Abraxas Reports Second Quarter 2005 Results with 23% Revenue and 9% Production Growth over First Quarter 2005.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 and six months ended June June: see month. 30, 2005. Production of 1.4 Bcfe for the quarter generated revenue of $9.6 million and net income of $305,000 or $0.01 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 $444,000 or $0.01 per share for the same quarter of 2004. Continuing operations represent financial and operating results from operations in the U.S. only as all of Grey Wolf Exploration Inc.'s ("Grey Wolf") historical performance and results from the sale of Grey Wolf shares owned by Abraxas in its initial public offering that closed on February February: see month. 28, 2005, 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. . As a result of the elimination of our capital expenditure limitations, a significant item related to the second quarter of 2005 results included capital expenditures of $8.8 million compared to $1.3 million in the second quarter of 2004. These capital expenditures enabled sequential One after the other in some consecutive order such as by name or number. quarterly production to increase 9% and contributed to a 23% increase in revenue from first quarter of 2005 and should further contribute to additional increases in production during the third quarter. "Increasing production through the quarter is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the two Edwards 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. wells that came on-line late in the quarter plus our continuing efforts to sustain and increase production on more mature fields through low-risk, low-cost re-completion programs. We expect production growth to continue through the 2nd half of 2005 as newly drilled or re-completed wells come on-line. Two wells are currently being completed in the Oates SW Field of West Texas, both of which have shown indications of commercial gas production during completion operations, and we expect to spud a well in 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. this week. Three significant events occurred subsequent to the end of the 2nd quarter that we expect to positively impact our results going forward -- the third Edwards horizontal well came on-line, our strategic acquisition in West Texas and the closing of our $12 million private placement of equity. Combined with rising production and strong commodity prices, these events should allow us to accelerate our capital development program for the remainder of 2005 and into 2006, provided we do not experience significant delays in procuring Procuring, in general, is the act of acquiring goods or services, usually by contract. It may refer to:
A general increase in field operating costs operating costs npl → gastos mpl operacionales experienced by the entire industry together with increased general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. ("G&A"), primarily associated with Sarbanes-Oxley related expenses, have impacted Abraxas' actual per unit costs. Based on these factors, our adjusted guidance for 2005 direct lifting costs and G&A is as follows (direct lifting costs do not include production taxes that are approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10% of revenue):
Direct Lifting Costs $1.10 per Mcfe
G&A $0.75 per Mcfe
As a result of the recent private placement of equity, Abraxas' capital expenditure budget for 2005 is under review and an expanded budget will be presented to the board of directors next month for approval. Abraxas invites your participation in a conference call on Thursday Thursday: see week. , August 11th, at 10:00 a.m. CT to discuss the contents of this release and respond to questions. Please call 1-800-946-0782 between 9:50 a.m. and 10:00 a.m. CT, confirmation code 7301461, 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 7301461, beginning approximately 1:00 p.m. CT, August 11th, through midnight CT, August 17th. 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. 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)
(In thousands except per share Three Months Ended Six Months Ended
data) June 30, June 30,
------------------ -----------------
2005 2004 2005 2004
--------- -------- -------- --------
Financial Results:
---------------------------------
Revenues $9,627 $8,504 $17,449 $16,464
EBITDA (a) 5,841 4,350 10,221 8,828
Cash Flow (Before Working Capital
Changes) (a) 2,460 2,593 3,717 4,251
Net Income (Loss) from continuing
operations 305 (444) (1,209) (6,199)
Income (Loss) Per Share from
continuing operations - Basic $0.01 $(0.01) $(0.03) $(0.17)
Weighted Average Shares
Outstanding 37.8 36.2 37.2 36.1
Production Per Day:
---------------------------------
Crude Oil (Bbl/d) 535 609 555 614
NGL (Bbl/d) - 25 - 25
Natural Gas (Mcf/d) 12,024 12,443 11,388 12,631
Mcfe/d 15,234 16,242 14,716 16,463
Realized Prices (net of hedge
impact):
---------------------------------
Crude Oil ($/Bbl) $49.43 $37.29 $48.25 $35.72
NGL ($/Bbl) - 23.19 - 23.37
Natural Gas ($/Mcf) (b) 6.33 5.52 5.83 5.25
Price per Mcfe 6.73 5.67 6.33 5.39
Expenses:
---------------------------------
Lease Operating ($/Mcfe) $1.82 $1.57 $1.80 $1.54
General & Administrative ($/Mcfe) 0.79 1.16 0.77 0.92
Cash Interest ($/Mcfe) 2.44 0.78 2.44 1.00
Total Interest ($/Mcfe) 2.44 2.83 2.44 3.02
D/D/A ($/Mcfe) 1.31 1.23 1.32 1.22
---------------------------------
(a) See reconciliation of non-GAAP financial measures below
(b) Includes deductions of $0.01 per Mcf in Q2 2005, $0.02 per Mcf in
Q2 2004, $0.25 per Mcf in 1st half 2005 and $0.06 per Mcf in 1st
half 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) June 30, 2005 December 31, 2004
--------------- ------------------
Cash $- $1,284
Working Capital (Deficit) (c) (5,137) (3,857)
Plant/Property/Equipment, Net 92,002 78,077
Total Assets 106,009 152,685
Long-Term Debt 136,277 126,425
Shareholders Equity (Deficit) (43,244) (53,464)
Common Shares Outstanding (Millions) 37.8 36.5
(c) Continuing operations only
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands except per share Three Months Ended Six Months Ended
data) June 30, June 30,
------------------ -----------------
2005 2004 2005 2004
--------- -------- -------- --------
Revenues:
Oil and gas production revenues $9,336 $8,373 $16,861 $16,156
Rig revenues 283 129 579 304
Other 8 2 9 4
--------- -------- -------- --------
9,627 8,504 17,449 16,464
Operating costs and expenses:
Lease operating and production
taxes 2,522 2,319 4,800 4,607
Depreciation, depletion, and
amortization 1,817 1,819 3,515 3,658
Rig operations 166 123 384 268
General and administrative 1,098 1,712 2,044 2,761
Stock-based compensation (326) (2,316) 277 (253)
--------- -------- -------- --------
5,277 3,657 11,020 11,041
--------- -------- -------- --------
Operating income 4,350 4,847 6,429 5,423
Other (income) expense:
Interest income - (1) (1) (5)
Interest expense 3,407 4,223 6,541 9,131
Amortization of deferred
financing fees 403 467 854 912
Financing costs - 602 - 1,573
Other 235 - 244 11
--------- -------- -------- --------
4,045 5,291 7,638 11,622
--------- -------- -------- --------
Earnings (loss) from continuing
operations 305 (444) (1,209) (6,199)
Net income from discontinued
operations (net of $6,060 income
tax expense in 2005) (27) 816 10,704 1,014
--------- -------- -------- --------
Net income (loss) $278 $372 $9,495 $(5,185)
========= ======== ======== ========
Basic earnings (loss) per common
share:
Net earnings (loss) from
continuing operations $0.01 $(0.01) $(0.03) $(0.17)
Discontinued operations - 0.02 0.29 0.03
--------- -------- -------- --------
Net income (loss) per common
share - basic $0.01 $0.01 $0.26 $(0.14)
========= ======== ======== ========
Diluted earnings (loss) per
common share:
Net earnings (loss) from
continuing operations $0.01 $(0.01) $(0.03) $(0.17)
Discontinued operations - 0.02 0.29 0.03
--------- -------- -------- --------
Net income (loss) per common
share - diluted $0.01 $0.01 $0.26 $(0.14)
========= ======== ======== ========
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 Six Months Ended
(In thousands) June 30, June 30,
------------------- -----------------
2005 2004 2005 2004
---------- -------- -------- --------
Operating income (loss) $4,350 $4,847 $6,429 $5,423
Depletion, depreciation and
amortization 1,817 1,819 3,515 3,658
Non-cash stock based compensation
expense (benefit) (326) (2,316) 277 (253)
Financing costs - (602) - (1,573)
Cash portion of other expense - - (9) -
Cash interest (3,381) (1,155) (6,495) (3,004)
----------------------------------------------------------------------
Cash Flow $2,460 $2,593 $3,717 $4,251
----------------------------------------------------------------------
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 Six Months Ended
(In thousands) June 30, June 30,
------------------- -----------------
2005 2004 2005 2004
---------- -------- -------- --------
Operating income (loss) $4,350 $4,847 $6,429 $5,423
Depletion, depreciation and
amortization 1,817 1,819 3,515 3,658
Non-cash stock based compensation
expense (benefit) (326) (2,316) 277 (253)
----------------------------------------------------------------------
EBITDA $5,841 $4,350 $10,221 $8,828
----------------------------------------------------------------------
Note: The above cash flow and EBITDA reconciliations exclude impact
from Grey Wolf Exploration Inc.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion