Just starting some basic DD on this company, have it on my radar. Looking for the next Stone Energy (SGY) -- under $10 in 2009 to $45 this year -- more than doubled just this past year -- solid company.
Per Yahoo stats, I'm seeing AXAS has just $349K of on-hand cash and a current ratio of only 0.43, that has me a little concerned. A current ratio closer to 1.00 indicates company has plenty of $$ to pay bills. Long term debt seems reasonable relative to operating cash flow. ROE & margins are great!
Price / Sales & Price Book ratios seem awful high compared with other small-cap companies in the G & O exploration group (WRES, GST, SGY, KOG). SGY ($3B enterprise value) is quite a bit larger than AXAS ($623M) & they're more into off-shore work but still considered a small company. I'm guessing the higher P/S & P/B ratios are saying that investors are willing to pay a premium for future growth.
Before Asking question you should do more Due Diligence:
Recent Press Release:
"SAN ANTONIO--(BUSINESS WIRE)--Jun. 24, 2014-- Abraxas Petroleum Corporation (“Abraxas” or the “Company”) (NASDAQ:AXAS) today announced the closing of its public offering of 11,500,000 shares of common stock including 1,500,000 shares sold pursuant to the exercise by the underwriters of their full option to purchase additional shares at a price of $5.00 per share, less applicable underwriting discounts"
Is that enough Cash for you !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Did you even bother to check the Credit Facility to see how muck Abraxas still has left on its Borrowing Base to Borrow:
From the 1st Quarter 10Q; you did read the whole 10Q? Even as far as Page #14:
"As of March 31, 2014 we had a borrowing base of $130.0 million and availability of $70.0 million"
"Subject to earlier termination rights and events of default, the stated maturity date of the credit facility is June 30, 2015"
And you looked at a Recent Press Release:
SAN ANTONIO--(BUSINESS WIRE)--Jun. 12, 2014"
"Abraxas’ lenders today increased the borrowing base of Abraxas’ credit facility to $162.5 million from $130 million. In connection with this redetermination, the existing credit facility terms were modified to extend the maturity to June 30, 2018, reduce interest by 50 basis points across the grid and reduce the commitment fees to 37.5 basis points when utilization is less than 50%."
Note: Besides getting a $32.5 Million Increase in Borrowing Base, Abraxas got an extension of maturity of THREE YEARS.
The Bank isn't worry; what makes \you worry. Go back to Stone Energy !!!!!
Ed ( calming Down with my Diet Dr. Pepper; skip[ping the limes(could be making me hyper)
Sheesh, calm down! Excu-u-u-u-u-use me for living and breathing !!!!!!!!!!!!!!
I said I was just STARTING my DD on this company and simply brought up what I thought was a simple observation. You provided me some stuff to follow-up on -- thank you. That's what I was looking for, no need to be rude.
The first thing I look at are basic financial stats, haven't had a chance to look at much else today -- especially not the 10Q's or all the news articles. Figured someone on this board probably had a simple explanation. Their mrq cash position struck me as tad low for this type of business but there could be any number of perfectly-valid reasons as to why. I was looking for a figure in the +$1M area at the very least. Running an exploration & production operation is costly and burns up cash in a hurry -- always lots of bills to pay. I found a few other E & P companies about the same size as AXAS (KOG, GST, WRES) and all three had better cash positions ($16M, $27M and $2M respectively). THAT'S what prompted me to ask the question in the first place.