EOG Resources, Inc (EOG) saw its loss narrow to $190 million, or $0.35 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4,075.74 million, or $7.47 a share. On an adjusted basis, loss per share was at $0.40 for the quarter compared with a profit of $0.02a share in the same period last year.
Revenue during the quarter went down marginally by 2.48 percent to $2,118.50 million from $2,172.43 million in the previous year period.
Operating loss for the quarter was $193.48 million, compared with an operating loss of $6,222.96 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $911.95 million compared with $846.78 million in the prior year period. At the same time, adjusted EBITDA margin improved 407 basis points in the quarter to 43.05 percent from 38.98 percent in the last year period.
“Even in a low commodity price environment, 2016 is proving to be a breakout year for EOG with record well productivity, sustainable cost reductions and organic growth in all our core plays, coupled with a historic transaction that adds substantial high-return growth potential,” said William R. “Bill” Thomas, chairman and chief executive officer. “EOG’s third quarter accomplishments reflect the hard work and ingenuity of our great employees and our unique culture.”
Operating cash flow drops significantly
EOG Resources, Inc has generated cash of $1,554.32 million from operating activities during the nine month period, down 47.83 percent or $1,425.03 million, when compared with the last year period.
The company has spent $1,263.61 million cash to meet investing activities during the nine month period as against cash outgo of $4,545.40 million in the last year period.
Cash flow from financing activities was $28.16 million for the nine month period, down 87.79 percent or $202.54 million, when compared with the last year period.
Cash and cash equivalents stood at $1,048.73 million as on Sep. 30, 2016, up 41.21 percent or $306.04 million from $742.69 million on Sep. 30, 2015.
Working capital increases sharply
EOG Resources, Inc has recorded an increase in the working capital over the last year. It stood at $1,004.80 million as at Sep. 30, 2016, up 29.15 percent or $226.80 million from $778 million on Sep. 30, 2015. Current ratio was at 1.58 as on Sep. 30, 2016, up from 1.38 on Sep. 30, 2015.
Days sales outstanding went down to 49 days for the quarter compared with 54 days for the same period last year.
Debt moves up
EOG Resources, Inc has witnessed an increase in total debt over the last one year. It stood at $6,986.12 million as on Sep. 30, 2016, up 8.65 percent or $555.91 million from $6,430.21 million on Sep. 30, 2015. Total debt was 27.34 percent of total assets as on Sep. 30, 2016, compared with 23.57 percent on Sep. 30, 2015. Debt to equity ratio was at 0.59 as on Sep. 30, 2016, up from 0.48 as on Sep. 30, 2015.
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