Sanchez Energy Corporation (SN) saw its loss narrow to $66.26 million, or $1.19 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $416.86 million, or $7.33 a share. On an adjusted basis, net profit for the quarter was $9.41 million, when compared with net loss $28.36 million in the last year period.
Revenue during the quarter went up marginally by 0.25 percent to $114.81 million from $114.53 million in the previous year period. Gross margin for the quarter expanded 50 basis points over the previous year period to 62.62 percent.
Operating loss for the quarter was $52.28 million, compared with an operating loss of $488.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $83.78 million compared with $94.32 million in the prior year period. At the same time, adjusted EBITDA margin contracted 938 basis points in the quarter to 72.97 percent from 82.35 percent in the last year period.
"As previously reported, we achieved excellent operating results in the third quarter 2016, with process improvements and efficiency gains driving our average well cost below $3.0 million per well," said Tony Sanchez, III, chief executive officer of Sanchez Energy. The combination of strong production and lower costs has allowed us to achieve positive returns on our capital program. This is evident in our financial results, as our Adjusted EBITDA for the third quarter 2016, at approximately $83.8 million, was up 5 percent over the second quarter.
Working capital increases sharply
Sanchez Energy Corporation has recorded an increase in the working capital over the last year. It stood at $265.12 million as at Sep. 30, 2016, up 54.20 percent or $93.19 million from $171.93 million on Sep. 30, 2015. Current ratio was at 2.82 as on Sep. 30, 2016, up from 1.79 on Sep. 30, 2015.
Days sales outstanding went down to 36 days for the quarter compared with 37 days for the same period last year.
At the same time, days payable outstanding went down to 11 days for the quarter from 31 for the same period last year.
Debt comes down marginally
Sanchez Energy Corporation has recorded a decline in total debt over the last one year. It stood at $1,710.63 million as on Sep. 30, 2016, down 2.07 percent or $36.17 million from $1,746.81 million on Sep. 30, 2015. Sanchez Energy has recorded a decline in long-term debt over the last one year. It stood at $1,710.63 million as on Sep. 30, 2016, down 2.07 percent or $36.17 million from $1,746.81 million on Sep. 30, 2015. Total debt was 144.34 percent of total assets as on Sep. 30, 2016, compared with 114 percent on Sep. 30, 2015.
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