C&J Energy Services (NYSE:CJES) released its fourth quarter earnings results on Wednesday, reporting net income of $53.4 million, or $1.00 per diluted share.
That was a big increase over fourth quarter results in 2011, where the company produced net income of $14.5 million, or $0.30 per diluted share.
Revenue in the latest quarter came to $220.1 million, down from the third quarter revenue of $229 million. That was attributed to customers of C&J deciding to provide their own sand on some of the jobs, as well as under utilization of some of the guaranteed pumping hours because of holidays and delays on some wells.
Josh Comstock, Chairman, President and Chief Executive Officer, said in a press release, "Demand for our services remained strong. We generated higher net income despite a slight dip in revenue as our high margin service revenue grew and our lower margin sand revenue declined. Our fourth quarter profitability demonstrates the benefits associated with the flexibility of our business model and our contracts that adjust to changing customer needs while still providing solid margins and bottom-line returns."
"Our debt free balance sheet, approximately $65 million in cash currently on hand and full access to our $200.0 million revolving credit facility provide exceptional flexibility to take advantage of growth opportunities. In addition to actively evaluating opportunities for organic growth, we are also well positioned to pursue strategic acquisitions that could support our geographic expansion in unconventional resource plays," he added.
Morgan Stanley (NYSE: MS) initiated coverage on C&J Energy Services on Thursday, February 9th. They placed an “Equal Weight” rating on the company.
C&J closed Wednesday at $19.85, falling $0.14, or 0.70 percent. They gained all that back in after hours trading.
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