Continental Resources, Inc. (CLR) saw its loss widen to $109.62 million, or $0.30 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $82.42 million, or $0.22 a share. On the other hand, adjusted net loss for the quarter widened to $82.85 million, or $0.22 a share from a loss of $43.51 million or $0.12 a share, a year ago.
Revenue during the quarter dropped 22.92 percent to $526.20 million from $682.67 million in the previous year period. Gross margin for the quarter contracted 43 basis points over the previous year period to 87.26 percent. Operating margin for the quarter stood at negative 17.71 percent as compared to a negative 7.67 percent for the previous year period.
Operating loss for the quarter was $93.18 million, compared with an operating loss of $52.36 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $386.79 million compared with $472.22 million in the prior year period. At the same time, adjusted EBITDA margin improved 433 basis points in the quarter to 73.51 percent from 69.17 percent in the last year period.
"We have expanded the productive footprint of STACK, SCOOP and the Bakken core, and are increasing the value of these assets with density testing and enhanced completions," commented Harold Hamm, chairman and chief executive officer. "The results of the Ludwig density test in STACK have given us confidence to begin development on acreage we have de-risked in the over-pressured oil window. "Additionally, we brought on several excellent producers in the Bakken using enhanced completion designs, including two wells that generated CLR-record 30-day initial rates for the Bakken. This is an encouraging start as the Company begins working down its large backlog of Bakken uncompleted wells and capturing their value."
Operating cash flow drops significantly
Continental Resources, Inc. has generated cash of $863.89 million from operating activities during the nine month period, down 38.97 percent or $551.60 million, when compared with the last year period.
The company has spent $550.22 million cash to meet investing activities during the nine month period as against cash outgo of $2,597.70 million in the last year period.
The company has spent $305.64 million cash to carry out financing activities during the nine month period as against cash inflow of $1,183.70 million in the last year period.
Cash and cash equivalents stood at $19.50 million as on Sep. 30, 2016, up 14.99 percent or $2.54 million from $16.96 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Continental Resources, Inc. was negative $51.48 million on Sep. 30, 2016 compared with negative $163.01 million on Sep. 30, 2015. Current ratio was at 0.94 as on Sep. 30, 2016, up from 0.86 on Sep. 30, 2015.
Days sales outstanding went down to 87 days for the quarter compared with 120 days for the same period last year.
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