Continental Resources Inc (CLR) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $0.47 million in the quarter, against a net loss of $198.33 million in the last year period. On an adjusted basis, net profit for the quarter stood at $6.78 million, or $0.02 a share compared with a net loss of $150.47 million, or $0.41 a share in the last year period. Revenue during the quarter surged 51.25 percent to $685.43 million from $453.17 million in the previous year period. Gross margin for the quarter expanded 672 basis points over the previous year period to 89.37 percent. Operating margin for the quarter period stood at positive 11.27 percent as compared to a negative 52.76 percent for the previous year period.
Operating income for the quarter was $77.22 million, compared with an operating loss of $239.10 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $482.47 million compared with $314.61 million in the prior year period. At the same time, adjusted EBITDA margin improved 97 basis points in the quarter to 70.39 percent from 69.42 percent in the last year period.
“Our optimized completions are another game changer for the Bakken,” said Jack Stark, president and chief executive officer. “This technology is delivering record 30-day production rates and almost doubling the rates of return expected from our previous economic models.”
Operating cash flow improves significantly
Continental Resources Inc has generated cash of $470.20 million from operating activities during the quarter, up 68.59 percent or $191.30 million, when compared with the last year period. The company has spent $389.27 million cash to meet investing activities during the quarter as against cash outgo of $358.81 million in the last year period.
The company has spent $80.38 million cash to carry out financing activities during the quarter as against cash inflow of $81.34 million in the last year period.
Cash and cash equivalents stood at $17.19 million as on Mar. 31, 2017, up 32.96 percent or $4.26 million from $12.93 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Continental Resources Inc was negative $75.82 million on Mar. 31, 2017 compared with negative $105.18 million on Mar. 31, 2016. Current ratio was at 0.92 as on Mar. 31, 2017, up from 0.88 on Mar. 31, 2016.
Days sales outstanding went down to 40 days for the quarter compared with 116 days for the same period last year.
Debt comes down
Continental Resources Inc has recorded a decline in total debt over the last one year. It stood at $6,508.21 million as on Mar. 31, 2017, down 9.68 percent or $697.39 million from $7,205.60 million on Mar. 31, 2016. Total debt was 47.07 percent of total assets as on Mar. 31, 2017, compared with 49.24 percent on Mar. 31, 2016. Debt to equity ratio was at 1.51 as on Mar. 31, 2017, down from 1.61 as on Mar. 31, 2016.
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