Chesapeake Energy Corporation (CHK) saw its loss narrow to $1,155 million, or $1.54 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4,652 million, or $7.08 a share. On an adjusted basis, net profit for the quarter stood at $27 million, or $0.04 a share compared with a net loss of $83 million, or $0.12 a share in the last year period.
Revenue during the quarter plunged 32.58 percent to $2,276 million from $3,376 million in the previous year period. Gross margin for the quarter expanded 273 basis points over the previous year period to 37.39 percent.
Operating loss for the quarter was $1,174 million, compared with an operating loss of $5,453 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $421 million compared with $560 million in the prior year period. At the same time, adjusted EBITDA margin improved 191 basis points in the quarter to 18.50 percent from 16.59 percent in the last year period.
Doug Lawler, Chesapeake’s Chief Executive Officer, commented, "We continue to make progress in reducing leverage, decreasing total cash costs and improving future midstream expenses. Our achievements in these areas, particularly in regard to our balance sheet, provide a stronger foundation for improving profitability and enhanced returns from our capital program in 2017 and beyond. As we have previously stated, our large resource base and significant inventory of high-return drilling opportunities offer long-term growth and flexibility for our shareholders."
Operating cash flow drops significantly
Chesapeake Energy Corporation has generated cash of $50 million from operating activities during the nine month period, down 95.26 percent or $1,005 million, when compared with the last year period.
The company has spent $579 million cash to meet investing activities during the nine month period as against cash outgo of $2,905 million in the last year period. It has incurred net capital expenditure of $505 million on net basis during the nine month period, down 82.88 percent or $2,444 million from year ago period.
The company has spent $292 million cash to carry out financing activities during the nine month period as against cash outgo of $499 million in the last year period.
Cash and cash equivalents stood at stood at $4 million as at Sep. 30, 2016.
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