Unit Corporation (UNT) saw its loss narrow to $24.02 million, or $0.48 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $205.28 million, or $4.18 a share. On the other hand, adjusted net income for the quarter stood at $1.75 million, or $0.04 a share compared with $1.66 million or $0.03 a share, a year ago.
Revenue during the quarter dropped 27.77 percent to $153.41 million from $212.39 million in the previous year period.
Operating loss for the quarter was $35.59 million, compared with an operating loss of $329.28 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $67.34 million compared with $103.15 million in the prior year period. At the same time, adjusted EBITDA margin contracted 467 basis points in the quarter to 43.90 percent from 48.57 percent in the last year period.
Larry Pinkston, Unit’s Chief Executive Officer and President, said: “Our Wilcox vertical behind pipe recompletion activity continues to produce strong results. In the Granite Wash, our extended lateral Dixon well is outperforming our type curve. Following two quarters of no new drilling activity, we recommenced our drilling program primarily in the SOHOT and Granite Wash plays. We are continuing our plan of maintaining a capital expenditure level within cash flow. While it is our intention to keep at least a two drilling rig program going for the foreseeable future, such action will be dependent on prevailing conditions."
Operating cash flow drops significantly
Unit Corporation has generated cash of $197.76 million from operating activities during the nine month period, down 48.16 percent or $183.72 million, when compared with the last year period. The company has spent $107.51 million cash to meet investing activities during the nine month period as against cash outgo of $474.19 million in the last year period.
The company has spent $90.18 million cash to carry out financing activities during the nine month period as against cash inflow of $92.55 million in the last year period.
Working capital remains negative
Working capital of Unit Corporation was negative $42.34 million on Sep. 30, 2016 compared with negative $31.68 million on Sep. 30, 2015. Current ratio was at 0.69 as on Sep. 30, 2016, down from 0.83 on Sep. 30, 2015.
Days sales outstanding went down to 33 days for the quarter compared with 47 days for the same period last year.
Debt comes down
Unit Corporation has recorded a decline in total debt over the last one year. It stood at $854.58 million as on Sep. 30, 2016, down 5.91 percent or $53.65 million from $908.23 million on Sep. 30, 2015. Unit Corp has recorded a decline in long-term debt over the last one year. It stood at $854.58 million as on Sep. 30, 2016, down 5.91 percent or $53.65 million from $908.23 million on Sep. 30, 2015. Total debt was 34.44 percent of total assets as on Sep. 30, 2016, compared with 27.65 percent on Sep. 30, 2015. Debt to equity ratio was at 0.72 as on Sep. 30, 2016, up from 0.56 as on Sep. 30, 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
