QEP Resources, Inc. (QEP) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $76.90 million, or $ 0.32 a share in the quarter, against a net loss of $863.80 million, or $4.55 a share in the last year period. On the other hand, adjusted net loss for the quarter narrowed to $34.50 million, or $0.14 a share from a loss of $101 million or $0.53 a share, a year ago. Revenue during the quarter surged 60.77 percent to $420.10 million from $261.30 million in the previous year period. Gross margin for the quarter expanded 1756 basis points over the previous year period to 59.46 percent.
Operating loss for the quarter was $5.20 million, compared with an operating loss of $1,379 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $170.70 million compared with $115.30 million in the prior year period. At the same time, adjusted EBITDA margin contracted 349 basis points in the quarter to 40.63 percent from 44.13 percent in the last year period.
"During the first quarter 2017 we commenced development on our Mustang Springs asset in the Permian Basin, completing four parent wells, three of which reached an average peak 24-hour IP of 1,384 Boed in the quarter, and initiated density pilot testing on the asset," commented Chuck Stanley, chairman, president and chief executive officer of QEP. "Also in the Permian, we delivered very strong well results from a five-well density pilot designed to test 16-wells per mile spacing in the Spraberry Shale on our County Line asset. The wells were drilled and completed utilizing our new 'tank-style' completion method, and delivered an average peak 24-hour IP of 1,803 Boed, with the best well of the group delivering a peak 24-hour IP of 2,193 Boed. The strong initial productivity of these wells is not only notable, but also helps confirm our development well spacing and completion design assumptions for both of our Permian assets going forward."
Operating cash flow improves significantly
QEP Resources, Inc. has generated cash of $149.40 million from operating activities during the quarter, up 82.86 percent or $67.70 million, when compared with the last year period. The company has spent $245.30 million cash to meet investing activities during the quarter as against cash outgo of $177.70 million in the last year period. It has incurred capital expenditure of $245.30 million on net basis during the quarter, up 38.04 percent or $67.60 million from year ago period.
The company has spent $9.50 million cash to carry out financing activities during the quarter as against cash inflow of $336.30 million in the last year period.
Cash and cash equivalents stood at $338.40 million as on Mar. 31, 2017, down 45.10 percent or $278 million from $616.40 million on Mar. 31, 2016.
Working capital drops significantly
QEP Resources, Inc. has witnessed a decline in the working capital over the last year. It stood at $98.40 million as at Mar. 31, 2017, down 83.83 percent or $510.20 million from $608.60 million on Mar. 31, 2016. Current ratio was at 1.24 as on Mar. 31, 2017, down from 2.33 on Mar. 31, 2016.
Days sales outstanding went down to 56 days for the quarter compared with 113 days for the same period last year.
Days inventory outstanding has decreased to 2 days for the quarter compared with 6 days for the previous year period.
Debt comes down
QEP Resources, Inc. has recorded a decline in total debt over the last one year. It stood at $2,031.60 million as on Mar. 31, 2017, down 7.36 percent or $161.30 million from $2,192.90 million on Mar. 31, 2016. Total debt was 28.08 percent of total assets as on Mar. 31, 2017, compared with 30.11 percent on Mar. 31, 2016. Debt to equity ratio was at 0.57 as on Mar. 31, 2017, down from 0.63 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]
