Gastar Exploration Inc (GST) saw its loss narrow to $4.54 million, or $0.06 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $157.52 million, or $2.07 a share. On the other hand, adjusted net loss for the quarter narrowed to $7.51 million, or $0.06 a share from a loss of $12.61 million or $0.16 a share, a year ago. Revenue during the quarter dropped 19.11 percent to $18.29 million from $22.61 million in the previous year period. Gross margin for the quarter contracted 248 basis points over the previous year period to 71.93 percent.
Operating income for the quarter was $3.93 million, compared with an operating loss of $149.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.56 million compared with $17.38 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1909 basis points in the quarter to 57.77 percent from 76.85 percent in the last year period.
J. Russell Porter, Gastar's President and Chief executive officer, commented, “Despite the challenging oil price environment that reduced our cash flow and restricted our 2016 capital program, our high quality acreage position in the Oklahoma STACK Play allowed us to attract strong financial partners to help us meet our objectives. The joint development agreement (the “Development Agreement”) we initiated with a large private global investment fund in the fourth quarter of 2016, combined with the capital transaction we completed with affiliates of Ares Management L.P. (“Ares”) in the first quarter of 2017 to provide $425 million in new financing, has positioned us to pursue a more active drilling program to de-lineate and de-risk our STACK assets.”
Operating cash flow drops significantly
Gastar Exploration Inc has generated cash of $6.74 million from operating activities during the year, down 86.86 percent or $44.54 million, when compared with the last year. Cash flow from investing activities was $66.48 million from investing activities during the year as against cash outgo of $150.46 million in the last year.
The company has spent $51.76 million cash to carry out financing activities during the year as against cash inflow of $138.25 million in the last year period.
Cash and cash equivalents stood at $71.53 million as on Dec. 31, 2016, up 42.85 percent or $21.46 million from $50.07 million on Dec. 31, 2015.
Working capital increases
Gastar Exploration Inc has recorded an increase in the working capital over the last year. It stood at $75.65 million as at Dec. 31, 2016, up 24.01 percent or $14.65 million from $61 million on Dec. 31, 2015. Current ratio was at 3.54 as on Dec. 31, 2016, down from 3.54 on Dec. 31, 2015.
Debt comes down
Gastar Exploration Inc has recorded a decline in total debt over the last one year. It stood at $404.49 million as on Dec. 31, 2016, down 21.68 percent or $111.98 million from $516.48 million on Dec. 31, 2015. Gastar Exploration has recorded a decline in long-term debt over the last one year. It stood at $404.49 million as on Dec. 31, 2016, down 21.68 percent or $111.98 million from $516.48 million on Dec. 31, 2015. Total debt was 134.74 percent of total assets as on Dec. 31, 2016, compared with 119.87 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
