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Clayton Williams Energy (Clayton Williams Energy) Operating Margin % : 65.32% (As of Dec. 2016)


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What is Clayton Williams Energy Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Clayton Williams Energy's Operating Income for the three months ended in Dec. 2016 was $105.5 Mil. Clayton Williams Energy's Revenue for the three months ended in Dec. 2016 was $161.5 Mil. Therefore, Clayton Williams Energy's Operating Margin % for the quarter that ended in Dec. 2016 was 65.32%.

The historical rank and industry rank for Clayton Williams Energy's Operating Margin % or its related term are showing as below:


CWEI's Operating Margin % is not ranked *
in the Oil & Gas industry.
Industry Median: 7.96
* Ranked among companies with meaningful Operating Margin % only.

Clayton Williams Energy's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Clayton Williams Energy's Operating Income for the three months ended in Dec. 2016 was $105.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2016 was $22.3 Mil.


Clayton Williams Energy Operating Margin % Historical Data

The historical data trend for Clayton Williams Energy's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Clayton Williams Energy Operating Margin % Chart

Clayton Williams Energy Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.86 2.94 23.83 -48.82 7.71

Clayton Williams Energy Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -154.53 -120.66 -79.55 -23.47 65.32

Competitive Comparison of Clayton Williams Energy's Operating Margin %

For the Oil & Gas E&P subindustry, Clayton Williams Energy's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Clayton Williams Energy's Operating Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Clayton Williams Energy's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Clayton Williams Energy's Operating Margin % falls into.



Clayton Williams Energy Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Clayton Williams Energy's Operating Margin % for the fiscal year that ended in Dec. 2016 is calculated as

Operating Margin %=Operating Income (A: Dec. 2016 ) / Revenue (A: Dec. 2016 )
=22.314 / 289.411
=7.71 %

Clayton Williams Energy's Operating Margin % for the quarter that ended in Dec. 2016 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 )
=105.469 / 161.464
=65.32 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Clayton Williams Energy  (NYSE:CWEI) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Clayton Williams Energy Operating Margin % Related Terms

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Clayton Williams Energy (Clayton Williams Energy) Business Description

Traded in Other Exchanges
N/A
Address
Clayton Williams Energy Inc is an independent oil and gas company that is engaged in the exploration for and production of oil and natural gas primarily in its core area in Southern Reeves County, Texas. it has holdings in the United States, the Wolfcamp Shale in the Southern Delaware Basin of West Texas.
Executives
Ares Management Llc director, 10 percent owner 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Corp director, 10 percent owner 2000 AVE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Holdings L.p. director, 10 percent owner 2000 AVENUE OF THE STARS, 12TH FL, LOS ANGELES CA 90067
Ares Partners Holdco Llc director, 10 percent owner 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Gp Llc director, 10 percent owner 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Holdings Inc. director, 10 percent owner 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Holdco Llc director, 10 percent owner 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ronald D. Scott director 5612 DREXEL COURT, MIDLAND TX 79707
Jordan R Smith director 500 W TEXAS STE 705, MIDLAND TX 79701
Mel G Riggs director, 10 percent owner, officer: President and Director 1870 CORDELL COURT, SUITE 210, EL CAJON CA 92020
Jaime R. Casas officer: SVP & CFO HERITAGE PLAZA, 1111 BAGBY STREET, SUITE 4600, HOUSTON TX 77002
Noble Energy Inc 10 percent owner 1001 NOBLE ENERGY WAY HOUSTON TX 77070
Nathan Walton director 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Robert L Parker director 2021 SOUTH LEWIS, STE 600 TULSA OK 74104

Clayton Williams Energy (Clayton Williams Energy) Headlines