Spark Energy Earnings Higher Due To Increased Unit Margins, Volumes

Spark Energy reported $11.5 million in Adjusted EBITDA for the quarter ending June 30, 2016, up from $5.4 million a year ago.

Retail Gross Margin for the second quarter was $29.1 million, up from $24.7 million a year ago

This increase of $4.4 million in Retail Gross Margin is primarily attributable to expanded natural gas unit margins and increased retail electricity and natural gas volumes. Favorable supply costs across several of Spark's markets were a key driver of these elevated unit margins in the second quarter.

Spark reported, "consistently strong unit margins across both retail natural gas and electricity segments."

During the quarter, Spark invested $2.8 million in organic customer acquisitions, while reducing attrition to 4.0%

Net income for the quarter ended June 30, 2016 was $10.7 million compared to net income of $4.0 million for the quarter ended June 30, 2015

Spark increased 2016 full year Adjusted EBITDA guidance range to $75 million - $82 million, an increase of 71% at the midpoint versus prior guidance

Specifically, with the previously reported closing of Spark's acquisition of Provider Power and the anticipated close of the acquisition of Major Energy, Spark is increasing its 2016 Adjusted EBITDA guidance range from $44.0 million - $48.0 million to $75.0 million - $82.0 million.