Abraxas Petroleum Corporation Announces 3Q Results and Successful Exploitation Activities Which Will Lead to Improved 4Q Results.Business Editors & Energy Writers SAN ANTONIO--(BUSINESS WIRE)--Nov. 13, 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 (AMEX AMEX See: American Stock Exchange :ABP 1. (networking) ABP - Alternating bit protocol. 2. ABP - Microsoft Address Book Provider. ) today released financial and operating results showing cash flow improving by 165% and 259% on a recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. basis in the third quarter and nine months respectively due to the Company's successful 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). , increased capital expenditures and improved commodity prices. Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. L. G. Watson, commented on the Company's current operations in United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada. "Abraxas made significant progress in proving up our major exploitation plays -- Brooks Draw in Wyoming, the Sundre/Caroline and Pouce pouce, n See cun. Coupe areas in Alberta, Canada and the Montoya in west Texas. Each of these plays has significant potential that is beginning to be realized. In Wyoming, the Company put its first two wells on production at a combined initial rate of over 700 BOPD BOPD Barrels of Oil Per Day BOPD Bataan Ocean Petroleum Depot . We expect to have gas processing facilities on line in the first quarter of 2001 to allow for the sale of the very rich gas that is being produced along with the oil. "In Sundre/Caroline, Alberta, Canada, the Company and its 49% owned public subsidiary, Grey Wolf Exploration Inc. (TO:GWX GWX Grey Wolves Expansion (for Silent Hunter III video game) GWX Genigraphics Link ), now control 100% of over 45,000 acres as well as the gas plant and gathering facilities. We are drilling our fourth well and doing our fourth recompletion in the field and are in the process of upgrading the gas plant and gathering facilities to handle the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. production. We expect to have the plant capable of processing 20 MMcfpd by the end of the year which would be double the current production rate. "In Pouce Coupe, the Company and Grey Wolf completed a second successful Montney test at a rate of 2.2 MMcfpd, acquired 1,280 acres offsetting existing production and are negotiating to acquire additional working interest in certain of its wells in this area. During the third quarter, under a previously announced drilling agreement, EOG Resources EOG Resources NYSE: EOG is a Fortune 600 company based in Houston, Texas. This company is one of the largest independent oil and natural gas companies in the United States. History 1999
See: New York Stock Exchange :EOG EOG electro-olfactogram. EOG abbr. electro-oculography EOG electro-oculogram; electro-olfactogram. EOG Electrooculogram, see there ) spudded the first of up to five carried wells on Abraxas' west Texas Montoya acreage. Abraxas has acquired additional acreage on trend with Montoya potential. This winter the Company plans three 3D seismic surveys in Wyoming and Canada to further delineate the potential." Based on stock price performance during the quarter, potential CVR CVR See contingent value right (CVR). dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. has been permanently reduced to 8.5 million shares based on the December trigger date and continued improvement in stock price in the near term could further reduce or eliminate potential dilution potential dilution The decrease in the proportional equity position of a share of stock that will occur eventually if additional authorized shares are actually issued. from the CVR's. As of Nov. 1, all of our oil production and approximately two-thirds of our gas production is unhedged which will add substantially to 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 cash flow in the fourth quarter and for 2001. Looking forward, the Company expects significant improvement in EBITDA and cash flow in the fourth quarter. The Company currently estimates cash flow of $0.35-$0.40 per share for the fourth quarter with EBITDA estimated between $0.65-$0.75 per share, on a primary basis. Due to the uncertainty of timing in getting production on stream due to regulatory, construction and completion issues, production increases in our major project areas are not projected to have a material impact on the fourth quarter but should impact the first quarter of 2001. In addition, the Company continues to review sales of non-core assets with the proceeds used to fund capital expenditures and reduce outstanding indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . All the Company's public debt is callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. by March 2001 and the Company may review alternatives for refinancing Refinancing An extension and/or increase in amount of existing debt. a portion of that indebtedness, reducing overall leverage and interest expense. The Company will have a conference call on Tuesday Nov. 14 at 1:30 pm CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. to review the results of the third quarter. Please call 800/818-5264 ten minutes before the appointed time to participate in this conference call. The confirmation code is 739828. If you miss the conference call Tuesday, please use our recall service at 888/203-1112; confirmation code 739828. The conference recall is available beginning at 4:30 p.m. CST on Tuesday, Nov. 14 and ends at 5:00 p.m. CST on Tuesday, Nov. 21. Additional information on recent events as well as a complete transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record of the conference call and Form 10-Q Form 10-Q See 10-Q. will be available directly from the Company or on its Web site at www.abraxaspetroleum.com. Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploration and production company that also processes natural gas. It operates primarily along the Texas Gulf Coast, in the 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 western Texas, western Canada
Western Canada, commonly referred to as the West , and Wyoming. 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). The Regulation seeks to end unfair advance communication of market-moving information between corporations and Wall Street analysts before the public at large has access to the same data.
ABRAXAS PETROLEUM CORPORATION
QUARTER END RESULTS
(UNAUDITED)
(In Thousands, Except Per Share And Production Data)
3 Months 9 Months
Ended Sept. 30 Ended Sept. 30
2000 1999 2000 1999
Revenues $ 16,377 $ 16,958 $ 49,381 $ 49,704
Cash Flow (Before
Working Capital
Changes) 2,477 934 44,210 2,845
Net Income (Loss) (11,453) (6,919) 10,290 (19,954)
Net Income (Loss) Per
Share(a) (.51) (1.09) .46 (3.15)
Net Income (Loss) Per
Share- Assuming
Dilution (.51) (1.09) .31 (3.15)
Weighted Ave. Shares
Outstanding 22,629 6,353 22,642 6,342
Production:
Crude Oil (BPD) 1,570 2,087 1,731 2,229
NGL (BPD) 860 1,062 889 1,031
Natural Gas (MCFPD) 51,787 68,184 55,885 73,826
MMCFEPD 66.4 87.1 71.6 93.4
Prices:
Crude Oil ($/BBL) $ 16.99 $ 16.88 $ 16.20 $ 13.98
NGL's ($/BBL) 23.35 15.62 21.50 11.96
Natural Gas ($/MCF) 2.32 1.77 2.19 1.59
Price per MCFE 2.51 1.98 2.37 1.72
Expenses:
Lease Operating ($MCFE) $ .75 $ .57 $ .69 $ .55
General & Administrative
($MCFE) .28 .18 .24 .16
Interest ($MCFE) 1.26 1.24 1.17 1.11
D/D/A ($MCFE) 1.43 .98 1.34 1.01
(a) Based on current primary outstanding
Safe Harbor for forward-looking statement: 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 and may be influenced by economic and other factors
beyond the Company's control. In the context of forward-looking
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
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
-------------------- ------------------
2000 1999 2000 1999
--------- --------- -------- --------
(In thousands except per share data)
Revenue:
Oil and gas production
revenues $ 15,345 $ 15,842 $ 46,472 $ 43,884
Gas processing revenues 672 818 2,074 2,733
Rig revenues 134 129 384 328
Other 226 169 451 2,759
--------- --------- -------- --------
16,377 16,958 49,381 49,704
Operating costs and expenses:
Lease operating and
production taxes 4,577 4,581 13,507 13,986
Depreciation, depletion and
amortization 8,746 7,834 26,212 25,801
Rig operations 204 156 588 452
General and administrative 1,680 1,405 4,762 4,187
--------- --------- -------- --------
15,207 13,976 45,069 44,426
--------- --------- -------- --------
Operating income (loss) 1,170 2,982 4,312 5,278
Other (income) expense:
Interest income (155) (226) (482) (493)
Amortization of deferred
financing fee 508 382 1,523 1,073
Interest expense 7,706 10,016 23,371 28,422
Gain of sale of equity
investment - - (33,983) -
Other 147 - 1,030 -
--------- --------- -------- --------
8,206 10,172 (8,541) 29,002
Income (loss) from operations
before taxes and
extraordinary item (7,036) (7,190) 12,853 (23,725)
Income tax expense (benefit):
Current (112) 92 71 305
Deferred 4,147 (510) 3,668 (4,247)
Minority interest in income
of consolidated foreign
subsidiary 382 147 597 172
--------- --------- -------- --------
Net income (loss) before
extraordinary item (11,453) (6,919) 8,517 (19,954)
Extraordinary item:
Debt extinguishment and
restructure - - 1,773 -
--------- --------- -------- --------
Net Income (loss) $ (11,453) $ (6,919) $ 10,290 $(19,954)
========= ========= ======== ========
Earnings (loss) per common
share:
Net Income (loss) before
extraordinary item $ (0.51) $ (1.09) $ 0.38 $ (3.15)
Extraordinary item - - 0.08 -
--------- --------- -------- --------
Net income (loss) per common
share $ (0.51) $ (1.09) $ 0.46 $ (3.15)
========= ========= ======== ========
Earnings (loss) per common
share assuming dilution:
Net Income (loss) before
extraordinary item $ (0.51) $ (1.09) $ 0.26 $ (3.15)
Extraordinary item - - 0.05 -
--------- --------- -------- --------
Net income (loss) per common
share $ (0.51) $ (1.09) $ 0.31 $ (3.15)
========= ========= ======== ========
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