Energy & Mining

Abraxas Petroleum Corp. (NASDAQ:AXAS) Gets Some Relief from Sell-Off

Abraxas Petroleum Corp. (NASDAQ:AXAS)

Abraxas Petroleum Corp. (NASDAQ:AXAS)

Abraxas Petroleum Corp. (NASDAQ:AXAS) stock is up over 9% in early trading after shares fell yesterday following the company’s Q2 earnings announcement. On Tuesday, Abraxas reported revenues of $13.2 million – $3.5 million below expectations. Q2 net income was $7.2 million, a positive result after the company posted a Q2 loss in 2016. Abraxas, based in San Antonio, TX, said it had per share profit of $0.04 cents. Earnings, adjusted for non-recurring gains, came to $0.01 cent per share. The financial results failed to meet analyst expectations which had earnings coming in at $.02.

Abraxas stock chart:

Abraxas Petroleum Corp. (NASDAQ:AXAS)
One month Abraxas stock price chart

Despite the adoption by Abraxas Petroleum Corp. (NASDAQ:AXAS) of a controlled flowback protocol on the recent Caprito completions, current production is averaging over 9,000 Boepd. As these two wells ramp up to expected levels, Abraxas expects to meet or exceed the Company’s originally forecasted 2017 exit rate of 9,500 Boepd in the coming weeks. Abraxas is adjusting the Company’s target exit rate to approximately 10,750 Boepd. Abraxas is adjusting guidance for 2017 to account for the Company’s current planned completion schedule and well performance.

Bob Watson, President and CEO of Abraxas, commented, “As expected, second quarter 2017 volumes dipped due to well shut-ins in the Bakken from offsetting completions. Unfortunately, we were also plagued by gas curtailments in South Texas and in the Permian, which negatively impacted the quarter. With the past now behind us, we expect to approach our anticipated year-end exit rate in the next few weeks. This bodes for a much stronger than anticipated second half 2017 production outlook as evidenced by our increased anticipated exit rate to 10,750 Boepd.

At the end of 2016, Abraxas Petroleum Corp. (NASDAQ:AXAS) stock was trading near $3.00 but yesterday shares closed at $1.61. YTD, AXAS stock is down over 37% but up almost 43% for the year. Analysts have given AXAS stock a consensus price target of $2.68.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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