QEP Resources, Inc. (QEP) saw its loss widen to $133.30 million, or $0.56 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $38.60 million, or $0.22 a share. On the other hand, adjusted net loss for the quarter widened to $36.20 million, or $0.15 a share from a loss of $1.80 million or $0.01 a share, a year ago. Revenue during the quarter dropped 14.65 percent to $399.70 million from $468.30 million in the previous year period. Gross margin for the quarter expanded 2280 basis points over the previous year period to 60.57 percent. Operating margin for the quarter stood at negative 9.23 percent as compared to a negative 30.88 percent for the previous year period.
Operating loss for the quarter was $36.90 million, compared with an operating loss of $144.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $174.10 million compared with $254 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1068 basis points in the quarter to 43.56 percent from 54.24 percent in the last year period.
"QEP is well positioned to capitalize on the improving commodity price environment and to generate superior shareholder returns through the development of our core Permian Basin assets," commented Chuck Stanley, chairman, president and chief executive officer of QEP. "We have laid out an ambitious 2017 capital investment plan, which will allow us to deliver significant crude oil volume growth in the Permian Basin as we continue to develop our County Line acreage and embark on our concentrated development program at Mustang Springs. As our assets continue to move through their respective life cycles, we plan to allocate a larger percentage of our development capital to assets with significant growth potential."
Operating cash flow improves significantly
QEP Resources, Inc. has generated cash of $663.70 million from operating activities during the year, up 37.90 percent or $182.40 million, when compared with the last year. The company has spent $1,179.10 million cash to meet investing activities during the year as against cash outgo of $1,217.60 million in the last year.
Cash flow from financing activities was $583.10 million for the year as against cash outgo of $47.70 million in the last year period.
Cash and cash equivalents stood at $443.80 million as on Dec. 31, 2016, up 18 percent or $67.70 million from $376.10 million on Dec. 31, 2015.
Working capital drops significantly
QEP Resources, Inc. has witnessed a decline in the working capital over the last year. It stood at $125.30 million as at Dec. 31, 2016, down 56.82 percent or $164.90 million from $290.20 million on Dec. 31, 2015. Current ratio was at 1.24 as on Dec. 31, 2016, down from 1.45 on Dec. 31, 2015.
Debt comes down
QEP Resources, Inc. has recorded a decline in total debt over the last one year. It stood at $2,033.20 million as on Dec. 31, 2016, down 8.47 percent or $188.10 million from $2,221.30 million on Dec. 31, 2015. Total debt was 28.06 percent of total assets as on Dec. 31, 2016, compared with 26.36 percent on Dec. 31, 2015. Debt to equity ratio was at 0.58 as on Dec. 31, 2016, up from 0.56 as on Dec. 31, 2015.
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