Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ABRAXAS PETROLEUM CORP | axas8k082610.htm |
| EX-10.1 - LIMITED LIABILITY COMPANY AGREEMENT - ABRAXAS PETROLEUM CORP | llcagrmt.htm |
| EX-99.1 - NEWS RELEASE - ABRAXAS PETROLEUM CORP | newsrelease.htm |
| EX-2.1 - SUBSCRIPTION AND CONTRIBUTION AGREEMENT - ABRAXAS PETROLEUM CORP | subcontagrmt.htm |
Exhibit 99.2
UNAUDITED PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma financial information is derived from the historical financial statements of the Company adjusted to reflect the following:
On August 18, 2010, Abraxas Petroleum Corporation and its wholly-owned subsidiary, Abraxas Operating, LLC, agreed to contribute 8,333 net acres in the Eagle Ford Shale play to Blue Eagle Energy, LLC (the “Blue Eagle JV”) and received a $25 million equity interest in the Blue Eagle JV pursuant to the terms of a Subscription and Contribution Agreement among Abraxas Petroleum, Abraxas Operating, Blue Eagle and Blue Stone Oil & Gas, LLC.
The Unaudited Pro Forma Condensed Balance Sheet of the Company as of June 30, 2010, has been prepared assuming that the contribution of the acreage and formation of Blue Eagle JV were consummated on June 30, 2010. The Unaudited Pro Forma Statements of Operations of the Company for the year ended December 31, 2009 and for the six month period ended June 30, 2010 have been prepared assuming that the transactions were consummated at the beginning of the reporting period.
The Unaudited Pro Forma Financial Information should be read in conjunction with the notes thereto, the Consolidated Financial Statements of the Company for the year ended December 31, 2009 and the six months ended June 30, 2010 and the notes thereto.
The Unaudited Pro Forma Financial Information is not indicative of the financial position or results of operations of the Company which would actually have occurred if the transactions were consummated 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 crude oil and natural gas production declines, reductions in prices paid for crude oil and natural gas, future acquisitions and other factors.
Abraxas Petroleum Corporation
Unaudited Proforma Condensed Balance Sheets
June 30, 2010
|
Historical
|
Pro Forma adjustments
|
Pro Forma
|
||||||||||
|
(in thousands)
|
||||||||||||
|
Assets:
|
||||||||||||
|
Current assets:
|
||||||||||||
|
Cash
|
$ | 2,594 | $ | - | $ | 2,594 | ||||||
|
Accounts receivable, net:
|
||||||||||||
|
Joint owners
|
943 | - | 943 | |||||||||
|
Oil and gas production
|
6,886 | - | 6,886 | |||||||||
|
Other
|
791 | - | 791 | |||||||||
| 8,620 | - | 8,620 | ||||||||||
|
Derivative asset – current
|
4,209 | - | 4,209 | |||||||||
|
Other current assets
|
405 | - | 405 | |||||||||
|
Total current assets
|
15,828 | - | 15,828 | |||||||||
|
Property and equipment:
|
||||||||||||
|
Oil and gas properties, full cost method of accounting:
|
||||||||||||
|
Proved
|
451,616 | (25,000 | ) |
(1a)
|
426,616 | |||||||
|
Other property and equipment
|
11,356 | - | 11,356 | |||||||||
|
Total
|
462,972 | (25,000 | ) | 437,972 | ||||||||
|
Less accumulated depreciation, depletion, and amortization
|
(317,906 | ) | - | (317,906 | ) | |||||||
|
Total property and equipment – net
|
145,066 | (25,000 | ) | 120,066 | ||||||||
|
|
||||||||||||
|
Investment in Joint Venture
|
- | 25,000 |
(1b)
|
25,000 | ||||||||
|
Deferred financing fees, net
|
4,621 | - | 4,621 | |||||||||
|
Derivative asset – long-term
|
7,480 | - | 7,480 | |||||||||
|
Other assets
|
864 | - | 864 | |||||||||
|
Total assets
|
$ | 173,859 | $ | - | $ | 173,859 | ||||||
|
Liabilities and Stockholders’ Deficit
|
||||||||||||
|
Current liabilities:
|
||||||||||||
|
Accounts payable
|
$ | 6,205 | $ | $ | 6,205 | |||||||
|
Oil and gas production payable
|
3,313 | - | 3,313 | |||||||||
|
Accrued interest
|
392 | - | 392 | |||||||||
|
Other accrued expenses
|
1,480 | - | 1,480 | |||||||||
|
Derivative liability - current
|
4,793 | - | 4,793 | |||||||||
|
Current maturities of long-term debt
|
146 | - | 146 | |||||||||
|
Total current liabilities
|
16,329 | - | 16,329 | |||||||||
|
Long-term debt
|
144,317 | - | 144,317 | |||||||||
|
Derivative liability - long-term
|
4,669 | - | 4,669 | |||||||||
|
Future site restoration
|
9,634 | - | 9,634 | |||||||||
|
Total liabilities
|
174,949 | - | 174,949 | |||||||||
|
Stockholders’ deficit:
|
||||||||||||
|
Common Stock, par value $.01 per share-
|
764 | - | 764 | |||||||||
|
Additional paid-in capital
|
183,494 | - | 183,494 | |||||||||
|
Accumulated deficit
|
(185,491 | ) | - | (185,491 | ) | |||||||
|
Accumulated other comprehensive income
|
143 | - | 143 | |||||||||
|
Total stockholders’ deficit
|
(1,090 | ) | - | (1,090 | ) | |||||||
|
Total liabilities and stockholders’ deficit
|
$ | 173,859 | $ | - | $ | 173,859 | ||||||
Abraxas Petroleum Corporation
Unaudited Proforma Statement of Operations
Year Ended December 31, 2009
|
Historical
|
Pro Forma Adjustments
|
Pro Forma
|
||||||||||
|
(In thousands except per share data)
|
||||||||||||
|
Revenues:
|
||||||||||||
|
Oil and gas production revenues
|
$ | 51,829 | $ | - | $ | 51,829 | ||||||
|
Rig revenues
|
914 | - | 914 | |||||||||
|
Other
|
7 | - | 7 | |||||||||
| 52,750 | - | 52,750 | ||||||||||
|
Operating costs and expenses:
|
||||||||||||
|
Lease operating and production taxes
|
26,224 | - | 26,224 | |||||||||
|
Depreciation, depletion, and amortization
|
17,886 | (1,557 | ) |
(2a)
|
16,329 | |||||||
|
Rig operations
|
758 | - | 758 | |||||||||
|
General and administrative
|
7,705 | - | 7,705 | |||||||||
| 52,573 | (1,557 | ) | 51,016 | |||||||||
|
Operating income
|
177 | 1,557 | 1,734 | |||||||||
|
Other (income) expense:
|
||||||||||||
|
Interest income
|
(15 | ) | - | (15 | ) | |||||||
|
Amortization of deferred financing fees
|
1,326 | - | 1,326 | |||||||||
|
Interest expense
|
11,346 | - | 11,346 | |||||||||
|
Financing fees
|
362 | - | 362 | |||||||||
|
Loss on derivative contracts
|
12,322 | - | 12,322 | |||||||||
|
Other
|
2,071 | - | 2,071 | |||||||||
| 27,412 | - | 27,412 | ||||||||||
|
Net loss before income tax and non-controlling interest
|
(27,235 | ) | 1,557 | (25,678 | ) | |||||||
|
Income tax
|
1,290 | - | 1,290 | |||||||||
|
Net loss attributable to non-controlling interest
|
9,745 | - | 9,745 | |||||||||
|
Net loss attributable to Abraxas
|
(18,780 | ) | 1,557 | (17,223 | ) | |||||||
|
Basic earnings per common share:
|
||||||||||||
|
Net income per common share - basic
|
$ | (0.34 | ) | $ | (0.31 | ) | ||||||
|
Net income per common share - diluted
|
$ | (0.34 | ) | $ | (0.31 | ) | ||||||
|
Weighted average shares:
|
||||||||||||
|
Basic
|
55,499 | 55,499 | ||||||||||
|
Diluted
|
55,499 | 55,499 | ||||||||||
Abraxas Petroleum Corporation
Unaudited Proforma Statement of Operations
Six Months Ended June 30, 2010
|
Historical
|
Pro Forma Adjustments
|
Pro Forma
|
||||||||||
|
(In thousands except per share data)
|
||||||||||||
|
Revenues:
|
||||||||||||
|
Oil and gas production revenues
|
$ | 30,509 | $ | - | $ | 30,509 | ||||||
|
Rig revenues
|
520 | - | 520 | |||||||||
|
Other
|
6 | - | 6 | |||||||||
| 31,035 | - | 31,035 | ||||||||||
|
Operating costs and expenses:
|
||||||||||||
|
Lease operating and production taxes
|
12,854 | - | 12,854 | |||||||||
|
Depreciation, depletion, and amortization
|
8,674 | (744 | ) |
(3a)
|
7,930 | |||||||
|
Rig operations
|
390 | - | 390 | |||||||||
|
General and administrative
|
4,332 | - | 4,332 | |||||||||
| 26,250 | (744 | ) | 25,506 | |||||||||
|
Operating income
|
4,785 | 744 | 5,529 | |||||||||
|
Other (income) expense:
|
||||||||||||
|
Interest income
|
(4 | ) | - | (4 | ) | |||||||
|
Amortization of deferred financing fees
|
1,322 | - | 1,322 | |||||||||
|
Interest expense
|
4,586 | - | 4,586 | |||||||||
|
Gain on derivative contracts
|
(17,527 | ) | - | (17,527 | ) | |||||||
|
Other
|
(75 | ) | - | (75 | ) | |||||||
| (11,698 | ) | - | (11,698 | ) | ||||||||
|
Net income
|
$ | 16,483 | $ | 744 | $ | 17,227 | ||||||
|
Basic earnings per common share:
|
||||||||||||
|
Net income per common share - basic
|
$ | 0.22 | $ | 0.23 | ||||||||
|
Net income per common share - diluted
|
$ | 0.21 | $ | 0.22 | ||||||||
|
Weighted average shares:
|
||||||||||||
|
Basic
|
75,824 | 75,824 | ||||||||||
|
Diluted
|
77,052 | 77,052 | ||||||||||
NOTE 1. The Unaudited Pro Forma Condensed Balance Sheet as of June 30, 2010, reflects the disposition of properties and formation of Blue Eagle JV as if it had occurred as of June 30, 2010:
|
|
(a)
|
Contribution of oil and gas properties to Blue Eagle JV. This represents a credit to the full cost pool with no gain being recognized in accordance with full cost accounting rules. At the time the transaction was consummated, Abraxas had not yet acquired all of the committed acreage. Abraxas has until December 31, 2010 to satisfy the acreage commitment which will require a cash outlay of $400,000 to $700,000.
|
|
|
(b)
|
Investment in Blue Eagle JV.
|
|
|
There were no liabilities associated with the properties contributed.
|
NOTE 2. The Unaudited Pro Forma Statement of Operations for the year ended December 31, 2009, reflects the disposition of properties and formation of Blue Eagle JV as if it were consummated on January 1, 2009.
|
|
(a)
|
Adjust depletion to reflect the impact of the properties contributed to the Blue Eagle JV.
|
NOTE 3. The Unaudited Pro Forma Statement of Operations for the six months ended June 30, 2010, reflects the disposition of properties and formation of Blue Eagle JV as if it were consummated on January 1, 2009.
|
|
(a)
|
Adjust depletion to reflect the impact of the properties contributed to the Blue Eagle JV.
|
NOTE 4. There was no historical production associated with the properties contributed to the Blue Eagle JV, accordingly there is no adjustment to operations related to these properties. Additionally there is no adjustment to equity or earnings of the joint venture.