Earthstone Energy (ESTE) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $3.90 million, or $ 0.17 a share in the quarter, against a net profit of $1.72 million, or $0.12 a share in the last year period. Revenue during the quarter dropped 19.01 percent to $10.59 million from $13.08 million in the previous year period. Operating margin for the quarter stood at negative 40.74 percent as compared to a negative 19.84 percent for the previous year period.
Operating loss for the quarter was $4.32 million, compared with an operating loss of $2.60 million in the previous year period.
Frank A. Lodzinski, president and chief executive officer of Earthstone Energy, Inc., commented, "Our accomplishments in the first half of 2016, including the closing of the Lynden acquisition and our public equity offering, has positioned us nicely to continue our growth in the second half of 2016. We are completing our 12-well Eagle Ford inventory and participating in a Wolfcamp well in Howard County which will lead to production growth in the fourth quarter of 2016 and first quarter of 2017. In addition, pending commodity prices, we anticipate resuming our operated Eagle Ford drilling program in the first quarter of 2017 in southwestern Gonzales County."
Operating cash flow drops significantlyEarthstone Energy has generated cash of $1.74 million from operating activities during the nine month period, down 59.70 percent or $2.57 million, when compared with the last year period. The company has spent $46.67 million cash to meet investing activities during the nine month period as against cash outgo of $63.30 million in the last year period.
Cash flow from financing activities was $45.48 million for the nine month period as against cash outgo of $0.13 million in the last year period.
Cash and cash equivalents stood at $23.81 million as on Sep. 30, 2016, down 42.39 percent or $17.52 million from $41.33 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Earthstone Energy was negative $1.45 million on Sep. 30, 2016 compared with negative $3.80 million on Sep. 30, 2015. Current ratio was at 0.96 as on Sep. 30, 2016, up from 0.95 on Sep. 30, 2015.
Days sales outstanding went down to 131 days for the quarter compared with 145 days for the same period last year.
Debt increases substantially
Earthstone Energy has witnessed an increase in total debt over the last one year. It stood at $14.70 million as on Sep. 30, 2016, up 31.31 percent or $3.50 million from $11.19 million on Sep. 30, 2015. Short-term debt stood at $1.59 million as on Sep. 30, 2016. Total debt was 4.41 percent of total assets as on Sep. 30, 2016, compared with 2.57 percent on Sep. 30, 2015. Debt to equity ratio was at 0.05 as on Sep. 30, 2016, up from 0.04 as on Sep. 30, 2015.
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