Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ABRAXAS PETROLEUM CORP | a8-kclosingofwycrosssale2.htm |
| EX-99.2 - NEWS RELEASE - ABRAXAS PETROLEUM CORP | newsrelease-wycrossclosing.htm |
Exhibit 99.1
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL DATA
On December 20, 2013, Abraxas completed the sale of the majority of the Company’s interest in the Wycross area Eagle Ford formation properties ("Wycross Properties") for net proceeds of $71.4 million after accounting for all fees and purchase price adjustments. The assets sold consist of approximately 1,200 net acres, 3.7 million barrels of proved reserves, (2.8 million barrels of oil, 3.0 billion cubic feet of gas and 0.5 million barrels of NGLs), based on the Company's June 30, 2013 internal reserve report. The Company plans to use the proceeds from this sale to immediately pay down the Company’s bank line, before being ultimately redeployed into additional operated lease blocks in the Eagle Ford and Bakken. The effective date of the sale was December 1, 2013.
The following Unaudited Pro Forma Condensed Consolidated balance sheet as of September 30, 2013, has been prepared assuming the divestiture of the Wycross Properties was consummated on September 30, 2013. The Unaudited Pro Forma Consolidated Statements of Operations for the year ended December 31, 2012 and for the nine months ended September 30, 2013, have been prepared assuming the divestiture of the Wycross Properties was consummated on January 1, 2012. These Unaudited Pro Forma Condensed financial statements should be read in conjunction with the notes thereto, and the Consolidated Financial Statements and notes thereto of Abraxas Petroleum Corporation filed with the Company’s Form 10-K for the year ended December 31, 2012 and Form 10-Q for the nine months ended September 30, 2013.
The Unaudited Pro Forma Financial Information is not indicative of the financial position or results of operations of Abraxas Petroleum Corporation which would actually have occurred if the transactions had occurred at the dates presented or which may be obtained in the future. In addition, future results may vary significantly from the results reflected in such statements due to normal oil and gas production declines, changes in prices of oil and gas, future acquisitions and other factors.
1
Abraxas Petroleum Corporation
Unaudited Pro-Forma Condensed Consolidated Balance Sheets
(in thousands)
As of September 30, 2013 | |||||||||||||
Historical | Pro-Forma Adjustments | Pro-Forma | |||||||||||
Assets | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 4,985 | $ | — | $ | 4,985 | |||||||
Accounts receivable, net | 37,851 | — | 37,851 | ||||||||||
Derivative asset – current | 735 | — | 735 | ||||||||||
Other current assets | 652 | — | 652 | ||||||||||
Total current assets | 44,223 | — | 44,223 | ||||||||||
Property and equipment: | |||||||||||||
Oil and gas properties, full cost method of accounting: | |||||||||||||
Proved | 579,365 | (31,067 | ) | (1 | ) | 548,298 | |||||||
Unproved properties excluded from depletion | 3,976 | — | 3,976 | ||||||||||
Other property and equipment | 38,858 | — | 38,858 | ||||||||||
Total | 622,199 | (31,067 | ) | 591,132 | |||||||||
Less accumulated depreciation, depletion, and amortization | (412,544 | ) | — | (412,544 | ) | ||||||||
Total property and equipment – net | 209,655 | (31,067 | ) | 178,588 | |||||||||
Deferred financing fees, net | 2,477 | — | 2,477 | ||||||||||
Derivative asset – long-term | 489 | — | 489 | ||||||||||
Other assets | 391 | — | 391 | ||||||||||
Total assets | $ | 257,235 | $ | (31,067 | ) | $ | 226,168 | ||||||
See notes to unaudited pro forma condensed consolidated financial statements.
2
Abraxas Petroleum Corporation
Unaudited Pro-Forma Condensed Consolidated Balance Sheets (continued)
(in thousands, except per share data)
As of September 30, 2013 | ||||||||||||
Historical | Pro-Forma Adjustments | Pro-Forma | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 40,750 | $ | — | $ | 40,750 | ||||||
Oil and gas production payable | 27,964 | — | 27,964 | |||||||||
Accrued interest | 67 | — | 67 | |||||||||
Other accrued expenses | 2,161 | — | 2,161 | |||||||||
Derivative liability – current | 3,784 | — | 3,784 | |||||||||
Current maturities of long-term debt | 2,113 | — | 2,113 | |||||||||
Total current liabilities | 76,839 | — | 76,839 | |||||||||
Long-term debt, excluding current maturities | 108,495 | (71,436 | ) | (2) | 37,059 | |||||||
Derivative liability – long-term | 2,022 | — | 2,022 | |||||||||
Other liabilities | 57 | — | 57 | |||||||||
Future site restoration | 10,214 | — | 10,214 | |||||||||
Total liabilities | 197,627 | (71,436 | ) | 126,191 | ||||||||
Stockholders’ Equity | ||||||||||||
Preferred stock, par value $0.01 per share, authorized 1,000,000 shares; -0- issued and outstanding | — | — | — | |||||||||
Common stock, par value $0.01 per share, authorized 200,000,000 shares; 92,799,762 issued and outstanding | 928 | — | 928 | |||||||||
Additional paid-in capital | 252,703 | — | 252,703 | |||||||||
Accumulated deficit | (193,605 | ) | 40,369 | (3) | (153,236 | ) | ||||||
Accumulated other comprehensive (loss) | (418 | ) | — | (418 | ) | |||||||
Total stockholders’ equity | 59,608 | 40,369 | 99,977 | |||||||||
Total liabilities and stockholders’ equity | $ | 257,235 | $ | (31,067 | ) | $ | 226,168 | |||||
See notes to unaudited pro forma condensed consolidated financial statements.
3
Abraxas Petroleum Corporation
Unaudited Pro Forma Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Year Ended December 31, 2012 | ||||||||||||||
Historical | Pro-Forma Adjustments | Pro-Forma | ||||||||||||
Revenue: | ||||||||||||||
Oil and gas production revenues | $ | 68,499 | $ | (823 | ) | (1) | $ | 67,676 | ||||||
Other | 74 | — | 74 | |||||||||||
68,573 | (823 | ) | 67,750 | |||||||||||
Operating costs and expenses: | ||||||||||||||
Lease operating expenses | 24,806 | (111 | ) | (1) | 24,695 | |||||||||
Production taxes | 6,613 | (39 | ) | (1) | 6,574 | |||||||||
Depreciation, depletion, and amortization | 23,016 | (877 | ) | (1) | 22,139 | |||||||||
Impairment | 19,774 | — | 19,774 | |||||||||||
General and administrative | 10,712 | — | 10,712 | |||||||||||
84,921 | (1,027 | ) | 83,894 | |||||||||||
Operating loss | (16,348 | ) | 204 | (16,144 | ) | |||||||||
Other (income) expense: | ||||||||||||||
Interest income | (4 | ) | — | (4 | ) | |||||||||
Interest expense | 5,520 | (2,265 | ) | (2) | 3,255 | |||||||||
Amortization of deferred financing fees | 937 | — | 937 | |||||||||||
Loss (gain) on derivative contracts - Realized | 459 | — | 459 | |||||||||||
Loss (gain) on derivative contracts - Unrealized | (2,669 | ) | — | (2,669 | ) | |||||||||
Equity in income of joint venture | (2,207 | ) | 1,373 | (3) | (834 | ) | ||||||||
Other | 97 | — | 97 | |||||||||||
2,133 | (892 | ) | 1,241 | |||||||||||
Net loss before income tax | (18,481 | ) | 1,096 | (17,385 | ) | |||||||||
Income tax expense | 310 | — | 310 | |||||||||||
Net loss | $ | (18,791 | ) | $ | 1,096 | $ | (17,695 | ) | ||||||
Net loss per common share – basic | $ | (0.20 | ) | $ | — | $ | (0.19 | ) | ||||||
Net loss per common share – diluted | $ | (0.20 | ) | $ | — | $ | (0.19 | ) | ||||||
Weighted average shares outstanding - basic | 91,914 | — | 91,914 | |||||||||||
Weighted average shares outstanding - diluted | 91,914 | — | 91,914 | |||||||||||
See notes to unaudited pro forma condensed consolidated financial statements.
4
Abraxas Petroleum Corporation
Unaudited Pro Forma Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Nine Months Ended September 30, 2013 | |||||||||||||
Historical | Pro-Forma Adjustments | Pro-Forma | |||||||||||
Revenue: | |||||||||||||
Oil and gas production revenues | $ | 71,733 | $ | (12,088 | ) | (1) | $ | 59,645 | |||||
Other | 52 | — | 52 | ||||||||||
71,785 | (12,088 | ) | 59,697 | ||||||||||
Operating costs and expenses: | |||||||||||||
Lease operating expenses | 18,097 | (494 | ) | (1) | 17,603 | ||||||||
Production taxes | 6,475 | (694 | ) | (1) | 5,781 | ||||||||
Depreciation, depletion, and amortization | 19,545 | (1,106 | ) | (1) | 18,439 | ||||||||
Impairment | 2,135 | — | 2,135 | ||||||||||
General and administrative | 7,737 | — | 7,737 | ||||||||||
53,989 | (2,294 | ) | 51,695 | ||||||||||
Operating income | 17,796 | (9,794 | ) | 8,002 | |||||||||
Other (income) expense: | |||||||||||||
Interest income | (2 | ) | ) | — | (2 | ) | |||||||
Interest expense | 3,577 | (1,699 | ) | (2) | 1,878 | ||||||||
Amortization of deferred financing fees | 1,020 | — | 1,020 | ||||||||||
Loss (gain) on derivative contracts - Realized | 3,832 | — | 3,832 | ||||||||||
Loss (gain) on derivative contracts - Unrealized | (2,374 | ) | — | (2,374 | ) | ||||||||
Other | 5 | — | 5 | ||||||||||
6,058 | (1,699 | ) | 4,359 | ||||||||||
Net income before income tax | 11,738 | (8,095 | ) | 3,643 | |||||||||
Income tax expense | 87 | — | 87 | ||||||||||
Net income | $ | 11,651 | $ | (8,095 | ) | $ | 3,556 | ||||||
Net income per common share – basic | $ | 0.13 | $ | — | $ | 0.04 | |||||||
Net income per common share – diluted | $ | 0.12 | $ | — | $ | 0.04 | |||||||
Weighted average shares outstanding - basic | 92,435 | — | 92,435 | ||||||||||
Weighted average shares outstanding - diluted | 93,375 | — | 93,375 | ||||||||||
See notes to unaudited pro forma condensed consolidated financial statements.
5
Notes to the Unaudited Pro Forma Condensed Consolidated Balance Sheet:
The Unaudited Pro Forma Condensed Consolidated Balance Sheet is presented as if the transactions had occurred as of September 30, 2013.
(1) | To reflect allocated cost of properties sold. |
(2) | To reduce long-term debt for net cash proceeds from the property sales. |
(3) | To adjust accumulated deficit for gain recognition |
Notes to the Unaudited Pro Forma Condensed Consolidated Statements of Operations:
The Unaudited Pro Forma Statements of Operations are presented as if the transactions had occurred as of the beginning of the period presented.
(1) | To adjust oil and gas production revenues, lease operating and production taxes and depreciation, depletion and amortization as if the transactions had been completed as of the beginning of the period. |
(2) | To adjust interest expense, giving effect to pay-down of the Company’s long-term debt, at the stated interest rates of the associated debt. |
(3) | To adjust earnings from equity method investment for income related to the properties sold that were held in the joint venture through August 2012. |
The Company estimates that the costs of completing this transaction were approximately $150,000, and estimated income taxes of approximately $570,000.
6