Whiting Petroleum Corporation (WLL) saw its loss widen to $173.26 million, or $0.59 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $98.69 million, or $0.48 a share. On the other hand, adjusted net loss for the quarter narrowed to $82.59 million, or $0.28 a share from a loss of $87.83 million or $0.43 a share, a year ago. Revenue during the quarter dropped 18.01 percent to $342.70 million from $417.95 million in the previous year period. Gross margin for the quarter expanded 317 basis points over the previous year period to 74.44 percent. Operating margin for the quarter stood at negative 38.22 percent as compared to a negative 11.71 percent for the previous year period.
Operating loss for the quarter was $130.98 million, compared with an operating loss of $48.95 million in the previous year period.
James J. Volker, Whitings chairman, president and chief executive officer, commented, "Whiting delivered another strong quarter. Production grew sequentially when adjusted for asset sales and exceeded the high end of our forecast. Operating expense was at the low end of guidance. We achieved this while generating operating cash flow that exceeded our capital expenditures. Also, our efforts to reshape our balance sheet came to fruition this quarter. We announced the $375 million sale of our North Dakota midstream assets. We received the proceeds on January 3, 2017 and used $275 million to redeem all of our outstanding 2018 notes on February 2, 2017. Since the beginning of 2016, we have sold $725 million of non-core properties and used the proceeds to improve our balance sheet. Asset sales combined with innovative debt exchange transactions and free cash flow reduced debt by $2.4 billion or 42% since March 2016."
Operating cash flow drops significantlyWhiting Petroleum Corporation has generated cash of $595.01 million from operating activities during the year, down 43.41 percent or $456.38 million, when compared with the last year. The company has spent $222.58 million cash to meet investing activities during the year as against cash outgo of $1,982.12 million in the last year.
The company has spent $315.26 million cash to carry out financing activities during the year as against cash inflow of $868.68 million in the last year period.
Cash and cash equivalents stood at $55.98 million as on Dec. 31, 2016, up 248.69 percent or $39.92 million from $16.05 million on Dec. 31, 2015.
Working capital turns positive
Working capital of Whiting Petroleum Corporation has turned positive to $144.27 million on Dec. 31, 2016 from negative $64.62 million on Dec. 31, 2015. Current ratio was at 1.30 as on Dec. 31, 2016, up from 0.89 on Dec. 31, 2015.
Debt comes down significantly
Whiting Petroleum Corporation has recorded a decline in total debt over the last one year. It stood at $3,535.30 million as on Dec. 31, 2016, down 31.98 percent or $1,662.40 million from $5,197.70 million on Dec. 31, 2015. Whiting Petroleum Corp has recorded a decline in long-term debt over the last one year. Total debt was 35.80 percent of total assets as on Dec. 31, 2016, compared with 45.64 percent on Dec. 31, 2015. Debt to equity ratio was at 0.69 as on Dec. 31, 2016, down from 1.09 as on Dec. 31, 2015. 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]
