Eclipse Resources Corporation​ (ECR) saw its loss narrow to $26.80 million, or $0.10 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $81.47 million, or $0.37 a share. On the other hand, adjusted net loss for the quarter narrowed to $21.39 million, or $0.08 a share from a loss of $33.68 million or $0.15 a share, a year ago.
Revenue during the quarter dropped 23.45 percent to $54.48 million from $71.17 million in the previous year period. Gross margin for the quarter contracted 1680 basis points over the previous year period to 46.63 percent. Operating margin for the quarter stood at negative 45.98 percent as compared to a negative 73.47 percent for the previous year period.
Operating loss for the quarter was $25.05 million, compared with an operating loss of $52.29 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $21.72 million compared with $29.57 million in the prior year period. At the same time, adjusted EBITDA margin contracted 167 basis points in the quarter to 39.87 percent from 41.55 percent in the last year period.
Benjamin W. Hulburt, chairman and chief executive officer, commented on the Company's third quarter 2016 results, "The team's continuously outstanding execution and innovation has allowed us to yet again exceed the high end of our production guidance while delivering unit operating costs below our previously estimated guidance range for the quarter. During the third quarter, a team of Eclipse Resources and Halliburton personnel set a Halliburton record for the number of stages completed in a month by a single crew in the Northeast region. This record was set and then broken by the same crew in two consecutive months. Additionally, this week we learned we set their record for the total amount of proppant pumped in a month by a single crew in the Northeast, pumping over 82 million pounds of proppant in October. Due to record setting efficiencies in our completion operations, we have been able to effectively neutralize well cost inflation keeping our well costs within budget and maintaining leading edge cost metrics."
Working capital drops significantly
Eclipse Resources Corporation has witnessed a decline in the working capital over the last year. It stood at $118.80 million as at Sep. 30, 2016, down 29.24 percent or $49.08 million from $167.88 million on Sep. 30, 2015. Current ratio was at 2.32 as on Sep. 30, 2016, down from 2.48 on Sep. 30, 2015.
Days sales outstanding went up to 49 days for the quarter compared with 37 days for the same period last year.
At the same time, days payable outstanding went down to 191 days for the quarter from 247 for the same period last year.
Debt comes down
Eclipse Resources Corporation has recorded a decline in total debt over the last one year. It stood at $491.59 million as on Sep. 30, 2016, down 8.76 percent or $47.21 million from $538.80 million on Sep. 30, 2015. Eclipse Resources Corporation has recorded a decline in long-term debt over the last one year. It stood at $491.59 million as on Sep. 30, 2016, down 8.76 percent or $47.21 million from $538.80 million on Sep. 30, 2015. Total debt was 40.86 percent of total assets as on Sep. 30, 2016, compared with 25.43 percent on Sep. 30, 2015. Debt to equity ratio was at 0.81 as on Sep. 30, 2016, up from 0.38 as on Sep. 30, 2015.
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