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
March 27, 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 March 22, 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: March 27, 2002
EXHIBIT 99.1
NEWS RELEASE
ABRAXAS ANNOUNCES 2001 FINANCIAL RESULTS AND YEAR-END RESERVES
Year 2001 Results Include Increased Revenue and Operating Income and Reduced LOE
and G&A Expenses Versus 2000 - Reserve Replacement was 146% with Drillbit
Finding Cost of $1.24/Mcfe
SAN ANTONIO, TX (March 27, 2002) - Abraxas Petroleum Corporation (AMEX:ABP)
today reported revenue and operating income for the year-ended December 31, 2001
of $77.2 million and $19.2 million, respectively, compared to $76.6 million and
$11.9 million in 2000. LOE and G&A expense were $18.6 million and $6.4 million
respectively compared to $18.8 million and $6.5 million in 2000. For 2001, net
income was a loss of $19.7 million after proved property impairment of $2.6
million or a loss of $.76 per share, compared to a gain of $8.4 million for
2000, which included a non-recurring cash gain of $34.0 million, or $0.37 per
share based on primary shares outstanding. EBITDA for the year was $53.2 million
compared to $82.0 million in 2000, with the lower 2001 amount primarily due to
lower average commodity prices and asset sales. Cash flow before working capital
changes for 2001 was $19.3 million, or $.74 per share, as compared to $55.6
million, or $2.43 per share, for 2000, which included the cash gain.
Revenues in the fourth quarter of 2001 were $12.1 million compared to $27.2
million in 2000. Net earnings for the fourth quarter of 2001 were a loss of
$12.8 million, which included the previously disclosed impairment charge,
compared to $292,000 in 2000. EBITDA in the quarter was $4.8 million, compared
to $18.9 million in 2000 primarily due to lower commodity prices and asset
sales. Cash flow before working capital changes in year 2001 fourth quarter was
($2.1) million compared to $13.1 million posted in the same quarter of 2000.
Capital expenditures for 2001 were $57 million of which $17 million was for
land, seismic, and facilities. The Company drilled 20 wells (16 net) with a 95%
success rate primarily in our core areas of Peace River Arch and Caroline in
Canada and Texas. Total reserve additions were 32 Bcfe, net of revisions,
resulting in a drillbit finding cost of $1.24. Total production for the year was
approximately 22 Bcfe.
The Company's estimated proved reserves at year-end 2001 were 230 Bcfe with an
estimated future net cash flow, discounted at 10%, or PV10, of $210 million.
Year-end realized prices utilized in this estimation included oil at $18.30 per
barrel and natural gas at $2.31 per Mcf. If the Company had utilized this PV10
in determining any impairment to its oil and gas properties at year-end, a write
down in its oil and gas property carrying value would have been recorded in the
amount of $71.3 million. The Company elected to utilize prices being received on
March 22, 2002 for determining its ultimate impairment and recorded a write down
of $2.6 million, all related to its Canadian assets. These realized prices on
March 22 were $24.21 per barrel of oil and $3.02 per Mcf of natural gas. The
estimated PV10 of the Company's proven oil and gas properties, utilizing these
higher prices was approximately $287 million.
Key annual results are summarized below.
(YTD Amounts)(In Thousands)
2001 2000
---------------------------
Revenues ..................................... $ 77,243 $ 76,600
Operating Income (Loss) ...................... $ 19,125 $ 11,943
Net Income (Loss) ............................ $ (19,718) $ 8,449
Earnings (Loss) Per Share .................... $ (.76) $ .37
Cash Flow (After Interest) ................... $ 19,323 $ 55,648
Cash Flow Per Share .......................... $ .74 $ 2.43
EBITDA ....................................... $ 53,195 $ 81,993
Consolidated PV-10 ........................... $ 209,666 $1,006,400
Average Oil Price (after hedge) .............. $ 24.63 $ 18.69
Average Gas Price (after hedge) .............. $ 3.20 $ 2.71
U. S. Reserves ............................... 134.9 Bcfe 151.4 Bcfe
Canada Reserves .............................. 94.7 Bcfe 93.0 Bcfe
Total Assets ................................. $ 303,713 $ 335,560
As a result of final 2001 financial results and current market conditions,
Abraxas has updated its operating and financial guidance for year 2002 as
follows:
Full-Year Full-Year
2001 Actual 2002 Forecast
------------- -------------
Production:
MBO .......................................... 0.45 0.266
MBNGL ........................................ 0.27 0.319
BCF .......................................... 17.5 20.0
BCFE ......................................... 21.9 23.5
Price Differentials (Pre Hedge):
$ Per BO ..................................... 1.97 0.84
$ Per BNGL ................................... 5.09 4.59
$ Per MCF .................................... 0.49 0.47
Lifting Costs, $ Per MCFE ......................... 0.85 0.75
G&A, $ Per MCFE ................................... 0.29 0.28
Capital Expenditures ($ Millions) ................. 57.1 37.4
Above guidance assumes no property sales during 2002
Abraxas invites your participation in a conference call on Thursday, March 28th,
at 1:30 pm CT to discuss the contents of this release and respond to questions.
Please call 1-800-289-0437 between 1:20 and 1:30 pm CT, confirmation code
651785, 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, confirmation code
651785, beginning approximately 3:30 pm CT Thursday, March 28th , through 5:00
pm CT Thursday, April 4th.
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. 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 and Subsidiaries
Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
(In thousands except per share data) December 31, December 31,
------------- ------------ ------------ ------------
2001 2000 2001 2000
------------- ------------ ------------ ------------
Revenue:
Oil and gas production revenues $11,158 $26,501 $73,201 $72,973
Gas processing revenues 727 643 2,438 2,717
Rig revenues 149 121 756 505
Other 106 (46) 848 405
------------- ------------ ------------ ------------
12,140 27,219 77,243 76,600
Operating costs and expenses:
Lease operating and production taxes 4,937 5,276 18,616 18,783
Depreciation, depletion, and amortization 7,334 9,645 32,484 35,857
Rig operations 154 129 702 717
Proved Property impairment 2,638 - 2,638 -
Stock - based compensation - 634 (2,767) 2,767
General and administrative 1,179 2,131 6,445 6,533
------------- ------------ ------------ ------------
16,242 17,815 58,118 64,657
------------- ------------ ------------ ------------
Operating income (loss) (4,102) 9,404 19,125 11,943
Other (income) expense:
Interest income (4) (48) (78) (530)
Amortization of deferred financing fees 953 568 2,268 2,091
Interest expense 7,823 7,769 31,523 31,140
Loss (gain) on sale of equity investment 845 - 845 (33,983)
Other 191 173 207 1,563
------------- ------------ ------------ ------------
9,808 8,462 34,765 281
Income (loss) from operations before taxes and
extraordinary gain (13,910) 942 (15,640) 11,662
Income tax expense (benefit) (1,060) (34) 2,402 3,705
Minority interest in income of consolidated foreign
subsidiary - 684 1,676 1,281
------------- ------------ ------------ ------------
Net income (loss) before extraordinary gain (12,850) 292 (19,718) 6,676
Extraordinary gain:
Debt extinguishment - - - 1,773
------------- ------------ ------------ ------------
Net income (loss) ($12,850) $292 ($19,718) $8,449
============= ============ ============ ============
Earnings (loss) per common share:
Net Income (loss) before extraordinary gain ($0.43) $0.01 ($0.76) $0.29
Extraordinary gain - - - 0.08
------------- ------------ ------------ ------------
Net income (loss) per common share ($0.43) $0.01 ($0.76) $0.37
============= ============ ============ ============
Earnings (loss) per common share assuming dilution:
Net Income (loss) before extraordinary gain ($0.43) $0.01 ($0.76) $0.21
Extraordinary gain - - - 0.05
------------- ------------ ------------ ------------
Net income (loss) per common share ($0.43) $0.01 ($0.76) $0.26
============= ============ ============ ============
ABRAXAS PETROLEUM CORPORATION
YEAR-END RESULTS
Three Months Twelve Months
(In thousands except per share data) Ended December 31, Ended December 31,
2001 2000 2001 2000
---- ---- ---- ----
Operations Data:
Revenues $12,140 $27,219 $77,243 $76,600
Cash Flow (Before Working Capital Changes) (2,141) 13,165 19,323 55,648
Net Income(Loss) (12,850) 292 (19,718) 8,449
Net Income(Loss) Per Share (.43) .01 (.76) .37
Weighted Ave. Shares Outstanding-Basic 30.0 22.6 25.8 22.6
Production:
Crude Oil (BPD) 877 1,766 1,244 1,740
NGL (BPD) 820 776 762 860
Natural Gas (MCFPD) 44,297 50,543 47,933 54,542
MMCFEPD 54.5 65.8 60.0 70.1
Prices (net of hedge losses):
Crude Oil ($/BBL) $18.72 $25.96 $24.63 $18.69
NGL's ($/BBL) 14.76 25.58 21.51 22.42
Natural Gas ($/MCF) 2.09 4.40 3.20 2.71
Price per MCFE 2.23 4.38 3.34 2.84
Expenses:
Lease Operating ($/MCFE) $.99 $.87 $ .85 $.73
General & Administrative ($/MCFE)* .24 .35 .29 .27
Interest ($/MCFE) 1.56 1.28 1.44 1.19
D/D/A ($/MCFE) 1.46 1.59 1.48 1.40
*Amount does not include stock-based compensation.
Balance Sheet Data (In $000s)
Year End Year End
December 31, 2001 December 31, 2000
------------------- ------------------
Cash $7,605 $2,004
Working Capital (Deficit) (4,994) (13,829)
Plant/Property/Equipment, Net 281,894 304,784
Total Assets 303,713 335,560
Long-Term Debt 285,184 266,441
Shareholders Equity (Deficit) (28,490) (6,503)
Common Shares Outstanding (Millions) 30.0 22.6