Nevada
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0-16071
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74-2584033
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification Number)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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99.1
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News Release
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·
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Production of 1.4 MMBoe (3,762 Boepd), of which 45% was oil or natural gas liquids
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·
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Production of 1.3 MMBoe (3,484 Boepd), excluding Abraxas’ equity interest in Blue Eagle’s production
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·
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Revenue of $64.6 million
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·
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EBITDA(a) of $31.5 million
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·
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Discretionary cash flow(a) of $24.7 million
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·
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Net income of $13.7 million, or $0.15 per share
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·
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Adjusted net income(a) of $6.3 million, or $0.07 per share, excluding certain non-cash items
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(a)
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See reconciliation of non-GAAP financial measures below.
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·
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In the Bakken / Three Forks play in the Williston Basin, during the fourth quarter of 2011, 1 gross (<1% net) non-operated well came on-line and 2 gross (0.3 net) wells are currently drilling or awaiting completion. Additionally, we have recently elected to participate in 6 gross (0.6 net) wells that have yet to spud.
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·
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The refurbishment of the Company owned drilling rig has been completed and the rig is currently on its way to McKenzie County, North Dakota to begin drilling its first multi-well pad site.
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·
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In Campbell County, Wyoming, the Hedgehog State 16-2H, a horizontal well targeting the Turner formation, was recently completed with a 17-stage fracture stimulation. The well is currently flowing back with encouraging initial results. Abraxas owns a 100% working interest in this well.
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·
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At December 31, 2011, Abraxas owned a 34.7% equity interest in Blue Eagle, a joint venture between Abraxas and Rock Oil Company, LLC.
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·
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In McMullen County, Texas, the Cobra 1H, a horizontal well targeting the Eagle Ford Shale, was recently completed with a 15-stage fracture stimulation. The well is currently flowing back at very promising rates. Blue Eagle owns a 100% working interest in this well.
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·
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In Alberta, Canada, the pipeline hook-up for three wells is underway and should be completed within the next few weeks. Two wells continue to await stimulation; however, the completions have been delayed as the availability of acid for the stimulations is in short supply. Canadian Abraxas owns a 100% working interest in each of these wells which have targeted the Pekisko formation.
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Three Months Ended
December 31,
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Twelve Months Ended
December 31,
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|||||||||||||||
2011
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2010
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2011
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2010
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|||||||||||||
Financial Results (In thousands except per share data):
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||||||||||||||||
Revenues
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$ | 16,453 | $ | 13,834 | $ | 64,622 | $ | 58,060 | ||||||||
EBITDA(a)
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7,742 | 6,330 | 31,504 | 28,200 | ||||||||||||
Discretionary cash flow(a)
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6,298 | 3,615 | 24,714 | 17,310 | ||||||||||||
Net income (loss)
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(5,260 | ) | (13,861 | ) | 13,743 | 1,766 | ||||||||||
Net income (loss) per share – basic
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$ | (0.06 | ) | $ | (0.18 | ) | $ | 0.15 | $ | 0.02 | ||||||
Adjusted net income (loss), excluding certain non-cash items(a)
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(11,215 | ) | (1,391 | ) | 6,267 | (3,732 | ) | |||||||||
Adjusted net income (loss), excluding certain non-cash items(a), per share – basic
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$ | (0.12 | ) | $ | (0.02 | ) | $ | 0.07 | $ | (0.05 | ) | |||||
Weighted average shares outstanding – basic
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91,590 | 75,989 | 90,151 | 75,923 | ||||||||||||
Production:
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||||||||||||||||
Crude oil per day (Bopd)
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1,564 | 1,369 | 1,479 | 1,366 | ||||||||||||
Natural gas per day (Mcfpd)
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11,248 | 13,345 | 11,567 | 15,011 | ||||||||||||
Natural gas liquids (Bblpd)
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111 | 29 | 77 | 28 | ||||||||||||
Crude oil equivalent per day (Boepd)
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3,549 | 3,621 | 3,484 | 3,896 | ||||||||||||
Crude oil equivalent (MBoe)
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327 | 333 | 1,272 | 1,422 | ||||||||||||
Crude oil equivalent per day (Boepd) (b)
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3,749 | 3,621 | 3,762 | 3,896 | ||||||||||||
Crude oil equivalent (MBoe) (b)
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345 | 333 | 1,373 | 1,422 | ||||||||||||
Realized Prices, net of realized hedging activity:
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||||||||||||||||
Crude oil ($ per Bbl)
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$ | 77.23 | $ | 66.44 | $ | 76.11 | $ | 66.76 | ||||||||
Natural gas ($ per Mcf)
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5.58 | 4.96 | 5.64 | 4.97 | ||||||||||||
Natural gas liquids ($ per Bbl)
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49.77 | 38.54 | 50.07 | 37.81 | ||||||||||||
Crude oil equivalent ($ per Boe)
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53.28 | 43.68 | 52.13 | 42.81 | ||||||||||||
Expenses:
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||||||||||||||||
Lease operating ($ per Boe)
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$ | 19.38 | $ | 14.25 | $ | 16.97 | $ | 13.69 | ||||||||
Production taxes (% of oil and gas revenue)
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9.3 | % | 10.1 | % | 8.9 | % | 10.2 | % | ||||||||
General and administrative, excluding stock-based compensation ($ per Boe)
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5.49 | 6.27 | 5.85 | 5.14 | ||||||||||||
Cash interest ($ per Boe)
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2.62 | 6.39 | 3.49 | 6.03 | ||||||||||||
Depreciation, depletion and amortization
($ per Boe)
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14.77 | 11.15 | 12.73 | 11.40 |
(a)
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See reconciliation of non-GAAP financial measures below.
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(b)
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Includes Abraxas’ equity interest in Blue Eagle’s production.
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(In thousands)
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December 31, 2011
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December 31, 2010
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||||||
Cash
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$ | — | $ | 99 | ||||
Working capital (a)
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(14,404 | ) | (5,948 | ) | ||||
Property and equipment – net
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179,552 | 117,248 | ||||||
Total assets
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241,150 | 182,909 | ||||||
Long-term debt
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126,258 | 140,940 | ||||||
Stockholders’ equity (deficit)
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62,651 | (14,976 | ) | |||||
Common shares outstanding
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92,261 | 76,428 |
(a)
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Excludes current maturities of long-term debt and current derivative assets and liabilities.
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(In thousands except per share data)
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Year Ended December 31,
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|||||||||
2011
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2010
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2009
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||||||||
Revenues:
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||||||||||
Oil and gas production
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$
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64,615
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$
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58,050
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$
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51,829
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||||
Other
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7
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10
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7
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|||||||
64,622
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58,060
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51,836
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||||||||
Operating costs and expenses:
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||||||||||
Lease operating
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21,581
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19,475
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20,265
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|||||||
Production and ad valorem taxes
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5,766
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5,910
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5,803
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|||||||
Depreciation, depletion, and amortization
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16,194
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16,212
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17,886
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|||||||
Ceiling test impairment
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—
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4,787
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—
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|||||||
General and administrative (including stock-based compensation of $1,987, $1,560 and $1,239)
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9,433
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8,869
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7,705
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|||||||
52,974
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55,253
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51,659
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||||||||
Operating income
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11,648
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2,807
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177
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|||||||
Other (income) expense:
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Interest income
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(7)
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(8)
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(15)
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|||||||
Interest expense
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4,898
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9,106
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11,346
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Amortization of deferred financing fees
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1,762
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2,479
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1,326
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Loss (gain) on derivative contracts - realized
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676
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(526)
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(15,328)
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(Gain) loss on derivative contracts - unrealized
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(7,476)
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(10,285)
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27,650
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|||||||
Financing fees
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—
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—
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362
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|||||||
Equity in (income) loss of joint venture
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(2,187)
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473
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—
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|||||||
Other
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316
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(119)
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2,071
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|||||||
(2,018)
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1,120
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27,412
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||||||||
Income (loss) before income tax and non-controlling interest
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13,666
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1,687
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(27,235)
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|||||||
Income tax benefit (expense)
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77
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79
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(1,290)
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|||||||
Income (loss) before non-controlling interest
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13,743
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1,766
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(28,525)
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|||||||
Non-controlling interest
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—
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—
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9,745
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|||||||
Net income (loss)
|
$
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13,743
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$
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1,766
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$
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(18,780)
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||||
Net income (loss) per common share - basic
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$
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0.15
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$
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0.02
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$
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(0.34)
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||||
Net income (loss) per common share - diluted
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$
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0.15
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$
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0.02
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$
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(0.34)
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||||
Weighted average shares outstanding:
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||||||||||
Basic
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90,151
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75,923
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55,499
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|||||||
Diluted
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92,244
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77,224
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55,499
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(In thousands)
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Three Months Ended
December 31,
|
Twelve Months Ended
December 31,
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||||||||||||||
2011
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2010
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2011
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2010
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|||||||||||||
Operating income (loss)
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$ | 1,482 | $ | (3,251 | ) | $ | 11,648 | $ | 2,807 | |||||||
Depreciation, depletion and amortization
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4,823 | 3,717 | 16,194 | 16,212 | ||||||||||||
Ceiling test impairment
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— | 4,787 | — | 4,787 | ||||||||||||
Stock-based compensation
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488 | 355 | 1,987 | 1,560 | ||||||||||||
Realized gain (loss) on derivative contracts
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361 | 136 | (676 | ) | 526 | |||||||||||
Cash interest
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(856 | ) | (2,129 | ) | (4,439 | ) | (8,582 | ) | ||||||||
Discretionary cash flow
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$ | 6,298 | $ | 3,615 | $ | 24,714 | $ | 17,310 |
(In thousands)
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Three Months Ended
December 31,
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Twelve Months Ended
December 31,
|
||||||||||||||
2011
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2010
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2011
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2010
|
|||||||||||||
Operating income (loss)
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$ | 1,482 | $ | (3,251 | ) | $ | 11,648 | $ | 2,807 | |||||||
Depreciation, depletion and amortization
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4,823 | 3,717 | 16,194 | 16,212 | ||||||||||||
Ceiling-test impairment
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— | 4,787 | — | 4,787 | ||||||||||||
Stock-based compensation
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488 | 355 | 1,987 | 1,560 | ||||||||||||
Realized gain (loss) on derivative contracts(a)
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949 | 722 | 1,675 | 2,834 | ||||||||||||
EBITDA
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$ | 7,742 | $ | 6,330 | $ | 31,504 | $ | 28,200 |
(a)
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Excludes realized gain (loss) associated with interest rate derivative contract.
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(In thousands)
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Three Months Ended
December 31,
|
Twelve Months Ended
December 31,
|
||||||||||||||
2011
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2010
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2011
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2010
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|||||||||||||
Net income (loss)
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$ | (5,260 | ) | $ | (13,861 | ) | $ | 13,743 | $ | 1,766 | ||||||
Ceiling test impairment
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— | 4,787 | — | 4,787 | ||||||||||||
Loss (gain) on unrealized derivative
contracts
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(5,955 | ) | 7,683 | (7,476 | ) | (10,285 | ) | |||||||||
Adjusted net income (loss), excluding certain non-cash items
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$ | (11,215 | ) | $ | (1,391 | ) | $ | 6,267 | $ | (3,732 | ) | |||||
Net income (loss) per share – basic
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(0.06 | ) | (0.18 | ) | 0.15 | 0.02 | ||||||||||
Adjusted net income (loss), excluding certain non-cash items, per share – basic
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$ | (0.12 | ) | $ | (0.02 | ) | $ | 0.07 | $ | (0.05 | ) |
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