Parsley Energy, Inc. (PE) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $29.44 million, or $ 0.13 a share in the quarter, against a net loss of $19.35 million, or $0.14 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $34.17 million, or $0.15 a share compared with a net loss of $5.30 million, or $0.03 a share in the last year period. Revenue during the quarter surged 221.43 percent to $200.86 million from $62.49 million in the previous year period. Gross margin for the quarter expanded 1346 basis points over the previous year period to 91.22 percent. Operating margin for the quarter period stood at positive 36.11 percent as compared to a negative 41.67 percent for the previous year period.
Operating income for the quarter was $72.53 million, compared with an operating loss of $26.04 million in the previous year period.
"Never has Parsley Energy's focus on execution and operational excellence been more apparent than during the first quarter of 2017, in which we added close to 10,000 net Boe per day on average even as we carried out transformative acquisitions totaling approximately 94,000 net acres," said Bryan Sheffield, Parsley's chairman and chief executive officer. "Increasing our production guidance for the year while holding capex expectations steady and lowering unit cost estimates sets the stage for a year of superior value creation."
Operating cash flow improves significantly
Parsley Energy, Inc. has generated cash of $41.79 million from operating activities during the quarter, up 109.93 percent or $21.88 million, when compared with the last year period. The company has spent $760.92 million cash to meet investing activities during the quarter as against cash outgo of $334.46 million in the last year period.
Cash flow from financing activities was $2,502.27 million for the quarter as against cash outgo of $0.22 million in the last year period.
Cash and cash equivalents stood at $1,916.51 million as on Mar. 31, 2017, up 6,669.74 percent or $1,888.20 million from $28.31 million on Mar. 31, 2016.
Working capital turns positive
Working capital of Parsley Energy, Inc. has turned positive to $1,864.61 million on Mar. 31, 2017 from negative $42.49 million on Mar. 31, 2016. Current ratio was at 6.41 as on Mar. 31, 2017, up from 0.80 on Mar. 31, 2016.
Days sales outstanding went down to 26 days for the quarter compared with 65 days for the same period last year.
Debt increases substantially
Parsley Energy, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,492.66 million as on Mar. 31, 2017, up 172.48 percent or $944.85 million from $547.81 million on Mar. 31, 2016. Total debt was 22.40 percent of total assets as on Mar. 31, 2017, compared with 22.30 percent on Mar. 31, 2016. Debt to equity ratio was at 0.33 as on Mar. 31, 2017, down from 0.35 as 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]
