Abraxas Petroleum Corp (NASDAQ:AXAS) posted operating and financial results for the quarter closed September 30, 2017. The quarter resulted in revenue of $24.7 million, production of 805 Mboe, net loss of $0.8 million, adjusted net income of $6.1 million, EBITDA of $15.7 million and adjusted EBITDA a bank loan covenants of $15.9 million.
Bob Watson, the CEO and President of Abraxas, reported that they are disappointed they ran into a mechanical problem on the Caprito 83-404H, however, are thrilled to get back on the respective well and mark the completion. The returns on the course of drilling, higher than expected pressures witnessed when stimulating the preliminary flow back and Wolfcamp B volumes when remediating the well have been encouraging. Irrespective of the delay they still project to achieve their previously projected 2017 exit level of 10,750 Boepd in December.
In 2017, Abraxas recorded critical mass from their production base, sustained to focus their portfolio through the divestiture of several non-core assets and advanced on consolidating their acreage position in Ward County while maintaining a robust balance sheet. The outcome of these initiatives can already be noted in their financial statements.
Differentials for gas, NGLs and oil improved significantly during the third quarter as their production base moved towards West Texas. With the separation of several high LOE non-core legacy assets, their per unit costs even enhanced with LOE averaging $5.11 per Boe during the third quarter. To put that figure in context, Abraxas LOE in 2012 averaged at $17.26.
They project per unit costs related with G&A and LOE to materially enhance once again in 2018 as their production base records scale and they focus on their core advancement properties in Wolfcamp and Bakken. The data of this focus are noted, and will continue to be noted, in their overall profitability and operating margins.