Abraxas Announces Fourth Quarter and Year-End Results Including Balance Sheet Improvement.Business Editors & Energy Writers SAN ANTONIO--(BUSINESS WIRE)--March 31, 2000 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 (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:AXAS) today announced its financial results for 1999. The Company had a 19.4% increase in its 1999 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 , and a significant reduction in debt and interest payments through an advantageous restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its balance sheet. It should be noted that the debt holders exchanged debt for common stock valued at $5.03 per share. In addition, Abraxas had an 11.5% increase in U.S. reserves plus a 5.6% increase in 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. reserves after taking into account reserve writedowns. Our drilling program is continuing apace, thanks in part to our interest savings. We are also working on rationalization rationalization, in psychology: see defense mechanism. of significant non-core Canadian assets to further allow the Company to grow while reducing debt. Abraxas has also applied for an American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. listing for its Common Stock. Detailed financial results are below. The Company continues to operate at a loss due primarily to interest costs related to significant long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . It should be noted, however, that the Company generated approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $43 million in EBITDA in 1999 ($1.90 per current outstanding share) versus approximately $36 million in 1998. U.S. reserves have increased from 144.8 BCFE BCFE Boundary Committee for England BCFE Ballyfermot College of Further Education (Dublin, Ireland) BCFE Board Certified Forensic Examiner Bcfe Billions of Cubic Feet Equivalent (Per Day; Gas Exploration) to 161.5 BCFE from 1998 to 1999, a 11.5% increase and PV10 values have increased from $US 94.2 million to $US 135.6 million, a 43.9% increase. Despite the fact that the New Cache acquisition has not met pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma estimates, thus far, that Abraxas made regarding the acquisition, Canadian reserves have increased from 98.9 BCFE to 104.4 BCFE from 1998 to 1999, a 5.6% increase, even after asset sales of approximately 15 BCFE, and PV10 values have increased from $US 87.3 million to $US 121.5 million, a 14.3% increase. Fourth quarter 1999 included a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $US 19.1 million for the 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 Canadian oil and gas properties. Abraxas is working on rationalizing its significant Canadian assets, including the sale of non-core assets, soliciting partners to fund a portion of the exploration costs of the Company's extensive undeveloped acreage position and will review other potential strategic alternatives. The Abraxas strategy to continue turning the Company around, attaining profitability and rationalizing its asset portfolio has also included a debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: . During the first quarter of 1999, Abraxas replaced its short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. bank debt with $63.5 million of 12 7/8% Senior Secured Notes due 2003. During the fourth quarter of 1999, Abraxas offered to exchange $191.8 million of 11 1/2% Senior Notes due 2004 plus 16.1 million shares of common stock and 16.1 million of Contingent Value Rights for $274 million of Senior Notes with the same interest rate and maturity date. Contingent Value Rights are rights to receive additional shares of stock if the price of the common stock does not reach certain levels. The actual number of shares issuable, if any, will depend on the market price of the Common Stock. The CVRs will be terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: and no Common Stock will be issuable pursuant thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. if the market price of the Common Stock exceeds certain target prices for a period of 30 trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. during any 45 consecutive trading day period prior to the expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. . On Dec. 21, 2000, the target price will be $5.68 and on May 21, 2001, the target price will be $5.97. Simply stated, Abraxas offered added equity in the Company for a reduction in debt of $82.2 million (and a corresponding increase in net worth) and a reduction in interest payment obligations. Holders of 98.4% of the Notes accepted the arrangement. Abraxas will save over $125 million in forgiven debt and interest over the next five years. The savings, along with operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. , will be devoted to changing undeveloped properties to developed properties. Abraxas capital expenditure program for 2000 calls for spending $49 million on existing leaseholds. This includes accelerating the Company's horizontal exploitation program. Abraxas currently has horizontal drilling a drilling machine having a horizontal drill spindle. See also: Horizontal or completion operations underway in West Texas, South 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 Kansas Kansas, state, United States Kansas (kăn`zəs), midwestern state occupying the center of the coterminous United States. It is bordered by Missouri (E), Oklahoma (S), Colorado (W), and Nebraska (N). . Abraxas focuses on North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. natural gas and is one of the industry's pioneers in using horizontal drilling techniques in deep wells containing known columns of hydrocarbons hydrocarbons (hīˈ·drō·kärˑ·b  nz),n. . These methods provide increased production at low incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. and very high rates of return. Abraxas has applied for listing of its common stock on the American Stock Exchange and anticipates action on its application during the second quarter of 2000.
Key results are summarized below.
1998 1999 Change
---- ---- ------
Revenues $60,084,000 $66,770,000 11.1%
Operating Income ($56,500,000) ($10,972,000) 80.1%
Net Income ($83,960,000) ($36,680,000) 56.3%
Earnings per Share ($13.26) ($5.41) 59.2%
EBITDA $35,950,000 $42,939,000 19.4%
EBITDA as % of Revenues 59.8% 64.3% 7.5%
U.S. Reserves 144.8 BCFE 161.5 BCFE 11.5%
Canada Reserves 98.9 BCFE 104.4 BCFE 5.6%
Total Assets $291,498,000 $322,284,000 10.6%
Abraxas Petroleum Corporation is a San Antonio-based natural gas and crude oil exploration and production Company that also processes natural gas. Abraxas operates primarily in the Texas Gulf Coast, Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. of West Texas, Western Canada
Western Canada, commonly referred to as the West and Wyoming. The Company's management will hold a teleconference call on Monday Monday: see week. , April 3, 2000, at 2:00 p.m. Eastern Standard Time to review 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. results. To participate, call 800/289-0730, access code: 898958. Telephone replay will be available from 5:00 p.m. April 3, 2000 until 6:00 p.m. April 7, 2000, by dialing 888/203-1112, access code: 898958. 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.
The following tables summarize production, prices, controllable
expenses and balance sheet trends:
Three Months
Ended Dec. 31
Production and Pricing Information 1999 1998 Change
----------------------------------------------------------------------
(In $000s)
Revenues 17,065 14,075 +21%
Cash Flow
(Before Working Capital Changes) 3,454 (23) +100%
Net Income (Loss)(a) (16,726) (67,488) +75%
Net Income (Loss) Per Share(a) (2.06) (10.68) +81%
Average Shares Outstanding (Millions) 81 6.3 +29%
(a) Applicable to common shareholders
Production
Crude Oil (Bpd) 1,840 1,778 +3%
NGL (Bpd) 1,032 1,654 -38%
Natural Gas (Mcfpd) 60,253 65,820 -8%
Mmcfepd 77.5 86.4 -10%
Prices
Oil Price ($/Bbbl) 16.68 13.33 +25%
NGL Price ($/Bbl) 17.66 6.35 +278%
Natural Gas Price ($/Mcf) 1.92 1.60 +20%
Price Per $/Mcfe 2.12 1.62 +31%
Expenses
Lease Operating Expenses
& Production Taxes
($/Mcfe) 0.55 0.54 +2%
General & Administrative ($/Mcfe) 0.15 0.20 -25%
Twelve Months
Ended Dec. 31
Production and Pricing Information 1999 1998 Change
----------------------------------------------------------------------
(In $000s)
Revenues 66,770 60,084 +11%
Cash Flow
(Before Working Capital Changes) 6,299 5,676 +11%
Net Income (Loss)(a) (36,680) (83,960) +56%
Net Income (Loss) Per Share(a) (5.41) (13.26) +59%
Average Shares Outstanding (Millions) 6.8 6.3 +8%
(a) Applicable to common shareholders
Production
Crude Oil (Bpd) 2,131 1,996 +7%
NGL (Bpd) 1,031 2,377 -57%
Natural Gas (Mcfpd) 70,405 68,301 +3%
Mmcfepd 89.4 94.5 -5%
Prices
Oil Price ($/Bbbl) 14.57 13.65 +7%
NGL Price ($/Bbl) 13.40 6.81 +97%
Natural Gas Price ($/Mcf) 1.66 1.54 +8%
Price Per $/Mcfe 1.81 1.57 +15%
Expenses
Lease Operating Expenses
& Production Taxes
($/Mcfe) 0.55 0.49 +12%
General & Administrative ($/Mcfe) 0.16 0.16 0%
Year Ended : December 31, 1999 December 31, 1998
----------------------------------------------------------------------
Balance Sheet (In $000s)
Working Capital (7,305) 50,689
Oil & Gas Properties, Net 294,666 208,449
Total Assets 322,284 291,498
Long-Term Debt 273,421 299,698
Shareholders Equity (9,505) (63,522)
Common Shares Outstanding (Millions) 22.6 6.3
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
December 31,
------------------------------
(In $000s except share
& per share data) 1999 1998
Revenue:
Oil and gas production revenues $ 15,140 $ 12,857
Gas processing revenues 1,511 790
Rig revenues 116 119
Other 298 309
----------- -----------
17,065 14,075
Operating costs and expenses:
Lease operating and
production taxes 3,951 4,704
Depreciation, depletion
& amortization 9,010 5,177
Rig operations 172 140
Proved property impairment 19,100 61,224
General and administrative 1,082 1,565
----------- -----------
33,315 72,810
Other (income) expense:
Interest income (173) (387)
Interest expense 8,393 8,053
Amortization of deferred
financing fee 842 658
----------- -----------
9,062 8,324
----------- -----------
Income (loss) before taxes (25,312) (67,059)
Minority interest 97 54
Income tax expense (benefit)
Current 186 23
Deferred (8,869) 352
----------- -----------
(Loss) $ (16,726) $ (67,488)
=========== ===========
Loss per share $ (2.06) $ (10.68)
=========== ===========
Weighted average
shares outstanding 8,139,330 6,321,188
=========== ===========
Twelve Months Ended
December 31,
------------------------------
(In $000s except share
& per share data) 1999 1998
Revenue:
Oil and gas production revenues $ 59,025 $ 54,263
Gas processing revenues 4,244 3,159
Rig revenues 444 469
Other 3,057 2,193
----------- -----------
66,770 60,084
Operating costs and expenses:
Lease operating and
production taxes 17,938 18,091
Depreciation, depletion
& amortization 34,811 31,226
Rig operations 624 521
Proved property impairment 19,100 61,224
General and administrative 5,269 5,522
----------- -----------
77,742 116,584
Other (income) expense:
Interest income (666) (805)
Interest expense 36,815 30,848
Amortization of deferred
financing fee 1,915 1,571
----------- -----------
38,064 31,614
----------- -----------
Income (loss) before taxes (49,036) (88,114)
Minority interest
Income tax expense (benefit)
Current 491 231
Deferred (13,116) (4,389)
----------- -----------
(Loss) $ (36,680) $ (83,960)
=========== ===========
Loss per share $ (5.41) $ (13.26)
=========== ===========
Weighted average
shares outstanding 6,783,633 6,331,292
=========== ===========
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