8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

June 4, 2018

Date of Report (Date of earliest event reported)

ABRAXAS PETROLEUM CORPORATION

(Exact name of registrant as specified in its charter)

Nevada	1-16071	74-2584033
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

18803 Meisner Drive

San Antonio, Texas 78258

(210) 490-4788

(Address of principal executive offices and Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c))

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(b) On June 4, 2018, Geoffrey R. King tendered his resignation as Vice President and Chief Financial Officer of the Company. Mr. King’s resignation is effective June 26, 2018. There was no disagreement or dispute between Mr. King and the Company which led to his resignation. A news release relating to Mr. King's resignation is attached as Exhibit 99.1.

Item 7.01 Regulation FD Disclosure

Geoffrey R. King, our current Vice President and Chief Financial Officer whose resignation is effective June 26, 2018, will be presenting and speaking with investors at the Stifel Cross Sector Insight Conference in Boston on June 11, 2018.   The presentation Mr. King will be using is attached as Exhibit 99.2.

The information in this Report (including Exhibit 99.2) is furnished pursuant to Item 7.01 and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of the Section. The information in this Report will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits.

99.1 News Release

99.2 Presentation

2

Pursuant to the requirements 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: /s/ G. William Krog, Jr.        

G. William Krog, Jr.

Vice President, Chief Accounting Officer

Dated: June 7, 2018

3

EX-99.1

ABRAXAS PETROLEUM CORPORATION

www.abraxaspetroleum.com

Abraxas Announces Resignation of Chief Financial Officer

San Antonio(June 7, 2018) — Abraxas Petroleum Corporation (“Abraxas” or the “Company”) (NASDAQ: AXAS) today announced Geoffrey R. King, Vice President and Chief Financial Officer of Abraxas, submitted his resignation on June 4, 2018 to pursue another opportunity in the financial sector.

Mr. King’s resignation is not the result of any dispute or disagreement with the Company, or any matter relating to the Company’s accounting practices or financial statements. Mr. King will continue in his role as Abraxas’ Chief Financial Officer until June 26, 2018 to ensure an orderly transition of his responsibilities. Abraxas intends to immediately initiate a search for Mr. King’s permanent successor. Bill Krog , the current Chief Accounting Officer, will serve as the Company’s principal financial and accounting officer for the interim period.

Bob Watson, President and CEO of Abraxas commented, “We would like to thank Geoff for his contributions to Abraxas over the last five years and wish him success in his new endeavor.”

Mr. King said, “I am extremely proud of our achievements at Abraxas over the last five years. Despite a substantial industry downturn, we streamlined the Company’s asset base, significantly delevered the balance sheet, reduced operating expenses by approximately 70% and more than doubled our production base. With the Company now boasting years of highly economic drilling inventory in the Delaware Basin, I am confident this highly economic growth will continue to the benefit of shareholders. Importantly, I believe now is the proper time for me to pursue another opportunity given Abraxas’ currently pristine financial condition.”

Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, Permian Basin and South Texas regions of the United States.

Safe Harbor for forward-looking statements: 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 and may be influenced by economic and other factors beyond Abraxas’ control. In the context of forward-looking information provided for in this release, reference is made to the discussion of risk factors detailed in Abraxas’ filings with the Securities and Exchange Commission during the past 12 months.

FOR MORE INFORMATION CONTACT:

Geoffrey King/Vice President – Chief Financial Officer

Telephone 210.490.4788

18803 Meisner Drive

San Antonio, Texas 78258

Phone: 210.490.4788 Fax: 210.918.6675

EX-99.2

Exhibit 99.2 Abraxas Petroleum Corporate Update June 2018 Raven Rig #1; McKenzie County, ND

Forward-Looking Statements The information presented herein may contain predictions, estimates and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, availability of capital, the need to develop and replace reserves, environmental risks, competition, government regulation and the ability of the Company to meet its stated business goals. Oil and Gas Reserves. The SEC permits oil and natural gas companies, in their SEC filings, to disclose only reserves anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. We use certain terms in this presentation, such as total potential, de-risked, and EUR (expected ultimate recovery), that the SEC’s guidelines strictly prohibit us from using in our SEC filings. These terms represent our internal estimates of volumes of oil and natural gas that are not proved reserves but are potentially recoverable through exploratory drilling or additional drilling or recovery techniques and are not intended to correspond to probable or possible reserves as defined by SEC regulations. By their nature these estimates are more speculative than proved, probable or possible reserves and subject to greater risk they will not be realized. Non-GAAP Measures. Included in this presentation are certain non-GAAP financial measures as defined under SEC Regulation G. Investors are urged to consider closely the disclosure in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and its subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and the reconciliation to GAAP measures provided in this presentation. Initial production, or IP, rates, for both our wells and for those wells that are located near our properties, are limited data points in each well’s productive history. These rates are sometimes actual rates and sometimes extrapolated or normalized rates. As such, the rates for a particular well may change as additional data becomes available. Peak production rates are not necessarily indicative or predictive of future production rates, expected ultimate recovery, or EUR, or economic rates of return from such wells and should not be relied upon for such purpose. Equally, the way we calculate and report peak IP rates and the methodologies employed by others may not be consistent, and thus the values reported may not be directly and meaningfully comparable. Lateral lengths described are indicative only. Actual completed lateral lengths depend on various considerations such as lease- line offsets. Standard length laterals, sometimes referred to as 5,000 foot laterals, are laterals with completed length generally between 4,000 feet and 5,500 feet. Mid-length laterals, sometimes referred to as 7,500 foot laterals, are laterals with completed length generally between 6,500 feet and 8,000 feet. Long laterals, sometimes referred to as 10,000 foot laterals, are laterals with completed length generally longer than 8,000 feet. 2

Corporate Profile NASDAQ: AXAS Headquarters.......................... San Antonio EV/BOE(1,3)…..………………………. $8.00 Shares outstanding(1)……......... 165.9 mm Proved Reserves(4)……………….. 65.4 mmboe Market cap(1) …………………….... $411.4 mm NBV Non-Oil & Gas Assets(5)… $20.8 mm Net debt(2)……………………………. $102.1 mm Production(6).……………………….. 10,485 boepd 2018E CAPEX……………………….. $140 mm PV-10(7)…………………………………. $427.4 (1) Shares outstanding as of March 31, 2018. Market cap using share price as of June 6, 2018. (2) Total net debt including RBL facility and building mortgage less estimated cash as of March 31, 2018. (3) Enterprise value includes working capital deficit (excluding current hedging assets and liabilities) as of March 31, 2018, but does not include building mortgage. Includes RBL facility and building mortgage less cash as of March 31, 2018. (4) Proved reserves as of December 31, 2017. See appendix for reconciliation of PV-10 to standardized measure. (5) Net book value of other assets as of March 31, 2018. (6) Average production for the quarter ended March 31, 2018. (7) PV-10 calculated using SEC pricing of $51.34/bbl of oil and $2.99/mcf of natural gas. Please see appendix for reconciliation to standardized measure. 3

Key Investment Highlights ▪ 9,681 net HBP acres prospective for the Wolfcamp A, B & Bone Spring intervals ▪ Multi-zone development across acreage position Delaware Basin Exposure ▪ Continue to actively lease and pursue acquisitions – recent acquisitions of ~4,500 net acres ▪ Allocated 2018 capital budget of $71 million (51% of total allocation) ▪ 12 gross (9 net) operated Wolfcamp/Bone Spring wells planned for 2018 ▪ 10 gross (4.7 net) operated Bakken/Three Forks wells planned for 2018 Visible Production Growth and ▪ (1) Fully Funded Capex Program Total drilling and completion CAPEX of $105 million funded out of cash flow provides 44% YoY production growth using the midpoint of 2018 guidance ▪ ~60+% of current and anticipated 2018 oil production from the Bakken or Eagle Ford ▪ Production growth not the objective but the outcome of making sound financial decisions ▪ G&A and interest expenses at low end of the peer group minimizes excess earnings/returns leakage ROCE Focused ▪ Divestiture of ~$190 million of marginal, high LOE assets last 5+ years further reduced the cost structure ▪ High ROR return drilling program + maintaining low cost structure = high ROCE ▪ Total net bank debt of ~$98.5 million (2) represents the only meaningful leverage (2, 3) of the Company Balance Sheet Strength with ▪ Liquidity of ~$76.5 million (2) positions the Company to remain acquisitive Solid Liquidity & Financial ▪ Flexibility Management continues to pursue and execute on non-core asset sales ▪ 2018 drilling and completion CAPEX forecasted to remain within cash flow (1) (1) Based on guidance provided on slide 5. Assumes strip pricing as of February 28, 2018. Includes only drilling and completion CAPEX and does not account for acquisitions. (2) As of March 31, 2018. Total bank debt of $104 million less estimated cash of $5.5 million. (3) Company also has $3.6 million of debt associated with a building mortgage. 4

2018 Operating and Financial Guidance 2018 Capex Budget Allocation 2018 Operating Guidance Capital % of Gross Net Low High Area Operating Costs ($MM) Total Wells Wells Case Case Permian - Delaware $71.2 50.9% 12.0 9.0 LOE ($/BOE) $4.00 $6.00 Bakken/Three Forks 33.8 24.1% 10.0 4.7 Production Tax (% Rev) 8.0% 9.0% Acquisitions/Facilities/Other 35.0 25.0% 0.0 0.0 Cash G&A ($mm) $8.5 $12.5 Total $140.0 100% 22.0 13.7 Production (boepd) 10,000 12,000 Daily Production vs Yearly CAPEX (1) 2018 Expected Production Mix 12,000 $250,000 12% 10,000 $200,000 8,000 $150,000 6,000 22% $100,000 4,000 $50,000 2,000 66% 0 $0 2014A 2015A 2016A 2017A 2013A Oil Gas NGL 2018E (2) 2018E (1) Yearly CAPEX for each year ending December 31, 2013, 2014, 2015, 2016 and 2017. 2018 based on midpoint of management guidance. (2) Average estimated production for 2018 based on the midpoint of management guidance. 5

Abraxas D&C CAPEX & Production Outlook(1) 2017-2019 in Boepd Assumes one rig in the Bakken/Three Forks and one rig in the Delaware 16,000 14,000 ) 12,000 Incremental Boepd (2) 10,000 Third Bone Spring/Wolfcamp Incremental Bakken/ 8,000 Three Forks (2) 6,000 4,000 PDP (2) 2,000 Barrels of Equivalent ofEquivalent ( BarrelsperDay 0 Jul-17 Jul-18 Jul-19 Jan-18 Jan-19 Jun-17 Jun-18 Jun-19 Oct-17 Oct-18 Oct-19 Apr-18 Apr-19 Sep-17 Feb-18 Sep-18 Feb-19 Sep-19 Dec-17 Dec-18 Dec-19 Aug-17 Aug-18 Aug-19 Nov-17 Nov-18 Nov-19 Mar-18 Mar-19 May-18 May-19 D&C CAPEX(3) $100mm $105mm $100mm (1) Production and CAPEX guidance based on internal management estimates. The 2018 and 2019 production and capital expenditure guidance is subject to change depending upon a number of factors, including the availability of drilling equipment and personnel, economic and industry conditions at the time of drilling, prevailing and anticipated prices for oil and gas, the availability of sufficient capital resources for drilling prospects, the Company’s financial results, the availability of leases on reasonable terms and the ability of the Company to obtain permits for drilling locations. (2) Projected PDP volumes are based on management’s internal estimates and account for all recent completions, acquisitions and planned well downtime. The rates of decline are estimates and actual production declines could be materially higher. Incremental 6 Bakken/Three Forks, Wolfcamp and Eagle Ford/Austin Chalk projections are based on the Company’s type curves. (3) D&C CAPEX includes only capital expenditures associated with drilling, completions and facilities. Excludes approximately $30 million and $35 associated with acquisitions consummated or planned during 2017 and 2018, respectively.

Asset Base Overview 7

Delaware Basin Permian Basin – Wolfcamp & Bone Spring ▪ 9,681 net acres located in the eastern core of the Delaware Basin ▪ Four proven potential zones (Bone Spring, Wolfcamp) ▫ 190+ gross operated identified potential locations ▫ 360+ gross operated identified potential locations with downspacing ▫ 130+ gross non-operated identified potential locations ▫ 2+ additional potential zones (Bone Spring, Wolfcamp) ▪ Unique, legacy high value acreage ▫ Favorable net revenue interests – in many cases 1/8th royalty ▫ 95+% held by production ▪ Infrastructure – Caprito area ▫ Two water supply wells ▫ Two 400,000 bbl lined frac pits, ▫ SWD wells and system in place ▫ Full gas gathering system (third party operated) ▫ Oil gathering system under construction (third party operated) ▪ Four well downspacing test flowing back/drilling out ▫ Wolfcamp A1: Caprito 99-211H & 99-202H ▫ Wolfcamp A2: Caprito 99-301H & 99-311H ▫ Fully remediated casing issue on the 311H and all four wells stimulated to full design ▫ 57.8% working interest ▫ 5,000 foot laterals ▪ Two 5,000’ lateral wells waiting on completion ▫ Greasewood 201H (A1) and 301H (A2) ▫ 75% net royalty interest ▪ Two 5,000’ lateral wells drilling ▫ Mesquite U103H (3BS) and 102H (3BS) Map Source: Callon, Jagged Peak, Halcon, Diamondback presentations, Drilling Info and management estimates. 8

Delaware Basin Caprito Development Plan ▪ First Pad – Caprito 98-201H & Caprito 98-301HR ▫ Wolfcamp A1 – Caprito 201H – producing ▫ Wolfcamp A2 – Caprito 301HR – producing ▪ Second Pad – Section 83 Pad – Two Well Pad ▫ Wolfcamp A2 – Caprito 83-304H – producing ▫ Wolfcamp B – Caprito 83-404H – producing ▪ Third Pad – Section 82 Pad – Two Well Pad ▫ Wolfcamp A1 – Caprito 82-202H – producing ▫ Third Bone Spring – Caprito 82-101H – producing ▪ Fourth Pad – Section 99 Pad – Four Well Pad – Downspacing Test ▫ Wolfcamp A1 – Caprito 99-211H and 202H – flowing back/drilling out ▫ Wolfcamp A2 – Caprito 99-301H and 311H – flowing back/drilling out 9

Surrounding Delaware Activity 1 9 UL Beldin 3H State Whiskey River 5-8 1H Jagged Peak Jagged Peak IP: 1,142 BOPD 1,634 MCFPD 1 IP: 1,118 BOPD 1,309 MCFPD LL: 10,000’ 13 LL: 10,136’ 2 UL Guanella 05-17 1H 10 Whiskey River 6-8 1H Felix 16 IP: 591 BOPD 686 MCFPD Jagged Peak LL: 5,000’ IP: 1,138 BOPD 3,608 MCFPD LL: 11,880’ 2 3 UL Willow 1H 11 Felix University Lands 1H & 2H IP: 1,292 BOPD 1,212 MCFPD Felix LL: 10,000’ LL:10,000’ 4 11 Pyote Flats 98-34 1H 12 Jagged Peak 3 Hunter 2601H 12 IP: 1,709 BOPD 1,762 MCFPD Halcon LL: 9,228’ LL: 10,000’ 5 Whiskey River 98-34 2H 13 4 Jagged Peak Sealy Ranch 8801H & 8802H IP: 1,300 BOPD 616 MCFPD 5 Halcon LL: 7,877’ 6 LL: 10,000’ 6 15 7 8 14 Whiskey River 9596C-34 1H State Eiland 4-33 41H Jagged Peak 14 Jagged Peak IP: 1,070 BOPD 1,170 MCFPD LL: 10,000’ LL: 10,141’ 7 15 State 5913A GG Houston 1H Catman 6263A 6263B & Jagged Peak 6263C 1H IP: 1,499 BOPD 1,641 MCFPD Jagged Peak LL: 9,011’ 9 10 LL: 7,500’ 8 16 State Quadricorn 1H Sealy Ranch7501H-7606H Jagged Peak 5 permits IP: 1,298 BOPD 1,447 MCFPD Halcon LL: 10,403’ LL: 10,000’ 10

Delaware Basin Third Bone Spring Well Economics 3RD Bone Spring: Type Curve Assumptions 3RD Bone Spring: ROR vs WTI Abraxas EOY17 Assumptions ▪ 660 MBOE gross type curve ▫ 84% Oil ▫ Initial rate: 1100 boepd ▫ di: 99.9% ▫ dm: 6.0% ▫ b-factor: 1.4 ▪ Assumed CWC: $7.3 million Third BONE SPRING DAILY PRODUCTION (82 101H) 82 101H BOE (BS) 3RD BS BOE TYPE 1400 1200 1000 800 BOE 600 400 200 0 0 20 40 60 80 DAYS 100 120 140 160 180 11

Delaware Basin Wolfcamp A1 Well Economics Wolfcamp A1: Type Curve Assumptions Wolfcamp A1: ROR vs WTI Abraxas EOY17 Assumptions ▪ 680 MBOE gross type curve ▫ 77% Oil ▫ Initial rate: 860 boepd ▫ di: 95.0% ▫ dm: 7.0% ▫ b-factor: 1.4 ▪ Assumed CWC: $7.3 million WOLFCAMP A1 AVERAGE DAILY PRODUCTION A1 Wells BOE Average A1 BOE TYPE 1400 1200 1000 800 BOE 600 400 200 0 0 20 40 60 80 100 120 140 160 180 DAYS 12

Delaware Basin Wolfcamp A2 Well Economics Wolfcamp A2: Type Curve Assumptions Wolfcamp A2: ROR vs WTI Abraxas EOY17 Assumptions ▪ 650 MBOE gross type curve ▫ 82% Oil ▫ Initial rate: 650 boepd ▫ di: 95.0% ▫ dm: 7.0% ▫ b-factor: 1.4 ▪ Assumed CWC: $7.3 million WOLFCAMP A2 AVERAGE DAILY PRODUCTION A2 Wells BOE Average A2 BOE TYPE 1200 1000 800 600 BOE 400 200 0 0 20 40 60 80 100 120 140 160 180 DAYS 13

Delaware Basin Wolfcamp B Well Economics Wolfcamp B: Type Curve Assumptions Wolfcamp B: ROR vs WTI Abraxas EOY17 Assumptions ▪ 535 MBOE gross type curve ▫ 85% Oil ▫ Initial rate: 580 boepd ▫ di: 95.0% ▫ dm: 7.0% ▫ b-factor: 1.4 ▪ Assumed CWC: $7.3 million WOLFCAMP B DAILY PRODUCTION (83 404H) 393 B BOE TYPE 800 700 600 500 400 BOE 300 200 100 0 0 20 40 60 80 100 120 140 160 180 DAYS 14

Bakken/Three Forks Bakken / Three Forks ▪ 4,013 net HBP acres located in the core of the Williston Basin in McKenzie County, ND – de-risked Bakken and Three Forks ▫ 44 operated completed wells ▫ Est. 19 gross additional operated Bakken/ First Bench Three Forks locations remaining ▫ Est. 20 gross additional Second Bench Three Forks locations remaining ▫ 8 gross/1.4 net non-operated completed wells ▫ Est. 34 gross/2.8 net additional non-operated locations remaining ▫ 3 gross operated wells completing ▫ 8 gross operated wells waiting on completion ▫ 5 gross operated wells drilling ▪ Yellowstone 5H-7H ▫ Three well pad completing ▫ 42.7% net revenue interest ▪ Lillibridge 9H-12H ▫ Four well pad waiting on completion ▫ June frac date ▫ 21.3-23.7% net revenue interest ▪ Ravin 9H-12H ▫ Four well pad waiting on completion ▫ 45.43% net revenue interest ▪ Ravin 13H-17H ▫ Five well pad drilling (1) The 30-day average rates represent the highest 30 days of production and do not include the impact of natural gas liquids and shrinkage at the processing plant and include flared gas. 15

Middle Bakken North Fork Economics Middle Bakken: Type Curve Assumptions Middle Bakken: ROR vs WTI Abraxas EOY17 Assumptions ▪ 845 MBOE gross type curve ▫ 76% Oil ▫ Initial rate: 1120 boepd ▫ di: 98.5% ▫ dm: 8.0% ▫ b-factor: 1.5 ▪ Assumed CWC: $7.0 million NORMALIZED AVERAGE PRODUCTION BY WELL GROUP NORTH FORK FIELD - MIDDLE BAKKEN ONLY GEN 1 COMPLETIONS; GEN 2 COMPLETIONS; GEN 3 COMPLETIONS; LINE = EOY16 TYPE 1,400 1,200 1,000 800 BOEPD 600 400 200 0 0 20 40 60 80 100 120 140 160 180 DAYS

Three Forks North Fork Economics Three Forks: Type Curve Assumptions Three Forks: ROR vs WTI Abraxas EOY17 Assumptions ▪ 723 MBOE gross type curve ▫ 73% Oil ▫ Initial rate: 1050 boepd ▫ di: 98.5% ▫ dm: 8.0% ▫ b-factor: 1.5 ▪ Assumed CWC: $7.0 million NORMALIZED AVERAGE PRODUCTION BY WELL GROUP NORTH FORK FIELD - THREE FORKS ONLY GEN 1 COMPLETIONS; GEN 2 COMPLETIONS; GEN 3 COMPLETIONS; LINE=EOY16 TYPE 1400 1200 1000 800 BOEPD 600 400 200 0 0 20 40 60 80 100 120 140 160 180 DAYS

Oil and Gas Marketing & Takeaway Delaware Basin Bakken/Three Forks Oil Marketing and Takeaway Caprito Area: North Fork/Pershing Area: • Caprito oil production on pipe in May/June 2018 • All oil production on pipe • Agreement with third party on long term contract • Agreement with third parties on long term contract • Rate of $0.65/bbl to Wink • Locked discount (including all tariff) of $4.70-$5.10 off NYMEX • Wink trades at a slight discount to Midland through March 2019 • Abraxas will likely add other units to the third party system • Do not anticipate any issues with takeaway as development progresses across the Company’s Ward and Winkler County assets Gas Marketing and Takeaway Delaware Basin: North Fork/Pershing Area: • Majority of acreage dedicated on long term contract • Dedicated to third party on long term contract • Contract pays 100% of residue gas and 100% of NGLs with • $2.50+ operating cost minimum margin per Mcfe (Abraxas deductions for compression, gathering and processing cannot receive a negative price) • Majority sells/prices at Waha • Anticipate continued gas takeaway issues until third party • Third party controls numerous processing facilities with an expands compression in late 2018 additional facility online in 4Q2018 • Additional takeaway issues likely until third party completes a • Third party has adequate capacity from Waha to Katy plant expansion in late 2019 • Multiple sales outlets with ample capacity expected • Additional midstream options expanding into the area • Operational downtime improving Hedging Abraxas has hedged basis in the past (as late as 2017) and will Difficult from a liquidity and contract standpoint to hedge basis in continue to hedge basis in the future when advantageous the area 18

Abraxas Hedging Profile 2018 (1) 2019 2020 Oil Swaps (bbls/day) 4,453 2,783 2,206 NYMEX (2) $53.74 $55.66 $54.34 (1) 2018 daily volumes indicated for February – December 2018. (2) Straight line average price. Includes 2,651 and 1,200 of WTI swaps in 2018 and 2019, respectively. Includes 500 Bopd and 1,000 Bopd of LLS swaps in 2018 and 2019, respectively. 19

Appendix 20

Adjusted EBITDA Reconciliation Adjusted EBITDA is defined as net income plus interest expense, depreciation, depletion and amortization expenses, deferred income taxes and other non-cash items. The following table provides a reconciliation of Adjusted EBITDA to net income for the periods presented. (In thousands) Year End 2016 2017 Net (loss) income ($96,378) $16,006 Net interest expense $3,827 $2,496 Depreciation, depletion and amortization $24,431 $26,226 Amortization of deferred financing fees $1,019 $423 Stock-based compensation $3,194 $3,238 Impairment $67,626 $0 Unrealized (gain) loss on derivative contracts $19,818 $4,299 Realized (gain) loss on monetized derivative contracts $14,370 $0 Expenses incurred with offerings and execution of loan agreement $1,747 $4,856 Other non-cash items $494 $451 Bank EBITDA $40,149 $57,994 Credit facility borrowings $93,250 $84,250 Debt/Bank EBITDA 2.32x 1.45x 21

TTM Adjusted EBITDA Reconciliation Adjusted EBITDA is defined as net income plus interest expense, depreciation, depletion and amortization expenses, deferred income taxes and other non-cash items. The following table provides a reconciliation of Adjusted EBITDA to net income for the periods presented. (In thousands) 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 TTM Net (loss) income $7,194 ($770) ($4,109) $10,779 $13,094 Net interest expense 389 753 959 1,198 3,300 Depreciation, depletion and amortization 4,415 7,878 8,560 10,130 30,982 Amortization of deferred financing fees 116 100 69 96 381 Stock-based compensation 979 750 739 586 3,055 Impairment 0 0 0 0 0 Unrealized (gain) loss on derivative contracts (5,071) 6,873 11,258 4,094 17,154 Realized (gain) loss on monetized derivative contracts 0 0 0 0 0 Expenses incurred with offerings and execution of loan agreement 703 199 164 202 1,268 Other non-cash items 113 113 113 130 470 Bank EBITDA $8,838 $15,896 $17,753 $27,216 $69,703 Credit facility borrowings $104,250 Debt/Bank EBITDA 1.50x 22

Standardized Measure Reconciliation PV-10 is the estimated present value of the future net revenues from our proved oil and gas reserves before income taxes discounted using a 10% discount rate. PV-10 is considered a non-GAAP financial measure under SEC regulations because it does not include the effects of future income taxes, as is required in computing the standardized measure of discounted future net cash flows. We believe that PV-10 is an important measure that can be used to evaluate the relative significance of our oil and gas properties and that PV-10 is widely used by securities analysts and investors when evaluating oil and gas companies. Because many factors that are unique to each individual company impact the amount of future income taxes to be paid, the use of a pre-tax measure provides greater comparability of assets when evaluating companies. We believe that most other companies in the oil and gas industry calculate PV-10 on the same basis. PV-10 is computed on the same basis as the standardized measure of discounted future net cash flows but without deducting income taxes. The following table provides a reconciliation of PV-10 to the standardized measure of discounted future net cash flows at December 31, 2017: Total Proved 31-Dec-17 ($000) Future cash inflows $2,035,619 Future production costs (609,921) Future development costs (461,619) Future income tax expense (83,915) Present Worth at 10 Percent $880,164 Discount (474,423) Standardized measure of discounted future net cash flows $405,741 23

NASDAQ: AXAS 24