Stone Energy skipped a $29 million loan payment that was due Monday to conserve cash and said in public documents it will consider alternatives for restructuring its debt, including filing for bankruptcy protection.
The Lafayette-based oil and gas producer is trying to navigate an era of low commodity prices.
In a filing with the Securities and Exchange Commission made public Monday, the company said it was “in the process of analyzing various alternatives to address its liquidity and capital structure, including strategic and refinancing alternatives through a private restructuring, asset sales and a prepackaged or prearranged bankruptcy filing.”
Stone also said it expects to be told by the New York Stock Exchange, where the company is traded under the symbol SGY, that its stock is not in compliance with minimum market capitalization requirements. On Wednesday, the stock was priced at 32 cents, and its market capitalization was $18.2 million, well below the $50 million floor set by the NYSE to be listed.
The moves come after first-quarter results, announced in early May, showed the company lost $188.8 million, which includes impairment charges of $129.2 million.
Stone President and CEO David Welch said the company has had some success operationally and that it was trying to preserve cash. At the end of the first quarter, the company had $367 million in cash, according its first-quarter earnings report.
“Late in the first quarter of 2016, we drew down on our credit facility to provide near-term financial flexibility to continue to execute operationally as we explore various options to strengthen our balance sheet,” Welch said in the earnings release.