Newfield Exploration Company (NFX) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $147 million, or $ 0.73 a share in the quarter, against a net loss of $624 million, or $3.52 a share in the last year period. On an adjusted basis, the company has earned $114 million, or $0.57 a share for the quarter. Revenue during the quarter surged 46.83 percent to $417 million from $284 million in the previous year period. Gross margin for the quarter expanded 1297 basis points over the previous year period to 69.30 percent.
Operating income for the quarter was $121 million, compared with an operating loss of $578 million in the previous year period.
"As you can see from our first quarter results, we are off to a great start in 2017 and building momentum that should carry into 2018 and beyond," said Lee K. Boothby, Newfield chairman, president and chief executive officer. "We remain confident that our near-term business plan is aligned with today's market realities. Our plan was carefully constructed to achieve several important objectives... to set the organization on a course to balance investments with cash flow while sustainably delivering double-digit production growth in the future, advance our learning curve in STACK through enhanced completions and initial infill drilling on multi-well pads, assess our SCORE program which includes several liquids-rich targets on our acreage and timely identify and mitigate potential bottlenecks to future development plans."
Operating cash flow improves significantly
Newfield Exploration Company has generated cash of $167 million from operating activities during the quarter, up 131.94 percent or $95 million, when compared with the last year period. The company has spent $251 million cash to meet investing activities during the quarter as against cash outgo of $275 million in the last year period.
The company has spent $2 million cash to carry out financing activities during the quarter as against cash inflow of $735 million in the last year period.
Cash and cash equivalents stood at $469 million as on Mar. 31, 2017, down 12.66 percent or $68 million from $537 million on Mar. 31, 2016.
Working capital drops significantly
Newfield Exploration Company has witnessed a decline in the working capital over the last year. It stood at $282 million as at Mar. 31, 2017, down 49.91 percent or $281 million from $563 million on Mar. 31, 2016. Current ratio was at 1.48 as on Mar. 31, 2017, down from 2.07 on Mar. 31, 2016.
Days sales outstanding went down to 28 days for the quarter compared with 81 days for the same period last year.
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