WPX ENERGY, INC. (WPX) saw its loss narrow to $219 million, or $0.72 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $230 million, or $0.93 a share. On the other hand, adjusted net loss for the quarter widened to $59 million, or $0.17 a share from a loss of $10 million or $0.04 a share, a year ago.
Revenue during the quarter plunged 38.33 percent to $251 million from $407 million in the previous year period. Gross margin for the quarter contracted 299 basis points over the previous year period to 60.16 percent.
Operating loss for the quarter was $301 million, compared with an operating income of $33 million in the previous year period.
"WPX’s forward story is compelling and achievable. Everything is in place to meet or exceed our objectives," said Rick Muncrief, president and chief executive officer. "All three of our assets are performing exceptionally well and are the platforms for prudent, disciplined growth."
Operating cash flow drops significantly
WPX ENERGY, INC. has generated cash of $109 million from operating activities during the nine month period, down 82.67 percent or $520 million, when compared with the last year period.
Cash flow from investing activities was $460 million for the nine month period as against cash outgo of $1,259 million in the last year period.
Cash flow from financing activities was $16 million for the nine month period, down 97.57 percent or $643 million, when compared with the last year period.
Working capital increases sharply
WPX ENERGY, INC. has recorded an increase in the working capital over the last year. It stood at $285 million as at Sep. 30, 2016, up 72.73 percent or $120 million from $165 million on Sep. 30, 2015. Current ratio was at 1.46 as on Sep. 30, 2016, up from 1.21 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 148 days for the quarter from 129 days for the last year period. Days sales outstanding went up to 78 days for the quarter compared with 65 days for the same period last year.
Days inventory outstanding has decreased to 15 days for the quarter compared with 36 days for the previous year period. At the same time, days payable outstanding went up to 241 days for the quarter from 231 for the same period last year.
Debt comes down
WPX ENERGY, INC. has recorded a decline in total debt over the last one year. It stood at $2,699 million as on Sep. 30, 2016, down 20.62 percent or $701 million from $3,400 million on Sep. 30, 2015. Short-term debt stood at $125 million as on Sep. 30, 2016. Total debt was 36.25 percent of total assets as on Sep. 30, 2016, compared with 31.17 percent on Sep. 30, 2015. Debt to equity ratio was at 0.74 as on Sep. 30, 2016, up from 0.67 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
