Abraxas Reports Best Year on Record

Abraxas' Eagle Ford Properties 2014
Abraxas' Eagle Ford Properties 2014

Abraxas Petroleum released its 2014 earnings report on March 4th that heralded a record year and includes a strategic plan to ride out a “tumultuous” 2015.

Abraxas reported a fourth quarter net income of $30.1 million, compared to $27.0 million during the same period in 2013 and an adjusted net income of $6.1 million, over $1.4 million in 2013. Production numbers for Q4 averaged of 624 MBoe 6,785 Boepd.

2014 Highlights

  • 2.1 MMBoe (5,720 Boepd) oil production
  • $134.1 million in revenue
  • $63.3 million net income
  • Adjusted net income  $39.8 million, or $0.40 per share
Our focused transformation over the last four years (...) has been very successful. And it has put Abraxas in a great position to not only weather the current storm, but to use the opportunities created by it for quality measured growth into the future.
— Bob Watson, Abraxas' President and CEO

Related: Abraxas Raises Eagle Ford Cap-Ex Budget by $35 Million

2015 Spending Plan

Citing a “very tumultuous 2015 from a commodity price perspective”, Watson said Abraxas will cut its capital expenditure budget to $54 million, compared with $193 million in 2014. The company expects to grow production 26% to 7100 barrels a day as it completes the nine wells it drilled during 2014.

We expect to use this down cycle to our advantage and you should expect to see Abraxas emerge on the upside a bigger, stronger and even more profitable company with a clean balance sheet.
— CEO Watson

Abraxas in the Eagle Ford

Abraxas reported that they completed drilling on two wells in its Eagle Ford operations during 2014 and will postpone completion until late spring or early summer to allow costs to decline even further. The company also has an eye to expand its operations in the Eagle Ford as conditions allow and anticipates activity to continue even during the entire down cycle. Abraxas owns 100% of all of our properties in the Eagle Ford, they remain very flexible and able to jump bakc into full production very quickly

Find out more at abraxaspetroleum.com

Read the full call transcript at seekingalpha.com