Sanchez Production Partners LP (SPP) saw its loss narrow to $12.90 million in the quarter ended compared with $44.52 million, a year ago.
Revenue during the quarter plunged 41.31 percent to $15.32 million from $26.10 million in the previous year period. Gross margin for the quarter contracted 1557 basis points over the previous year period to 58.23 percent.
However, the adjusted EBITDA for the quarter stood at $12.43 million compared with $11.91 million in the prior year period. At the same time, adjusted EBITDA margin improved 3552 basis points in the quarter to 81.15 percent from 45.63 percent in the last year period.
"During 2016, the Partnership made significant progress on our midstream growth strategy," said Gerry Willinger, chief executive officer of the general partner of SPP. "In July, we closed on the acquisition of a 50 percent interest in Carnero Gathering, LLC, a joint venture with Targa Resources Corp. ("Targa") that owns the Carnero Gathering Pipeline. Then, in November, we closed on the acquisition of a 50 percent interest in Carnero Processing, LLC, a joint venture, also with Targa, that owns the Raptor Gas Processing Facility currently under construction in La Salle County, Texas."
Working capital drops significantly
Sanchez Production Partners LP has witnessed a decline in the working capital over the last year. It stood at $5.32 million as at Dec. 31, 2016, down 77.72 percent or $18.57 million from $23.89 million on Dec. 31, 2015. Current ratio was at 1.56 as on Dec. 31, 2016, down from 3.65 on Dec. 31, 2015.
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