Abraxas Petroleum Corp. (NASDAQ:AXAS)

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

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.

Houston American Energy Corporation (NYSEMKT:HUSA)

Abraxas Petroleum Corp. (NASDAQ:AXAS) Announces $13.7 Million In Net Income In First Quarter 2017 Results

Abraxas Petroleum Corp. (NASDAQ:AXAS)

Abraxas Petroleum Corp. (NASDAQ:AXAS) has announced its financial results, and provided a business update, for the first quarter ended March 31, 2017.

During the period, the company reported $13.7 million or $0.09 per share in net income compared to (-$$40.9) million or (-$0.39) per share in net loss reported in the three months ended March 31, 2016. The company’s revenue during the period stood at $18.8 million.

In addition to the financial results, Abraxas Petroleum Corp. (NASDAQ:AXAS) announced completion of drilling of Caprito 98-301HRn and Caprito 98-201H in Texas. The company drilled the Caprito 98-301HR to target the Wolfcamp A2 zone while the Caprito 98-201H well was drilled to target the Wolfcamp A1 zone.  The company is optimistic that the well will be complete and operational in the shortest time possible.  Abraxas will have an 88% working stake in the wells.

Abraxas Petroleum Corp. (NASDAQ:AXAS) also started drilling works at the Caprito 83-404H and Caprito 83-304H wells. The company drilled Caprito 83-304H as a strategic target for Wolfcamp A2 zone and Caprito 83-404H as a strategic target for Wolfcamp B zone. The company will own 81% working stake in Caprito 83-404H and Caprito 83-304H.

In addition, Abraxas Petroleum Corp. (NASDAQ:AXAS) has drilled the Stenehjem 6H-9H well which is located in McKenzie County, North Dakota. The company owns 75% working stake in Stenehjem 6H-9H.

In a statement, Abraxas Petroleum Corp. (NASDAQ:AXAS) President and CEO, Bob Watson, said the company almost doubled its revenue compared to what it registered during the first quarter of the previous financial year.  He added that the company reported a 20% drop in costs per barrel. He expressed optimism that the company will maintain an upward trajectory.

Abraxas Petroleum Corp. (NASDAQ:AXAS) closed the quarter with debt of $18 million to finance its $115 million revolver. The company is currently engaging with the lender for a possible extension of the loan facility on similar terms. The company, he said, is counting on possible increases in liquidity to fund its additional drilling activities as well as remain in a better financial position to acquire more wells. The company is counting on its strong balance sheet to boost its position in the Delaware Basin where it is exploring for more wells. He added that the company is on schedule in regards to its operations lined up for the year.

Abraxas Petroleum Corp. (NASDAQ:AXAS) was up by 1.60% in Wednesday’s trading session, ending the day at $1.90 a share.

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.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.