Chesapeake Energy Corporation (CHK) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $140 million, or $ 0.08 a share in the quarter, against a net loss of $1,068 million, or $1.66 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $212 million, or $0.23 a share compared with a net loss of $69 million, or $0.11 a share in the last year period. Revenue during the quarter surged 40.96 percent to $2,753 million from $1,953 million in the previous year period. Gross margin for the quarter expanded 564 basis points over the previous year period to 46.86 percent. Operating margin for the quarter period stood at positive 8.75 percent as compared to a negative 56.27 percent for the previous year period.
Operating income for the quarter was $241 million, compared with an operating loss of $1,099 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $525 million compared with $282 million in the prior year period. At the same time, adjusted EBITDA margin improved 463 basis points in the quarter to 19.07 percent from 14.44 percent in the last year period.
Doug Lawler, Chesapeake's Chief Executive Officer, commented, "Our operational momentum continues to build in our Eagle Ford, Powder River Basin and Mid-Continent oil assets, as we remain on track to reach our production target of 100,000 barrels of oil per day by year-end. We expect our production to grow significantly in the second half of 2017 as we place more wells to sales, and as a result, we have raised the bottom range of our 2017 production guidance. We remain focused on improving our balance sheet and decreasing our cash costs, while improving the capital efficiency from our operations. We look forward to reporting our results as the year progresses."
Operating cash flow turns positive
Chesapeake Energy Corporation has generated cash of $99 million from operating activities during the quarter as against cash outgo of $421 million in the last year period. Cash flow from investing activities was $380 million for the quarter as against cash outgo of $273 million in the last year period.
The company has spent $1,112 million cash to carry out financing activities during the quarter as against cash outgo of $115 million in the last year period.
Cash and cash equivalents stood at $249 million as on Mar. 31, 2017, up 1,456.25 percent or $233 million from $16 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Chesapeake Energy Corporation was negative $1,428 million on Mar. 31, 2017 compared with negative $1,341 million on Mar. 31, 2016. Current ratio was at 0.49 as on Mar. 31, 2017, down from 0.53 on Mar. 31, 2016.
Days sales outstanding went down to 18 days for the quarter compared with 48 days for the same period last year.
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