-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, J4GdMgZNg2cG+UDd3gN0uEXSyKHxtW0ytqNXjOXCtMVDvs0ozl84Ax8zKAsWae0t iG3l8E46GAd2ZBVUXziE0w== 0000867665-99-000006.txt : 19990301 0000867665-99-000006.hdr.sgml : 19990301 ACCESSION NUMBER: 0000867665-99-000006 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990226 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ABRAXAS PETROLEUM CORP CENTRAL INDEX KEY: 0000867665 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 742584033 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 000-19118 FILM NUMBER: 99551344 BUSINESS ADDRESS: STREET 1: 500 N LOOP 1604 EAST STE 100 CITY: SAN ANTONIO STATE: TX ZIP: 78209 BUSINESS PHONE: 2104904788 MAIL ADDRESS: STREET 1: 500 N LOOP 1604 EAST STE 100 CITY: SAN ANTONIO STATE: TX ZIP: 78232 8-K/A 1 8-K/A 2/26/99 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 8 - K/A Number 1 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report February 26, 1999 Abraxas Petroleum Corporation (Exact name of registrant as specified in its charter) Nevada (State of other jurisdiction of incorporation) 0-19118 74-2584033 (Commission File Number) (I.R.S. Employer Identification Number) 500 N. Loop 1604 East, Suite 100 San Antonio, Texas 78232 (Address of principal executive offices) Registrant's telephone number, including area code: 210-490-4788 The undersigned registrant hereby amends the following items, financial statements and exhibits of its Current Report on Form 8-K dated January 28, 1999, as set forth in the pages attached hereto. Item 7. FINANCIAL STATEMENTS AND EXHIBITS (B)Unaudited Pro Forma Financial Statements (1) Pro Forma Condensed Balance Sheet as of September 30, 1998. (2) Pro Forma Statement of Operations for the year ended December 31, 1997 and for the nine months ended September 30, 1998. ITEM 7 - FINANCIAL STATEMENTS AND EXHIBITS (b) Pro Forma Financial Information UNAUDITED PRO FORMA FINANCIAL INFORMATION The following unaudited pro forma financial statements are derived from the historical financial statements of Abraxas Petroleum Corporation (Company) and are adjusted to reflect the divestiture of the Company's Wyoming properties, previously reported on Form 8-K and Form 8-K/A Number 1 filed on November 30, 1998 and January 27, 1999 respectively. The unaudited pro forma statements also reflect the acquisition of New Cache Petroleums Ltd (New Cache) described in the Form 8-K filed on January 28, 1999. The unaudited pro forma condensed balance sheet of the Company as of September 30, 1998 has been prepared assuming that the divestiture of the Wyoming properties and the acquisition of New Cache occurred on September 30, 1998. The historical balance sheet of New Cache is as of August 31, 1998 as their fiscal year ended on November 30. The unaudited pro forma consolidated statements of operations are presented as if the divestiture of the Wyoming properties and the acquisition of New Cache occurred at the beginning of the period presented. The historical financial statements of New Cache included in the pro forma statements are for the nine months ended August 31, 1998 and November 30, 1997 respectively. The unaudited pro forma information is presented for illustrative purposes only and may not be indicative of the results that would have been obtained had the divestiture and acquisition actually occurred on the dates assumed, nor is it necessarily indicative of the future consolidated results of operations. While the Company believes that cost savings in general and administrative expense for the combined entities will be achieved, these potential cost savings have not been included in the pro forma statements of operations.
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET September 30, 1998 ------------------------------------------------------------------------------- Abraxas Divestiture New Cache Abraxas/ Petroleum of Wyoming Ltd. Pro Forma New Cache Historical Properties Sub-total Historical Adjustments Pro Forma ----------- -------------- ---------- ------------ ------------- ----------- (In Thousands) ASSETS: Current Assets Cash ...................... $ 11,268 $ -- $ 11,268 $ -- $ (3,064)(2) $ 8,204 Accounts receivable, less allowance for doubtful accounts .................. 8,952 -- 8,952 5,391 -- 14,343 Property held for sale .... 60,250 (60,250)(2) -- -- -- -- Equipment inventory ....... 493 -- 493 -- -- 493 Other current assets ...... 185 -- 185 -- -- 185 --------- --------- --------- --------- --------- --------- Total current assets .... 81,148 (60,250) 20,898 5,391 (3,064) 23,225 Property and equipment, based on the full cost method of accounting - net ........... 259,964 1,650 (2) 261,614 107,950 (1,141)(3) 368,423 Deferred financing fees, net of accumulated amortization 8,656 -- 8,656 -- -- 8,656 Restricted cash ............ 40 -- 40 -- -- 40 Other assets ................ 1,222 602 (3) 1,824 -- -- 1,824 --------- --------- --------- --------- --------- --------- Total assets ............... $ 351,030 $ (57,998) $ 293,032 $ 113,341 $ (4,205) $ 402,168 ========= ========= ========= ========= ========= =========
See adjustments to unaudited pro forma financial statements.
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET September 30, 1998 ------------------------------------------------------------------------------- Abraxas Divestiture New Cache Abraxas/ Petroleum of Wyoming Ltd. Pro Forma New Cache Historical Properties Sub-total Historical Adjustments Pro Forma ----------- -------------- ---------- ------------ ------------- ----------- (In Thousands) LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable ........ $ 9,450 $ -- $ 9,450 $ 6,122 $ -- $ 15,572 Oil and gas production payable ................ 3,285 -- 3,285 -- -- 3,285 Accrued interest ........ 13,253 -- 13,253 -- -- 13,253 Income taxes payable .... 162 -- 162 -- -- 162 Other accrued expenses .. 1,109 -- 1,109 -- -- 1,109 --------- --------- --------- --------- --------- --------- Total current liabilities 27,259 -- 27,259 6,122 -- 33,381 Long-term debt: Senior notes .............. 275,000 (57,998)(1) 217,002 -- 57,998 (1) 275,000 Credit facility ........... 100 -- 100 24,426 2,269 (2) 26,795 Other ..................... 7,076 -- 7,076 -- -- 7,076 --------- --------- --------- --------- --------- --------- 282,176 (57,998) 224,178 24,426 60,267 308,871 Premium on senior notes ... 3,471 -- 3,471 -- -- 3,471 Deferred income taxes ..... 21,976 -- 21,976 17,857 -- 39,833 Minority interest in foreign subsidiary ............... 9,392 -- 9,392 -- -- 9,392 Future site restoration ... 3,279 -- 3,279 464 -- 3,743 Stockholders' equity ...... 3,477 -- 3,477 64,472 (64,472) 3,477 --------- --------- --------- --------- ---------- --------- Total liabilities and stockholders' equity ... $ 351,030 $ (57,998) $ 293,032 $ 113,341 $ (4,205) $ 402,168 ========= ========= ========= ========= ========== =========
See adjustments to unaudited pro forma financial statements.
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS Nine months ended September 30, 1998 ------------------------------------------------------------------------------- Abraxas Divestiture New Cache Abraxas/ Petroleum of Wyoming Ltd. Pro Forma New Cache Historical Properties Sub-total Historical Adjustments Pro Forma ----------- -------------- ---------- ------------ ------------- ---------- (In Thousands) Revenue: Oil and gas production revenues ............ $ 41,406 $(10,189)(1) $ 31,217 $ 12,409 $ -- $ 43,626 Gas processing revenues .................... 2,369 -- 2,369 -- -- 2,369 Rig revenues ............................... 350 -- 350 -- -- 350 Other ...................................... 1,884 84 (3) 1,968 661 -- 2,629 -------- --------- --------- --------- --------- ---------- 46,009 (10,105) 35,904 13,070 -- 48,974 Operating costs and expenses: Lease operating and production taxes ....... 12,530 (1,775)(1) 10,755 4,838 -- 15,593 Gas processing costs ....................... 857 -- 857 -- -- 857 Depreciation, depletion, and amortization .. 26,049 (3,415)(1) 22,634 8,184 -- 30,818 Rig operations ............................. 381 -- 381 -- -- 381 General and administrative ................. 3,957 -- 3,957 1,367 -- 5,324 -------- --------- --------- --------- --------- ---------- 43,774 (5,190) 38,584 14,392 -- 52,976 -------- --------- --------- --------- --------- ---------- Operating income .............................. 2,235 (4,915) (2,680) (1,322) -- (4,002) Other (income) expense: Interest income ............................ (418) -- (418) -- -- (418) Amortization of deferred financing fee ..... 913 -- 913 -- -- 913 Interest expense ........................... 22,795 (7,230)(2) 15,565 769 7,230 (1) 23,564 -------- --------- --------- --------- ------- ----------- 23,290 (7,230) 16,060 769 7,230 24,059 -------- --------- --------- --------- ------- ----------- Income (loss) before taxes .................... (21,055) 2,315 (18,740) (2,091) (7,230) (28,061) Income tax expense (benefit): Current .................................... 208 -- 208 146 -- 354 Deferred ................................... (4,741) -- (4,741) (479) -- (5,220) Minority interest in income of consolidated foreign subsidiary ............ (50) -- (50) -- -- (50) -------- --------- --------- --------- -------- ----------- Income (loss) ................................. $ (16,472) $ 2,315 $(14,157) $ (1,758) $(7,230) $ (23,145) ========== ========= ========= ========= ======== =========== Net income (loss) per common share ......... $ (2.60) $ .36 $ (2.24) $ (3.66) ========== ========= ========= =========== Net income (loss) per common share - assuming dilution: ................................. $ (2.60) $ .36 $ (2.24) $ (3.66) ========== ========= ========= ===========
See adjustments to unaudited pro forma financial statements.
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS Year ended December 31, 1997 ------------------------------------------------------------------------------- Abraxas Divestiture New Cache Abraxas/ Petroleum of Wyoming Ltd. Pro Forma New Cache Historical Properties Sub-total Historical Adjustments Pro Forma ----------- -------------- ---------- ------------ ------------- ----------- (In Thousands) Revenue: Oil and gas production revenues ............ $ 65,826 $(13,773)(1) $ 52,053 $ 12,884 $ -- $ 64,937 Gas processing revenues .................... 3,568 -- 3,568 -- -- 3,568 Rig revenues ............................... 334 -- 334 -- -- 334 Other ..................................... 1,203 114 (3) 1,317 812 -- 2,129 -------- --------- --------- --------- --------- ---------- 46,009 (13,659) 57,272 13,696 -- 70,968 Operating costs and expenses: Lease operating and production taxes ....... 14,881 (1,386)(1) 12,495 4,040 -- 16,535 Gas processing costs ....................... 1,252 -- 1,252 -- -- 1,252 Depreciation, depletion, and amortization... 30,581 (7,485)(1) 23,096 5,941 -- 29,037 Proved property impairment.................. 4,600 -- 4,600 -- -- 4,600 Rig operations ............................. 296 -- 296 -- -- 296 General and administrative ................. 4,171 -- 4,171 1,542 -- 5,713 -------- --------- --------- --------- --------- --------- 55,781 (9,874) 45,910 11,523 -- 57,433 -------- --------- --------- --------- --------- --------- Operating income............................... 15,150 (3,788) 11,362 2,173 -- 13,535 Other (income) expense: Interest income ............................ (320) -- (320) (110) -- (430) Amortization of deferred financing fee...... 1,260 -- 1,260 -- -- 1,260 Interest expense ........................... 24,620 (3,635)(2) 20,985 715 3,635 (1) 25,335 Other....................................... (369) -- (369) -- -- (369) -------- --------- --------- --------- --------- --------- 25,191 (3,635) 21,556) 605 3,635 25,796 -------- --------- --------- --------- --------- --------- Income (loss) before taxes .................... (10,041) (153) (10,194) 1,568 (3,635) (12,261) Income tax expense (benefit): Current .................................... 244 -- 244 175 -- 419 Deferred ................................... (4,135) -- (4,135) 854 -- (3,281) Minority interest in income of consolidated foreign subsidiary ............ 335 -- 335 -- -- 335 -------- --------- --------- --------- --------- --------- Income (loss) ................................. (6,485) (153) (6,638) 539 (3,635) (9,734) Less dividend requirement on cumulative preferred stock.............................. (183) -- (183) -- -- (183) -------- --------- --------- --------- --------- --------- Net income (loss) applicable to common stock... $ (6,668) $ (153) $ (6,821) $ 539 $ (3,635) $ (9,917) ======== ========= ========= ========= ========= ========= Net income (loss) per common share........... $ (1.11) $ (.02) $ (1.13) $ (1.65) ======== ========= ========= ========= Net income (loss) per common share - assuming dilution:.................................. $ (1.11) $ (.02) $ (1.13) $ (1.65) ======== ========= ========= =========
See adjustments to unaudited pro forma financial statements. ADJUSTMENTS TO UNAUDITED PRO FORMA FINANCIAL STATEMENTS WYOMING DIVESTITURE Adjustments to the Unaudited Pro Forma Condensed Consolidated Balance Sheet: The Unaudited Pro Forma Condensed Consolidated Balance Sheet is presented as it the transaction had occurred as of September 30, 1998. (1) To record net cash proceeds of the transaction as a reduction of long-term debt. (2) To adjust property held for sale and property and equipment to reflect actual sales proceeds. (3) To record the Company's investment in the Partnership. Adjustments to the Unaudited Pro Forma Statement of Operations: The Unaudited Pro Forma Statements of Operations are presented as if the transaction had been occurred as of the beginning of the periods presented. (1) To adjust oil and gas production revenues, lease operating and production taxes and depreciation, depletion and amortization as if this transaction had been completed as of the beginning of the period. (2) To adjust interest expense, giving effect to paydown of the Company's long term debt, at the Company's assumed average interest rates. (3) To recognize Company's one percent (1%) management fee from the Partnership for the period. NEW CACHE ACQUISITION The Unaudited Pro Forma Condensed Consolidated Balance Sheet is presented as it the transaction had occurred as of September 30, 1998. Adjustments to the Unaudited Pro Forma Condensed Consolidated Balance Sheet: (1) Record long-term debt associated with the New Cache acquisition, reduction in long-term debt was recognized as the result of the Wyoming divestiture proceeds. Debt is being reinstated as the Wyoming divestiture proceeds were reinvested in the New Cache acquisition. (2) Record additional long-term debt associated with the New Cache acquisition, and additional cash invested. (3) Record increase in basis of oil and gas properties for acquisition cost in excess of historical basis. Adjustments to the Unaudited Pro Forma Statement of Operations: The Unaudited Pro Forma Statements of Operations are presented as if the transaction had been occurred as of the beginning of the periods presented. (1) Reinstate interest expense that was previously reduced as a result of the Wyoming divestiture. The proceeds from the Wyoming divestiture were reinvested in the New Cache acquisition, a opposed to reduction of long-term debt as previously reflected. SIGNATURES Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ABRAXAS PETROLEUM CORPORATION By: ___________________________________ Chris Williford Executive Vice President, Chief Financial Officer and Treasurer Dated: February 26, 1999 -----END PRIVACY-ENHANCED MESSAGE-----