Ring Energy, Inc. (REI) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $1.28 million, or $ 0.03 a share in the quarter, against a net loss of $15.28 million, or $0.50 a share in the last year period. Revenue during the quarter surged 100.97 percent to $12.24 million from $6.09 million in the previous year period. Gross margin for the quarter expanded 1878 basis points over the previous year period to 77.90 percent.
Operating income for the quarter was $2.50 million, compared with an operating loss of $23.83 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $7.11 million compared with $1.67 million in the prior year period. At the same time, adjusted EBITDA margin improved 3067 basis points in the quarter to 58.03 percent from 27.36 percent in the last year period.
Ring's chief executive officer, Mr. Kelly Hoffman, stated, "2017 is off to a fast start. With the promising initial results from the first 10 horizontal wells we drilled on our Central Basin Platform ("CBP") property, our enthusiasm has only increased. Our staff has amassed a premier acreage portfolio in what is arguably one of the best locations in the country. With the acquisition of the 33,000 acres in Gaines County completed, we now have over 600 net potential drilling locations. We continue to look for opportunities that complement our core assets. We are excited and expect this year to be an extraordinary time for the Company."
Operating cash flow turns positive
Ring Energy, Inc. has generated cash of $11.02 million from operating activities during the quarter as against cash outgo of $1.74 million in the last year period. The company has spent $26.54 million cash to meet investing activities during the quarter as against cash outgo of $3.90 million in the last year period.
The company has spent $0.15 million cash to carry out financing activities during the quarter as against cash inflow of $5.02 million in the last year period.
Working capital turns positive
Working capital of Ring Energy, Inc. has turned positive to $42.02 million on Mar. 31, 2017 from negative $0.03 million on Mar. 31, 2016. Current ratio was at 3.26 as on Mar. 31, 2017, up from 1 on Mar. 31, 2016.
Days sales outstanding went down to 34 days for the quarter compared with 55 days for the same period last year.
At the same time, days payable outstanding went up to 492 days for the quarter from 334 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
