Gastar Exploration Inc. (GST) saw its loss narrow to $18.70 million, or $0.14 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $69.86 million, or $0.93 a share. On the other hand, adjusted net loss for the quarter narrowed to $9.56 million, or $0.06 a share from a loss of $17.67 million or $0.22 a share, a year ago.
Revenue during the quarter grew 26.05 percent to $18.67 million from $14.81 million in the previous year period. Gross margin for the quarter expanded 1635 basis points over the previous year period to 71.17 percent.
Operating income for the quarter was $4.27 million, compared with an operating loss of $60.59 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.56 million compared with $10.68 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1558 basis points in the quarter to 56.54 percent from 72.12 percent in the last year period.
J. Russell Porter, Gastar's President and chief executive officer, commented, "We are continuing to make progress on the delineation of the Meramec and Osage formations across our STACK Play acreage. The joint development agreement we established in October 2016 combined with our balance sheet refinancing has positioned us to execute an active drilling program, both within the joint development area and outside of it. To date, we have drilled and completed a total of 17 Meramec wells, four Osage wells and one Oswego well."
Operating cash flow turns negative
Gastar Exploration Inc. has spent $7.56 million cash to meet operating activities during the quarter as against cash inflow of $15.18 million in the last year period.
The company has spent $63.73 million cash to meet investing activities during the quarter as against cash outgo of $12.79 million in the last year period.
Cash flow from financing activities was $64.35 million for the quarter as against cash outgo of $25.51 million in the last year period.
Cash and cash equivalents stood at $64.60 million as on Mar. 31, 2017, up 139.68 percent or $37.64 million from $26.95 million on Mar. 31, 2016.
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