UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
May 14, 2002
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
Item 5.OTHER EVENTS
See attached Press Release
The following exhibits are filed as part of this report:
NUMBER DOCUMENT
99.1 Press release dated May 14, 2002
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: May 14, 2002
Exhibit 99.1
NEWS RELEASE
ABRAXAS REPORTS 2002 FIRST QUARTER FINANCIAL RESULTS
AND DRILLING SUCCESS IN WEST TEXAS
SAN ANTONIO, TX (May 14, 2002) - Abraxas Petroleum Corporation (AMEX:ABP) today
reported a first quarter of 2002 loss of $8.7 million or $0.29 per share
compared to net income of $0.3 million or $0.01 per share for the first quarter
of 2001. Improvements in General and Administrative ("G&A") expense and Lease
Operating Expense ("LOE") at $1.7 million and $3.9 million respectively in the
2002 quarter compared to $2.1 million and $4.9 million respectively in the 2001
quarter were offset by reduced revenues. Sharply lower commodity prices,
compared to the first quarter of 2001, combined with asset sales, resulted in
revenues declining from $29.1 million in 2001 to $11.8 million in this quarter.
Capital expenditures for the first quarter of 2002 were $17.4 million of which
$12.5 million was for development of Canadian assets under the Mirant Canada
facility.
In the United States, the third well in the Montoya Trend in west Texas went
online at an initial rate of 18-20 MMcfe per day (2.5-2.8 net to the Company's
interest) under the joint participation agreement with EOG Resources (NYSE:EOG).
The fourth well under this agreement is currently drilling. The Company is also
reviewing bids on its previously announced U.S. assets sale package.
Negotiations are at various stages and closings are expected in the second
quarter.
In Canada, the Company drilled 17 wells (12.1 net) with an 84% success rate in
our core areas of Peace River Arch, Caroline and Ladyfern during the recent
winter drilling season, which is expected to add 11-15 MMcfepd of net
production. In Ladyfern, two wells are currently online and producing at a
combined gross rate of 10-15 MMcfepd (1.6-2.5 net). The rights of first refusal
have been exercised on the sale of certain Canadian assets previously announced
and closing is proceeding on schedule.
CEO Bob Watson commented, "We are pleased with the initial results of our latest
well in west Texas which continues to prove up our acreage in the Montoya trend.
This new well along with our results in our Canadian winter drilling program
continue our efforts to add new production which, combined with the recent
improvement in commodity prices and proceeds from our asset sale program, should
greatly improve our liquidity going forward. This added liquidity will help in
our continuing efforts to improve our balance sheet during 2002."
The Company reiterates that it does expect to make its $11 million interest
payment on its Senior Secured Notes by utilizing cash on hand and expected cash
flows within the 30 day grace period, which commenced May 1.
Key quarterly results are summarized below:
(Amounts in thousands)
2002 2001
---- ----
Revenues $11,807 $29,086
Operating Income (Loss) $(735) $12,193
Net Income (Loss) $(8,699) $255
Earnings (Loss) Per Share $(.29) $.01
EBITDA $6,079 $21,949
Average Oil Price (after hedge) $16.64 $27.22
Average Gas Price (after hedge) $2.21 $4.85
Total Assets $309,294 $333,974
Abraxas invites your participation in a conference call on Tuesday, May 14th, at
1:30 pm CDT to discuss the contents of this release and respond to questions.
Please call 1-800-818-5264 between 1:20 and 1:30 pm CDT, passcode code 350101,
if you would like to participate in the call. There will be a replay of the
conference call available by calling 1-888-203-1112, passcode code 350101,
beginning approximately 3:30 pm CDT Tuesday, May 14th, through 5:00 pm CDT
Tuesday, May 21.
Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas
exploitation and production company that also processes natural gas. The Company
operates in Texas, Wyoming and western Canada. For additional information about
the Company, please visit our web site, www.abraxaspetroleum.com for the most
current and updated information. The web site is updated daily in order to
comply with the SEC Regulation FD (Fair Disclosure).
Safe Harbor for forward-looking statement: Statements in this release looking
forward in time involve known and unknown risks and uncertainties, which may
cause the Company's 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 the
Company for crude oil and natural gas and our ability to sell certain assets in
a timely manner to support liquidity needs. In addition, the Company's future
crude oil and natural gas production is highly dependent upon the Company's
level of success in acquiring or finding additional reserves. Further, the
Company operates in an industry sector where securities values are highly
volatile and may be influenced by economic and other factors beyond the
Company's control. In the context of forward-looking information provided for in
this release, reference is made to the discussion of risk factors detailed in
the Company's filing with the Securities and Exchange Commission during the past
12 months.
FOR MORE INFORMATION CONTACT:
Janice Herndon/Manager Corp. Communications
Telephone 210-490-4788
jherndon@abraxaspetroleum.com
www.abraxaspetroleum.com
ABRAXAS PETROLEUM CORPORATION
QUARTER-END RESULTS
(UNAUDITED)
Three Months
(In thousands except per share data) Ended March 31,
Production and Pricing Information 2002 2001
Revenues $11,807 $29,086
Cash Flow (Before Working Capital Changes) (2,188) 14,103
Net Income(Loss) (8,699) 255
Net Income(Loss) Per Share (.29) .01
Weighted Ave. Shares Outstanding 30.0 22.6
Production:
Crude Oil (BPD) 823 1,470
NGL (BPD) 759 868
Natural Gas (MCFPD) 44,145 51,409
MMCFEPD 53.6 65.4
Prices (net of hedge impact):
Crude Oil ($/BBL) $16.64 $27.22
NGL's ($/BBL) 12.76 28.44
Natural Gas ($/MCF) 2.21 4.85
Price per MCFE 2.26 4.80
Expenses:
Lease Operating ($/MCFE) $.81 $.82
General & Administrative ($/MCFE) .34 .36
Interest ($/MCFE) 1.74 1.32
D/D/A ($/MCFE) 1.42 1.50
Balance Sheet (In $000s)
Quarter Ended Year Ended
March 31, 2002 December 31, 2001
Cash $3,851 $7,605
Working Capital (Deficit)* (21,361) (4,994)
Plant/Property/Equipment, Net 292,066 281,894
Total Assets 309,294 303,616
Long-Term Debt 227,103 285,184
Shareholders Equity (Deficit) (39,726) (28,585)
Common Shares Outstanding (Millions) 30.0 30.0
*1st Quarter 2002 working capital excludes debt of $63.5 million which is due
March, 2003.
Abraxas Petroleum Corporation and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
March 31,
--------------------------------------
2002 2001
-- ---------------- -- ---------------
(In thousands except per share data)
Revenue:
Oil and gas production revenues................................... $ 10,886 $ 28,249
Gas processing revenue .......................................... 670 436
Rig revenues...................................................... 151 183
Other............................................................. 100 218
---------------- ---------------
11,807 29,086
Operating costs and expenses:
Lease operating and production taxes.............................. 3,909 4,859
Depreciation, depletion and amortization.......................... 6,814 8,841
Rig operations.................................................... 121 153
General and administrative....................................... 1,698 2,109
General and administrative (Stock-based Compensation)............ - 931
---------------- ---------------
12,542 16,893
---------------- ---------------
Operating Income (Loss).............................................. (735) 12,193
Other (income) expense
Interest income................................................... (33) (16)
Interest expense ............................................. 8,413 7,781
Amortization of deferred financing fees........................... 427 455
Other ............................................................ - 16
---------------- ---------------
8,807 8,236
---------------- ---------------
Income (Loss) from operations before taxes ......................... (9,542) 3,957
Income tax expense (benefit)......................................... (843) 2,776
Minority interest in income of consolidated foreign subsidiary....... - (926)
---------------- ---------------
Net Income (Loss) ................................................... $ (8,699) $ 255
================ ===============
Earnings per share:
Net income per common share - basic.............................. $ (0.29) $ .01
================ ===============
Net income per common - diluted.................................. $ (0.29) $ .01
================ ===============