Parsley Energy, Inc. (PE) saw its loss widen to $30.74 million, or $0.17 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $15.24 million, or $0.14 a share.
Revenue during the quarter surged 126.08 percent to $155.88 million from $68.95 million in the previous year period. Gross margin for the quarter expanded 925 basis points over the previous year period to 90.52 percent. Operating margin for the quarter period stood at positive 27.72 percent as compared to a negative 27.79 percent for the previous year period.
Operating income for the quarter was $43.21 million, compared with an operating loss of $19.16 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $117.48 million compared with $58.18 million in the prior year period. At the same time, adjusted EBITDA margin contracted 903 basis points in the quarter to 75.37 percent from 84.39 percent in the last year period.
"The fourth quarter was a strong conclusion to an extraordinary year for Parsley Energy," said Bryan Sheffield, Parsley's chairman and chief executive officer. "During 2016 we grew production by approximately 80% and set the pace on cost compression, as well. Our operational momentum and anticipated rig additions through 2017 position us for robust production growth both this year and next, and our recently announced acquisitions of premium acreage position us for many more years of efficient growth. Having amassed what we believe to be the premiere acreage portfolio of its size, our focus is on execution and capital efficiency as we extract maximum value from the assets we have consolidated."
Operating cash flow improves significantly
Parsley Energy, Inc. has generated cash of $228.19 million from operating activities during the year, up 32.45 percent or $55.90 million, when compared with the last year. The company has spent $1,885.37 million cash to meet investing activities during the year as against cash outgo of $427.16 million in the last year.
Cash flow from financing activities was $1,447.47 million for the year, up 164.42 percent or $900.06 million, when compared with the last year.
Cash and cash equivalents stood at $133.38 million as on Dec. 31, 2016, down 61.12 percent or $209.70 million from $343.08 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Parsley Energy, Inc. has turned negative to $45.47 million on Dec. 31, 2016 from positive $259.83 million on Dec. 31, 2015. Current ratio was at 0.87 as on Dec. 31, 2016, down from 2.14 on Dec. 31, 2015.
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