)	67.2	(16.3)
Cash Flow Hedging [Member] | Commodity Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion, Net, Total	(18.8)	(26.0)	4.1	(43.4)
Cash Flow Hedging [Member] | Derivative Income (Expense), Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net, Total	$ (0.4)	$ (1.0)	$ 0.5	$ (1.6)

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Earnings Per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Note 2 – Earnings Per Share

The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands, except per share data)
Income (numerator):
Basic:
Net income (loss)	($	152,906	)	$	4,444		($	480,294	)	$	30,387
Net income attributable to participating securities		—			(111	)		—			(698	)
Net income (loss) attributable to common stock - basic	($	152,906	)	$	4,333		($	480,294	)	$	29,689
Diluted:
Net income (loss)	($	152,906	)	$	4,444		($	480,294	)	$	30,387
Net income attributable to participating securities		—			(111	)		—			(697	)
Net income (loss) attributable to common stock - diluted	($	152,906	)	$	4,333		($	480,294	)	$	29,690
Weighted average shares (denominator):
Weighted average shares - basic		55,251			52,050			55,216			50,540
Dilutive effect of stock options		—			58			—			54
Dilutive effect of convertible notes		—			265			—			133
Weighted average shares - diluted		55,251			52,373			55,216			50,727
Basic earnings (loss) per share	($	2.77	)	$	0.08		($	8.70	)	$	0.59
Diluted earnings (loss) per share	($	2.77	)	$	0.08		($	8.70	)	$	0.59

All outstanding stock options were considered antidilutive during the three and six months ended June 30, 2015 (approximately 174,000 shares) because we had a net loss for such periods. Stock options that were considered antidilutive because the exercise price of the options exceeded the average price of our common stock totaled approximately 120,000 shares and 131,000 shares, respectively, during the three and six months ended June 30, 2014.

During the three months ended June 30, 2015 and 2014, approximately 29,000 shares and 40,000 shares of our common stock, respectively, were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock by employees and nonemployee directors. During the six months ended June 30, 2015 and 2014, approximately 399,000 shares and 372,000 shares of our common stock, respectively, were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock by employees and nonemployee directors. In May 2014, 5,750,000 shares of our common stock were issued in a public offering.

Because it is management’s stated intention to redeem the principal amount of our 1 ³⁄₄% Senior Convertible Notes due 2017 (the “2017 Convertible Notes”) (see Note 4 – Long-Term Debt) in cash, we have used the treasury method for determining dilution in the diluted earnings per share computation. For the three and six months ended June 30, 2015, there was no dilutive effect on the diluted earnings per share computation because we had a net loss for such periods. For the three months ended June 30, 2014, the average price of our common stock exceeded the effective conversion price for such notes, resulting in a dilutive effect on the diluted earnings per share computation for the three and six months ended June 30, 2014. For all periods presented, the average price of our common stock was less than the strike price of the Sold Warrants (as defined in Note 4 – Long-Term Debt) and therefore, such warrants were not dilutive for such periods. Based on the terms of the Purchased Call Options (as defined in Note 4 – Long-Term Debt), such call options are antidilutive and therefore were not included in the calculation of diluted earnings per share.

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Derivative Instruments and Hedging Activities - Before Tax Effect of Derivative Instruments in Statement of Operations (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Decrease/increase in oil revenue owing to effective hedging contracts	$ 26.4	$ (6.1)	$ 60.4	$ (8.6)
Decrease/increase in gas revenue owing to effective hedging contracts	$ 4.0	$ (3.1)	$ 6.8	$ (7.7)

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities (Other assets)	$ 8.8	$ 8.4
Assets, Fair Value, Total	91.4	161.9
Liabilities, Fair Value, Total	0.0	0.0
Derivative Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, Fair Value	82.6	153.5
Derivative Liabilities, Fair Value	0.0	0.0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities (Other assets)	8.8	8.4
Assets, Fair Value, Total	8.8	8.4
Liabilities, Fair Value, Total	0.0	0.0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Derivative Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liabilities, Fair Value	0.0	0.0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value, Total	82.6	153.5
Liabilities, Fair Value, Total	0.0	0.0
Significant Other Observable Inputs (Level 2) [Member] | Derivative Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets, Fair Value	82.6	153.5
Derivative Liabilities, Fair Value	0.0	0.0
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, Fair Value, Total	0.0	0.0
Significant Unobservable Inputs (Level 3) [Member] | Derivative Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liabilities, Fair Value	$ 0.0	$ 0.0

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CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands		Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents		$ 141,655		$ 74,488	$ 333,886		$ 331,224
Restricted cash				177,647
Accounts receivable		68,706		120,359
Fair value of derivative contracts		74,319		139,179
Current income tax receivable		6		7,212
Inventory		3,709		3,709
Other current assets		10,076		8,118
Total current assets		298,471		530,712
Oil and gas properties, full cost method of accounting:
Proved		9,074,425		8,817,268
Less: accumulated depreciation, depletion and amortization		(7,846,343)		(6,970,631)
Net proved oil and gas properties		1,228,082		1,846,637
Unevaluated		529,589		567,365
Other property and equipment, net		30,736		32,340
Fair value of derivative contracts		8,231		14,333
Other assets, net		28,082		27,224
Total assets		2,123,191		3,018,611
Current liabilities:
Accounts payable to vendors		69,423		132,629
Undistributed oil and gas proceeds		17,000		23,232
Accrued interest		9,027		9,022
Deferred taxes	[1]	7,065		20,119
Asset retirement obligations		56,176		69,400
Other current liabilities		46,780		49,505
Total current liabilities		205,471		303,907
Long-term debt		1,048,406		1,041,035
Deferred taxes	[1]	11,752		286,343
Asset retirement obligations		240,613		247,009
Other long-term liabilities		32,213		38,714
Total liabilities		$ 1,538,455		$ 1,917,008
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value; authorized 150,000,000 shares; issued 55,283,825 and 54,884,542 shares, respectively		$ 553		$ 549
Treasury stock (16,582 shares, at cost)		(860)		(860)
Additional paid-in capital		1,639,389		1,633,307
Accumulated deficit		(1,095,002)		(614,708)
Accumulated other comprehensive income		40,656	$ 70,800	83,315	$ (18,200)	$ (9,200)	$ (2,100)
Total stockholders' equity		584,736		1,101,603
Total liabilities and stockholders' equity		$ 2,123,191		$ 3,018,611

[1] Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside.

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Guarantor Financial Statements - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands		Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents		$ 141,655		$ 74,488	$ 333,886		$ 331,224
Restricted cash				177,647
Accounts receivable		68,706		120,359
Fair value of derivative contracts		74,319		139,179
Current income tax receivable		6		7,212
Inventory		3,709		3,709
Other current assets		10,076		8,118
Total current assets		298,471		530,712
Oil and gas properties, full cost method:
Proved		9,074,425		8,817,268
Less: accumulated DD&A		(7,846,343)		(6,970,631)
Net proved oil and gas properties		1,228,082		1,846,637
Unevaluated		529,589		567,365
Other property and equipment, net		30,736		32,340
Fair value of derivative contracts		8,231		14,333
Other assets, net		28,082		27,224
Total assets		2,123,191		3,018,611
Current liabilities:
Accounts payable to vendors		69,423		132,629
Undistributed oil and gas proceeds		17,000		23,232
Accrued interest		9,027		9,022
Deferred taxes	[1]	7,065		20,119
Asset retirement obligations		56,176		69,400
Other current liabilities		46,780		49,505
Total current liabilities		205,471		303,907
Long-term debt		1,048,406		1,041,035
Deferred taxes	[1]	11,752		286,343
Asset retirement obligations		240,613		247,009
Other long-term liabilities		32,213		38,714
Total liabilities		$ 1,538,455		$ 1,917,008
Commitments and contingencies
Stockholders' equity:
Common stock		$ 553		$ 549
Treasury stock		(860)		(860)
Additional paid-in capital		1,639,389		1,633,307
Accumulated deficit		(1,095,002)		(614,708)
Accumulated other comprehensive income (loss)		40,656	$ 70,800	83,315	(18,200)	$ (9,200)	(2,100)
Total stockholders' equity		584,736		1,101,603
Total liabilities and stockholders' equity		2,123,191		3,018,611
Parent [Member]
Current assets:
Cash and cash equivalents		116,427		72,886	244,254		246,294
Restricted cash				177,647
Accounts receivable		38,735		73,711
Current income tax receivable		6		7,212
Deferred taxes	[1]			4,095
Inventory		3,426		1,011
Other current assets		10,007		8,112
Total current assets		168,601		344,674
Oil and gas properties, full cost method:
Proved		1,778,480		1,689,802
Less: accumulated DD&A		(1,724,404)		(970,387)
Net proved oil and gas properties		54,076		719,415
Unevaluated		300,360		289,556
Other property and equipment, net		30,736		32,340
Other assets, net		25,149		20,857
Investment in subsidiary		1,057,810		1,050,546
Total assets		1,636,732		2,457,388
Current liabilities:
Accounts payable to vendors		56,763		74,756
Undistributed oil and gas proceeds		16,093		22,158
Accrued interest		9,027		9,022
Deferred taxes	[1]	298
Other current liabilities		46,724		49,306
Total current liabilities		128,905		155,242
Long-term debt		1,048,406		1,041,035
Deferred taxes	[1]	(161,285)		117,206
Asset retirement obligations		3,757		3,588
Other long-term liabilities		32,213		38,714
Total liabilities		$ 1,051,996		$ 1,355,785
Commitments and contingencies
Stockholders' equity:
Common stock		$ 553		$ 549
Treasury stock		(860)		(860)
Additional paid-in capital		1,639,389		1,633,307
Accumulated deficit		(1,095,002)		(614,708)
Accumulated other comprehensive income (loss)		40,656		83,315
Total stockholders' equity		584,736		1,101,603
Total liabilities and stockholders' equity		1,636,732		2,457,388
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents		25,034		1,450	89,388		84,290
Accounts receivable		243,846		46,615
Fair value of derivative contracts		74,319		139,179
Inventory		283		2,698
Total current assets		343,482		189,942
Oil and gas properties, full cost method:
Proved		7,251,498		7,127,466
Less: accumulated DD&A		(6,077,492)		(6,000,244)
Net proved oil and gas properties		1,174,006		1,127,222
Unevaluated		227,067		241,230
Fair value of derivative contracts		8,231		14,333
Other assets, net		1,385		1,360
Total assets		1,754,171		1,574,087
Current liabilities:
Accounts payable to vendors		216,834		57,873
Undistributed oil and gas proceeds		907		1,074
Deferred taxes	[1]	6,767		24,214
Asset retirement obligations		56,176		69,400
Other current liabilities		56		199
Total current liabilities		280,740		152,760
Deferred taxes	[1]	189,303		169,137
Asset retirement obligations		236,856		243,421
Total liabilities		$ 706,899		$ 565,318
Commitments and contingencies
Stockholders' equity:
Additional paid-in capital		$ 1,367,434		$ 1,362,684
Accumulated deficit		(366,607)		(440,699)
Accumulated other comprehensive income (loss)		46,445		86,784
Total stockholders' equity		1,047,272		1,008,769
Total liabilities and stockholders' equity		1,754,171		1,574,087
Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents		194		152	$ 244		$ 640
Accounts receivable		31		33
Other current assets		69		6
Total current assets		294		191
Oil and gas properties, full cost method:
Proved		44,447
Less: accumulated DD&A		(44,447)
Unevaluated		2,162		36,579
Deferred taxes	[1]	16,266
Other assets, net		1,548		5,007
Investment in subsidiary		20,083		41,638
Total assets		40,353		$ 83,415
Current liabilities:
Accounts payable to vendors		9,732
Total current liabilities		9,732
Total liabilities		$ 9,732
Commitments and contingencies
Stockholders' equity:
Additional paid-in capital		$ 100,023		$ 90,339
Accumulated deficit		(57,824)		12
Accumulated other comprehensive income (loss)		(11,578)		(6,936)
Total stockholders' equity		30,621		83,415
Total liabilities and stockholders' equity		40,353		83,415
Eliminations [Member]
Current assets:
Accounts receivable		(213,906)
Deferred taxes	[1]			(4,095)
Total current assets		(213,906)		(4,095)
Oil and gas properties, full cost method:
Deferred taxes	[1]	(16,266)
Investment in subsidiary		(1,077,893)		(1,092,184)
Total assets		(1,308,065)		(1,096,279)
Current liabilities:
Accounts payable to vendors		(213,906)
Deferred taxes	[1]			(4,095)
Total current liabilities		(213,906)		(4,095)
Deferred taxes	[1]	(16,266)
Total liabilities		$ (230,172)		$ (4,095)
Commitments and contingencies
Stockholders' equity:
Additional paid-in capital		$ (1,467,457)		$ (1,453,023)
Accumulated deficit		424,431		440,687
Accumulated other comprehensive income (loss)		(34,867)		(79,848)
Total stockholders' equity		(1,077,893)		(1,092,184)
Total liabilities and stockholders' equity		$ (1,308,065)		$ (1,096,279)

[1] Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside.

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (480,294)	$ 30,387
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	164,373	175,481
Write-down of oil and gas properties	715,706
Accretion expense	12,817	15,288
Deferred income tax (benefit) provision	(264,954)	18,094
Settlement of asset retirement obligations	(35,923)	(24,915)
Non-cash stock compensation expense	6,028	5,358
Non-cash derivative expense	7,931	2,697
Non-cash interest expense	8,737	8,229
Change in current income taxes	7,206	(6)
(Increase) decrease in accounts receivable	23,047	(25,524)
Increase in other current assets	(1,959)	(82)
Increase (decrease) in accounts payable	(7,826)	1,843
Increase (decrease) in other current liabilities	(8,720)	50,785
Other	(504)	(675)
Net cash (used in) provided by operating activities	145,665	256,960
Cash flows from investing activities:
Investment in oil and gas properties	(264,355)	(517,904)
Proceeds from sale of oil and gas properties, net of expenses	10,100	51,955
Investment in fixed and other assets	(727)	(3,896)
Change in restricted funds	179,475	(356)
Net cash used in investing activities	(75,507)	(470,201)
Cash flows from financing activities:
Proceeds from bank borrowings	5,000
Repayment of bank borrowings	(5,000)
Net proceeds from issuance of common stock		226,036
Deferred financing costs		(3,167)
Net payments for share-based compensation	(3,069)	(6,948)
Net cash provided by (used in) financing activities	(3,069)	215,921
Effect of exchange rate changes on cash	78	(18)
Net change in cash and cash equivalents	67,167	2,662
Cash and cash equivalents, beginning of period	74,488	331,224
Cash and cash equivalents, end of period	$ 141,655	$ 333,886

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Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 1,048,406	$ 1,041,035
Convertible Debt [Member] | 1.75% Senior Notes due 2017 [Member]
Debt Instrument [Line Items]
Long-term debt	273,400	266,000
Senior Notes [Member] | 7.5% Notes due 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 775,000	$ 775,000

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Asset Retirement Obligations (Tables)

6 Months Ended

Jun. 30, 2015

Asset Retirement Obligation Disclosure [Abstract]

Changes in Asset Retirement Obligations

The change in our asset retirement obligations during the six months ended June 30, 2015 is set forth below:

	Six Months Ended June 30, 2015
	(In millions)
Asset retirement obligations as of the beginning of the period, including current portion	$	316.4
Liabilities incurred		3.5
Liabilities settled		(35.9	)
Accretion expense		12.8
Asset retirement obligations as of the end of the period, including current portion	$	296.8

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Long-Term Debt - Long-Term Debt (Parenthetical) (Detail)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Convertible Debt [Member] | 1.75% Senior Notes due 2017 [Member]
Debt Instrument [Line Items]
Interest rate	1.75%	1.75%	1.75%
Senior Notes [Member] | 7.5% Notes due 2022 [Member]
Debt Instrument [Line Items]
Interest rate	7.50%	7.50%

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income Loss

Changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2015 were as follows (in millions):

	Cash Flow Hedges			Foreign Currency Items			Total
For the Three Months Ended June 30, 2015
Beginning balance, net of tax	$	77.9		($	7.1	)	$	70.8
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		(18.8	)		—			(18.8	)
Foreign currency translations		—			1.3			1.3
Income tax effect		6.9			—			6.9
Net of tax		(11.9	)		1.3			(10.6	)
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		30.4			—			30.4
Income tax effect		(10.9	)		—			(10.9	)
Net of tax		19.5			—			19.5
Other comprehensive income (loss), net of tax		(31.4	)		1.3			(30.1	)
Ending balance, net of tax	$	46.5		($	5.8	)	$	40.7

	Cash Flow Hedges			Foreign Currency Items			Total
For the Six Months Ended June 30, 2015
Beginning balance, net of tax	$	86.8		($	3.5	)	$	83.3
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		4.1			—			4.1
Foreign currency translations		—			(2.3	)		(2.3	)
Income tax effect		(1.3	)		—			(1.3	)
Net of tax		2.8			(2.3	)		0.5
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		67.2			—			67.2
Income tax effect		(24.1	)		—			(24.1	)
Net of tax		43.1			—			43.1
Other comprehensive income (loss), net of tax		(40.3	)		(2.3	)		(42.6	)
Ending balance, net of tax	$	46.5		($	5.8	)	$	40.7

Changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2014, were as follows (in millions):

	Cash Flow Hedges			Foreign Currency Items			Total
For the Three Months Ended June 30, 2014
Beginning balance, net of tax	($	8.0	)	($	1.2	)	($	9.2	)
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		(26.0	)		—			(26.0	)
Foreign currency translations		—			0.8			0.8
Income tax effect		9.4			—			9.4
Net of tax		(16.6	)		0.8			(15.8	)
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		(9.2	)		—			(9.2	)
Derivative expense, net		(1.5	)		—			(1.5	)
Income tax effect		3.9			—			3.9
Net of tax		(6.8	)		—			(6.8	)
Other comprehensive income (loss), net of tax		(9.8	)		0.8			(9.0	)
Ending balance, net of tax	($	17.8	)	($	0.4	)	($	18.2	)

	Cash Flow Hedges			Foreign Currency Items			Total
For the Six Months Ended June 30, 2014
Beginning balance, net of tax	($	1.4	)	($	0.7	)	($	2.1	)
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		(43.4	)		—			(43.4	)
Foreign currency translations		—			0.3			0.3
Income tax effect		15.7			—			15.7
Net of tax		(27.7	)		0.3			(27.4	)
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		(16.3	)		—			(16.3	)
Derivative expense, net		(1.5	)		—			(1.5	)
Income tax effect		6.5			—			6.5
Net of tax		(11.3	)		—			(11.3	)
Other comprehensive income (loss), net of tax		(16.4	)		0.3			(16.1	)
Ending balance, net of tax	($	17.8	)	($	0.4	)	($	18.2	)

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Interim Financial Statements

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Interim Financial Statements

Note 1 – Interim Financial Statements

The condensed consolidated financial statements of Stone Energy Corporation (“Stone”) and its subsidiaries as of June 30, 2015 and for the three and six month periods ended June 30, 2015 and 2014 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 periods. The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited financial statements as of that date contained in our Annual Report on Form 10-K for the year ended December 31, 2014 (our “2014 Annual Report on Form 10-K”). 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 our 2014 Annual Report on Form 10-K. The results of operations for the three and six month periods ended June 30, 2015 are not necessarily indicative of future financial results.

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CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	55,283,825	54,884,542
Treasury stock, shares	16,582	16,582

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Guarantor Financial Statements

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Guarantor Financial Statements

Note 11 – Guarantor Financial Statements

Our Guarantor Subsidiaries, Stone Offshore, SEO A LLC and SEO B LLC, are unconditional guarantors of the 2017 Convertible Notes and the 2022 Notes. Our other subsidiaries (the “Non-Guarantor Subsidiaries”) have not provided guarantees. The following presents unaudited condensed consolidating financial information as of June 30, 2015 and December 31, 2014 and for the three and six month periods ended June 30, 2015 and 2014 on an issuer (parent company), Guarantor Subsidiaries, Non-Guarantor Subsidiaries and consolidated basis. Elimination entries presented are necessary to combine the entities.

CONDENSED CONSOLIDATING BALANCE SHEET

JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	116,427		$	25,034		$	194		$	—		$	141,655
Accounts receivable		38,735			243,846			31			(213,906	)		68,706
Fair value of derivative contracts		—			74,319			—			—			74,319
Current income tax receivable		6			—			—			—			6
Inventory		3,426			283			—			—			3,709
Other current assets		10,007			—			69			—			10,076
Total current assets		168,601			343,482			294			(213,906	)		298,471
Oil and gas properties, full cost method:
Proved		1,778,480			7,251,498			44,447			—			9,074,425
Less: accumulated DD&A		(1,724,404	)		(6,077,492	)		(44,447	)		—			(7,846,343	)
Net proved oil and gas properties		54,076			1,174,006			—			—			1,228,082
Unevaluated		300,360			227,067			2,162			—			529,589
Other property and equipment, net		30,736			—			—			—			30,736
Fair value of derivative contracts		—			8,231			—			—			8,231
Deferred taxes *		—			—			16,266			(16,266	)		—
Other assets, net		25,149			1,385			1,548			—			28,082
Investment in subsidiary		1,057,810			—			20,083			(1,077,893	)		—
Total assets	$	1,636,732		$	1,754,171		$	40,353		($	1,308,065	)	$	2,123,191
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	56,763		$	216,834		$	9,732		($	213,906	)	$	69,423
Undistributed oil and gas proceeds		16,093			907			—			—			17,000
Accrued interest		9,027			—			—			—			9,027
Deferred taxes *		298			6,767			—			—			7,065
Asset retirement obligations		—			56,176			—			—			56,176
Other current liabilities		46,724			56			—			—			46,780
Total current liabilities		128,905			280,740			9,732			(213,906	)		205,471
Long-term debt		1,048,406			—			—			—			1,048,406
Deferred taxes *		(161,285	)		189,303			—			(16,266	)		11,752
Asset retirement obligations		3,757			236,856			—			—			240,613
Other long-term liabilities		32,213			—			—			—			32,213
Total liabilities		1,051,996			706,899			9,732			(230,172	)		1,538,455
Commitments and contingencies
Stockholders’ equity:
Common stock		553			—			—			—			553
Treasury stock		(860	)		—			—			—			(860	)
Additional paid-in capital		1,639,389			1,367,434			100,023			(1,467,457	)		1,639,389
Accumulated deficit		(1,095,002	)		(366,607	)		(57,824	)		424,431			(1,095,002	)
Accumulated other comprehensive income (loss)		40,656			46,445			(11,578	)		(34,867	)		40,656
Total stockholders’ equity		584,736			1,047,272			30,621			(1,077,893	)		584,736
Total liabilities and stockholders’ equity	$	1,636,732		$	1,754,171		$	40,353		($	1,308,065	)	$	2,123,191

* Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	72,886		$	1,450		$	152		$	—		$	74,488
Restricted cash		177,647			—			—			—			177,647
Accounts receivable		73,711			46,615			33			—			120,359
Fair value of derivative contracts		—			139,179			—			—			139,179
Current income tax receivable		7,212			—			—			—			7,212
Deferred taxes *		4,095			—			—			(4,095	)		—
Inventory		1,011			2,698			—			—			3,709
Other current assets		8,112			—			6			—			8,118
Total current assets		344,674			189,942			191			(4,095	)		530,712
Oil and gas properties, full cost method:
Proved		1,689,802			7,127,466			—			—			8,817,268
Less: accumulated DD&A		(970,387	)		(6,000,244	)		—			—			(6,970,631	)
Net proved oil and gas properties		719,415			1,127,222			—			—			1,846,637
Unevaluated		289,556			241,230			36,579			—			567,365
Other property and equipment, net		32,340			—			—			—			32,340
Fair value of derivative contracts		—			14,333			—			—			14,333
Other assets, net		20,857			1,360			5,007			—			27,224
Investment in subsidiary		1,050,546			—			41,638			(1,092,184	)		—
Total assets	$	2,457,388		$	1,574,087		$	83,415		($	1,096,279	)	$	3,018,611
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	74,756		$	57,873		$	—		$	—		$	132,629
Undistributed oil and gas proceeds		22,158			1,074			—			—			23,232
Accrued interest		9,022			—			—			—			9,022
Deferred taxes *		—			24,214			—			(4,095	)		20,119
Asset retirement obligations		—			69,400			—			—			69,400
Other current liabilities		49,306			199			—			—			49,505
Total current liabilities		155,242			152,760			—			(4,095	)		303,907
Long-term debt		1,041,035			—			—			—			1,041,035
Deferred taxes *		117,206			169,137			—			—			286,343
Asset retirement obligations		3,588			243,421			—			—			247,009
Other long-term liabilities		38,714			—			—			—			38,714
Total liabilities		1,355,785			565,318			—			(4,095	)		1,917,008
Commitments and contingencies
Stockholders’ equity:
Common stock		549			—			—			—			549
Treasury stock		(860	)		—			—			—			(860	)
Additional paid-in capital		1,633,307			1,362,684			90,339			(1,453,023	)		1,633,307
Accumulated earnings (deficit)		(614,708	)		(440,699	)		12			440,687			(614,708	)
Accumulated other comprehensive income (loss)		83,315			86,784			(6,936	)		(79,848	)		83,315
Total stockholders’ equity		1,101,603			1,008,769			83,415			(1,092,184	)		1,101,603
Total liabilities and stockholders’ equity	$	2,457,388		$	1,574,087		$	83,415		($	1,096,279	)	$	3,018,611

* Deferred income taxes have been allocated to our Guarantor Subsidiaries where related oil and gas properties reside.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	6,504		$	105,081		$	—		$	—		$	111,585
Natural gas production		15,647			11,260			—			—			26,907
Natural gas liquids production		8,077			2,956			—			—			11,033
Total operating revenue		30,228			119,297			—			—			149,525
Operating expenses:
Lease operating expenses		5,111			22,318			—			—			27,429
Transportation, processing and gathering expenses		17,974			1,966			—			—			19,940
Production taxes		1,436			391			—			—			1,827
Depreciation, depletion, amortization		44,052			33,899			—			—			77,951
Write-down of oil and gas properties		179,125			—			45,169			—			224,294
Accretion expense		91			6,317			—			—			6,408
Salaries, general and administrative		16,398			—			20			—			16,418
Incentive compensation expense		1,264			—			—			—			1,264
Other operational expense		1,454			—			—			—			1,454
Derivative expense, net		—			701			—			—			701
Total operating expenses		266,905			65,592			45,189			—			377,686
Income (loss) from operations		(236,677	)		53,705			(45,189	)		—			(228,161	)
Other (income) expenses:
Interest expense		10,472			—			—			—			10,472
Interest income		(46	)		(19	)		(1	)		—			(66	)
Other income		(187	)		(423	)		(3	)		—			(613	)
(Income) loss from investment in subsidiaries		(16,147	)		—			28,918			(12,771	)		—
Total other (income) expenses		(5,908	)		(442	)		28,914			(12,771	)		9,793
Income (loss) before taxes		(230,769	)		54,147			(74,103	)		12,771			(237,954	)
Provision (benefit) for income taxes:
Deferred		(77,863	)		9,082			(16,267	)		—			(85,048	)
Total income taxes		(77,863	)		9,082			(16,267	)		—			(85,048	)
Net income (loss)	($	152,906	)	$	45,065		($	57,836	)	$	12,771		($	152,906	)
Comprehensive income (loss)	($	183,062	)	$	45,065		($	57,836	)	$	12,771		($	183,062	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	5,854		$	136,539		$	—		$	—		$	142,393
Natural gas production		20,800			25,867			—			—			46,667
Natural gas liquids production		10,219			5,717			—			—			15,936
Other operational income		1,880			170			—			—			2,050
Total operating revenue		38,753			168,293			—			—			207,046
Operating expenses:
Lease operating expenses		5,046			44,408			—			—			49,454
Transportation, processing and gathering expenses		10,456			3,642			—			—			14,098
Production taxes		1,903			1,354			—			—			3,257
Depreciation, depletion, amortization		30,385			62,450			—			—			92,835
Accretion expense		61			7,672			—			—			7,733
Salaries, general and administrative		16,639			—			(2	)		—			16,637
Incentive compensation expense		3,903			—			—			—			3,903
Derivative expense, net		—			2,516			—			—			2,516
Total operating expenses		68,393			122,042			(2	)		—			190,433
Income (loss) from operations		(29,640	)		46,251			2			—			16,613
Other (income) expenses:
Interest expense		9,880			33			—			—			9,913
Interest income		(146	)		(41	)		(6	)		—			(193	)
Other income		(192	)		(530	)		—			—			(722	)
Other expense		179			—			—			—			179
Income from investment in subsidiaries		(29,947	)		—			(8	)		29,955			—
Total other (income) expenses		(20,226	)		(538	)		(14	)		29,955			9,177
Income (loss) before taxes		(9,414	)		46,789			16			(29,955	)		7,436
Provision (benefit) for income taxes:
Deferred		(13,858	)		16,850			—			—			2,992
Total income taxes		(13,858	)		16,850			—			—			2,992
Net income	$	4,444		$	29,939		$	16		($	29,955	)	$	4,444
Comprehensive income (loss)	($	4,566	)	$	29,939		$	16		($	29,955	)	($	4,566	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	10,854		$	208,238		$	—		$	—		$	219,092
Natural gas production		32,264			22,980			—			—			55,244
Natural gas liquids production		17,956			5,443			—			—			23,399
Other operational income		1,792			—			—			—			1,792
Derivative income, net		—			2,427			—			—			2,427
Total operating revenue		62,866			239,088			—			—			301,954
Operating expenses:
Lease operating expenses		10,087			44,919			—			—			55,006
Transportation, processing and gathering expenses		34,082			3,561			—			—			37,643
Production taxes		3,634			708			—			—			4,342
Depreciation, depletion, amortization		86,164			78,209			—			—			164,373
Write-down of oil and gas properties		670,537			—			45,169			—			715,706
Accretion expense		182			12,635			—			—			12,817
Salaries, general and administrative		33,399			1			25			—			33,425
Incentive compensation expense		2,827			—			—			—			2,827
Other operational expense		1,170			—			—			—			1,170
Total operating expenses		842,082			140,033			45,194			—			1,027,309
Income (loss) from operations		(779,216	)		99,055			(45,194	)		—			(725,355	)
Other (income) expenses:
Interest expense		20,816			21			—			—			20,837
Interest income		(147	)		(35	)		(6	)		—			(188	)
Other income		(320	)		(433	)		(3	)		—			(756	)
(Income) loss from investment in subsidiaries		(45,174	)		—			28,918			16,256			—
Total other (income) expenses		(24,825	)		(447	)		28,909			16,256			19,893
Income (loss) before taxes		(754,391	)		99,502			(74,103	)		(16,256	)		(745,248	)
Provision (benefit) for income taxes:
Deferred		(274,097	)		25,410			(16,267	)		—			(264,954	)
Total income taxes		(274,097	)		25,410			(16,267	)		—			(264,954	)
Net income (loss)	($	480,294	)	$	74,092		($	57,836	)	($	16,256	)	($	480,294	)
Comprehensive income (loss)	($	522,953	)	$	74,092		($	57,836	)	($	16,256	)	($	522,953	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	12,490		$	268,192		$	—		$	—		$	280,682
Gas production		49,639			53,390			—			—			103,029
Natural gas liquids production		28,473			15,433			—			—			43,906
Other operational income		2,704			343			—			—			3,047
Total operating revenue		93,306			337,358			—			—			430,664
Operating expenses:
Lease operating expenses		9,059			87,298			—			—			96,357
Transportation, processing and gathering expenses		20,773			7,951			—			—			28,724
Production taxes		3,584			2,735			—			—			6,319
Depreciation, depletion, amortization		58,440			117,041			—			—			175,481
Accretion expense		129			15,159			—			—			15,288
Salaries, general and administrative		32,964			2			—			—			32,966
Incentive compensation expense		7,037			—			—			—			7,037
Other operational expenses		176			36			—			—			212
Derivative expense, net		—			3,115			—			—			3,115
Total operating expenses		132,162			233,337			—			—			365,499
Income (loss) from operations		(38,856	)		104,021			—			—			65,165
Other (income) expenses:
Interest expense		18,233			37			—			—			18,270
Interest income		(225	)		(99	)		(12	)		—			(336	)
Other income		(373	)		(1,056	)		—			—			(1,429	)
Other expense		179			—			—			—			179
Income from investment in subsidiaries		(67,292	)		—			(12	)		67,304			—
Total other (income) expenses		(49,478	)		(1,118	)		(24	)		67,304			16,684
Income before taxes		10,622			105,139			24			(67,304	)		48,481
Provision (benefit) for income taxes:
Deferred		(19,765	)		37,859			—			—			18,094
Total income taxes		(19,765	)		37,859			—			—			18,094
Net income	$	30,387		$	67,280		$	24		($	67,304	)	$	30,387
Comprehensive income	$	14,288		$	67,280		$	24		($	67,304	)	$	14,288

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2015

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	($	480,294	)	$	74,092		($	57,836	)	($	16,256	)	($	480,294	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		86,164			78,209			—			—			164,373
Write-down of oil and gas properties		670,537			—			45,169			—			715,706
Accretion expense		182			12,635			—			—			12,817
Deferred income tax (benefit) provision		(274,097	)		25,410			(16,267	)		—			(264,954	)
Settlement of asset retirement obligations		(14	)		(35,909	)		—			—			(35,923	)
Non-cash stock compensation expense		6,028			—			—			—			6,028
Non-cash derivative expense		—			7,931			—			—			7,931
Non-cash interest expense		8,737			—			—			—			8,737
Change in current income taxes		7,206			—			—			—			7,206
Non-cash (income) expense from investment in subsidiaries		(45,174	)		—			28,918			16,256			—
Change in intercompany receivables/payables		15,070			(24,802	)		9,732			—			—
Decrease in accounts receivable		16,968			6,079			—			—			23,047
Increase in other current assets		(1,895	)		—			(64	)		—			(1,959	)
(Increase) decrease in inventory		(2,415	)		2,415			—			—			—
Decrease in accounts payable		(500	)		(7,326	)		—			—			(7,826	)
Decrease in other current liabilities		(8,409	)		(311	)		—			—			(8,720	)
Other		(71	)		(433	)		—			—			(504	)
Net cash (used in) provided by operating activities		(1,977	)		137,990			9,652			—			145,665
Cash flows from investing activities:
Investment in oil and gas properties		(128,333	)		(124,506	)		(11,516	)		—			(264,355	)
Proceeds from sale of oil and gas properties, net of expenses		—			10,100			—			—			10,100
Investment in fixed and other assets		(727	)		—			—			—			(727	)
Change in restricted funds		177,647			—			1,828			—			179,475
Investment in subsidiaries		—			—			(9,684	)		9,684			—
Net cash provided by (used in) investing activities		48,587			(114,406	)		(19,372	)		9,684			(75,507	)
Cash flows from financing activities:
Proceeds from bank borrowings		5,000			—			—			—			5,000
Repayments of bank borrowings		(5,000	)		—			—			—			(5,000	)
Equity proceeds from parent		—			—			9,684			(9,684	)		—
Net payments for share-based compensation		(3,069	)		—			—			—			(3,069	)
Net cash (used in) provided by financing activities		(3,069	)		—			9,684			(9,684	)		(3,069	)
Effect of exchange rate changes on cash		—			—			78			—			78
Net change in cash and cash equivalents		43,541			23,584			42			—			67,167
Cash and cash equivalents, beginning of period		72,886			1,450			152			—			74,488
Cash and cash equivalents, end of period	$	116,427		$	25,034		$	194		$	—		$	141,655

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	30,387		$	67,280		$	24		($	67,304	)	$	30,387
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		58,440			117,041			—			—			175,481
Accretion expense		129			15,159			—			—			15,288
Deferred income tax (benefit) provision		(19,765	)		37,859			—			—			18,094
Settlement of asset retirement obligations		(82	)		(24,833	)		—			—			(24,915	)
Non-cash stock compensation expense		5,358			—			—			—			5,358
Non-cash derivative expense		—			2,697			—			—			2,697
Non-cash interest expense		8,229			—			—			—			8,229
Change in current income taxes		(6	)		—			—			—			(6	)
Non-cash income from investment in subsidiaries		(67,292	)		—			(12	)		67,304			—
Change in intercompany receivables/payables		(126,526	)		114,841			11,685			—			—
(Increase) decrease in accounts receivable		(42,216	)		16,692			—			—			(25,524	)
Increase in other current assets		(82	)		—			—			—			(82	)
Increase (decrease) in accounts payable		2,052			(209	)		—			—			1,843
Increase in other current liabilities		48,987			1,798			—			—			50,785
Other		381			(1,056	)		—			—			(675	)
Net cash (used in) provided by operating activities		(102,006	)		347,269			11,697			—			256,960
Cash flows from investing activities:
Investment in oil and gas properties		(121,836	)		(384,349	)		(11,719	)		—			(517,904	)
Proceeds from sale of oil and gas properties, net of expenses		9,777			42,178			—			—			51,955
Investment in fixed and other assets		(3,896	)		—			—			—			(3,896	)
Change in restricted funds		—			—			(356	)		—			(356	)
Investment in subsidiaries		—			—			(12,176	)		12,176			—
Net cash used in investing activities		(115,955	)		(342,171	)		(24,251	)		12,176			(470,201	)
Cash flows from financing activities:
Net proceeds from issuance of common stock		226,036			—			—			—			226,036
Deferred financing costs		(3,167	)		—			—			—			(3,167	)
Equity proceeds from parent		—			—			12,176			(12,176	)		—
Net payments for share-based compensation		(6,948	)		—			—			—			(6,948	)
Net cash provided by financing activities		215,921			—			12,176			(12,176	)		215,921
Effect of exchange rate on cash		—			—			(18	)		—			(18	)
Net change in cash and cash equivalents		(2,040	)		5,098			(396	)		—			2,662
Cash and cash equivalents, beginning of period		246,294			84,290			640			—			331,224
Cash and cash equivalents, end of period	$	244,254		$	89,388		$	244		$	—		$	333,886

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 05, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Trading Symbol	SGY
Entity Registrant Name	STONE ENERGY CORP
Entity Central Index Key	0000904080
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		57,249,506

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Earnings Per Share (Policies)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earning Per Share

Because it is management’s stated intention to redeem the principal amount of our 1 ³⁄₄% Senior Convertible Notes due 2017 (the “2017 Convertible Notes”) (see Note 4 – Long-Term Debt) in cash, we have used the treasury method for determining dilution in the diluted earnings per share computation. For the three and six months ended June 30, 2015, there was no dilutive effect on the diluted earnings per share computation because we had a net loss for such periods. For the three months ended June 30, 2014, the average price of our common stock exceeded the effective conversion price for such notes, resulting in a dilutive effect on the diluted earnings per share computation for the three and six months ended June 30, 2014. For all periods presented, the average price of our common stock was less than the strike price of the Sold Warrants (as defined in Note 4 – Long-Term Debt) and therefore, such warrants were not dilutive for such periods. Based on the terms of the Purchased Call Options (as defined in Note 4 – Long-Term Debt), such call options are antidilutive and therefore were not included in the calculation of diluted earnings per share.

Derivative Instruments and Hedging Activities

The nature of a derivative instrument must be evaluated to determine if it qualifies as a hedging instrument. If the instrument qualifies as a hedging instrument, it is recorded as either an asset or liability measured at fair value and subsequent changes in the derivative’s fair value are recognized in stockholders’ equity through other comprehensive income (loss), net of related taxes, to the extent the hedge is considered effective. Monthly settlements of effective hedges are reflected in revenue from oil and gas production and cash flows from operating activities. Instruments not qualifying as hedging instruments are recorded in our balance sheet at fair value, and changes in fair value are recognized in earnings through derivative expense (income). Monthly settlements of ineffective hedges and derivative instruments not qualifying as hedging instruments are recognized in earnings through derivative expense (income) and cash flows from operating activities.

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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating revenue:
Oil production	$ 111,585	$ 142,393	$ 219,092	$ 280,682
Natural gas production	26,907	46,667	55,244	103,029
Natural gas liquids production	11,033	15,936	23,399	43,906
Other operational income		2,050	1,792	3,047
Derivative income, net			2,427
Total operating revenue	149,525	207,046	301,954	430,664
Operating expenses:
Lease operating expenses	27,429	49,454	55,006	96,357
Transportation, processing and gathering expenses	19,940	14,098	37,643	28,724
Production taxes	1,827	3,257	4,342	6,319
Depreciation, depletion and amortization	77,951	92,835	164,373	175,481
Write-down of oil and gas properties	224,294		715,706
Accretion expense	6,408	7,733	12,817	15,288
Salaries, general and administrative expenses	16,418	16,637	33,425	32,966
Incentive compensation expense	1,264	3,903	2,827	7,037
Other operational expenses	1,454		1,170	212
Derivative expense, net	701	2,516		3,115
Total operating expenses	377,686	190,433	1,027,309	365,499
Income (loss) from operations	(228,161)	16,613	(725,355)	65,165
Other (income) expenses:
Interest expense	10,472	9,913	20,837	18,270
Interest income	(66)	(193)	(188)	(336)
Other income	(613)	(722)	(756)	(1,429)
Other expense		179		179
Total other (income) expenses	9,793	9,177	19,893	16,684
Income (loss) before income taxes	(237,954)	7,436	(745,248)	48,481
Provision (benefit) for income taxes:
Deferred	(85,048)	2,992	(264,954)	18,094
Total income taxes	(85,048)	2,992	(264,954)	18,094
Net income (loss)	$ (152,906)	$ 4,444	$ (480,294)	$ 30,387
Basic earnings (loss) per share	$ (2.77)	$ 0.08	$ (8.70)	$ 0.59
Diluted earnings (loss) per share	$ (2.77)	$ 0.08	$ (8.70)	$ 0.59
Average shares outstanding	55,251	52,050	55,216	50,540
Average shares outstanding assuming dilution	55,251	52,373	55,216	50,727

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Divestitures

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Divestitures

Note 6 – Divestitures

On July 31, 2014, we completed the sale of certain of our non-core properties in the GOM conventional shelf for cash consideration of approximately $177.6 million, after giving effect to preliminary purchase price adjustments. All of the proceeds from this sale were deposited with a Qualified Intermediary (under the terms of a Qualified Trust Agreement and Exchange Agreement) for potential reinvestment in like-kind replacement property as defined under Section 1031 of the Internal Revenue Code and were included in our balance sheet as restricted cash at December 31, 2014. Compliance with provisions under the Qualified Trust Agreement and Exchange Agreement provided for deferral of taxable gain on these sales proceeds. We identified qualified replacement properties and had until January 27, 2015 to close on an acquisition of such properties in order to achieve deferral of our taxable gain. We did not close on such a transaction by January 27, 2015, and the funds were released from restrictions and reclassified to cash and cash equivalents at such date.

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Asset Retirement Obligations

6 Months Ended

Jun. 30, 2015

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

Note 5 – Asset Retirement Obligations

The change in our asset retirement obligations during the six months ended June 30, 2015 is set forth below:

	Six Months Ended June 30, 2015
	(In millions)
Asset retirement obligations as of the beginning of the period, including current portion	$	316.4
Liabilities incurred		3.5
Liabilities settled		(35.9	)
Accretion expense		12.8
Asset retirement obligations as of the end of the period, including current portion	$	296.8

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value Recurring Basis

The following tables present our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2015:

	Fair Value Measurements at June 30, 2015
Assets	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Marketable securities (Other assets)	$	8.8	$	8.8	$	—	$	—
Derivative contracts		82.6		—		82.6		—
Total	$	91.4	$	8.8	$	82.6	$	—

	Fair Value Measurements at June 30, 2015
Liabilities	Total		Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Derivative contracts	$	—	$	—	$	—	$	—
Total	$	—	$	—	$	—	$	—

The following tables present our assets and liabilities that are measured at fair value on a recurring basis at December 31, 2014:

	Fair Value Measurements at December 31, 2014
Assets	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Marketable securities (Other assets)	$	8.4	$	8.4	$	—	$	—
Derivative contracts		153.5		—		153.5		—
Total	$	161.9	$	8.4	$	153.5	$	—

	Fair Value Measurements at December 31, 2014
Liabilities	Total		Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Derivative contracts	$	—	$	—	$	—	$	—
Total	$	—	$	—	$	—	$	—

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Calculation of Basic and Diluted Weighted Average Shares Outstanding Earnings Per Share

The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands, except per share data)
Income (numerator):
Basic:
Net income (loss)	($	152,906	)	$	4,444		($	480,294	)	$	30,387
Net income attributable to participating securities		—			(111	)		—			(698	)
Net income (loss) attributable to common stock - basic	($	152,906	)	$	4,333		($	480,294	)	$	29,689
Diluted:
Net income (loss)	($	152,906	)	$	4,444		($	480,294	)	$	30,387
Net income attributable to participating securities		—			(111	)		—			(697	)
Net income (loss) attributable to common stock - diluted	($	152,906	)	$	4,333		($	480,294	)	$	29,690
Weighted average shares (denominator):
Weighted average shares - basic		55,251			52,050			55,216			50,540
Dilutive effect of stock options		—			58			—			54
Dilutive effect of convertible notes		—			265			—			133
Weighted average shares - diluted		55,251			52,373			55,216			50,727
Basic earnings (loss) per share	($	2.77	)	$	0.08		($	8.70	)	$	0.59
Diluted earnings (loss) per share	($	2.77	)	$	0.08		($	8.70	)	$	0.59

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Investment in Oil and Gas Properties

6 Months Ended

Jun. 30, 2015

Extractive Industries [Abstract]

Investment in Oil and Gas Properties

Note 9 – Investment in Oil and Gas Properties

Under the full cost method of accounting, we compare, at the end of each financial reporting period, the present value of estimated future net cash flows from proved reserves (adjusted for hedges and excluding cash flows related to estimated abandonment costs) to the net capitalized costs of proved oil and gas properties, net of related deferred taxes. We refer to this comparison as a ceiling test. If the net capitalized costs of proved oil and gas properties exceed the estimated discounted future net cash flows from proved reserves, we are required to write down the value of our oil and gas properties to the value of the discounted cash flows. At June 30, 2015, our ceiling test computation resulted in a write-down of our U.S. oil and gas properties of $179.1 million based on twelve month average prices, net of applicable differentials, of $68.68 per barrel of oil, $2.47 per Mcf of natural gas and $29.13 per barrel of natural gas liquids (“NGLs”). The write-down at June 30, 2015 was decreased by $47.8 million as a result of hedges. At March 31, 2015, our ceiling test computation resulted in a write-down of our U.S. oil and gas properties of $491.4 million based on twelve month average prices, net of applicable differentials, of $78.99 per barrel of oil, $2.96 per Mcf of natural gas and $28.82 per barrel of NGLs. The write-down at March 31, 2015 was decreased by $28.7 million as a result of hedges.

In April 2013, we entered into an agreement to participate in the drilling of exploratory wells in Canada. Upon a more complete evaluation of this project and in response to the significant decline in commodity prices over the last several months, we have suspended our business development effort in Canada. Accordingly, at June 30, 2015, we recognized a write-down of our Canadian oil and gas properties of $45.2 million.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 7 – Fair Value Measurements

U.S. Generally Accepted Accounting Principles establish a fair value hierarchy that has three levels based on the reliability of the inputs used to determine the fair value. These levels include: Level 1, defined as inputs such as unadjusted quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for use when little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of June 30, 2015 and December 31, 2014, we held certain financial assets and liabilities that are required to be measured at fair value on a recurring basis, including our commodity derivative instruments and our investments in marketable securities. We utilize the services of an independent third party to assist us in valuing our derivative instruments. We used the income approach in determining the fair value of our derivative instruments utilizing a proprietary pricing model. The model accounts for our credit risk and the credit risk of our counterparties in the discount rate applied to estimated future cash inflows and outflows. Our swap contracts are included within the Level 2 fair value hierarchy. For a more detailed description of our derivative instruments, see Note 3 – Derivative Instruments and Hedging Activities. We used the market approach in determining the fair value of our investments in marketable securities, which are included within the Level 1 fair value hierarchy.

The following tables present our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2015:

	Fair Value Measurements at June 30, 2015
Assets	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Marketable securities (Other assets)	$	8.8	$	8.8	$	—	$	—
Derivative contracts		82.6		—		82.6		—
Total	$	91.4	$	8.8	$	82.6	$	—

	Fair Value Measurements at June 30, 2015
Liabilities	Total		Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Derivative contracts	$	—	$	—	$	—	$	—
Total	$	—	$	—	$	—	$	—

The following tables present our assets and liabilities that are measured at fair value on a recurring basis at December 31, 2014:

	Fair Value Measurements at December 31, 2014
Assets	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Marketable securities (Other assets)	$	8.4	$	8.4	$	—	$	—
Derivative contracts		153.5		—		153.5		—
Total	$	161.9	$	8.4	$	153.5	$	—

	Fair Value Measurements at December 31, 2014
Liabilities	Total		Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Derivative contracts	$	—	$	—	$	—	$	—
Total	$	—	$	—	$	—	$	—

The fair value of cash and cash equivalents approximated book value at June 30, 2015 and December 31, 2014. As of June 30, 2015 and December 31, 2014, the fair value of the liability component of the 2017 Convertible Notes was approximately $264.9 million and $252.6 million, respectively. As of June 30, 2015 and December 31, 2014, the fair value of the 7 ¹⁄₂% Senior Notes due 2022 (the “2022 Notes”) was approximately $685.9 million and $664.6 million, respectively.

The fair value of the 2022 Notes was determined based on quotes obtained from brokers, which represent Level 1 inputs. We applied fair value concepts in determining the liability component of the 2017 Convertible Notes (see Note 4 – Long-Term Debt) at inception, June 30, 2015 and December 31, 2014. The fair value of the liability was estimated using an income approach. The significant inputs in these determinations were market interest rates based on quotes obtained from brokers and represent Level 2 inputs.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 8 – Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2015 were as follows (in millions):

	Cash Flow Hedges			Foreign Currency Items			Total
For the Three Months Ended June 30, 2015
Beginning balance, net of tax	$	77.9		($	7.1	)	$	70.8
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		(18.8	)		—			(18.8	)
Foreign currency translations		—			1.3			1.3
Income tax effect		6.9			—			6.9
Net of tax		(11.9	)		1.3			(10.6	)
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		30.4			—			30.4
Income tax effect		(10.9	)		—			(10.9	)
Net of tax		19.5			—			19.5
Other comprehensive income (loss), net of tax		(31.4	)		1.3			(30.1	)
Ending balance, net of tax	$	46.5		($	5.8	)	$	40.7

	Cash Flow Hedges			Foreign Currency Items			Total
For the Six Months Ended June 30, 2015
Beginning balance, net of tax	$	86.8		($	3.5	)	$	83.3
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		4.1			—			4.1
Foreign currency translations		—			(2.3	)		(2.3	)
Income tax effect		(1.3	)		—			(1.3	)
Net of tax		2.8			(2.3	)		0.5
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		67.2			—			67.2
Income tax effect		(24.1	)		—			(24.1	)
Net of tax		43.1			—			43.1
Other comprehensive income (loss), net of tax		(40.3	)		(2.3	)		(42.6	)
Ending balance, net of tax	$	46.5		($	5.8	)	$	40.7

Changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2014, were as follows (in millions):

	Cash Flow Hedges			Foreign Currency Items			Total
For the Three Months Ended June 30, 2014
Beginning balance, net of tax	($	8.0	)	($	1.2	)	($	9.2	)
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		(26.0	)		—			(26.0	)
Foreign currency translations		—			0.8			0.8
Income tax effect		9.4			—			9.4
Net of tax		(16.6	)		0.8			(15.8	)
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		(9.2	)		—			(9.2	)
Derivative expense, net		(1.5	)		—			(1.5	)
Income tax effect		3.9			—			3.9
Net of tax		(6.8	)		—			(6.8	)
Other comprehensive income (loss), net of tax		(9.8	)		0.8			(9.0	)
Ending balance, net of tax	($	17.8	)	($	0.4	)	($	18.2	)

	Cash Flow Hedges			Foreign Currency Items			Total
For the Six Months Ended June 30, 2014
Beginning balance, net of tax	($	1.4	)	($	0.7	)	($	2.1	)
Other comprehensive income (loss) before reclassifications:
Change in fair value of derivatives		(43.4	)		—			(43.4	)
Foreign currency translations		—			0.3			0.3
Income tax effect		15.7			—			15.7
Net of tax		(27.7	)		0.3			(27.4	)
Amounts reclassified from accumulated other comprehensive income:
Operating revenue: oil/gas production		(16.3	)		—			(16.3	)
Derivative expense, net		(1.5	)		—			(1.5	)
Income tax effect		6.5			—			6.5
Net of tax		(11.3	)		—			(11.3	)
Other comprehensive income (loss), net of tax		(16.4	)		0.3			(16.1	)
Ending balance, net of tax	($	17.8	)	($	0.4	)	($	18.2	)

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 10 – Commitments and Contingencies

We are named as a party in certain lawsuits and regulatory proceedings arising in the ordinary course of business. We do not expect that these matters, individually or in the aggregate, will have a material adverse effect on our financial condition.

On August 2, 2013, Kimmeridge Energy Exploration Fund, L.P. (“Kimmeridge”) filed a lawsuit against Stone in the 15^th Judicial District Court in Lafayette Parish, Louisiana seeking damages in the amount of $18,372,819 plus interest, costs and attorney fees. Kimmeridge alleged that Stone was obligated to pay Kimmeridge (1) $1,118,878 for brokerage costs incurred pursuant to a letter of understanding and (2) $17,253,941 pursuant to a letter of intent which, according to Kimmeridge’s pleadings, required Stone to negotiate in good faith and close an acquisition of mineral interests in the Illinois basin. The court granted summary judgment in favor of Stone, limiting damages on Kimmeridge’s $17,253,941 claim to $1,000,000 and reducing Stone’s exposure at trial for both claims to $2,118,878. During the three months ended June 30, 2015, Stone and Kimmeridge settled both claims for an amount within the previously disclosed range of loss (between $0 and $2,118,878).

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Derivative Instruments and Hedging Activities - Gains or Losses Related to Changes in Fair Value and Cash Settlements on Derivatives Not Qualifying as Hedging Instruments (Detail) - Commodity Contracts [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Cash settlements on Derivative Instruments not Qualifying Hedges	$ 4.1		$ 7.2
Change in fair value on Derivative Instruments not Qualifying Hedges	(4.4)	$ (1.5)	(5.3)	$ (1.5)
Total gains (losses) on Derivative Instruments not Qualifying Hedges	$ (0.3)	$ (1.5)	$ 1.9	$ (1.5)

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consisted of the following at:

	June 30, 2015		December 31, 2014
	(In millions)
1 3⁄4% Senior Convertible Notes due 2017	$	273.4	$	266.0
7 1⁄2% Senior Notes due 2022		775.0		775.0
Bank debt		—		—
Total long-term debt	$	1,048.4	$	1,041.0

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Earnings Per Share - Calculation of Basic and Diluted Weighted Average Shares Outstanding and Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic:
Net income (loss)	$ (152,906)	$ 4,444	$ (480,294)	$ 30,387
Net income attributable to participating securities		(111)		(698)
Net income (loss) attributable to common stock - basic	(152,906)	4,333	(480,294)	29,689
Diluted:
Net income (loss)	(152,906)	4,444	(480,294)	30,387
Net income attributable to participating securities		(111)		(697)
Net income (loss) attributable to common stock - diluted	$ (152,906)	$ 4,333	$ (480,294)	$ 29,690
Weighted average shares (denominator):
Weighted average shares - basic	55,251	52,050	55,216	50,540
Dilutive effect of stock options		58		54
Dilutive effect of convertible notes		265		133
Weighted average shares - diluted	55,251	52,373	55,216	50,727
Basic earnings (loss) per share	$ (2.77)	$ 0.08	$ (8.70)	$ 0.59
Diluted earnings (loss) per share	$ (2.77)	$ 0.08	$ (8.70)	$ 0.59

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Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
1.75% Senior Notes due 2017 [Member] | Convertible Debt [Member]
Debt Instrument [Line Items]
Fair value of Convertible Notes	$ 264.9	$ 252.6
7.5% Notes due 2022 [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Fair value of Notes	$ 685.9	$ 664.6

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (152,906)	$ 4,444	$ (480,294)	$ 30,387
Other comprehensive income (loss), net of tax effect:
Derivatives	(31,480)	(9,765)	(40,338)	(16,355)
Foreign currency translation	1,324	755	(2,321)	256
Comprehensive income (loss)	$ (183,062)	$ (4,566)	$ (522,953)	$ 14,288

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Long-Term Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Long-Term Debt

Note 4 – Long-Term Debt

Long-term debt consisted of the following at:

	June 30, 2015		December 31, 2014
	(In millions)
1 3⁄4% Senior Convertible Notes due 2017	$	273.4	$	266.0
7 1⁄2% Senior Notes due 2022		775.0		775.0
Bank debt		—		—
Total long-term debt	$	1,048.4	$	1,041.0

Bank Debt. On June 24, 2014, we entered into an amended and restated revolving credit facility with commitments totaling $900 million (subject to borrowing base limitations) through a syndicated bank group, replacing our previous facility. The bank credit facility matures on July 1, 2019. On May 1, 2015, our borrowing base under the bank credit facility was reaffirmed at $500 million. The next redetermination of our borrowing base under the bank credit facility is expected in October 2015. As of June 30 and August 5, 2015, we had no outstanding borrowings under the bank credit facility, and $19.2 million of letters of credit had been issued pursuant to the bank credit facility, leaving $480.8 million of availability under the bank credit facility. Subject to certain exceptions, the bank credit facility is required to be guaranteed by all of our material domestic direct and indirect subsidiaries. As of June 30, 2015, the bank credit facility was guaranteed by Stone Energy Offshore, L.L.C. (“Stone Offshore”), SEO A LLC and SEO B LLC (collectively, the “Guarantor Subsidiaries”).

The borrowing base under the bank credit facility is redetermined semi-annually, typically in May and November, by the lenders, taking into consideration the estimated loan value of our oil and gas properties and those of our subsidiaries that guarantee the bank credit facility in accordance with the lenders’ customary practices for oil and gas loans. In addition, we and the lenders each have discretion at any time, but not more than two additional times in any calendar year, to have the borrowing base redetermined. If a reduction in our borrowing base were to fall below any outstanding balances under the bank credit facility plus any outstanding letters of credit, our agreement with the banks allows us one or more of three options to cure the borrowing base deficiency. We may (1) repay amounts outstanding sufficient to cure the deficiency within 10 days after our 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 the properties within 30 days after our written election to do so; and/or (3) arrange to pay the deficiency in six equal monthly installments.

The bank credit facility is collateralized by substantially all of the assets of Stone and its material subsidiaries. They are required to mortgage, and grant a security interest in, their oil and natural gas reserves representing at least 80% of the discounted present value of the future net cash flows from their proved oil and natural gas reserves reviewed in determining the borrowing base. Interest on loans under the bank credit facility is calculated using the London Interbank Offering (“LIBOR”) rate or the base rate, at the election of Stone. The margin for loans at the LIBOR rate is determined based on borrowing base utilization and ranges from 1.500% to 2.500%. The bank credit facility provides for optional and mandatory prepayments and affirmative and negative covenants, including interest coverage ratio and leverage ratio maintenance covenants. We were in compliance with all covenants as of June 30, 2015.

2017 Convertible Notes. On March 6, 2012, we issued in a private offering $300 million in aggregate principal amount of the 2017 Convertible Notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The 2017 Convertible Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, based on an initial conversion rate of 23.4449 shares of our common stock per $1,000 principal amount of 2017 Convertible Notes, which corresponds to an initial conversion price of approximately $42.65 per share of our common stock. On June 30, 2015, our closing share price was $12.59. The conversion rate, and thus the conversion price, may be adjusted under certain circumstances as described in the indenture related to the 2017 Convertible Notes. Upon conversion, we will be obligated to pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. Prior to December 1, 2016, the 2017 Convertible Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date.

In connection with the offering, we entered into convertible note hedge transactions with respect to our common stock (the “Purchased Call Options”) with Barclays Capital Inc., acting as agent for Barclays Bank PLC and Bank of America, N.A. (the “Dealers”). We paid an aggregate amount of approximately $70.8 million to the Dealers for the Purchased Call Options. The Purchased Call Options cover, subject to customary antidilution adjustments, approximately 7,033,470 shares of our common stock at a strike price that corresponds to the initial conversion price of the 2017 Convertible Notes, also subject to adjustment, and are exercisable upon conversion of the 2017 Convertible Notes.

We also entered into separate warrant transactions whereby, in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act, we sold to the Dealers warrants to acquire, subject to customary antidilution adjustments, approximately 7,033,470 shares of our common stock (the “Sold Warrants”) at a strike price of $55.91 per share of our common stock. We received aggregate proceeds of approximately $40.1 million from the sale of the Sold Warrants to the Dealers. If, upon expiration of the Sold Warrants, the price per share of our common stock, as measured under the Sold Warrants, is greater than the strike price of the Sold Warrants, we will be required to issue, without further consideration, under each Sold Warrant a number of shares of our common stock with a value equal to the amount of such difference.

As of June 30, 2015, the carrying amount of the liability component of the 2017 Convertible Notes was $273.4 million. During the three and six months ended June 30, 2015, we recognized $3.7 million and $7.4 million, respectively, of interest expense for the amortization of the discount and $0.4 million and $0.7 million, respectively, of interest expense for the amortization of deferred financing costs related to the 2017 Convertible Notes. During the three and six months ended June 30, 2014, we recognized $3.5 million and $6.8 million, respectively, of interest expense for the amortization of the discount and $0.3 million and $0.6 million, respectively, of interest expense for the amortization of deferred financing costs related to the 2017 Convertible Notes. During the three and six months ended June 30, 2015, we recognized $1.3 million and $2.6 million, respectively, of interest expense related to the contractual interest coupon on the 2017 Convertible Notes. During the three and six months ended June 30, 2014, we recognized $1.3 million and $2.6 million, respectively, of interest expense related to the contractual interest coupon on the 2017 Convertible Notes.

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Earnings Per Share - Additional Information (Detail) - shares	1 Months Ended	3 Months Ended		6 Months Ended
	May. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Weighted Average Shares Used In Computing Earnings Per Share [Line Items]
Antidilutive stock options outstanding		174,000	120,000	174,000	131,000
Shares of common stock issued upon vesting of restricted stock		29,000	40,000	399,000	372,000
Common stock issued	5,750,000
Convertible Debt [Member] | 1.75% Senior Notes due 2017 [Member]
Weighted Average Shares Used In Computing Earnings Per Share [Line Items]
Interest rate		1.75%	1.75%	1.75%	1.75%	1.75%

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Asset Retirement Obligations - Changes in Asset Retirement Obligations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations as of the beginning of the period, including current portion			$ 316,400
Liabilities incurred			3,500
Liabilities settled			(35,900)
Accretion expense	$ 6,408	$ 7,733	12,817	$ 15,288
Asset retirement obligations as of the end of the period, including current portion	$ 296,800		$ 296,800

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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Hedging Positions

The following table illustrates our derivative positions for calendar years 2015 and 2016 as of August 5, 2015:

	Fixed-Price Swaps (NYMEX)
	Natural Gas				Oil
	Daily Volume (MMBtus/d)		Swap Price ($)		Daily Volume (Bbls/d)		Swap Price ($)
2015		10,000		4.005		1,000		89.00
2015		10,000		4.120		1,000		90.00
2015		10,000		4.150		1,000		90.25
2015		10,000		4.165		1,000		90.40
2015		10,000		4.220		1,000		91.05
2015		10,000		4.255		1,000		93.28
2015						1,000		93.37
2015						1,000		94.85
2015						1,000		95.00
2016		10,000		4.110		1,000		90.00
2016		10,000		4.120

Location and Fair Value Amounts of Derivative Instruments Reported in Balance Sheet

The following tables disclose the location and fair value amounts of derivatives qualifying as hedging instruments, as reported in our balance sheet, at June 30, 2015 and December 31, 2014:

Fair Value of Derivatives Qualifying as Hedging Instruments at June 30, 2015 (In millions)
	Asset Derivatives			Liability Derivatives
Description	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity contracts	Current assets: Fair value of derivative contracts	$	67.5	Current liabilities: Fair value of derivative contracts	$	—
	Long-term assets: Fair value of derivative contracts		8.2	Long-term liabilities: Fair value of derivative contracts		—
		$	75.7		$	—
Fair Value of Derivatives Qualifying as Hedging Instruments at December 31, 2014 (In millions)
	Asset Derivatives			Liability Derivatives
Description	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity contracts	Current assets: Fair value of derivative contracts	$	127.0	Current liabilities: Fair value of derivative contracts	$	—
	Long-term assets: Fair value of derivative contracts		14.3	Long-term liabilities: Fair value of derivative contracts		—
		$	141.3		$	—

Before Tax Effect of Derivative Instruments in Statement of Operations

The following tables disclose the before tax effect of derivatives qualifying as hedging instruments, as reported in the statement of operations, for the three and six months ended June 30, 2015 and 2014:

Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Three Months Ended June 30, 2015 and 2014 (In millions)
Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives						Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a)						Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion)
	2015			2014			Location	2015		2014			Location	2015			2014
Commodity contracts	($	18.8	)	($	26.0	)	Operating revenue - oil/gas production	$	30.4	($	9.2	)	Derivative income (expense), net	($	0.4	)	($	1.0	)
Total	($	18.8	)	($	26.0	)		$	30.4	($	9.2	)		($	0.4	)	($	1.0	)

(a) For the three months ended June 30, 2015, effective hedging contracts increased oil revenue by $26.4 million and increased gas revenue by $4.0 million. For the three months ended June 30, 2014, effective hedging contracts decreased oil revenue by $6.1 million and decreased gas revenue by $3.1 million.

Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Six Months Ended June 30, 2015 and 2014 (In millions)
Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives					Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a)						Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion)
	2015		2014			Location	2015		2014			Location	2015		2014
Commodity contracts	$	4.1	($	43.4	)	Operating revenue - oil/gas production	$	67.2	($	16.3	)	Derivative income (expense), net	$	0.5	($	1.6	)
Total	$	4.1	($	43.4	)		$	67.2	($	16.3	)		$	0.5	($	1.6	)

(a) For the six months ended June 30, 2015, effective hedging contracts increased oil revenue by $60.4 million and increased gas revenue by $6.8 million. For the six months ended June 30, 2014, effective hedging contracts decreased oil revenue by $8.6 million and decreased gas revenue by $7.7 million.

Location and Fair Value Amounts of Derivative Instruments Not Qualifying as Hedging Instruments Reported in Balance Sheet

The following table discloses the location and fair value amounts of our derivatives not qualifying as hedging instruments, as reported in our balance sheet, at June 30, 2015 and December 31, 2014:

Fair Value of Derivatives Not Qualifying as Hedging Instruments (In millions)
Description	Balance Sheet Location	June 30, 2015		December 31, 2014
Commodity contracts	Current assets: Fair value of derivative contracts	$	6.8	$	12.1

Gains or Losses Related to Changes in Fair Value and Cash Settlements on Derivatives Not Qualifying as Hedging Instruments

Gains or losses related to changes in fair value and cash settlements for derivatives not qualifying as hedging instruments are recorded as derivative income (expense) in the statement of operations. The following table discloses the before tax effect of our derivatives not qualifying as hedging instruments on the statement of operations, for the three and six months ended June 30, 2015 and 2014.

Amount of Gain (Loss) Recognized in Derivative Income (Expense) (In millions)
	Three Months Ended June 30,						Six Months Ended June 30,
Description	2015			2014			2015			2014
Commodity contracts:
Cash settlements	$	4.1		$	—		$	7.2		$	—
Change in fair value		(4.4	)		(1.5	)		(5.3	)		(1.5	)
Total gains (losses) on non-qualifying hedges	($	0.3	)	($	1.5	)	$	1.9		($	1.5	)