Abraxas Petroleum Earnings: An Early Look

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Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Abraxas Petroleum (NASDAQ: AXAS  ) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Abraxas is a small, independent oil and gas company, with assets scattered across the middle of North America in places including Alberta, the Permian Basin, and the onshore Gulf Coast. Let's take an early look at what's been happening with Abraxas Petroleum over the past quarter and what we're likely to see in its quarterly report on Friday.

Stats on Abraxas Petroleum

Analyst EPS Estimate


Year-Ago EPS


Revenue Estimate

$18.24 million

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

Will Abraxas Petroleum generate some energy this quarter?
Analysts have gotten less optimistic about Abraxas Petroleum's earnings prospects in recent months. They've worsened their original break-even estimate for the just-ended quarter by a penny per share, and they've cut $0.04 per share off their full-year 2013 views. But since early December, the stock has done well, rising 16%.

For years, Abraxas struggled to break into the big leagues among small independent oil and gas companies. With its assets scattered across North America, it was hard for the company to focus on any one area, despite having promising locations like the Eagle Ford among its holdings.

Last year, though, Abraxas decided to concentrate on the Bakken, spending the bulk of its capital expenditure budget in the area and the nearby Niobrara and seeking to sell off most of its Eagle Ford and Alberta assets. In doing so, Abraxas hopes to follow the same game plan that brought Kodiak Oil & Gas (UNKNOWN: KOG.DL  ) to profitability, as Kodiak has greatly increased its production from the greater Williston Basin area to send revenue soaring. Northern Oil & Gas (NYSEMKT: NOG  ) achieved similarly attractive results from its strategy to concentrate in the Bakken.

In the past quarter, Abraxas has had some positive news. Back in November, it doubled its production guidance for 2013, with an implied growth rate of 21%-28%. More recently, Abraxas came out with its operational update last month, showing good growth in oil and gas-liquids reserves during 2012 at the expense of natural-gas capacity.

In its quarterly report, watch for Abraxas to comment on its ongoing transition toward more lucrative oil and liquids, as well as how its chosen wells in the Bakken and its remaining Eagle Ford assets are performing. If all goes well, Abraxas could see some of the same success that has vaulted its peers higher over the years.

Kodiak Oil & Gas is a dynamic growth story, but one with great opportunities and great risks. Before you hitch your horse to this carriage let us help you with your due diligence. To see if Kodiak is currently a buy or sell, check out our new premium report.

Click here to add Abraxas Petroleum to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 13, 2013, at 1:42 PM, jblakely444 wrote:

    You're kidding right? kog has been a nine dollar stock forever. axas has NOT sold off their eagleford fact they currently have a 10 well program drilling right now.

    What this looks like is an attempt to pump kog. There are much better plays. Keep your eye on axas though they have two bakken wells set to release 30 production rates.

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Related Tickers

9/30/2016 4:00 PM
AXAS $1.69 Up +0.02 +1.20%
Abraxas Petroleum CAPS Rating: **
KOG.DL $0.00 Down +0.00 +0.00%
Kodiak Oil and Gas CAPS Rating: *****
NOG $2.68 Down -0.24 -8.22%
Northern Oil and G… CAPS Rating: **