Rodman & Renshaw Maintains Outperform, Raises PT to $37 on Stone Energy

Rodman & Renshaw reiterates its Outperform rating on Stone Energy

as the company's 2011 reserves and 2012 guidance are in line. Rodman & Renshaw says, "SGY reported proved reserves of 602 Bcfe at year-end 2011, up 27% y/y but just under our forecast of 610-615 Bcfe. The corresponding PV-10 of $2.1 billion implies a value of ~$3.50/Mcfe, which is roughly inline with the per-unit value we had been estimating. While the company's PUD percentage came in higher than expected at 40% of reserves (versus expectations of 30%-35%), its oil weighting surprised to the upside at 46% (versus 40%-45%). For the year, SGY replaced 264% of its production at an estimated cost of ~$3.00/Mcfe. Importantly, the company is beginning to see real results from its diversification efforts." SGY closed at $28.29 a share on Monday.