Abraxas Announces 2001 Financial Results and Year-End Reserves.Business Editors & Energy Writers SAN ANTONIO--(BUSINESS WIRE)--March 27, 2002 Year 2001 Results Include Increased Revenue and Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and Reduced LOE LOE Ley Orgánica de Educación (Spanish) LOE Level Of Effort LOE Limited Objective Experiment LOE Letter of Explanation LOE Language Other than English. and G&A Expenses Versus 2000 -- Reserve Replacement Was 146% With Drillbit Finding Cost of $1.24/Mcfe Abraxas A`brax´as n. 1. A mystical word used as a charm and engraved on gems among the ancients; also, a gem stone thus engraved. Petroleum Corporation (AMEX AMEX See: American Stock Exchange :ABP 1. (networking) ABP - Alternating bit protocol. 2. ABP - Microsoft Address Book Provider. ) today reported revenue and operating income for the year-ended Dec. 31, 2001, of $77.2 million and $19.2 million, respectively, compared to $76.6 million and $11.9 million in 2000. LOE and G&A expense were $18.6 million and $6.4 million respectively compared to $18.8 million and $6.5 million in 2000. For 2001, net income was a loss of $19.7 million after proved property impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of $2.6 million or a loss of $.76 per share, compared to a gain of $8.4 million for 2000, which included a non-recurring cash gain of $34.0 million, or $0.37 per share based on primary shares outstanding. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the year was $53.2 million compared to $82.0 million in 2000, with the lower 2001 amount primarily due to lower average commodity prices and asset sales. Cash flow before working capital changes for 2001 was $19.3 million, or $.74 per share, as compared to $55.6 million, or $2.43 per share, for 2000, which included the cash gain. Revenues in the fourth quarter of 2001 were $12.1 million compared to $27.2 million in 2000. Net earnings for the fourth quarter of 2001 were a loss of $12.8 million, which included the previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). impairment charge, compared to $292,000 in 2000. EBITDA in the quarter was $4.8 million, compared to $18.9 million in 2000 primarily due to lower commodity prices and asset sales. Cash flow before working capital changes in year 2001 fourth quarter was ($2.1) million compared to $13.1 million posted in the same quarter of 2000. Capital expenditures for 2001 were $57 million of which $17 million was for land, seismic and facilities. The Company drilled 20 wells (16 net) with a 95% success rate primarily in our core areas of Peace River Arch and Caroline Car·o·line adj. Relating to the life and times of Charles I or Charles II of England. [Medieval Latin Carol in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and Texas. Total reserve additions were 32 Bcfe, net of revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. , resulting in a drillbit finding cost of $1.24. Total production for the year was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 22 Bcfe. The Company's estimated proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2001 were 230 Bcfe with an estimated future net cash flow, discounted at 10%, or PV10, of $210 million. Year-end realized prices utilized in this estimation estimation In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator. included oil at $18.30 per barrel barrel: see English units of measurement. and natural gas at $2.31 per Mcf. If the Company had utilized this PV10 in determining any impairment to its oil and gas properties at year-end, a write down in its oil and gas property carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. would have been recorded in the amount of $71.3 million. The Company elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to utilize prices being received on March 22, 2002, for determining its ultimate impairment and recorded a write down of $2.6 million, all related to its Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. assets. These realized prices on March 22 were $24.21 per barrel of oil and $3.02 per Mcf of natural gas. The estimated PV10 of the company's proven oil and gas properties, utilizing these higher prices was approximately $287 million. Key annual results are summarized below.
(YTD Amounts)
(In Thousands) 2001 2000
-------------- ---- ----
Revenues $77,243 $76,600
Operating Income (Loss) $19,125 $11,943
Net Income (Loss) ($19,718) $8,449
Earnings (Loss) Per Share ($.76) $.37
Cash Flow (After Interest) $19,323 $55,648
Cash Flow Per Share $.74 $2.43
EBITDA $53,195 $81,993
Consolidated PV-10 $209,666 $1,006,400
Average Oil Price (after hedge) $24.63 $18.69
Average Gas Price (after hedge) $3.20 $2.71
U.S. Reserves 134.9 Bcfe 151.4 Bcfe
Canada Reserves 94.7 Bcfe 93.0 Bcfe
Total Assets $303,713 $335,560
As a result of final 2001 financial results and current market conditions, Abraxas has updated its operating and financial guidance for year 2002 as follows:
Full-Year Full-Year
2001 Actual 2002 Forecast
----------- -------------
Production:
MBO 0.454 0.266
MBNGL 0.278 0.319
BCF 17.5 20.0
BCFE 21.9 23.5
Price Differentials (Pre Hedge):
$ Per BO 1.97 0.84
$ Per BNGL 5.09 4.59
$ Per MCF 0.49 0.47
Lifting Costs, $ Per MCFE 0.85 0.75
G&A, $ Per MCFE 0.29 0.28
Capital Expenditures ($ Millions) 57.1 37.4
Above guidance assumes no property sales during 2002 Abraxas invites your participation in a conference call on Thursday Thursday: see week. , March 28, at 1:30 p.m. CT to discuss the contents of this release and respond to questions. Please call 800/289-0437 between 1:20 and 1:30 p.m. CT, confirmation code 651785, if you would like to participate in the call. There will be a replay of the conference call available by calling 888/203-1112, confirmation code 651785, beginning approximately 3:30 p.m. CT Thursday, March 28, through 5:00 p.m. CT Thursday, April 4. Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploitation Exploitation See also Opportunism. Barnum, P. T. (1810–1891) circus impressario famous for his saying, “Never give a sucker an even break.” [Am. Hist. and production company that also processes natural gas. The Company operates in Texas, Wyoming Wyoming, city, United States Wyoming, city (1990 pop. 63,891), Kent co., W Mich., in the greater Grand Rapids metropolitan area, on the Grand River; settled 1832, inc. 1959. and western Canada
Western Canada, commonly referred to as the West . For additional information about the Company, please visit our Web site, www.abraxaspetroleum.com, for the most current and updated information. The Web site is updated daily in order to comply with the SEC Regulation FD (Fair Disclosure). Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Statements in this release looking forward in time involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to be materially different from any future performance suggested in this release. Such factors may include, but may not be necessarily limited to, changes in the prices received by the Company for crude oil and natural gas. In addition, the Company's future crude oil and natural gas production is highly dependent upon the Company's level of success in acquiring or finding additional reserves. Further, the Company operates in an industry sector where securities values are highly volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. and may be influenced by economic and other factors beyond the Company's control. In the context of forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information provided for in this release, reference is made to the discussion of risk factors detailed in the Company's filing with the Securities and Exchange Commission during the past 12 months.
Abraxas Petroleum Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands Three Months Ended Twelve Months Ended
except per share data) December 31, December 31,
-------- -------- -------- --------
2001 2000 2001 2000
-------- -------- -------- --------
Revenue:
Oil and gas
production revenues $ 11,158 $ 26,501 $ 73,201 $ 72,973
Gas processing revenues 727 643 2,438 2,717
Rig revenues 149 121 756 505
Other 106 (46) 848 405
-------- -------- -------- --------
12,140 27,219 77,243 76,600
Operating costs and expenses:
Lease operating
and production taxes 4,937 5,276 18,616 18,783
Depreciation, depletion,
and amortization 7,334 9,645 32,484 35,857
Rig operations 154 129 702 717
Proved Property impairment 2,638 -- 2,638 --
Stock-based compensation -- 634 (2,767) 2,767
General and administrative 1,179 2,131 6,445 6,533
-------- -------- -------- --------
16,242 17,815 58,118 64,657
-------- -------- -------- --------
Operating income (loss) (4,102) 9,404 19,125 11,943
Other (income) expense:
Interest income (4) (48) (78) (530)
Amortization of deferred
financing fees 953 568 2,268 2,091
Interest expense 7,823 7,769 31,523 31,140
Loss (gain) on sale of
equity investment 845 -- 845 (33,983)
Other 191 173 207 1,563
-------- -------- -------- --------
9,808 8,462 34,765 281
Income (loss) from
operations before taxes
and extraordinary gain (13,910) 942 (15,640) 11,662
Income tax expense (benefit) (1,060) (34) 2,402 3,705
Minority interest in income
of consolidated foreign
subsidiary -- 684 1,676 1,281
-------- -------- -------- --------
Net income (loss) before
extraordinary gain (12,850) 292 (19,718) 6,676
Extraordinary gain:
Debt extinguishment
-- -- -- 1,773
-------- -------- -------- --------
Net income (loss) ($12,850) $ 292 ($19,718) $ 8,449
======== ======== ======== ========
Earnings (loss)
per common share:
Net Income (loss) before
extraordinary gain ($ 0.43) $ 0.01 ($ 0.76) $ 0.29
Extraordinary gain -- -- -- 0.08
-------- -------- -------- --------
Net income (loss)
per common share ($ 0.43) $ 0.01 ($ 0.76) $ 0.37
======== ======== ======== ========
Earnings (loss) per common
share assuming dilution:
Net Income (loss) before
extraordinary gain ($ 0.43) $ 0.01 ($ 0.76) $ 0.21
Extraordinary gain -- -- -- 0.05
-------- -------- -------- --------
Net income (loss)
per common share ($ 0.43) $ 0.01 ($ 0.76) $ 0.26
======== ======== ======== ========
ABRAXAS PETROLEUM CORPORATION
YEAR-END RESULTS
Three Months Twelve Months
(In thousands Ended December 31, Ended December 31,
except per share data)
2001 2000 2001 2000
---- ---- ---- ----
Operations Data:
Revenues $ 12,140 $ 27,219 $ 77,243 $ 76,600
Cash Flow (Before Working
Capital Changes) (2,141) 13,165 19,323 55,648
Net Income (Loss) (12,850) 292 (19,718) 8,449
Net Income (Loss)
Per Share (.43) .01 (.76) .37
Weighted Ave. Shares
Outstanding -- Basic 30.0 22.6 25.8 22.6
Production:
Crude Oil (BPD) 877 1,766 1,244 1,740
NGL (BPD) 820 776 762 860
Natural Gas (MCFPD) 44,297 50,543 47,933 54,542
MMCFEPD 54.5 65.8 60.0 70.1
Prices (net of hedge losses):
Crude Oil ($/BBL) $ 18.72 $ 25.96 $ 24.63 $ 18.69
NGL's ($/BBL) 14.76 25.58 21.51 22.42
Natural Gas ($/MCF) 2.09 4.40 3.20 2.71
Price per MCFE 2.23 4.38 3.34 2.84
Expenses:
Lease Operating ($/MCFE) $ .99 $ .87 $ .85 $ .73
General & Administrative
($/MCFE)(a) .24 .35 .29 .27
Interest ($/MCFE) 1.56 1.28 1.44 1.19
D/D/A ($/MCFE) 1.46 1.59 1.48 1.40
(a) Amount does not include stock-based compensation.
Balance Sheet Data (In $000s)
Year End Year End
December 31, 2001 December 31, 2000
----------------- -----------------
Cash $7,605 $2,004
Working Capital (Deficit) (4,994) (13,829)
Plant/Property/Equipment, Net 281,894 304,784
Total Assets 303,713 335,560
Long-Term Debt 285,184 266,441
Shareholders Equity (Deficit) (28,490) (6,503)
Common Shares
Outstanding (Millions) 30.0 22.6
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