SAN ANTONIO--(BUSINESS WIRE)--
Abraxas Petroleum Corporation (“Abraxas” or the “Company”) (AXAS)
today announced 2014 year end reserves grew 37% over 2013 to 42.4 MMBoe,
and also provided first quarter 2015 guidance.
December 31, 2014 Reserves
As of December 31, 2014, Abraxas’ proved oil and natural gas reserves
consisted of approximately 42.4 MMBoe, a net increase of 11.4 MMBoe, or
approximately 37%, over 2013 year end reserves of 31.0 MMBoe. The
majority of the reserve additions came from the Bakken where the Company
benefited from an upward revision in the type curve and successful
downspacing tests in the Middle Bakken and Three Forks. The additional
undeveloped locations on the Southern Fault Block at Jourdanton remain
unbooked. December 31, 2014 reserves consisted of approximately 29.4
million barrels of oil, 3.7 million barrels of NGLs and 55.9 billion
cubic feet of natural gas. Proved developed producing reserves grew 34%
year over year to 17.4 MMBoe and comprised 41% of proved reserves as of
December 31, 2014. The present value, using a 10% discount rate, of
future net cash flows before income taxes of Abraxas’ proved reserves
was approximately $637.4 million, using 2014 average prices of $4.35/mcf
of natural gas and $95.28/bbl of oil. The independent reserve
engineering firm DeGolyer and MacNaughton prepared a complete
engineering analysis on 98.2% of Abraxas’ proved reserves on a Boe basis.
The following table outlines changes in Abraxas’ proved reserves from
December 31, 2013 (inclusive of Canadian reserves, production and asset
sales):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
|
|
|
Natural Gas
|
|
|
NGL
|
|
|
Total
|
|
|
(MMbbl)
|
|
|
(Bcf)
|
|
|
(MMbbl)
|
|
|
(MMBoe)
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved Reserves December 31, 2013
|
|
20.9
|
|
|
48.1
|
|
|
2.0
|
|
|
31.0
|
Additions
|
|
7.8
|
|
|
6.9
|
|
|
0.9
|
|
|
9.8
|
Purchases
|
|
0.0
|
|
|
0.0
|
|
|
0.0
|
|
|
0.0
|
Revisions
|
|
2.7
|
|
|
7.4
|
|
|
1.0
|
|
|
4.9
|
Sales
|
|
(0.6)
|
|
|
(3.6)
|
|
|
(0.0)
|
|
|
(1.0)
|
Production
|
|
(1.4)
|
|
|
(2.9)
|
|
|
(0.2)
|
|
|
(2.1)
|
Proved Reserves December 31, 2014
|
|
29.4
|
|
|
55.9
|
|
|
3.7
|
|
|
42.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2014 Production
Production for the fourth quarter of 2014 averaged approximately 6,785
boepd (4,560 barrels of oil per day, 9,027 mcf of natural gas per day,
720 barrels of NGLs per day). Production for 2014 averaged approximately
5,720 boepd (3,820 barrels of oil per day, 7,944 mcf of natural gas per
day, 568 barrels of NGLs per day). 2014 production numbers exclude
Canadian production, which is now classified as discountinued
operations. This change in classification removed 67 boepd (32 barrels
of oil per day, 128 mcf of natural gas per day, 3 barrels of NGLs per
day) from 2014 production numbers. Abraxas production for the final two
weeks of December averaged approximately 8,000 Boepd with the productive
capacity of the Company estimated to be in excess of 8,500 Boepd. The
delta between actual production volumes and the productive capacity was
due to third-party gas processing constraints in the Bakken, well
downtime in the Eagle Ford, Bakken and Permian.
2014 CAPEX
For the year ended December 31, 2014, Abraxas’ capital expenditures
totaled approximately $192.8 million.
1Q15 and 2015 Guidance
Abraxas is providing the following 1Q15 guidance and is reiterating the
Company’s Full Year 2015 guidance. First quarter guidance was negatively
impacted by continued downtime, flaring and shut-ins primarily in the
Williston and Permian basins.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15E
|
|
|
2015E
|
|
|
Low
|
|
|
|
High
|
|
|
Low
|
|
|
|
High
|
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (Boepd)
|
|
6,600
|
|
|
|
6,800
|
|
|
7,200
|
|
|
|
7,300
|
% Oil
|
|
|
|
67%
|
|
|
|
|
|
|
69%
|
|
|
% NGL
|
|
|
|
9%
|
|
|
|
|
|
|
9%
|
|
|
% Natural Gas
|
|
|
|
24%
|
|
|
|
|
|
|
22%
|
|
|
Operating Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOE ($/Boe)
|
|
$10.00
|
|
|
|
$12.00
|
|
|
$10.00
|
|
|
|
$12.00
|
Production Tax (% Rev)
|
|
8.5%
|
|
|
|
9.0%
|
|
|
8.5%
|
|
|
|
9.0%
|
Cash G&A ($mm) (2) |
|
$2.3
|
|
|
|
$2.5
|
|
|
$11.5
|
|
|
|
$12.5
|
CAPEX
|
|
|
|
$10.0
|
|
|
|
|
|
|
$53.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bob Watson, President and CEO of Abraxas, commented, “Despite
significant commodity price volatility in 2014, Abraxas put together
another year of impressive production and reserve growth. Statistically,
Abraxas posted F&D costs of $13.09/boe(1), adjusted F&D
costs including future development costs of $19.48/boe(2) and
reserve replacement of 710%(3).”
“Following the violent collapse in commodity prices, Abraxas swiftly
curtailed the Company’s capital plan in December 2014. Absent a
sustained recovery in commodity prices, Abraxas may elect to further
curtail spending by delaying completions until service costs and
commodity prices justify sufficient returns on capital. Despite the
slowdown in drilling activity, we are not sitting idle as we continue to
evaluate opportunities to add to our production and reserve base
primarily in the Bakken and Eagle Ford. In evaluating every opportunity,
Abraxas maintains its intense focus on preserving the Company’s pristine
balance sheet and abundant liquidity. Moreover, each opportunity must be
accretive and earn a suitable full cycle rate of return.”
|
|
|
(1)
|
|
F&D calculated as follows. $192.8 million of 2014 CAPEX / 14.7
MMBoe of reserve additions. 14.7 MMBoe of reserve additions = 9.8
MMBoe of additions + 4.9 MMBoe of revisions.
|
(2)
|
|
Adjusted F&D including future development costs calculated as
follows. ($192.8 million of 2014 CAPEX + $94.3 million of
increased future development costs) / 14.7 MMBoe of reserve
additions. $94.3 million of future development costs = $557.8
million (2014) - $463.5 million (2013). 14.7 MMBoe of reserve
additions = 9.8 MMBoe of additions + 4.9 MMBoe of revisions.
|
(3)
|
|
Reserve replacement calculated as follows. 14.7 MMBoe of
reserve additions / 2.1 MMBoe of production. 14.7 MMBoe of reserve
additions = 9.8 MMBoe of additions + 4.9 MMBoe of revisions.
|
|
|
|
Abraxas Petroleum Corporation is a San Antonio-based crude oil and
natural gas exploration and production company with operations across
the Rocky Mountain, Permian Basin and onshore Gulf Coast regions of the
United States.
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 crude oil and natural
gas. In addition, Abraxas’ future crude oil and natural gas 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.