Gastar Exploration (Gastar Exploration) Gross Margin % : 24.36% (As of Sep. 2018)

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What is Gastar Exploration Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Gastar Exploration's Gross Profit for the three months ended in Sep. 2018 was $4.53 Mil. Gastar Exploration's Revenue for the three months ended in Sep. 2018 was $18.59 Mil. Therefore, Gastar Exploration's Gross Margin % for the quarter that ended in Sep. 2018 was 24.36%.

Warning Sign:

Gastar Exploration Inc gross margin has been in long term decline. The average rate of decline per year is -3.7%.

The historical rank and industry rank for Gastar Exploration's Gross Margin % or its related term are showing as below:

GSPAQ.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 50.94 Med: 65.08 Max: 80.42
Current: 73.07

During the past 8 years, the highest Gross Margin % of Gastar Exploration was 80.42%. The lowest was 50.94%. And the median was 65.08%.

GSPAQ.PFD's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 27.905 vs GSPAQ.PFD: 73.07

Gastar Exploration had a gross margin of 24.36% for the quarter that ended in Sep. 2018 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Gastar Exploration was -3.70% per year.

Gastar Exploration Gross Margin % Historical Data

The historical data trend for Gastar Exploration's Gross 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.

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Gastar Exploration Gross Margin % Chart

Gastar Exploration Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Gross Margin %

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42.38

55.71

14.55

7.49

29.50

Gastar Exploration Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
Gross Margin %	Get a 7-Day Free Trial															12.64	4.19	16.42	-26.91	24.36

Competitive Comparison of Gastar Exploration's Gross Margin %

For the Oil & Gas E&P subindustry, Gastar Exploration's Gross Margin %, along with its competitors' market caps and Gross 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.

Gastar Exploration's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Gastar Exploration's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Gastar Exploration's Gross Margin % falls into.

Gastar Exploration Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Gastar Exploration's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )	=	Gross Profit (A: Dec. 2017 )	/	Revenue (A: Dec. 2017 )
	=	21.3	/	72.13
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(72.13 - 50.854)	/	72.13
	=	29.50 %

Gastar Exploration's Gross Margin for the quarter that ended in Sep. 2018 is calculated as

Gross Margin % (Q: Sep. 2018 )	=	Gross Profit (Q: Sep. 2018 )	/	Revenue (Q: Sep. 2018 )
	=	4.5	/	18.589
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(18.589 - 14.06)	/	18.589
	=	24.36 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Gastar Exploration (OTCPK:GSPAQ.PFD) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Gastar Exploration had a gross margin of 24.36% for the quarter that ended in Sep. 2018 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Gastar Exploration Gross Margin % Related Terms

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Gastar Exploration (Gastar Exploration) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Gastar Exploration Inc (OTCPK:GSPAQ.PFD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1331 Lamar Street, Suite 650, Houston, TX, USA, 77010

Website

http://www.gastar.com

Gastar Exploration Inc is Mid-Continent independent energy company which is engaged in the exploration, development, and production of oil, condensate, natural gas and NGLs (natural gas liquids). The principal business activities of the company include the identification, acquisition, and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays. The company's exploration properties consist primarily of oil and natural gas leases in the Mid-Continent area of the U.S. in Oklahoma. Gastar operates through the single segment being Exploration and production of oil, condensate, natural gas.

Executives

William L Transier	director	3505 W SAM HOUSTON PKWY NORTH, SUITE 400, HOUSTON TX 77043
Marc A Beilinson	director	10100 SANTA MONICA BLVD STE. 1100, LOS ANGELES CA 90067
Harry Quarls	director	14701 ST. MARY'S LANE, SUITE 275, HOUSTON TX 77079
Stephen Phillip Roberts	officer: Senior VP & COO	1331 LAMAR, SUITE 650, HOUSTON TX 77010
Af V Energy I Aiv B1, L.p.	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
Nathan Walton	director	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Holdings Inc.	10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Acof Investment Management Llc	10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Holdco Llc	10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Llc	10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Gp Llc	10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Partners Holdco Llc	10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Holdings L.p.	10 percent owner	2000 AVENUE OF THE STARS, 12TH FL, LOS ANGELES CA 90067
Ares Management Corp	10 percent owner	2000 AVE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067