PANHANDLE OIL AND GAS INC (PHX) saw its loss narrow to $2.24 million, or $0.13 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.80 million, or $0.17 a share. Revenue during the quarter plunged 38.48 percent to $7.05 million from $11.46 million in the previous year period. Gross margin for the quarter contracted 1454 basis points over the previous year period to 51.54 percent. Operating margin for the quarter stood at negative 43.30 percent as compared to a negative 41.93 percent for the previous year period.
Operating loss for the quarter was $3.05 million, compared with an operating loss of $4.81 million in the previous year period.
Paul F. Blanchard Jr., president and chief executive officer said, "Like many other oil and gas companies, Panhandle experienced declining sales in 2016, due to low capital expenditures in the low product price environment. Prices for oil, NGL and natural gas improved during first quarter 2017, and recent NYMEX futures pricing suggests continued improvement for the remainder of 2017. As a result, we are experiencing a substantial increase in activity on our holdings."
Operating cash flow drops significantly
PANHANDLE OIL AND GAS INC has generated cash of $3.68 million from operating activities during the quarter, down 64.39 percent or $ 6.66 million, when compared with the last year period. The company has spent $2.19 million cash to meet investing activities during the quarter as against cash outgo of $0.61 million in the last year period.
The company has spent $1.48 million cash to carry out financing activities during the quarter as against cash outgo of $8.83 million in the last year period.
Cash and cash equivalents stood at $0.48 million as on Dec. 31, 2016, down 67.75 percent or $1.02 million from $1.50 million on Dec. 31, 2015.
Working capital turns negative
Working capital of PANHANDLE OIL AND GAS INC has turned negative to $1.98 million on Dec. 31, 2016 from positive $3.24 million on Dec. 31, 2015. Current ratio was at 0.76 as on Dec. 31, 2016, down from 1.56 on Dec. 31, 2015.
Days sales outstanding went up to 90 days for the quarter compared with 55 days for the same period last year.
At the same time, days payable outstanding went up to 74 days for the quarter from 52 for the same period last year.
Debt comes down
PANHANDLE OIL AND GAS INC has recorded a decline in total debt over the last one year. It stood at $44.10 million as on Dec. 31, 2016, down 22.63 percent or $12.90 million from $57 million on Dec. 31, 2015. Panhandle Oil & Gas has recorded a decline in long-term debt over the last one year. It stood at $44.10 million as on Dec. 31, 2016, down 22.63 percent or $12.90 million from $57 million on Dec. 31, 2015. Total debt was 22.44 percent of total assets as on Dec. 31, 2016, compared with 25.35 percent on Dec. 31, 2015. Debt to equity ratio was at 0.40 as on Dec. 31, 2016, down from 0.46 as 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
