Jones Energy, Inc. (JONE) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.39 million, or $ 0.05 a share in the quarter, against a net profit of $18.91 million, or $0.57 a share in the last year period. On an adjusted basis, net profit for the quarter was $2.94 million, when compared with net loss $0.83 million in the last year period. Revenue during the quarter surged 59.46 percent to $41.23 million from $25.86 million in the previous year period.
Operating loss for the quarter was $13.51 million, compared with an operating loss of $34.08 million in the previous year period.
Jonny Jones, the Companys Founder, chairman, and chief executive officer, commented, "2017 is a transition year for Jones Energy from a Western Anadarko (Cleveland) focused company to a Merge focused company. During the first quarter, our production was driven by strong base production from the Western Anadarko, exceeding the top end of guidance despite a crippling ice storm in early January. Strong performance from our Cleveland development program has highlighted that the asset still competes for capital and continues to outperform expectations today as we are well into the second quarter. Our team has also quickly pivoted to the Merge, where we have kicked-off drilling and intend to build to a three-rig program as soon as possible. It is still early days in the Merge, and the three wells we have on production are in the clean-up phase with production still increasing. Average oil cuts are over 50% on the first three wells, and we expect to report max IP30 rates on these wells after peak production is reached. Our first quarter results highlight our ability to successfully begin the asset transition while managing our production profile and balance sheet."
Operating cash flow turns positiveJones Energy, Inc. has generated cash of $13.58 million from operating activities during the quarter as against cash outgo of $4.83 million in the last year period. The company has spent $16.91 million cash to meet investing activities during the quarter as against cash inflow of $35.16 million in the last year period. It has incurred capital expenditure of $44.77 million on net basis during the quarter, up 527.60 percent or $37.63 million from year ago period.
The company has spent $22.60 million cash to carry out financing activities during the quarter as against cash inflow of $1.57 million in the last year period.
Cash and cash equivalents stood at $8.71 million as on Mar. 31, 2017, down 83.82 percent or $45.10 million from $53.80 million on Mar. 31, 2016.
Working capital turns negative
Working capital of Jones Energy, Inc. has turned negative to $38.13 million on Mar. 31, 2017 from positive $143.03 million on Mar. 31, 2016. Current ratio was at 0.68 as on Mar. 31, 2017, down from 3.33 on Mar. 31, 2016.
Days sales outstanding went down to 90 days for the quarter compared with 148 days for the same period last year.
Debt comes down
Jones Energy, Inc. has recorded a decline in total debt over the last one year. It stood at $701.59 million as on Mar. 31, 2017, down 6.37 percent or $47.73 million from $749.31 million on Mar. 31, 2016. Jones Energy, Inc. has recorded a decline in long-term debt over the last one year. Total debt was 37.44 percent of total assets as on Mar. 31, 2017, compared with 39.44 percent on Mar. 31, 2016. Debt to equity ratio was at 0.79 as on Mar. 31, 2017, up from 0.76 as on Mar. 31, 2016. 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
