Abraxas Petroleum Corporation Announces Results for First Quarter 1999, Conference Call May 17.SAN ANTONIO--(BUSINESS WIRE)--May 14, 1999--
ABRAXAS PETROLEUM CORPORATION (Nasdaq:AXAS)
500 North Loop 1604 East, Suite 100, San Antonio, TX 78232
210/490-4788 210/490-8816 Fax
TO: PRESS RELEASE RECIPIENTS
FROM: JACK RONEY - VICE PRESIDENT/CORPORATE DEVELOPMENT
DATE: MAY 14, 1999
SUBJ: FIRST QUARTER RESULTS CONFERENCE CALL -
Monday, May 17, 1999, 1:00 p.m. CDT
Our first quarter results conference call will be held Monday,
May 17, 1999, at 1:00 p.m. CDT. The call will be led by Robert L. G.
Watson, President and CEO of Abraxas, who will discuss our first
quarter results as well as current drilling activity. A question and
answer session will follow Mr. Watson's presentation.
Please call the toll free number listed below five minutes before
the appointed time to participate in this conference call:
888/227-1642
-- 703/326-5142 -- Canadian Callers please use this number if you
have difficulty getting through on the 888 number listed above.
Thank you for your participation and for your interest in
Abraxas.
RECALL PROGRAM
If you miss the conference call Monday, then please use our
Recall Service. Details are:
-- Recall of the conference call is available beginning at 4:00 p.m.
CDT on 5/17/99
-- Recall service ends 5:00 p.m. CDT on 5/21/99
-- Recall number is: 888/266-2081, PIN 1548375(pound sign)
703/925-2533, PIN 1548375(pound sign) (Int'l. callers)
ONLINE SERVICE
An audio replay of the call will be available to members of
C-Call.Com at www.c-call.com for two weeks following the presentation.
If you have questions regarding any of these services, please
call Jack Roney, Chris Williford or Dixie Bane.
NEWS RELEASE 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 (Nasdaq:AXAS) today released financial results for the three months ended March 31, 1999. Abraxas reported a net loss applicable to common shareholders of $6.3 million, or $0.99 per share, on revenues of $16.0 million for the three months ended March 31, 1999. For the comparable quarter of 1998, Abraxas reported a net loss applicable to common shareholders of $4.6 million, or $0.72 per share, on revenues of $16.7 million. All per share amounts are on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. Primarily as a result of lower product price realizations on slightly increased production volumes, cash flow before changes in working capital totaled $1.2 million, or $0.18 per share for the first quarter of 1999, compared to $3.2 million, or $0.51 per share reported for the same period in 1998. Before hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. activities, the average price realized for the three months ended March 31, 1999, was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.48 per Mcfe, an 11% decrease from the $1.67 per Mcfe realized in the prior year period. Abraxas' hedging program added approximately $.6 million in revenues, or $0.07 per Mcfe during the first quarter of 1999. Oil and gas production for the first three months of 1999 increased slightly to 99.3 MMcfe MMcfe Millions of Cubic Feet Equivalent (Per Day; gas exploration) per day from 97.6 MMcfe per day in the 1998 first quarter period. Approximately 80% of Abraxas' production was natural gas. Natural gas liquids volumes declined approximately 70% in the 1999 first quarter period due to the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the Company's 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. properties in the fourth quarter of 1998 and the Company's economic decision to shut down two natural gas processing Natural gas processing plants, or fractionators, are used to purify the raw natural gas extracted from underground gas fields and brought up to the surface by gas wells. The processed natural gas, used as fuel by residential, commercial and industial consumers, is almost pure plants in south Texas. The Wyoming properties contributed approximately 1,395 Bbls per day of natural gas liquids during the first three months of 1998 which was offset by only 230 Bbls per day from the New Cache properties acquired in January January: see month. 1999. "The recent increase in commodity prices gives rise for increasing optimism Optimism See also Hope. Bontemps, Roger personification of cheery contentment. [Fr. Lit.: “Roger Bontemps” in Walsh Modern, 66] Candide beset by inconceivable misfortunes, hero indifferently shrugs them off. [Fr. for improved operating performance for the balance of the year," noted Abraxas' Chief Executive Officer 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. "We continue to focus on a plan that addresses the Company's overall capital structure, continued development of our natural gas projects which make up 80% of our reserves, and maintaining efficient, low-cost operations." -0-
PRODUCTION AND PRICING Three Months Ended
March 31
1999 1998 Change
--------------------------------
Revenues (In $000s except share data) 15,970 16,739 -5%
Cash Flow (before working capital
changes) 1,152 3,235 -64%
Net Income (Loss)(a) (6,294) (4,572) -38%
Net Income (Loss) Per Share(a) (0.99) (0.72) -38%
Net Income (Loss) Per Share -
assuming dilution(a) (0.99) (0.72) -38%
Average Shares Outstanding (Millions) 6.3 6.4 --
(a) Applicable to Common Shareholders
Production
Crude Oil (Bpd) 2,500 2,211 +13%
NGL (Bpd) 814 2,683 -70%
Natural Gas (Mcfpd) 79,439 68,213 +16%
MMcfepd 99,323 97,577 +2%
Prices
Crude Oil Price ($/Bbl) 12.14 14.47 -16%
NGL Price ($/Bbl) 7.53 8.24 -9%
Natural Gas ($/Mcf) 1.48 1.59 -7%
Price Per $/Mcfe 1.55 1.67 -7%
Expenses
Lease Operating Expenses &
Production Taxes ($/Mcfe) 0.53 0.53 N.C.
General & Administrative
($/Mcfe) 0.15 0.15 N.C.
BALANCE SHEET SUMMARY
(In $000s except share data)
March 31, 1999 Dec. 31, 1998
---------------- ---------------
Balance Sheet
Working Capital (6,144) 50,689
Oil & Gas Properties, net 315,324 208,449
Total Assets 355,462 291,498
Long-Term Debt 344,869 299,698
Shareholders' Equity (66,657) (63,522)
Common Shares Outstanding 6,504,513 6,501,441
-0- 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 southwestern south·west n. 1. Abbr. SW The direction or point on the mariner's compass halfway between due south and due west, or 135° west of due north. 2. An area or region lying in the southwest. 3. Wyoming. 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. -0-
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31
1999 1998
------------ ------------
(In $000s except share and per share data)
Revenue:
Oil & gas production sales $ 13,838 $ 14,655
Processing revenue 865 735
Rig revenues 90 116
Other 1,177 1,233
------------ ------------
15,970 16,739
Operating costs and expenses:
Lease operating and production taxes 4,758 4,639
Depreciation, depletion and amortization 9,146 8,252
General and administrative 1,323 1,303
Rig operations 139 122
------------ ------------
15,366 14,316
------------ ------------
Operating income 604 2,423
Other (income) expense
Interest income (186) (136)
Interest expense 8,683 7,516
Amortization of deferred financing fees 345 327
------------ ------------
8,842 7,707
------------ ------------
Income (loss) from operations before taxes (8,238) (5,284)
Income tax expense (benefit)
Current 102 60
Deferred (2,039) (695)
Minority interest in income (loss)
of consolidated foreign subsidiary (7) (77)
------------ ------------
Net income (loss) applicable to common stock $ (6,294) $ (4,572)
============ ============
Earnings (loss) per share:
Net income (loss) per common share $ (.99) $ (.72)
============ ============
Net income (loss) per common
share-assuming dilution $ (.99) $ (.72)
============ ============
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