Cimarex Energy Co. (XEC) saw its loss narrow to $12.82 million, or $0.14 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $763.28 million, or $8.21 a share. On an adjusted basis, net profit for the quarter stood at $38.21 million, or $0.41 a share compared with a net loss of $14.36 million, or $0.15 a share in the last year period.
Revenue during the quarter dropped 5.71 percent to $335.72 million from $356.06 million in the previous year period. Gross margin for the quarter expanded 79 basis points over the previous year period to 92.89 percent.
Operating loss for the quarter was $7.34 million, compared with an operating loss of $1,179.88 million in the previous year period.
Tom Jorden, Cimarex chairman and chief executive officer said, "Our confidence in our well performance, Cimarex's operational excellence and the quality of our assets remains steadfast. During the third quarter, we faced delays in our completion schedule, driven mostly by stimulations that were upsized beyond our original plans. These upsized stimulations lengthened the time required for our pad completions. The resultant production ramps slipped later into the fourth quarter, with peak production moving into first quarter 2017. We will enter 2017 with great momentum."
Operating cash flow drops significantly
Cimarex Energy Co. has generated cash of $429.33 million from operating activities during the nine month period, down 25.53 percent or $147.22 million, when compared with the last year period.
The company has spent $484.40 million cash to meet investing activities during the nine month period as against cash outgo of $789.71 million in the last year period. It has incurred net capital expenditure of $460.38 million on net basis during the nine month period, down 37.07 percent or $271.25 million from year ago period.
The company has spent $25.62 million cash to carry out financing activities during the nine month period as against cash inflow of $706.62 million in the last year period.
Cash and cash equivalents stood at $698.70 million as on Sep. 30, 2016, down 22.31 percent or $200.62 million from $899.31 million on Sep. 30, 2015.
Working capital drops significantly
Cimarex Energy Co. has witnessed a decline in the working capital over the last year. It stood at $525.19 million as at Sep. 30, 2016, down 30.66 percent or $232.17 million from $757.35 million on Sep. 30, 2015. Current ratio was at 2.19 as on Sep. 30, 2016, down from 2.57 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 99 days for the quarter from 70 days for the last year period. Days sales outstanding were almost stable at 75 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 67 days for the quarter compared with 229 days for the previous year period. At the same time, days payable outstanding went up to 241 days for the quarter from 234 for the same period last year.
Debt remains almost stable
Cimarex Energy Co. has recorded a decline in total debt over the last one year. It stood at $1,487.37 million as on Sep. 30, 2016, down 0.84 percent or $12.63 million from $1,500 million on Sep. 30, 2015. Cimarex Energy Co has recorded a decline in long-term debt over the last one year. It stood at $1,487.37 million as on Sep. 30, 2016, down 0.84 percent or $12.63 million from $1,500 million on Sep. 30, 2015. Total debt was 32.77 percent of total assets as on Sep. 30, 2016, compared with 23.67 percent on Sep. 30, 2015. Debt to equity ratio was at 0.64 as on Sep. 30, 2016, up from 0.44 as on Sep. 30, 2015.
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