Contango Oil & Gas Company (MCF) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $0.88 million in the quarter, against a net loss of $11.40 million in the last year period.
Revenue during the quarter grew 10.48 percent to $19.42 million from $17.58 million in the previous year period. Operating margin for the quarter stood at negative 30.36 percent as compared to a negative 83.27 percent for the previous year period.
Operating loss for the quarter was $5.90 million, compared with an operating loss of $14.64 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $7.15 million compared with $7.26 million in the prior year period. At the same time, adjusted EBITDA margin contracted 448 basis points in the quarter to 36.83 percent from 41.31 percent in the last year period.
Allan D. Keel, the Company's president and chief executive officer, said "We continue to advance the de-risking and development of our Southern Delaware Basin acreage. To date we have brought three wells on production, the first of which we previously announced and the other two which have been on-line for less than 30 days. Upon completion of the Gunner, we will likely move the rig back to the Grim Reaper location to drill a new horizontal well, the Crusader #1, as we continue moving forward toward de-risking our position and maximizing our results."
Working capital remains negative
Working capital of Contango Oil & Gas Co was negative $44.80 million on Mar. 31, 2017 compared with negative $17.22 million on Mar. 31, 2016. Current ratio was at 0.24 as on Mar. 31, 2017, down from 0.50 on Mar. 31, 2016.
Days sales outstanding went down to 75 days for the quarter compared with 87 days for the same period last year.
Debt comes down significantly
Contango Oil & Gas Co has recorded a decline in total debt over the last one year. It stood at $59.72 million as on Mar. 31, 2017, down 46.76 percent or $52.46 million from $112.18 million on Mar. 31, 2016. Contango Oil & Gas Co has recorded a decline in long-term debt over the last one year. It stood at $59.72 million as on Mar. 31, 2017, down 46.76 percent or $52.46 million from $112.18 million on Mar. 31, 2016. Total debt was 15.82 percent of total assets as on Mar. 31, 2017, compared with 28.24 percent on Mar. 31, 2016. Debt to equity ratio was at 0.25 as on Mar. 31, 2017, down from 0.49 as on Mar. 31, 2016.
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