Sanchez Production Partners LP (NYSE:SPP) has issued its second quarter earnings report on Friday.
Q2 Financial Highlights
The company had a revenue of $12.30 million during the period. For the second quarter, Sanchez Production Partners had a net loss of $2 million. Furthermore, Operating expenses came in at $13.60 million while General and Administrative (G&A) expenses amounted to $3.40 million. Meanwhile, capital spending for the period was seen at about $1.20 million.
Gerald Willinger, Sanchez Production Partners CEO of General Partner, noted that the latest quarterly results further underscore the efficiency of the company’s distinct structure. He emphasized that Sanchez Production Partners has its eyes on optimized liquidity and stronger balance sheet in the long term, believing that the company is well-positioned in the industry to materialize its growth prospects.
Sanchez Production Partners ended the second quarter with a total of $146 million in outstanding debt.
Prior to the release of the second quarter earnings report on Friday, the company has declared on Wednesday a quarterly dividend of $0.4183 per common share. This signifies an annualized dividend of $1.6732. On the other hand, the company has also declared a quarterly dividend of $0.45 per preferred share. The quarterly dividends will be issued on August 31 to shareholders of record on August 22.
Last month, Sanchez Production Partners has completed the sale of all its operated assets and interests based in Oklahoma and Kansas, which were first offered in early 2015.
Willinger commented that the closing of the sale indicates another significant milestone in the company’s efforts to refine the focus of the operational platform of Sanchez Oil & Gas Corp. As Sanchez Production Partners has already let go some of its non-core businesses, it is expected to focus more on its core operations.
Early in July, Sanchez Production Partners also revealed that it had acquired 50% of the Carnero Gathering LLC interest of Sanchez Energy Corporation (NYSE:SN). As a result, the company is now the partial owner of Carnero Gathering along with Targa Resources Corp. (NYSE:TRGP), which owns the remaining 50% of the stake.