NEW YORK (TheStreet) -- Stone Energy Corp (SGY) shares are up 11.5% to $49.83 on Tuesday after the company announced drilling success at the deep water Cardona South oil well in the Gulf of Mexico.
Stone Energy has a 65% interest in the well.
"The success of the Cardona South well and the previously announced Cardona well allows us to move forward with our accelerated development program. We expect to begin production early in 2015, less than one year after spudding the first Cardona well, and we expect volumes from these two wells to more than double our deep water oil production," said CEO David H. Welch.
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TheStreet Ratings team rates STONE ENERGY CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate STONE ENERGY CORP (SGY) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: