Parsley Energy, Inc. (PE) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $2.71 million, or $ 0.02 a share in the quarter, against a net profit of $0.91 million, or $0.01 a share in the last year period.
Revenue during the quarter surged 106.53 percent to $132.66 million from $64.23 million in the previous year period. Gross margin for the quarter expanded 1119 basis points over the previous year period to 87.63 percent. Operating margin for the quarter period stood at positive 9.40 percent as compared to a negative 31.79 percent for the previous year period.
Operating income for the quarter was $12.47 million, compared with an operating loss of $20.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $94.66 million compared with $47.07 million in the prior year period. At the same time, adjusted EBITDA margin contracted 193 basis points in the quarter to 71.35 percent from 73.28 percent in the last year period.
Sheffield, Parsley's president and chief executive officer. "We are proud of the way we have managed through the downcycle by opportunistically expanding our asset base and reducing our cost structure to the point that well-level returns today match returns at $85 oil two years ago. We remain well-positioned for future growth, with a strong balance sheet and a high-quality drilling inventory distributed across scalable operating areas in premier portions of the Midland and Southern Delaware Basins. In fact, in light of our favorable combination of highly productive wells and low costs, we have deployed a fifth horizontal rig and continue to contemplate additional rig activity as we look toward 2017. In the meantime, we are raising full-year 2016 production guidance even as we transition to larger pad projects and undertake additional density that could translate to a flattish production profile in the fourth quarter on the way to rapid and efficient growth in 2017. Future growth potential is also enhanced by the prospect of significant resource expansion, of which adding a second target zone in the Wolfcamp B interval is just one component."
Operating cash flow improves significantly
Parsley Energy, Inc. has generated cash of $175.20 million from operating activities during the nine month period, up 58.58 percent or $64.72 million, when compared with the last year period. The company has spent $1,270.76 million cash to meet investing activities during the nine month period as against cash outgo of $357.54 million in the last year period.
Cash flow from financing activities was $1,324.24 million for the nine month period, up 314.30 percent or $1,004.61 million, when compared with the last year period.
Cash and cash equivalents stood at $571.76 million as on Sep. 30, 2016, up 364.40 percent or $448.64 million from $123.12 million on Sep. 30, 2015.
Working capital turns positive
Working capital of Parsley Energy, Inc. has turned positive to $475.94 million on Sep. 30, 2016 from negative $1.28 million on Sep. 30, 2015. Current ratio was at 3.20 as on Sep. 30, 2016, up from 0.99 on Sep. 30, 2015.
Days sales outstanding went down to 15 days for the quarter compared with 62 days for the same period last year.
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