Matador Resources Company (MTDR) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $11.93 million, or $ 0.13 a share in the quarter, against a net loss of $242.06 million, or $2.86 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $5.38 million, or $0.06 a share compared with $2.56 million or $0.03 a share, a year ago.
Revenue during the quarter dropped 10.35 percent to $88.73 million from $98.98 million in the previous year period. Gross margin for the quarter contracted 746 basis points over the previous year period to 67.95 percent.
Operating income for the quarter was $16.85 million, compared with an operating loss of $268.65 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $47.27 million compared with $58.03 million in the prior year period. At the same time, adjusted EBITDA margin contracted 535 basis points in the quarter to 53.27 percent from 58.63 percent in the last year period.
Joseph Wm. Foran, Matador’s chairman and chief executive officer, commented, “The Matador staff delivered another strong quarter of operating and financial results for its shareholders in the third quarter of 2016. Our oil, natural gas, and total oil equivalent production, as well as our proved oil and natural gas reserves, were all-time highs for the Company. Well results throughout our Delaware Basin acreage position continue to meet or exceed our projections, leading to better-than-expected production results, both in the third quarter and year-to-date. In addition, we have reduced our unit costs per BOE of total production by almost 25% year-over-year. As a result, for the second time this year, we have increased our 2016 total oil equivalent production, natural gas production and Adjusted EBITDA guidance in conjunction with this earnings release.
Operating cash flow drops significantly
Matador Resources Company has generated cash of $96.46 million from operating activities during the nine month period, down 48.12 percent or $89.46 million, when compared with the last year period.
The company has spent $297.60 million cash to meet investing activities during the nine month period as against cash outgo of $405.56 million in the last year period.
Cash flow from financing activities was $204.97 million for the nine month period, down 8.95 percent or $20.15 million, when compared with the last year period.
Cash and cash equivalents stood at $20.57 million as on Sep. 30, 2016, up 48.10 percent or $6.68 million from $13.89 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Matador Resources Company was negative $70.61 million on Sep. 30, 2016 compared with negative $26.74 million on Sep. 30, 2015. Current ratio was at 0.53 as on Sep. 30, 2016, down from 0.83 on Sep. 30, 2015.
Days sales outstanding went up to 59 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 8 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 58 for the same period last year.
Debt moves up
Matador Resources Company has witnessed an increase in total debt over the last one year. It stood at $457.15 million as on Sep. 30, 2016, up 16.93 percent or $66.19 million from $390.96 million on Sep. 30, 2015. Matador Resources has witnessed an increase in long-term debt over the last one year. It stood at $457.15 million as on Sep. 30, 2016, up 16.93 percent or $66.19 million from $390.96 million on Sep. 30, 2015. Total debt was 38.82 percent of total assets as on Sep. 30, 2016, compared with 30.53 percent on Sep. 30, 2015. Debt to equity ratio was at 1.04 as on Sep. 30, 2016, up from 0.55 as on Sep. 30, 2015.
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