Panhandle Oil & Gas (PHX) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $3.47 million, or $ 0.21 a share in the quarter, against a net loss of $7.44 million, or $0.44 a share in the last year period.
Revenue during the quarter surged 83.91 percent to $13.96 million from $7.59 million in the previous year period. Gross margin for the quarter expanded 2010 basis points over the previous year period to 75.10 percent.
Operating income for the quarter was $4.56 million, compared with an operating loss of $11.67 million in the previous year period.
Commenting on the results, Paul F. Blanchard Jr., president and chief executive officer said, "Panhandle experienced a material shift in momentum this quarter. Net income for the quarter of $3.5 million was the highest for the Company since the first quarter of 2015. Our average sales price of oil, gas and NGL also reached the highest level since the first quarter of 2015 at $3.78 per Mcfe and we generated lease bonus revenues of $2.3 million. Compared to 2016 year-end, total mid-year 2017 proved reserves increased 16.4 Bcfe, while proved developed reserves increased 12.5 Bcfe. During the six months ended March 31, 2017, we funded $7.7 million in capital expenditures with cash flow, while reducing debt by $.5 million.
Operating cash flow drops significantlyPanhandle Oil & Gas has generated cash of $9.35 million from operating activities during the first half, down 32.06 percent or $4.41 million, when compared with the last year period. The company has spent $7.02 million cash to meet investing activities during the first six months as against cash outgo of $1.88 million in the last year period. It has incurred net capital expenditure of $7 million on net basis during the first six months, up 263.39 percent or $5.08 million from year ago period.
The company has spent $2.25 million cash to carry out financing activities during the first six months as against cash outgo of $12 million in the last year period.
Cash and cash equivalents stood at $0.55 million as on Mar. 31, 2017, up 13.37 percent or $0.07 million from $0.49 million on Mar. 31, 2016.
Working capital drops significantly
Panhandle Oil & Gas has witnessed a decline in the working capital over the last year. It stood at $0.06 million as at Mar. 31, 2017, down 98.69 percent or $4.20 million from $4.26 million on Mar. 31, 2016. Current ratio was at 1.01 as on Mar. 31, 2017, down from 2.58 on Mar. 31, 2016.
Days sales outstanding went down to 37 days for the quarter compared with 65 days for the same period last year.
At the same time, days payable outstanding went up to 100 days for the quarter from 51 for the same period last year.
Debt comes downPanhandle Oil & Gas has recorded a decline in total debt over the last one year. It stood at $44 million as on Mar. 31, 2017, down 19.27 percent or $10.50 million from $54.50 million on Mar. 31, 2016. Panhandle Oil & Gas has recorded a decline in long-term debt over the last one year. It stood at $44 million as on Mar. 31, 2017, down 19.27 percent or $10.50 million from $54.50 million on Mar. 31, 2016. Total debt was 22.03 percent of total assets as on Mar. 31, 2017, compared with 26.08 percent on Mar. 31, 2016. Debt to equity ratio was at 0.38 as on Mar. 31, 2017, down from 0.47 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
