Abraxas Reports 2002 Second Quarter Financial Results; Lower Price Realizations in Canada Contribute to Proved Property Impairment.Business Editors & Energy Writers SAN ANTONIO--(BUSINESS WIRE)--Aug. 13, 2002 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 a second quarter of 2002 loss of $95.7 million or $3.19 per share (including a non-cash net 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 $86.6 million or $2.89 per share) compared to a loss of $1.3 million or $0.05 per share for the second quarter of 2001. Improvements in General and Administrative expense and Lease Operating Expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. at $1.5 million and $3.4 million respectively in the 2002 quarter compared to $1.6 million and $4.3 million respectively in the 2001 quarter were offset by reduced revenues. Sharply lower commodity prices, compared to the second quarter of 2001, combined with asset sales, resulted in revenues declining from $21.1 million in 2001 to $14.2 million in this quarter. Capital expenditures for the second quarter of 2002 were $6.4 million of which $4.6 million was for development of 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 under the Mirant Mirant Services LLC, an Atlanta-based energy company, produces and sells electricity in the United States, the Caribbean, and the Philippines. The company was spun-off from parent, Southern Company, on April 2, 2001. 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 facility. During the quarter, Abraxas completed the sale of certain assets for $32.9 million and is evaluating alternatives for the sale of certain additional assets. In west Texas, the Company has completed its fourth well and is drilling its fifth well under the joint participation agreement 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
See: New York Stock Exchange :EOG EOG electro-olfactogram. EOG abbr. electro-oculography EOG electro-oculogram; electro-olfactogram. EOG Electrooculogram, see there ). The fourth well, in an area that had no 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. assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. previously, tested at a pipeline restricted gross initial rate of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 5 MMcfepd. In Canada, the Company has resumed drilling after the spring break up period. Three successfully drilled wells are expected to be put on line during the third quarter and the Company has two rigs running. 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. Bob Watson
Key quarterly results are summarized below:
Quarter Ended
June 30
(Amounts in thousands)
--------------------
2002 2001
---- ----
Revenues $14,235 $21,116
Operating Income (Loss) $(115,879) $9,062
Net Income (Loss) $(95,690) $(1,274)
Earnings (Loss) Per Share $(3.19) $(.05)
EBITDA $9,226 $14,463
Average Oil Price (after hedge) $23.48 $25.32
Average Gas Price (after hedge) $2.44 $3.41
Total Assets $188,497 $328,823
Abraxas invites your participation in a conference call on Wednesday Wednesday: see week. , August 14, at 1:30 p.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT to discuss the contents of this release and respond to questions. Please call 800/500-0177 between 1:20 and 1:30 p.m. CDT, passcode code 522392, if you would like to participate in the call. There will be a replay of the conference call available by calling 888/203-1112, passcode code 522392, beginning approximately 3:30 p.m. CDT Wednesday, August 14, through 5:00 p.m. CDT Wednesday, August 2l. 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 and our ability to sell certain assets in a timely manner to support liquidity needs. 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
QUARTER-END RESULTS
(UNAUDITED)
(In thousands except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
---- ---- ---- ----
Operations Data:
Revenues $ 14,235 $ 21,116 $ 26,042 $ 50,202
Cash Flow (Before Working
Capital Changes) 702 6,636 (1,598) 20,739
Net Income (Loss)(a) (95,690) (1,274) (104,389) (1,019)
Net Income (Loss)
Per Share(a) (3.19) (.05) (3.48) (.04)
Weighted Avg.
Shares Outstanding 30.0 23.6 30.0 23.1
Production:
Crude Oil (BPD) 826 1,347 825 1,408
NGL (BPD) 676 723 717 795
Natural Gas (MCFPD) 46,350 49,776 45,254 50,588
MMCFEPD 55.4 62.2 54.5 63.9
Prices
(net of hedge impact):
Crude Oil ($/BBL) $ 23.47 $ 25.32 $ 20.08 $ 26.31
NGL's ($/BBL) 17.73 24.10 15.11 26.46
Natural Gas ($/MCF) 2.44 3.41 2.33 4.14
Price per MCFE 2.61 3.56 2.44 4.18
Expenses:
Lease Operating ($/MCFE) $ .67 $ .77 $ .74 $ .80
General &
Administrative ($/MCFE) .29 .28 .32 .32
Interest ($/MCFE) 1.74 1.38 1.74 1.35
D/D/A ($/MCFE) 1.81 1.46 1.61 1.48
(a) Includes a $116 million proved property impairment due to lower
realized prices at period end
Balance Sheet Data (In $000s)
June 30, 2002 December 31, 2001
Cash(b) $ 16,732 $ 7,605
Working Capital (Deficit)(c) 5,197 (4,994)
Plant/Property/Equipment, Net 149,059 281,894
Total Assets 188,497 303,616
Long-Term Debt 227,297 285,184
Shareholders Equity (Deficit) (128,643) (28,585)
Common Shares Outstanding (Millions) 30.0 30.0
(b) 6/30/2002 includes restricted cash of $9.9 million
(c) 6/30/2002 working capital excludes current portion of long-term
debt of $63.5 million
Abraxas Petroleum Corporation and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
---- ---- ---- ----
(In thousands except per share data)
Revenue:
Oil and gas
production revenues $ 13,143 $ 20,127 $ 24,029 $ 48,376
Gas processing revenues 741 498 1,411 934
Rig revenues 193 225 344 408
Other 158 266 258 484
-------- -------- --------- --------
14,235 21,116 26,042 50,202
Operating costs and expenses:
Lease operating
and production taxes 3,353 4,332 7,262 9,191
Depreciation, depletion,
and amortization 9,110 8,288 15,924 17,129
Proved property impairment 115,995 -- 115,995 --
Rig operations 175 191 296 344
General and administrative 1,481 1,575 3,179 3,684
General and administrative
(Stock-based compensation) -- (2,332) -- (1,401)
-------- -------- --------- --------
130,114 12,054 142,656 28,947
-------- -------- --------- --------
Operating income (115,879) 9,062 (116,614) 21,255
Other (income) expense:
Interest income (8) (12) (41) (28)
Amortization of deferred
financing fee 431 455 858 910
Interest expense 8,761 7,829 17,174 15,610
Other expense -- -- -- 16
-------- -------- --------- --------
9,184 8,272 17,991 16,508
-------- -------- --------- --------
Net income (loss) from
operations before taxes (125,063) 790 (134,605) 4,747
Income tax expense (benefit) (29,373) 1,509 (30,216) 4,285
Minority interest in income
of consolidated foreign
subsidiary -- 555 -- 1,481
-------- -------- --------- --------
Net income (loss) $(95,690) $ (1,274) $(104,389) $ (1,019)
======== ======== ========= ========
Earnings (loss)
per common share:
Net income per
common share -- basic $ (3.19) $ (0.05) $ (3.48) $ (0.04)
======== ======== ========= ========
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