Miller Energy Q1 Loss Widens on Higher Operating Expenses
Miller Energy Resources Inc. (MILL), an upstream energy firm, reported adjusted first-quarter fiscal 2015 (three months ended Jul 31, 2014) loss per share of 26 cents, wider than both the Zacks Consensus Estimate of loss of 24 cents and the year-ago loss of 16 cents. Significantly higher operating expenses during the quarter hampered the results.
Miller Energy Resources, Inc - Earnings Surprise | FindTheBest
Revenues of $25.4 million were up 95.1% from the year-ago quarter’s $13 million, owing to higher production. The top line however failed to beat the Zacks Consensus Estimate of $28 million, primarily due to lower oil price realization.
Production & Prices
In the reported quarter, average volume increased 144% to 304,802 barrels of oil equivalent (Boe) from 125,080 boe in the year-ago period.
Oil production came in at 208,821 barrels, significantly higher than the year-ago quarter output of 115,410 barrels. Production of natural gas also increased considerably to 575,883 thousand cubic feet (Mcf) from 58,021 Mcf in the previous year’s quarter.
Oil was sold at $100.44 per barrel, lower than $104.57 in the year-ago quarter. However, natural gas price realization was $6.83 per Mcf, higher than $4.63 in the first quarter of fiscal 2014.
Operating Cost
The company reported operating expenses of $35 million. This reflects an 82.5% increase from the year-ago quarter.
Capital Spending and Balance Sheet
Miller Energy's capital investments for oil and gas assets were $40.2 million. As of Jul 31, 2014, cash on hand was $3.7 million and long-term debt (including current portion) was $205.3 million, representing a debt-to-capitalization ratio of 43%.
Zacks Rank
Miller Energy currently carries a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the energy sector like Cameron International Corporation (CAM), Pioneer Energy Services Corp. (PES) and Delek Logistics Partners LP (DKL). All these stocks sport a Zacks Rank #1 (Strong Buy).
Read the Full Research Report on CAM
Read the Full Research Report on DKL
Read the Full Research Report on PES
Read the Full Research Report on MILL
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