Abraxas WHY shorts are wrong - ,1) a number of technical indicators show that the market could be presenting an opportunity to enter crude oil on the long side. Including 5 day charts, double bottom, RSI , bullish wedges, 2) A confluence of support, bullish price patterns, and confirmation by way of oscillators shows that reward to risk ratios favor bullish market participants at these levels. Great opportunity to own quality-cheap 3) Downgrades and analyst begging for cheap shares with simple cases, lies and over analyzing irrelevant variables. This is further confirmed by bearish extremes in sentiment and we now have positive seasonality maintenance and cleaning in the sector. 4) Historic patterns now fitting chart patterns of retrenchments and gains, same old market cycles 5) normal risk/reward evaluation not seen in good blue chip companies 6) people are overlooking hedges and dividend 6) shorts covering for fuel 6) overstated bear case for storage and companies balance sheets of assets 7) Macro events worldwide like middle east problems supply chains 8) Economies getting better world wide eventually 9) rig counts shutting down, capx spending down will create a need 10) slow times focus on technical background work
Abraxas recently elected to crystalize the value of the Company’s remaining 2015 hedges for total proceeds of approximately $4.6 million. Subsequent to these transactions, Abraxas entered into collars for the periods from June 2015 through December 2015. These hedges will provide the Company with downside protection on 2,000 Bbls/d in 2015 with a floor of $55/Bbl and a ceiling of $70/Bbl. Abraxas also added 1,000 Bbls/d of three way collars in 2016 with a floor of $60/Bbl a sub floor of $45/Bbl and a ceiling of $71/Bbl.
Bob Watson, Abraxas' President and CEO commented, “Amidst a violent correction in commodity prices that left our average realizations nearly halved year-over-year, we maintain our steadfast focus on what we can control - production and costs. Evidence of this is found in our significant 60% year-over-year production growth from continuing operations. Our focus on cost control resulted in our cash costs(1) falling from $27.91/Boe to $18.57/Boe for the three months ending March 31, 2014 and 2015, respectively. We are also earning suitable returns on our active development programs with the benefit of substantial service cost savings.
"We continue to evaluate numerous acquisition opportunities in our core areas, while at all times ensuring that any acquisition will not jeopardize our balance sheet. To this end, we restructured our hedge book, which allowed us to crystalize $4.6 million in value while still providing additional protection for 2015 in the event of further commodity price weakness. We look forward to updating the market as we continue to execute on our business plan.”
The three months ended March 31, 2015 resulted in:
• Production of 593 MBoe (6,590 Boepd)
• Revenue of $22.3 million inclusive of realized hedge settlements
• Adjusted EBITDA(a) of $13.2 million inclusive of Raven Drilling
• Adjusted discretionary cash flow(a) of $12.5 million inclusive of Raven Drilling
• Net loss of $0.7 million, or $0.01 per share
• Adjusted net loss(a), excluding certain non-cash items and inclusive of Raven Drilling of $1.2 million, or $0.01 per share
GAS inventories came in today. Shorts took advantage of a week situation. The Inventories were right in line as expected. These oil sell offs in the small oil stocks have happened 4 times as I remember. About, every week and a half. SPOT WTI double bottomed about 59.11.......... It looks to be on its way back up. Traders have taken advantage of at least a 6% gain on the pull backs and 6% on the up trade, not bad. Its funny to see oil take a 2.5 % hit and see all my oil stocks down 5 to 9 %. Needles to say today looks very bad but I have held through the pull backs to see it rebound in days. This is the way the slow grind up works.
The stock has a 7 book and nothing has changed on the balance sheet. It has stayed the same with the companies long term out look. Take todays weakness and do your self a favor. Load the boat...... 92% institutional ownership should be a clue.
real rough day for me as oil stocks just got whacked. Last time it took a couple days to bounce back. WTI down 1% and the stocks averaging down 3% or so. I have seen 3 of these the last month as oil is still grinding higher. They will have a few great days next week and you will never know this fall happened. The traders know how to play today and will be buying the close.
oil is up 50% the last few weeks. You may be wanting another real bad quarter but, I feel we just saw the worst. I think its up from here. Bretaña shutting down was a huge drain.
OIL hit 62 dollars yesterday for a short time. The path for oil is back up. We saw the low and turning point. Today the stocks are very weak. Its a good time to add these small oil plays for next weeks run.
It was the same as the past quarters. ONE big difference the ((( other))) expense was out of the ordinary). The rest looked identical to prior quarters. Take the (other= Bretaña ) out of the income statement and they are the same. Results in both this quarter and the fourth quarter of 2014 were significantly impacted by the Company's decision to cease development of the Bretaña field on Block 95 . strong balance sheet with cash and cash equivalents of $203.5 million at March 31, 2015.The Company's cash balance reflects $74.0 million of capital expenditures in the first quarter of 2015 that were incurred largely as a result of pre-committed costs associated with legacy projects and decisions made before the senior management and strategy changes. remember this company is debt free ...... Its a great buy right here, OIL averaged 53 a barrel....... next quarter it looks to be over where it is now at 61/ $$$$$$$$$$
the 5 day chart should give you a clue as to the upward momentum of the stock and gas. WTI GAS went from 42 to 62 a barrel. That's 50% in a few weeks. I think there are plenty more gains ahead. The shorts are a stubborn group and are not giving up very easily. Most these small oil stocks will make it and do very well the months ahead. Its just my guess but backed by my own money and convictions.
the new contract did not have a cost for the gas. Will they still lose 70% of their money on every sale they make? The share holders should feel they are buying the gas for the rail system. YOU ARE! I hope it pans out for you and you make money but to spend that much money chasing a dream is not investing to me, I could be wrong but I pass with that huge negative margin.
They only lost a penny? That is great !!!! This is way over sold. Abraxas Petroleum reports EPS in-line, down on revs (AXAS) : Reports Q1 (Mar) loss of $0.01 per share, in-line with the Capital IQ Consensus Estimate of ($0.01); revenues fell 26.7% year/year to $18.7 mln vs the $22.63 mln consensus. The whole sector is slowing . Buy time.
nobody is looking at the fundamentals. They just see the glut. If they would look a year out they would buy tell it hurt. This is one of the best plays in the industry.