Quarterly / Earnings Reports | Third Quarter (3Q) Update

Abraxas Talks Q3 2019 Results

Email    |    Print    |    Bookmark

You Need to login first

   |    Wednesday,November 13,2019

Abraxas Petroleum Corp. reported its Q3 2019 results.

Highlights:

• Production of 9,899 Boepd (up 3% vs 2Q19)
• Revenue of $31.5 million (down 9% vs 2Q19)
• Net income of $17.0 million, or $ 0.10 per share (up 45% vs 2Q19)
• Adjusted net income(excluding certain non-cash items)^(a) of $ 3.8 million, or $ 0.02 per share (down 10% vs 2Q19)
• EBITDA^(a) of $20.0 million (up 1% vs 2Q19)

Ops Summary

In Ward County, the two-well Greasewood NE Pad was successfully fracked with 64 stages between the two wells and recently began flowback. These wells, in which the Company owns a 100 percent interest, have approximately 4,800-foot laterals, one in the Third Bone Spring and the other in the Wolfcamp B. On our slow flowback protocol, the wells combined are currently producing over 1,000 barrels of oil and 1.2 million cubic feet of gas per day (1,200 barrels of oil equivalent per day). We expect them to reach peak rate in December 2019.

As previously discussed, we have only three gross (2.5 net) wells to drill in the Delaware Basin next year to maintain 100 percent held-by production status across all of our leasehold in both the Bakken and the Delaware.

Outlook

Abraxas management and board of directors are carefully weighing the important objectives of free cash flow generation, debt reduction, and production growth. A final decision on the capital budget for 2020 will be made at a later date. Company management and board of directors are also considering operating and overhead cost efficiencies that could be realized in connection with the 2020 capital budget.

Subsequent to quarter end, the Company has closed the two previously announced divestitures of non-core assets for total proceeds of $7.9 million. One sale represents a complete exit from South Texas and the other was small non-operated position in Reeves County, Texas. All of the proceeds were used to pay down borrowings under the Company's reserve-based loan.