STONE ENERGY CORPORATION (NYSE:SGY) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05. Costs Associated with Exit or Disposal Activities.
Company or Stone) notified employees of workforce reduction plans,
which are expected to better align its employee base with the
current business needs. The plans will result in a reduction of
approximately 20% of the Companys total workforce and are expected
to be substantially completed by the end of the second quarter of
2017. In connection with the reductions, the Company estimates it
will incur a pre-tax charge of approximately $5-6 million in the
second quarter of 2017, primarily consisting of cash severance
payments to affected employees and payment of related employer
payroll taxes. The workforce reduction percentage and the range of
expected charges exclude the effects of a smaller reduction made in
late-April 2017 associated with the sale of our Appalachia
properties and separation costs tied to the departure of our
previous Chief Executive Officer.
commencement of drilling operations on the Rampart Deep Prospect in
Mississippi Canyon Block 116 and the implementation a workforce
reduction plan. 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.
forward-looking and are based upon Stones current belief as to the
outcome and timing of future events. All statements, other than
statements of historical facts, that address activities that Stone
plans, expects, believes, projects, estimates or anticipates will,
should or may occur in the future, including anticipated charges
and cash expenditures related to workforce reductions, future
production of oil and gas, future capital expenditures and drilling
of wells and future financial or operating results are
forward-looking statements. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements herein include, but are not limited to,
the timing and extent of changes in commodity prices for oil and
gas; operating risks; liquidity risks, including risks relating to
our bank credit facility and the Company’s ability to access the
capital markets; political and regulatory developments and
legislation, including developments and legislation relating to our
operations in the Gulf of Mexico basin; and other risk factors and
known trends and uncertainties as described in Stones Annual Report
on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K as filed with the Securities and Exchange Commission. For
a more detailed discussion of risk factors, please see Part I, Item
1A, Risk Factors of the Companys most recent Annual Report on Form
10-K and Part II, Item 1A of the Companys Quarterly Report on Form
10-Q for the period ended March 31, 2017. Should one or more of
these risks or uncertainties occur, or should underlying
assumptions prove incorrect, Stones actual results and plans could
differ materially from those expressed in the forward-looking
statements. Stone assumes no obligation and expressly disclaims any
duty to update the information contained herein, except as required
by law.
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99.1
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Press release dated June 9, 2017
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About STONE ENERGY CORPORATION (NYSE:SGY)
Stone Energy Corporation is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties. The Company operates in the Gulf of Mexico (GOM) basin. It has leveraged its operations in the GOM conventional shelf and has its reserve base in the prolific basins of the GOM deep water, Gulf Coast deep gas, and the Marcellus and Utica shales in Appalachia. Its estimated proved oil and natural gas reserves are over 60 million barrels of oil equivalents (MMBoe) or 340 billion cubic feet equivalent (Bcfe). Over 95 MMBoe or 570 Bcfe of its estimated proved reserves are revised downward. It has made investments in seismic data and leasehold interests, and has geological, geophysical, engineering and operational operations in deep water arena to evaluate potential exploration, development and acquisition opportunities. It holds over two deep water platforms, producing reserves and various leases.