Legacy Reserves Lp (LGCY) has reported an 84.46 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $16.37 million, or $0.16 a share in the quarter, compared with $105.33 million, or $1.47 a share for the same period last year.
Revenue during the quarter surged 51.15 percent to $99.55 million from $65.86 million in the previous year period. Operating margin for the quarter period stood at positive 2.30 percent as compared to a negative 25.62 percent for the previous year period.
Operating income for the quarter was $2.28 million, compared with an operating loss of $16.88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $40.19 million compared with $29.09 million in the prior year period. At the same time, adjusted EBITDA margin contracted 380 basis points in the quarter to 40.37 percent from 44.18 percent in the last year period.
Paul T. Horne, chairman, president and chief executive officer, commented, "Our company started the year off well as we grew oil production by 9% relative to Q4 of last year, driven by our recent Permian horizontal drilling efforts. While LOE was up 19% relative to Q4, the primary driver was an increase in returning wells to production and workovers that are now economic in an improved commodity price environment. This proactive well work in the Permian Basin and East Texas served to further reduce oil and gas declines for our portfolio of shallow-decline properties, the base from which we intend to grow the business in 2017 and beyond."
Working capital turns negative
Working capital of Legacy Reserves Lp has turned negative to $7.81 million on Mar. 31, 2017 from positive $54.39 million on Mar. 31, 2016. Current ratio was at 0.92 as on Mar. 31, 2017, down from 1.76 on Mar. 31, 2016. Days sales outstanding went down to 57 days for the quarter compared with 80 days for the same period last year.
Debt comes down
Legacy Reserves Lp has recorded a decline in total debt over the last one year. It stood at $1,148.15 million as on Mar. 31, 2017, down 7.26 percent or $89.92 million from $1,238.07 million on Mar. 31, 2016. Legacy Reserves Lp has recorded a decline in long-term debt over the last one year. It stood at $1,148.15 million as on Mar. 31, 2017, down 7.26 percent or $89.92 million from $1,238.07 million on Mar. 31, 2016. Total debt was 87.24 percent of total assets as on Mar. 31, 2017, compared with 81.36 percent on Mar. 31, 2016.
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