Abraxas Petroleum Corp. said Nov. 9 it had regained compliance with NASDAQ after a reverse-stock split boosted the company’s share price.
The NASDAQ Stock Market LLC warned Abraxas earlier this year that the company was not in compliance with its continued listing rules, which requires a minimum average closing price of $1 per share over a period of 10 consecutive trading days.
On Oct. 19, Abraxas effected a 1-for-20 reverse stock split of its issued and outstanding shares of common stock at $0.01 par value. As a result, the company’s stock began to trade above $1 per share for the first time since July 2019.
Abraxas is a San Antonio-based oil and gas E&P company with positions in the Rocky Mountain and Permian Basin regions of the U.S. The company’s operations are focused on core areas in the Bakken/Three Forks shale play in the Williston Basin and the Bone Spring/Wolfcamp in the Delaware Basin.
Following refinancing transactions with its lenders completed in August, Abraxas said it renewed the strategic alternatives review it had initiated in October 2019. Jon Hughes and Richard Moss with Petrie Partners LLC will lead the renewed review of strategic alternatives for Abraxas.
In a statement on Aug. 17 commenting on the strategic review, Abraxas Petroleum CEO Bob Watson said: “We look forward to working with Petrie to examine ways to optimize value. Our strong, concentrated asset bases in the Delaware and Williston Basins, as well as our excellent hedge book, position Abraxas for success on a standalone basis and also make us an attractive transaction partner.”
As of Sept. 30, Abraxas had $100 million outstanding under its first lien credit facility and $118.3 million outstanding on its second lien credit facility, according to the company’s filing with the U.S. Securities and Exchange Commission.
Following the oil market collapse earlier this year, Abraxas shut in production in mid-March 2020, which resulted in future cash flows being driven by hedge settlements, and an ability to successfully implement cost reductions and restart production. By June, the company said it started bringing the shut-in wells back on production and, as of Sep. 30, the majority of such wells have been brought back on production.
Recommended Reading
Diversified Bolts-On Appalachia Gas Production, Midstream Assets
2025-01-06 - Diversified Energy will buy Summit Natural Resources’ assets, including producing wells and coal mine methane wells, in the southern part of the Appalachian Basin.
Elliott Demands Phillips 66 Sell or Spin Off Midstream Biz for $40B+
2025-02-12 - Activist investor Elliott Capital Management disclosed Feb. 11 it has built a $2.5 billion position in Phillips 66 and issued a series of initiatives, including the sale or spinning off of the company’s midstream assets.
Howard Energy Partners Closes on Deal to Buy Midship Interests
2025-02-13 - The Midship Pipeline takes natural gas from the SCOOP/STACK plays to the Gulf Coast to feed demand in the Southeast.
Matador’s Stake in San Mateo JV Rises to $1.5B After Pipeline Deal
2024-12-19 - Matador Resources closed a deal adding subsidiary Pronto Midstream to its 51%-owned joint venture with Five Point Energy.
DT Midstream Closes $1.2B Midwest Pipeline Acquisition with ONEOK
2024-12-31 - DT Midstream acquired three pipelines with more than 3.7 Bcf/d of capacity that span approximately 1,300 miles across seven states.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.