Sanchez Energy Corporation(SN) has reported an 157.68 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $57.95 million, or $0.73 a share in the quarter, compared with $22.49 million, or $0.30 a share for the same period last year. On an adjusted basis, net profit for the quarter was $9.54 million, when compared with $2.04 million in the last year period.
Revenue during the quarter grew 14.79 percent to $125.74 million from $109.53 million in the previous year period. Gross margin for the quarter expanded 1555 basis points over the previous year period to 66.96 percent. Operating margin for the quarter period stood at positive 10.11 percent as compared to a negative 6.02 percent for the previous year period.
Operating income for the quarter was $12.71 million, compared with an operating loss of $6.59 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $78.70 million compared with $86.01 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1594 basis points in the quarter to 62.59 percent from 78.52 percent in the last year period.
"Starting in early 2016, we made the strategic decision to maintain high liquidity levels while operationally concentrating our efforts in the Western Eagle Ford, an area where we see considerable growth potential and impressive returns," said Tony Sanchez, III, chief executive officer of Sanchez Energy. "We achieved excellent operating results in 2016 with average production of 53,350 Boe/d for the full year. The combination of low cost drilling operations and improving well performance has allowed us to unlock considerable value in our Western Eagle Ford position. This is evident in our ability to dramatically reduce capital spending in 2016, compared to 2015, and still execute our appraisal and development plans to maintain production levels and significantly increase proved reserves. With the development and appraisal drilling over the last twelve months, we increased year-end reserves by over 55%, excluding acquisitions and divestitures, and generated an approximate 430% reserve replacement ratio."
Working capital declines
Sanchez Energy Corporation has witnessed a decline in the working capital over the last year. It stood at $385.81 million as at Dec. 31, 2016, down 22.70 percent or $113.30 million from $499.11 million on Dec. 31, 2015. Current ratio was at 3.18 as on Dec. 31, 2016, down from 3.98 on Dec. 31, 2015.
Debt remains almost stable
Total debt of Sanchez Energy Corporation remained almost stable for the quarter at $1,712.77 million, when compared with the last year period. Long-term debt of Sanchez Energy remained almost stable for the quarter at $1,712.77 million, when compared with the last year period. Total debt was 133.16 percent of total assets as on Dec. 31, 2016, compared with 110.61 percent on Dec. 31, 2015.
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