Abraxas Reports First Quarter 2005 Results.SAN ANTONIO San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. -- 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 ("Abraxas") (AMEX AMEX See: American Stock Exchange :ABP 1. (networking) ABP - Alternating bit protocol. 2. ABP - Microsoft Address Book Provider. ) today reported financial and operating results for the quarter ended March 31, 2005. As a result of the Grey Wolf Exploration Inc. ("Grey Wolf") initial public offering ("IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ") that closed on February February: see month. 28, 2005, the information herein represents financial and operating results from operations in the U.S. only as all of Grey Wolf's historical performance and results from the sale of Grey Wolf shares owned by Abraxas, are treated as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Production of 1.3 Bcfe for the quarter generated revenues of $7.8 million and a net loss of $1.5 million or $0.04 per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the . This compares to a net loss from continuing operations of $5.8 million or $0.16 per share for the same quarter of 2004. Net income of $9.2 million (including a discontinued operations impact of $10.7 million) for the first quarter of 2005 included a $19.6 million gain on the sale of the Grey Wolf shares in the IPO, a $6.1 million non-cash income tax expense related to the sale of the Grey Wolf shares that Abraxas owned which offset a similar tax benefit booked in the fourth quarter of 2004, and a $2.8 million loss from operations, predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. for debt retirement costs of loans that were repaid with the proceeds from the Grey Wolf IPO. As a result of the elimination of our capital expenditure limitations, the most significant item related to the first quarter of 2005 results included capital expenditures of $8.7 million compared to $2.2 million in the first quarter of 2004. "The 1st quarter of 2005 was a busy time at Abraxas -- we completed the Grey Wolf IPO thus, significantly reducing the leverage on our balance sheet and returning our focus to U.S. development as we kicked off our capital development program with 7 wells in South and West Texas. We are currently drilling 1 horizontal horizontal /hor·i·zon·tal/ (hor?i-zon´t'l) 1. parallel to the plane of the horizon. 2. occupying or confined to a single level in a hierarchy. horizontal parallel to the plane of the horizon. well in West Texas and completing and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. testing 1 vertical well in West Texas and 3 horizontal wells in South Texas. The horizontal wells have been encouraging as we look forward to definitive results upon completion and testing of the wells despite delays in contracting equipment," commented Bob Watson
Abraxas invites your participation in a conference call on Thursday Thursday: see week. , May 19th, at 10:00 a.m. CT to discuss the contents of this release and respond to questions. Please call 1-888-855-5428 between 9:50 a.m. and 10:00 a.m. CT, confirmation code 4635216, if you would like to participate in the call. There will be a replay of the conference call available by calling 1-888-203-1112, confirmation code 4635216, beginning approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1:00 p.m. CT, May 19th, through midnight CT, May 25th. 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 with operations in Texas and 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. . 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 statements 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 Abraxas' 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 Abraxas for crude oil and natural gas. In addition, Abraxas' future crude oil and natural gas production is highly dependent upon Abraxas' level of success in acquiring or finding additional reserves. Further, Abraxas operates in an industry sector where the value of securities is 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 Abraxas' 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 Abraxas' filing with the Securities and Exchange Commission during the past 12 months.
ABRAXAS PETROLEUM CORPORATION
QUARTER-END RESULTS
(UNAUDITED)
Three Months Ended
(In thousands except per share data) March 31,
--------------------
2005 2004
---------- ---------
Financial Results:
-------------------------------------------------
Revenues $7,822 $7,960
EBITDA (a) 4,380 4,478
Cash Flow (Before Working Capital Changes) (a) 1,257 1,658
Net Income (Loss) from continuing operations (1,514) (5,755)
Income (Loss) Per Share from continuing
operations - Basic (0.04) (0.16)
Weighted Average Shares Outstanding 36.6 36.0
Production Per Day:
-------------------------------------------------
Crude Oil (Bbl/d) 575 619
NGL (Bbl/d) - 25
Natural Gas (Mcf/d) 10,745 12,819
Mcfe/d 14,192 16,683
Realized Prices (net of hedge impact):
-------------------------------------------------
Crude Oil ($/Bbl) $47.13 $34.18
NGL ($/Bbl) - 23.55
Natural Gas ($/Mcf) (b) 5.26 4.98
Price per Mcfe 5.89 5.13
Expenses:
-------------------------------------------------
Lease Operating ($/Mcfe) $1.78 $1.51
General & Administrative ($/Mcfe) 0.74 0.69
Cash Interest ($/Mcfe) 2.44 1.22
Total Interest ($/Mcfe) 2.45 3.23
D/D/A ($/Mcfe) 1.33 1.21
----------------------------------------------------------------------
(a) See reconciliation of non-GAAP financial measures below
(b) Includes deductions of $0.53 per Mcf in 2005 and $0.10 per Mcf in
2004 related to non-cash hedge accounting impact
Note: The above quarterly results exclude impact from Grey Wolf
Exploration Inc.
BALANCE SHEET DATA
(In thousands) March 31, 2005 December 31, 2004
--------------- -----------------
Cash $- $1,284
Working Capital (Deficit) (c) (10,016) (3,857)
Plant/Property/Equipment, Net 85,031 78,077
Total Assets 99,172 152,685
Long-Term Debt 125,007 126,425
Shareholders Equity (Deficit) (43,389) (53,464)
Common Shares Outstanding (Millions) 37.8 36.5
(c) Continuing operations only
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data) Three Months Ended
March 31,
----------------------
2005 2004
----------- ----------
Revenues:
Oil and gas production revenues $7,525 $7,783
Rig revenues 296 175
Other 1 2
----------- ----------
7,822 7,960
Operating costs and expenses:
Lease operating and production taxes 2,278 2,288
Depreciation, depletion, and amortization 1,698 1,839
Rig operations 218 145
General and administrative 946 1,049
Stock-based compensation 603 2,063
----------- ----------
5,743 7,384
----------- ----------
Operating income 2,079 576
Other (income) expense:
Interest income (1) (4)
Interest expense 3,134 4,908
Amortization of deferred financing fees 451 445
Financing costs - 971
Other 9 11
----------- ----------
3,593 6,331
----------- ----------
Loss from continuing operations (1,514) (5,755)
Net income from discontinued operations 10,731 198
----------- ----------
Net income (loss) $9,217 $(5,557)
=========== ==========
Basic earnings (loss) per common share:
Net earnings (loss) from continuing
operations $(0.04) $(0.16)
Discontinued operations 0.29 0.01
----------- ----------
Net income (loss) per common share - basic $0.25 $(0.15)
=========== ==========
Diluted earnings (loss) per common share:
Net earnings (loss) from continuing
operations $(0.04) $(0.16)
Discontinued operations 0.29 0.01
----------- ----------
Net income (loss) per common share - diluted $0.25 $(0.15)
=========== ==========
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
To fully assess Abraxas' operating results, management believes that,
although not prescribed under generally accepted accounting principles
("GAAP"), discretionary cash flow and EBITDA are appropriate measures
of Abraxas' ability to satisfy capital expenditure obligations and
working capital requirements. Cash flow and EBITDA are non-GAAP
financial measures as defined under SEC rules. Abraxas' cash flow and
EBITDA should not be considered in isolation or as a substitute for
other financial measurements prepared in accordance with GAAP or as a
measure of the Company's profitability or liquidity. As cash flow and
EBITDA exclude some, but not all, items that affect net income and may
vary among companies, the cash flow and EBITDA presented below may not
be comparable to similarly titled measures of other companies.
Management believes that operating income (loss) calculated in
accordance with GAAP is the most directly comparable measure most
similar to cash flow and EBITDA.
Cash flow is defined as operating income (loss) plus depletion,
depreciation and amortization expenses, non-cash expenses, cash gains
(losses) on the settlement of non-hedge derivatives and cash portion
of other income (expense) and cash interest. The following table
provides a reconciliation of cash flow to operating income (loss) for
the periods presented.
Three Months Ended
(In thousands) March 31,
--------------------
2005 2004
---------- ---------
Operating income (loss) $2,079 $576
Depletion, depreciation and amortization 1,698 1,839
Non-cash stock based compensation expense 603 2,063
Financing costs - (971)
Cash portion of other expense (9) -
Cash interest (3,114) (1,849)
----------------------------------------------------------------------
Cash Flow $1,257 $1,658
----------------------------------------------------------------------
EBITDA is defined as net income (loss) plus interest expense,
depletion, depreciation and amortization expenses, deferred income
taxes and other non-cash items. The following table provides a
reconciliation of EBITDA to operating income (loss) for the periods
presented -- see consolidated statements of operations for a
reconciliation of net income (loss) to operating income (loss).
Three Months Ended
(In thousands) March 31,
--------------------
2005 2004
---------- ---------
Operating income (loss) $2,079 $576
Depletion, depreciation and amortization 1,698 1,839
Non-cash stock based compensation expense 603 2,063
----------------------------------------------------------------------
EBITDA $4,380 $4,478
----------------------------------------------------------------------
Note: The above cash flow and EBITDA reconciliations exclude impact
from Grey Wolf Exploration Inc.
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