Abraxas Petroleum Corporation Announces Second Quarter Results.Business Editors & Energy Writers SAN ANTONIO--(BUSINESS WIRE)--Aug. 14, 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 Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :AXAS) today released financial and operating results for the second quarter of 2000, showing significant improvement from the second quarter of 1999. Bob Watson
The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. of 1998 and 1999, our realized price per Mcfe increased 58% from 1999 and 17% from the first quarter of this year. "We look forward to November November: see month. when the bulk of our hedges expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. , and we can take full advantage of what we believe is a very healthy outlook for North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. natural gas. The hedge expirations will enable major increases in revenues, cash flows and earnings. In addition, we aggressively continue our program to improve operating results outside of price improvements. Moreover, a promising joint venture with 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
"Finally, we believe our common stock is very undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. based on our net asset valuation, and last week we announced our coming August 18 listing on the 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. under the symbol ABP 1. (networking) ABP - Alternating bit protocol. 2. ABP - Microsoft Address Book Provider. . The broader exposure and more efficient trading on the AMEX AMEX See: American Stock Exchange should allow us to recognize a valuation more commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with our peers in the natural gas universe." In the second quarter of 2000, Abraxas posted a loss of $3.6 million, or $.16 per share, compared to a loss of $6.7 million, or $1.06 per share in 1999. Cash flow before changes in working capital for the second quarter was $5.6 million ($4.2 million 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. ) compared to $760,000 last year. 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 was $13.2 million ($11.8 million recurring) this quarter compared to $10.5 million in 1999. Impacting results for the second quarter were 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. losses of $2.9 million. Production declined from 8.5 Bcfe in 1999 to 6.6 Bcfe this past quarter due to property sales since last year's quarter. Natural gas comprised 78% of the Company's production with 60% of this gas component coming from the Company's 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. Overcoming the production decline, oil and gas sales revenues were up 22%, from $14.2 million to $17.3 million. Price realizations increased from $1.66 per Mcfe in 1999 to $2.63 this past quarter. The Company's debt for equity exchange in late 1999 drove down interest costs from $9.6 million in second quarter of 1999 to $7.6 million in the just completed period, an almost 21% reduction. The company's repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of $7.1 million of its 11 1/2 % notes during the quarter will further improve interest expense going forward. The Company invested $14.8 million on capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. in the second quarter of 2000, all in ongoing 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. efforts. This compares to $5.9 million spent in second quarter of 1999. Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploration and production company that also processes natural gas. It operates in Texas, Kansas Kansas, state, United States Kansas (kăn`zəs), midwestern state occupying the center of the coterminous United States. It is bordered by Missouri (E), Oklahoma (S), Colorado (W), and Nebraska (N). , Wyoming Wyoming, city, United States Wyoming, city (1990 pop. 63,891), Kent co., W Mich., in the greater Grand Rapids metropolitan area, on the Grand River; settled 1832, inc. 1959. and western Canada
Western Canada, commonly referred to as the West .
ABRAXAS PETROLEUM CORPORATION
QUARTER END RESULTS
(UNAUDITED)
(In Thousands, Except Per Share And Production Data)
3 Months 6 Months
Ended June 30 Ended June 30
2000 1999 2000 1999
Revenues 18,068 16,776 34,785 32,746
Cash Flow (Before Working
Capital Changes) 5,570 760 41,741 1,912
Net Income (Loss) (3,633) (6,741) 23,524 (13,035)
Net Income (Loss) Per Share(a) (.16) (1.06) 1.04 (2.05)
Net Income (Loss) Per Share-
Assuming Dilution (.16) (1.06) .50 (2.05)
Weighted Ave. Shares Outstanding 22,651 6,359 22,649 6,359
Production:
Crude Oil (BPD) 1,773 2,105 1,812 2,301
NGL (BPD) 900 1,215 903 1,016
Natural Gas (MCFPD) 56,135 73,980 57,957 76,694
MMCFEPD 72.2 93.9 74.2 96.6
Prices:
Crude Oil ($/BBL) 19.84 13.22 17.74 12.64
NGL's ($/BBL) 19.70 11.65 20.62 10.01
Natural Gas ($/MCF) 2.44 1.54 2.24 1.51
Price per MCFE 2.63 1.66 2.44 1.60
Expenses:
Lease Operating ($/MCFE) 0.66 0.54 0.66 0.54
General & Administrative ($MCFE) 0.25 0.17 0.23 0.16
Interest ($MCFE) 1.16 1.14 1.14 1.05
D/D/A ($MCFE) 1.30 1.03 1.29 1.03
(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 June 30,
2000 1999
------------------ -----------------
(In thousands except per share data)
Revenue:
Oil and gas production
revenues $ 17,282 $ 14,204
Gas processing revenues 645 1,050
Rig revenues 119 109
Other 22 1,413
------------------ -----------------
18,068 16,776
Operating costs and expenses:
Lease operating and
production taxes 4,301 4,647
Depreciation, depletion,
and amortization 8,518 8,821
Rig operations 196 157
General and administrative 1,643 1,459
------------------ -----------------
14,658 15,084
------------------ -----------------
Operating income 3,410 1,692
Other (income) expense:
Interest income (267) (81)
Amortization of deferred
financing fee 508 346
Interest expense 7,892 9,723
Gain on sale of equity
investment - -
------------------ -----------------
8,133 9,988
------------------ -----------------
Net income (loss) from
operations before taxes and
extraordinary item (4,723) (8,296)
Income tax expense (benefit):
Current 57 111
Deferred (26) (1,698)
Minority interest in income
of consolidated foreign
subsidiary 204 32
------------------ -----------------
Net income (loss) before
extraordinary item (4,958) (6,741)
Extraordinary item:
Debt extinguishment 1,326 -
------------------ -----------------
Net income (loss) $ (3,632) $ (6,741)
================== =================
Earnings (loss) per common
share:
Net Income (loss) before
extraordinary item $ (0.22) $ (1.06)
Extraordinary item 0.06 -
------------------ -----------------
Net income (loss) per common
share $ (0.16) $ (1.06)
================== =================
Earnings (loss) per common
share assuming dilution:
Net Income (loss) before
extraordinary item $ (0.22) $ (1.06)
Extraordinary item 0.06 -
------------------ -----------------
Net income (loss) per common
share $ (0.16) $ (1.06)
================== =================
Six Months Ended June 30,
2000 1999
------------------ -----------------
(In thousands except per share data)
Revenue:
Oil and gas production
revenues $ 32,908 $ 28,042
Gas processing revenues 1,402 1,915
Rig revenues 250 199
Other 225 2,590
------------------ -----------------
34,785 32,746
Operating costs and expenses:
Lease operating and
production taxes 8,930 9,405
Depreciation, depletion,
and amortization 17,466 17,967
Rig operations 384 296
General and administrative 3,082 2,782
------------------ -----------------
29,862 30,450
------------------ -----------------
Operating income 4,923 2,296
Other (income) expense:
Interest income (327) (267)
Amortization of deferred
financing fee 1,015 691
Interest expense 15,665 18,406
Gain on sale of equity
investment (33,547) -
------------------ -----------------
(17,194) 18,830
------------------ -----------------
Net income (loss) from
operations before taxes and
extraordinary item 22,117 (16,534)
Income tax expense (benefit):
Current 183 213
Deferred (479) (3,737)
Minority interest in income
of consolidated foreign
subsidiary 215 25
------------------ -----------------
Net income (loss) before
extraordinary item 22,198 (13,035)
Extraordinary item:
Debt extinguishment 1,326 -
----------------- -----------------
Net income (loss) $ 23,524 $ (13,035)
================== =================
Earnings (loss) per common
share:
Net Income (loss) before
extraordinary item $ 0.97 $ (2.05)
Extraordinary item 0.06 -
------------------ -----------------
Net income (loss) per common
share $ 1.03 $ (2.05)
================== =================
Earnings (loss) per common
share assuming dilution:
Net Income (loss) before
extraordinary item $ 0.47 $ (2.05)
Extraordinary item 0.03 -
------------------ -----------------
Net income (loss) per common
share $ 0.50 $ (2.05)
================== =================
See accompanying notes to consolidated financial statements
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