Northern Oil and Gas, Inc. (NOG) saw its loss narrow to $12.33 million, or $0.20 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $172.31 million, or $2.84 a share. On the other hand, adjusted net income for the quarter stood at $2.39 million, or $0.04 a share compared with $15.61 million or $0.25 a share, a year ago.
Revenue during the quarter plunged 36.84 percent to $35.94 million from $56.91 million in the previous year period. Gross margin for the quarter contracted 1191 basis points over the previous year period to 67.40 percent.
Operating income for the quarter was $2.49 million, compared with an operating loss of $156.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $35.07 million compared with $67.70 million in the prior year period.
"Northern performed well in 2016 given the challenging commodity price environment and was free cash flow positive for the year," commented Northern’s Interim chief executive officer and chief financial officer, Tom Stoelk. "Northern has seen significant improvements in well productivity due to the widespread adoption of enhanced completion techniques and focus of drilling activity in the core of the play. At the same time, average drilling and completion costs have declined, with average AFE costs of $7.0 million for wells that we elected to participate in during 2016." Mr. Stoelk continued, "We remain focused on returns and disciplined capital allocation, which will position us to return to growth as development activity increases in the Williston Basin."
Working capital turns negative
Working capital of Northern Oil and Gas, Inc. has turned negative to $30.55 million on Dec. 31, 2016 from positive $50.70 million on Dec. 31, 2015. Current ratio was at 0.61 as on Dec. 31, 2016, down from 1.65 on Dec. 31, 2015.
Debt comes down marginally
Northern Oil and Gas, Inc.has recorded a decline in total debt over the last one year. It stood at $832.63 million as on Dec. 31, 2016, down 1.79 percent or $15.18 million from $847.80 million on Dec. 31, 2015. Northern Oil and Gas, Inc. has recorded a decline in long-term debt over the last one year. It stood at $832.63 million as on Dec. 31, 2016, down 1.79 percent or $15.18 million from $847.80 million on Dec. 31, 2015. Total debt was 192.95 percent of total assets as on Dec. 31, 2016, compared with 115.51 percent on Dec. 31, 2015.
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