Message #34 From:
Stock News Bot Date: March 13, 2007 05:40:00 AM
ABP News Abraxas Reports Full Year 2006 Results with Increased Production, Revenue, EBITDA and Cash Flow
SAN ANTONIO--(BUSINESS WIRE)--Abraxas Petroleum Corporation (AMEX:ABP) today reported financial and operating results for the twelve months ended December 31, 2006 and provided an operational update.
Results for the year ended December 31, 2006 included:
Production of 7.7 Bcfe, a 26% increase over 2005;
Revenue of $51.7 million, a 6% increase over 2005;
EBITDA (a) of $35.0 million, a 12% increase over 2005; and
Cash flow (a) of $18.4 million, a 6% increase over 2005.
(a) See reconciliation of non-GAAP financial measures below.
Net earnings for the year ended December 31, 2006 were $1.2 million, or $0.03 per share, as compared to net earnings in 2005 of $6.3 million, or $0.16 per share, from continuing operations. Continuing operations represent financial and operating results from operations in the U.S. only as all of Grey Wolf Exploration Inc.’s historical performance and results are treated as discontinued operations as a result of the sale of Grey Wolf shares owned by Abraxas in Grey Wolf’s initial public offering that closed on February 28, 2005. Abraxas currently owns less than 1% of the outstanding capital stock of Grey Wolf.
“I am pleased to announce that in 2006 we increased production, revenue, EBITDA and cash flow over 2005 levels. Net earnings were lower in 2006 due to higher interest and depreciation, depletion and amortization (D/D/A) expenses – the higher D/D/A is a direct result of the increased drilling costs that have plagued the industry over the past year. Our preliminary budget for 2007 includes roughly 20 to 30 projects, which will focus on improving our reserve ratio through the conversion of proved undeveloped and probable / possible reserves to the proved developed category. Based on our current plans, coupled with relatively strong commodity prices, I believe we are poised to have a great 2007,” commented Bob Watson, Abraxas’ President and CEO.
Operations
In the Oates SW Field of Pecos County, Texas, a rig is currently scheduled to move this week onto the Manzanita #1H (ABP: 100% WI) to drill the horizontal lateral in the Devonian formation. The vertical portion of the well was previously cleaned out with a Company-owned workover rig.
In the Abraxas Cherry Canyon Field of Ward County Texas, the Caprito 83 #12 (ABP: 81% WI) was completed in the Bell & Cherry Canyon sands - the Bell Canyon is currently being tested. After testing is complete, the bridge plug will be pulled and the Bell Canyon will be commingled with the Cherry Canyon. The Caprito 82 #12 (ABP: 64% WI) was completed in the Cherry Canyon and a pumping unit is currently being installed on the well.
In the Brooks Draw Field of Converse & Niobrara Counties, Wyoming, we are in the process of permitting several horizontal wells to target the Mowry Shale (ABP: 100% WI); while we address various land issues on several other locations.
“We have begun the initial phase of production testing on the Caprito wells and look forward to definitive results in the near future. In Wyoming, we are very encouraged by the initial results other operators have achieved by drilling horizontally in the Mowry Shale and their stated plans of a continuous drilling program during 2007. We anticipate that our initial drilling permits will be approved by mid-summer, with drilling operations to commence soon thereafter. Lastly, we anticipate that the drilling of the lateral section on the Manzanita #1H well in the Oates SW Field will be underway by next week,” commented Bob Watson, Abraxas’ President and CEO.
Conference Call
Abraxas invites you to participate in a conference call on Tuesday, March 13, 2007, at 10:00 a.m. CT to discuss the contents of this release and respond to questions. Please dial 1.800.599.9795, passcode 35589430, 10 minutes before the scheduled start time, if you would like to participate in the call. The conference call will also be webcast live on the Internet and can be accessed directly on the Company’s website at www.abraxaspetroleum.com under the Investor Relations section. In addition to the audio webcast replay, a podcast and transcript of the conference call will be posted on the Investor Relations section of the Company’s website approximately 24 hours after the conclusion of the call, and will be accessible for at least 60 days.
Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploitation and production company with operations in Texas and Wyoming.
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 natural gas and crude oil. In addition, Abraxas’ future natural gas and crude oil 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.
ABRAXAS PETROLEUM CORPORATION
QUARTER AND YEAR-END RESULTS
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2006
2005
2006
2005
Financial results:
(In thousands except per share data)
Revenues
$
11,899
$
17,012
$
51,723
$
48,625
EBITDA (a)
7,112
11,017
34,966
31,265
Cash flow (a)
2,955
7,223
18,361
17,275
Earnings (loss) from continuing operations
(1,546)
3,460
1,246
6,271
Earnings (loss) per share from continuing operations – basic
$
(0.04)
$
0.08
$
0.03
$
0.16
Weighted average shares outstanding – basic
42,663
42,002
42,579
39,367
Production:
Crude oil per day (Bopd)
551
534
549
533
Natural gas per day (Mcfpd)
17,272
16,469
17,849
13,541
Natural gas equivalents per day (Mcfepd)
20,578
19,676
21,144
16,736
Natural gas equivalents (Bcfe)
1.89
1.81
7.72
6.11
Realized prices (net of hedge impact):
Crude oil (Bbl)
$
55.76
$
57.18
$
62.10
$
53.27
Natural gas (Mcf)
5.43
9.12
5.78
7.48
Price per Mcfe
6.05
9.18
6.49
7.75
Expenses:
Lease operating ($ per Mcfe)
$
1.01
$
1.16
$
0.94
$
1.12
Production taxes (% of revenue)
11.7%
6.9%
8.7%
8.7%
General and administrative, excluding stock-based compensation ($ per Mcfe)
0.67
1.39
0.54
0.90
Cash interest ($ per Mcfe)
2.20
2.10
2.15
2.28
D/D/A ($ per Mcfe)
1.92
1.82
1.86
1.46
(a) See reconciliation of non-GAAP financial measures below.
Note: The above results exclude impact from Grey Wolf Exploration Inc.
BALANCE SHEET DATA
(In thousands)
December 31, 2006
December 31, 2005
Cash
$
43
$
42
Working capital (deficit)
(3,719)
(4,880)
Property and equipment - net
104,957
105,248
Total assets
117,486
121,866
Long-term debt
127,614
129,527
Stockholders’ equity (deficit)
(21,619)
(23,701)
Common shares outstanding
42,727
42,007
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
Year Ended December 31,
2006
2005
2004
Revenues:
Oil and gas production revenues
$
50,094
$
47,314
$
33,073
Rig revenues
1,613
1,295
771
Other
16
16
10
51,723
48,625
33,854
Operating costs and expenses:
Lease operating
7,291
6,870
5,489
Production taxes
4,485
4,224
3,078
Depreciation, depletion, and amortization
14,393
8,914
7,213
Rig operations
819
756
671
General and administrative (including stock- based compensation of $998, $247 and $112)
