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What: Shares of Stone Energy
So what: Depletion, depreciation, and amortization costs fell by $10 million in the fourth quarter, allowing Stone to book $0.49 in per-share earnings. Analysts had been calling for $0.45. The beat justified the optimism of big-money buyers who've pushed the shares more than 100% higher over the past six months.
Now what: And yet the rally may not be over. Management backed its earlier production guidance for 2011. Stone Energy expects $425 million in capital outlays in order to produce 200 million to 220 million cubic feet equivalent of gas per day.
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.
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