Chesapeake Energy Corporation (CHK) saw its loss narrow to $343 million, or $0.84 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2,185 million, or $3.36 a share. On an adjusted basis, net profit for the quarter stood at $93 million, or $0.07 a share compared with a net loss of $168 million, or $0.19 a share in the last year period.
Revenue during the quarter dropped 23.71 percent to $2,021 million from $2,649 million in the previous year period. Gross margin for the quarter contracted 1518 basis points over the previous year period to 24.49 percent.
Operating loss for the quarter was $297 million, compared with an operating loss of $2,919 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $385 million compared with $298 million in the prior year period. At the same time, adjusted EBITDA margin improved 780 basis points in the quarter to 19.05 percent from 11.25 percent in the last year period.
Doug Lawler, Chesapeake's chief executive officer, commented, "During 2016, we made significant progress in improving our capital efficiency, decreasing cash costs and future midstream commitments while improving our liquidity and leverage profile, which resulted in a much stronger foundation for Chesapeake going forward. In 2017, we are capitalizing on these improvements across our cost structure to increase shareholder returns from our high-quality, diversified oil and natural gas portfolio. Our increase in activity over 2016 levels positions Chesapeake to deliver increased profitability and long-term value for our shareholders."
Operating cash flow turns negativeChesapeake Energy Corporation has spent $204 million cash to meet operating activities during the year as against cash inflow of $1,234 million in the last year. The company has spent $660 million cash to meet investing activities during the year as against cash outgo of $3,451 million in the last year.
Cash flow from financing activities was $921 million for the year as against cash outgo of $1,066 million in the last year period.
Cash and cash equivalents stood at $882 million as on Dec. 31, 2016, up 6.91 percent or $57 million from $825 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Chesapeake Energy Corporation was negative $1,506 million on Dec. 31, 2016 compared with negative $1,205 million on Dec. 31, 2015. Current ratio was at 0.59 as on Dec. 31, 2016, down from 0.67 on Dec. 31, 2015.
Debt comes down marginallyChesapeake Energy Corporation has recorded a decline in total debt over the last one year. It stood at $9,938 million as on Dec. 31, 2016, down 3.62 percent or $373 million from $10,311 million on Dec. 31, 2015. Total debt was 76.02 percent of total assets as on Dec. 31, 2016, compared with 59.41 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
