Chesapeake Granite Wash Trust :CHKR-US: Earnings Analysis: Q4, 2016 By the Numbers : April 4, 2017

Chesapeake Granite Wash Trust reports financial results for the quarter ended December 31, 2016.

Highlights

  • Summary numbers: Revenues of USD 3.39 million, Net Earnings of USD 3.01 million.
  • Narrowing of operating margins contributed to decline in earnings.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2016-12-31 2016-09-30 2016-06-30 2016-03-31 2015-12-31
Relevant Numbers (Quarterly)
Revenues (mil) 3.39 2.61 2.35 4.08 5.51
Revenue Growth (%YOY) -38.43 -61.69 -71.41 -74.23 -73.45
Earnings (mil) 3.01 2.57 1.41 5.49 11.33
Earnings Growth (%YOY) -73.47 -79.49 -89.67 -65.15 -36.37
Net Margin (%) 88.67 98.7 59.98 134.67 205.79
EPS 0.06 0.06 0.03 0.12 0.24
Return on Equity (%) 37.05 27.06 12.96 40.96 55.52
Return on Assets (%) 37.05 27.06 12.96 40.9 55.46

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Market Share Versus Profits

Revenues History
Earnings History

Compared to the same period last year, CHKR-US‘s change in revenue was close to the amount of its change in earnings. It remains to be seen how the rest of its peer group’s results will turn out and if CHKR-US‘s performance is a sign of any major shift in the composition of market share in this sector. Also, for comparison purposes, revenues changed by 29.98% and earnings by 16.78% compared to the previous period.

Margins

The company’s decline in earnings has been influenced by the following factors: (1) Decline in operating margins (EBIT margins) from 94.26% to 88.67% and (2) one-time items that contributed to a decrease in pretax margins from 205.79% to 88.67%

EBIT Margin History
PreTax Margin History

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Company Profile

Chesapeake Granite Wash Trust engages in the ownership of royalty interests. It owns royalty interests in oil, natural gas liquids and natural gas properties located in Washita County, Oklahoma producing from the colony granite wash play within the broader granite wash formation of the anadarko basin. The company was founded on June 29, 2011 and is headquartered in Austin, TX.

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