UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
March 3, 2009
Date of report (Date of earliest event reported)
STONE ENERGY CORPORATION
(Exact Name of Registrant as Specified in Charter)
| | | | | |
| Delaware | | 1-12074 | | 72-1235413 |
| |
(State or Other
Jurisdiction of
Incorporation) | | (Commission File
Number) | | (IRS Employer
Identification No.) |
| | | |
625 E. Kaliste Saloom Road
Lafayette, Louisiana | | 70508 |
| |
| (Address of Principal Executive Offices) | | (Zip Code) |
Registrant’s telephone number, including area code: (337) 237-0410
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c))
Item 7.01. Regulation FD Disclosure.
On March 9, 2009, we issued a press release announcing the unwinding of the majority of our 2009 hedge positions and an operational update. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 7.01.
In accordance with General Instruction B.2 of Form 8-K, the information in this report, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (“Exchange Act”) or otherwise subject to the liabilities of that section, nor shall such information, including Exhibit 99.1, be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01. Other Events.
On March 3, 2009, we unwound all of our crude oil hedges for the period from April 2009 through December 2009, resulting in proceeds of approximately $59 million. On March 6, 2009, we unwound two of our natural gas hedges for the period from April 2009 through December 2009, resulting in proceeds of approximately $54 million. We intend to use a substantial portion of the proceeds to build our cash position and reduce bank borrowings. In addition, we may use some of the proceeds to reduce outstanding public debt and/or repurchase Stone common shares. We also re-hedged a portion of our 2009 volumes and will continue to evaluate hedging opportunities.
The following table provides our updated derivative position as of March 6, 2009:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Zero-Premium Collars |
| | | Natural Gas | | Oil |
| | | Daily | | | | | | | | | | Daily | | | | |
| | | Volume | | Floor | | Ceiling | | Volume | | Floor | | Ceiling |
| | | (MMBtus/d) | | Price | | Price | | (Bbls/d) | | Price | | Price |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| 2009 | | | 20,000 | | | $ | 8.00 | | | $ | 14.30 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Fixed-Price Swaps |
| | | Natural Gas | | Oil |
| | | Daily | | | | | | Daily | | |
| | | Volume | | Swap | | Volume | | Swap |
| | | (MMBtus/d) | | Price | | (Bbls/d) | | Price |
| 2009 (Oct-Dec) | | | | | | | | | | | 3,000 | | | $ | 50.00 | |
| 2009 (Oct-Dec) | | | | | | | | | | | 2,000 | | | | 50.45 | |
| 2010 | | | 20,000 | | | $ | 6.97 | | | | 2,000 | | | | 63.00 | |
| 2010 | | | 20,000 | | | | 6.50 | | | | | | | | | |
| 2010 | | | 10,000 | | | | 6.50 | | | | | | | | | |
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| | 99.1 | | Press release dated March 9, 2009, “Stone Energy Corporation Announces Unwinding of 2009 Hedge Positions Resulting in Proceeds of $113 Million and Provides Operational Update.” |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Stone Energy Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | |
| | STONE ENERGY CORPORATION
| |
| Date: March 9, 2009 | By: | /s/ J. Kent Pierret | |
| | | J. Kent Pierret | |
| | | Senior Vice President,
Chief Accounting Officer and Treasurer | |
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EXHIBIT INDEX
| | | |
| Exhibit | | |
| Number | | Description |
| | | |
| 99.1 | | Press release dated March 9, 2009, “Stone Energy Corporation Announces Unwinding of 2009 Hedge Positions Resulting in Proceeds of $113 Million and Provides Operational Update.” |
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