Stock on Focus: Abraxas Petroleum Corp. (AXAS)

Company Profile:

Abraxas Petroleum Corporation, an independent energy company, engages in the acquisition, exploitation, development, and production of oil and gas properties in the United States. The company operates oil and gas assets in the Rocky Mountain, Permian Basin, and onshore Gulf Coast regions. As of December 31, 2014, the Company’s estimated net proved reserves were 42.4 million barrels of oil equivalent (MMBoe), of which 42% were classified as proved developed, 78% were oil and natural gas liquids (NGL) and 92% of which (on a PV-10 basis) were operated by the Company. The Company’s daily net production for the year ended December 31, 2014 was 5,720 barrels of oil equivalent per day (Boepd), of which 77% was oil or liquids. The company was founded in 1977 and is based in San Antonio, Texas.

Recent News:

The company will host its first quarter 2016 earnings conference call on Wednesday, May 11, 2016 at 10 AM Central Time (11 AM Eastern Time). Abraxas plans to announce first quarter 2016 operating and financial results prior to the call.

For the three months ended December 31, 2015, the company reported revenue of $15.9 million inclusive of realized hedge settlements. Net loss for the three months ended December 31, 2015 was $67.4 million, or $0.64 per share, compared to net income of $30.1 million, or $0.29 per share, for the three months ended December 31, 2014.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

AXAS’s strengths can be seen in its strong profitability and better solvency. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI is in bull territory, which stands at 46.57 with positive bias. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Abraxas Petroleum Corp. (AXAS) a Strong BUY.