CONSOL Energy Inc. (CNX) saw its loss narrow to $38.97 million, or $0.17 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $97.57 million, or $0.43 a share.

Revenue during the quarter surged 31.13 percent to $698.71 million from $532.83 million in the previous year period. Gross margin for the quarter expanded 588 basis points over the previous year period to 80.24 percent. Operating margin for the quarter stood at negative 1.78 percent as compared to a positive 4.76 percent for the previous year period.

However, the adjusted EBITDA for the quarter stood at $216.84 million compared with $181.26 million in the prior year period. At the same time, adjusted EBITDA margin contracted 298 basis points in the quarter to 31.03 percent from 34.02 percent in the last year period.

"During the quarter, substantial progress was achieved on three important drivers of net asset value (NAV) per share," commented Nicholas J. DeIuliis, president and chief executive officer. "First, for E&P, cycle times are down, capital efficiencies are up, and well type curves are further optimized, resulting in production guidance increases in 2017 and 2018 without any increases to last quarter's previously announced capital budgets. Second, our asset sales program is in high gear, and we monetized over $100 million to date and expect to be over halfway to the high end of our $400-$600 million asset sales target by the end of the second quarter. Third, the company generated approximately $100 million in organic free cash flow from continuing operations1, which excludes asset sales, in the first quarter and used that organic free cash flow to purchase our debt at a discount and reduce interest expense."

The company has spent $87.64 million cash to meet investing activities during the quarter as against cash inflow of $320.98 million in the last year period. It has incurred capital expenditure of $93.55 million on net basis during the quarter, up 35.18 percent or $24.35 million from year ago period.

The company has spent $116.69 million cash to carry out financing activities during the quarter as against cash outgo of $96.86 million in the last year period.

Cash and cash equivalents stood at $61.27 million as on Mar. 31, 2017, down 85.64 percent or $365.38 million from $426.65 million on Mar. 31, 2016.

Working capital remains negative

Working capital of CONSOL Energy Inc. was negative $376.63 million on Mar. 31, 2017 compared with negative $438.49 million on Mar. 31, 2016. Current ratio was at 0.62 as on Mar. 31, 2017, down from 0.72 on Mar. 31, 2016.

Cash conversion cycle (CCC) has increased to 104 days for the quarter from 50 days for the last year period. Days sales outstanding went down to 50 days for the quarter compared with 56 days for the same period last year.

Days inventory outstanding has decreased to 23 days for the quarter compared with 58 days for the previous year period. At the same time, days payable outstanding went up to 177 days for the quarter from 164 for the same period last year.