Bill Barrett Corporation (BBG) saw its loss narrow to $13.12 million, or $0.18 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $46.50 million, or $0.96 a share. On the other hand, adjusted net loss for the quarter narrowed to $11.56 million, or $0.16 a share from a loss of $13.71 million or $0.28 a share, a year ago. Revenue during the quarter surged 71.69 percent to $50.54 million from $29.43 million in the previous year period. Gross margin for the quarter expanded 2010 basis points over the previous year period to 87.43 percent.
Operating loss for the quarter was $15.83 million, compared with an operating loss of $39.46 million in the previous year period.
Chief Executive Officer and President Scot Woodall commented, "We're off to a good start in 2017 as we delivered production sales volumes at the upper end of our guidance range and we continue to demonstrate improvements in LOE and oil price realizations that are having a positive impact on operating margins. In the DJ Basin, we are implementing enhanced drilling and completion concepts, including higher sand concentration and tighter frac stage spacing that we anticipate will improve well performance and recovery going forward. We placed two DSUs on initial flowback during the first quarter and are on track to execute a 70-75 well program in the DJ Basin this year, including the addition of a second drilling rig during the second quarter that establishes a strong foundation of growth for 2018. We recently took advantage of changing oil market dynamics in Utah and negotiated a significant improvement in our Uinta Oil Program oil pricing contracts effective May 2017. This translates into improved well economics as we have recently initiated a recompletion program. Consistent with our strategy of maintaining balance sheet flexibility, we issued $275 million of senior notes, due 2025. The proceeds, plus cash on hand, will be used to redeem our existing $315 million of senior notes, due October 2019 and extends our nearest maturity to 2022. The reduction in debt and related extension of maturity positions us better financially for the future."
Operating cash flow declines
Bill Barrett Corporation has generated cash of $38.10 million from operating activities during the quarter, down 5.97 percent or $ 2.42 million, when compared with the last year period. The company has spent $46.75 million cash to meet investing activities during the quarter as against cash outgo of $63.28 million in the last year period.
The company has spent $1.30 million cash to carry out financing activities during the quarter as against cash outgo of $0.51 million in the last year period.
Cash and cash equivalents stood at $265.89 million as on Mar. 31, 2017, up 151.88 percent or $160.32 million from $105.56 million on Mar. 31, 2016.
Working capital increases sharply
Bill Barrett Corporation has recorded an increase in the working capital over the last year. It stood at $205.16 million as at Mar. 31, 2017, up 65.74 percent or $81.38 million from $123.78 million on Mar. 31, 2016. Current ratio was at 2.93 as on Mar. 31, 2017, up from 1.96 on Mar. 31, 2016.
Debt comes down
Bill Barrett Corporation has recorded a decline in total debt over the last one year. It stood at $711.49 million as on Mar. 31, 2017, down 10.55 percent or $83.92 million from $795.42 million on Mar. 31, 2016. Total debt was 50.76 percent of total assets as on Mar. 31, 2017, compared with 55.08 percent on Mar. 31, 2016. Debt to equity ratio was at 1.27 as on Mar. 31, 2017, down from 1.57 as on Mar. 31, 2016. 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
