SM Energy Company (SM) saw its loss narrow to $200.95 million, or $2.20 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $340.26 million, or $5.01 a share. On the other hand, adjusted net loss for the quarter narrowed to $28.65 million, or $0.31 a share from a loss of $61.06 million or $0.90 a share, a year ago.
Revenue during the quarter grew 25.08 percent to $379.90 million from $303.73 million in the previous year period. Gross margin for the quarter expanded 1573 basis points over the previous year period to 60.01 percent.
Operating loss for the quarter was $284.39 million, compared with an operating loss of $505.57 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $186.22 million compared with $216.28 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2219 basis points in the quarter to 49.02 percent from 71.21 percent in the last year period.
president and chief executive officer Jay Ottoson comments: "It is an understatement that 2016 was an exciting and transformational year for our Company, accomplished in a challenging macro-economic environment. We commence 2017 with a plan focused entirely on development of top tier oil, natural gas and NGL assets. During 2016, we acquired substantial assets in the Midland Basin, where we believe we have the ability to create value through optimized drilling and completions and to drive margin expansion that we expect will deliver growing cash flows per debt-adjusted share in the coming years."
Operating cash flow drops significantly
SM Energy Company has generated cash of $552.80 million from operating activities during the year, down 43.50 percent or $425.55 million, when compared with the last year.
The company has spent $1,870.64 million cash to meet investing activities during the year as against cash outgo of $1,144.64 million in the last year. It has incurred net capital expenditure of $1,867.64 million on net basis during the year, up 63.30 percent or $723.99 million from year ago.
Cash flow from financing activities was $1,327.19 million for the year, up 698.62 percent or $1,161 million, when compared with the last year.
Cash and cash equivalents stood at $9.37 million as on Dec. 31, 2016, up 51,966.67 percent or $9.35 million from $0.02 million on Dec. 31, 2015.
Working capital turns negative
Working capital of SM Energy Company has turned negative to $190.53 million on Dec. 31, 2016 from positive $216.46 million on Dec. 31, 2015. Current ratio was at 0.54 as on Dec. 31, 2016, down from 1.72 on Dec. 31, 2015.
Debt moves up
SM Energy Company has witnessed an increase in total debt over the last one year. It stood at $2,897.58 million as on Dec. 31, 2016, up 15.08 percent or $379.60 million from $2,517.97 million on Dec. 31, 2015. Short-term debt stood at $130.86 million as on Dec. 31, 2016. Total debt was 45.32 percent of total assets as on Dec. 31, 2016, compared with 44.79 percent on Dec. 31, 2015. Debt to equity ratio was at 1.16 as on Dec. 31, 2016, down from 1.36 as on Dec. 31, 2015.
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: editor@irisindia.net
