Cimarex Energy Company (XEC) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $130.97 million, or $ 1.38 a share in the quarter, against a net loss of $231.46 million, or $2.49 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $99.72 million, or $1.05 a share compared with a net loss of $25.95 million, or $0.28 a share in the last year period.
Revenue during the quarter surged 85.86 percent to $447.18 million from $240.60 million in the previous year period. Gross margin for the quarter expanded 246 basis points over the previous year period to 93.35 percent.
Operating income for the quarter was $221.48 million, compared with an operating loss of $349.27 million in the previous year period.
Operating cash flow improves significantly
Cimarex Energy Co has generated cash of $249.51 million from operating activities during the quarter, up 192.15 percent or $164.11 million, when compared with the last year period.
The company has spent $314.98 million cash to meet investing activities during the quarter as against cash outgo of $172.81 million in the last year period. It has incurred capital expenditure of $306.90 million on net basis during the quarter, up 87.89 percent or $143.56 million from year ago period.
The company has spent $8.50 million cash to carry out financing activities during the quarter as against cash outgo of $15.34 million in the last year period.
Cash and cash equivalents stood at $578.91 million as on Mar. 31, 2017, down 14.44 percent or $97.73 million from $676.64 million on Mar. 31, 2016.
Working capital declines
Cimarex Energy Co has witnessed a decline in the working capital over the last year. It stood at $441.90 million as at Mar. 31, 2017, down 23.01 percent or $132.09 million from $574 million on Mar. 31, 2016. Current ratio was at 1.87 as on Mar. 31, 2017, down from 2.61 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 120 days for the quarter from 28 days for the last year period. Days sales outstanding went down to 55 days for the quarter compared with 79 days for the same period last year.
Days inventory outstanding has decreased to 57 days for the quarter compared with 113 days for the previous year period. At the same time, days payable outstanding went up to 232 days for the quarter from 220 for the same period last year.
Debt remains almost stable
Total debt of Cimarex Energy Co remained almost stable for the quarter at $1,488.50 million, when compared with the last year period. Long-term debt of Cimarex Energy Co remained almost stable for the quarter at $1,488.50 million, when compared with the last year period. Total debt was 33.88 percent of total assets as on Mar. 31, 2017, compared with 30.32 percent on Mar. 31, 2016. Debt to equity ratio was at 0.67 as on Mar. 31, 2017, up from 0.57 as on Mar. 31, 2016.
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