EV Energy Partners, L.P. (EVEP) saw its loss widen to $165.67 million, or $3.31 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $71.26 million, or $1.43 a share. Revenue during the quarter grew 9.36 percent to $52.44 million from $47.95 million in the previous year period. Gross margin for the quarter expanded 1861 basis points over the previous year period to 55.65 percent.
Operating loss for the quarter was $138.51 million, compared with an operating loss of $111.16 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $28.52 million compared with $52.72 million in the prior year period.
"In 2016, our overall results were in line with guidance, we continued to reduce operating costs through the hard work of our asset teams, and we reduced debt by $83 million. In December, we sold some of our Barnett Shale natural gas assets, and in January, redeployed the proceeds in an oil-weighted Karnes County acquisition that we believe has significantly more drilling opportunities at attractive rates of return in the current commodity price environment. In 2017, we plan to increase our capital spending, while remaining focused on our cost structure and maintaining sufficient liquidity," said Michael Mercer, president and chief executive officer.
Operating cash flow drops significantly
EV Energy Partners, L.P. has generated cash of $33.88 million from operating activities during the year, down 76.02 percent or $107.41 million, when compared with the last year. The company has spent $9.77 million cash to meet investing activities during the year as against cash inflow of $291.79 million in the last year.
The company has spent $38.97 million cash to carry out financing activities during the year as against cash outgo of $420.92 million in the last year period.
Cash and cash equivalents stood at $5.56 million as on Dec. 31, 2016, down 72.78 percent or $14.86 million from $20.42 million on Dec. 31, 2015.
Working capital turns negative
Working capital of EV Energy Partners, L.P. has turned negative to $6.88 million on Dec. 31, 2016 from positive $54.81 million on Dec. 31, 2015. Current ratio was at 0.88 as on Dec. 31, 2016, down from 1.90 on Dec. 31, 2015.
Debt comes down
EV Energy Partners, L.P. has recorded a decline in total debt over the last one year. It stood at $606.95 million as on Dec. 31, 2016, down 11.86 percent or $81.67 million from $688.61 million on Dec. 31, 2015. Ev Energy Partners Lp has recorded a decline in long-term debt over the last one year. It stood at $606.95 million as on Dec. 31, 2016, down 11.86 percent or $81.67 million from $688.61 million on Dec. 31, 2015. Total debt was 37.77 percent of total assets as on Dec. 31, 2016, compared with 35.80 percent on Dec. 31, 2015.
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