Stone Energy (SGY +1.5%) is downgraded to Underperform from In-line with a $0.50 price target, cut from $1.25, at Imperial Capital, citing the recent severe cut to SGY's borrowing base that leaves "little hope for a recovery" without a large and speedy rebound in crude pricing.

Expecting a cut, SGY borrowed the entire availability on its former borrowing base, thus borrowings now exceed the new base by $175M; after paying down the overage, incorporating an $18.3M letter of credit, an $11.8M building loan, and addressing the 2017 maturity, Imperial estimates SGY will be left with $53M of liquidity.