SGY Stone Energy Breaks $9 Resistance on Q2 Earnings

Stone Energy (NYSE:SGY) was up just over 20% today after beating Q2 Earnings, breaking the $9 resistance level on very impressive volume to close the day at $10.86/share.  Looks like one of the big mutual funds may have been picking up some shares today with over 6 million shares traded.  It may take a few weeks, but this one looks poised to gain.

Stone Energy Corp (SGY) is an oil and natural gas company that reported a second-quarter profit that beat estimates, helped by higher production and lower expenses.

For the quarter, the company's net income was $27.2 million, or 65 cents a share, compared with $82.8 million, or $2.88 per share, a year earlier. Total operating revenue was $170.3 million.

Analysts on average were expecting Stone to earn 17 cents a share, on revenue of $128.8 million, according to Reuters Estimates.

Net daily production volumes during the quarter averaged 209 million cubic feet of gas equivalent (mmcfe), 8 percent above last year.

The company forecast third-quarter net daily production of 215 mmcfe to 235 mmcfe.

"The current board authorized 2009 capital expenditure budget is $300 million... Although the board has authorized a capital expenditure budget of $300 million, management has targeted a lesser amount of approximately $250 million," the company said.