Mid-Con Energy Partners, LP (MCEP) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $4.44 million, or $ 0.11 a share in the quarter, against a net loss of $3.31 million, or $0.11 a share in the last year period. Revenue during the quarter surged 33.58 percent to $18.48 million from $13.84 million in the previous year period. Gross margin for the quarter expanded 1682 basis points over the previous year period to 72.99 percent. Operating margin for the quarter period stood at positive 31.85 percent as compared to a negative 8.31 percent for the previous year period.
Operating income for the quarter was $5.89 million, compared with an operating loss of $1.15 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.47 million compared with $13.40 million in the prior year period. At the same time, adjusted EBITDA margin contracted 6181 basis points in the quarter to 35 percent from 96.81 percent in the last year period.
"We have continued to execute on reducing costs during the first quarter of 2017," commented Jeff Olmstead, President and Chief executive officer. "Total lease operating expenses declined approximately 3% from the fourth quarter of 2016 and 18% from the first quarter of 2016. Cash general & administrative expenses declined approximately 2% from the same period in 2016. These improvements helped partially offset lower realized prices after hedges and production during the first quarter of this year. Operationally, we remain focused on ongoing waterflood developments started in the second half of 2016 at select key projects. As expected, this resulted in lower overall production quarter-over-quarter; however, we have already started to see positive response from increased injection in certain areas, which has allowed us to increase the bottom end of our production guidance range for this year."
Operating cash flow drops significantly
Mid-Con Energy Partners, LP has generated cash of $4.82 million from operating activities during the quarter, down 60.19 percent or $ 7.29 million, when compared with the last year period. The company has spent $2.31 million cash to meet investing activities during the quarter as against cash outgo of $1.60 million in the last year period.
The company has spent $2.07 million cash to carry out financing activities during the quarter as against cash outgo of $11.02 million in the last year period.
Cash and cash equivalents stood at $2.80 million as on Mar. 31, 2017, up 2,565.71 percent or $2.69 million from $0.10 million on Mar. 31, 2016.
Working capital declines
Mid-Con Energy Partners, LP has witnessed a decline in the working capital over the last year. It stood at $2.48 million as at Mar. 31, 2017, down 17.28 percent or $0.52 million from $3 million on Mar. 31, 2016. Current ratio was at 1.44 as on Mar. 31, 2017, up from 1.14 on Mar. 31, 2016.
Days sales outstanding went down to 35 days for the quarter compared with 57 days for the same period last year.
At the same time, days payable outstanding went down to 41 days for the quarter from 48 for the same period last year.
Debt comes down significantly
Mid-Con Energy Partners, LP has recorded a decline in total debt over the last one year. It stood at $120.50 million as on Mar. 31, 2017, down 28.70 percent or $48.50 million from $169 million on Mar. 31, 2016. Total debt was 44.10 percent of total assets as on Mar. 31, 2017, compared with 54.15 percent on Mar. 31, 2016. 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]
