Revenue during the quarter surged 67.69 percent to $133.84 million from $79.82 million in the previous year period. Gross margin for the quarter expanded 2601 basis points over the previous year period to 65.07 percent. Operating margin for the quarter stood at negative 10.14 percent as compared to a negative 71.85 percent for the previous year period.

Operating loss for the quarter was $13.58 million, compared with an operating loss of $57.35 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $50.61 million compared with $64.06 million in the prior year period. At the same time, adjusted EBITDA margin contracted 4245 basis points in the quarter to 37.81 percent from 80.26 percent in the last year period.

“During the first quarter 2017, we closed the transformational Comanche Transaction, which provides us with tremendous growth opportunities now and for many years to come,” said Tony Sanchez, III, chief executive officer of Sanchez Energy. “Upon closing, we immediately ramped up activity on the Comanche assets through the seamless transition of operations. In support of our operations ramp up at Comanche, we contracted major services, including drilling rigs, pressure pumping and sand. These fixed price arrangements allow us to maintain our cost structure and de-bundled approach to procurement despite current upward price pressure on the services market. When combined with our active hedging program, we have taken significant strides toward securing attractive operating margins for several years to come.