UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 8 - K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
March 22, 1999
Abraxas Petroleum Corporation
(Exact name of registrant as specified in its charter)
Nevada
(State of other jurisdiction of incorporation)
0-19118 74-2584033
(Commission File Number) (I.R.S. Employer Identification Number)
500 N. Loop 1604 East, Suite 100
San Antonio, Texas 78232
(Address of principal executive offices)
Registrant's telephone number, including area code:
210-490-4788
<PAGE>
Item 5. OTHER EVENT
See exhibits
The following exhibits are filed as part of this report:
NUMBER DOCUMENT
99.1 Press release dated March 18, 1999.
99.2 Unadudited December 31, 1998 Financial statements
<PAGE>
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ABRAXAS PETROLEUM CORPORATION
By: ___________________________________
Chris Williford
Executive Vice President, Chief Financial
Officer and Treasurer
Dated: March 22, 1999
<PAGE>
Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE www.abraxaspetroleum.com
FOR MORE INFORMATION CONTACT:
JACK M. RONEY
VICE PRESIDENT/CORPORATE DEVELOPMENT
ABRAXAS PETROLEUM CORPORATION REPORTS
1998 YEAR-END RESERVES, FOURTH QUARTER AND YEAR-END RESULTS
SAN ANTONIO, TX (March 18, 1999) - Abraxas Petroleum Corporation (NASDAQ: AXAS)
today announced that on an ongoing basis, the Company ended 1998 with proved
reserves of 320.2 billion cubic feet equivalent (Bcfe) compared with 328.2 Bcfe
at year-end 1997. Ending reserves in the text of this release compare ongoing
operations of the Company and include the reserves of New Cache Petroleums Ltd.
which was acquired in early January 1999 and exclude the operations and reserves
of the Company's Wyoming oil and gas properties, which were sold in mid-November
1998.
The Company replaced approximately 341% of its record level 1998 production of
approximately 34.5 Bcfe. Total reserve additions for 1998 aggregated 117.7 Bcfe
despite net downward revisions of approximately 27.8 Bcfe due principally to
lower oil and gas prices at year-end.
Approximately 80% of Abraxas' proved reserves were classified as proved
developed at year-end 1998 by the Company's outside engineers, DeGolyer and
MacNaughton (U.S.) and McDaniel & Associates Consultant, Ltd. (Canada), compared
with 83% in 1997. The Company's total proved reserves of 320.2 Bcfe are
comprised of 8.1 million barrels of crude oil, 2.8 million barrels of natural
gas liquids, and 254.6 billion cubic feet of natural gas. The pre-tax net
present value (PV-10%) of Abraxas' proved reserves, including the New Cache
acquisition, decreased 12% to $237.2 million at year-end 1998, reflecting weak
commodity prices.
Approximately 79% of the Company's reserves are natural gas.
Year End Reserves
<TABLE>
<CAPTION>
1998 Proforma % Change
1998 Actual New Cache 1997 Actual 1998 Proforma/1997
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oil (MMBO) 5.6 8.1 8.9 -9%
NGL (MMBO) 2.1 2.8 8.8 -68%
Gas (BCF) 197.5 254.6 221.3 +15%
Equivalent (MMBOE) 40.6(81% gas) 53.4(79% gas) 54.7(67% gas) -2%
Equivalent (BCFE) 243.6(19% oil) 320.2(21% oil) 328.2(33% oil) -2%
PV-10% (BFIT, $MM) 181.6 237.2 268.6 -12%
</TABLE>
<PAGE>
The Company today also released financial results for the three months and year
ended December 31, 1998.
For the fourth quarter of 1998, Abraxas reported a net loss of $67.5 million, or
$10.68 per diluted common share, on revenues of $14.1 million as compared to a
net loss of $3.9 million, or $0.61 per diluted common share, on revenues of
$20.2 million for the same period of 1997. Cash flow, before changes in working
capital, for the fourth quarter of 1998, was at near break-even levels, compared
to $9.2 million, or $1.45 per diluted common share, for the fourth quarter of
1997.
The fourth quarter of 1998 included a non-cash charge for the impairment of oil
and gas properties of $61.2 million compared with a $4.6 million ($3.0 million,
net) charge in the prior year fourth quarter. Exclusive of these charges, the
Company's net loss for the 1998 quarter would have been $6.3 million, or $0.99
per diluted common share compared to a net loss of $888,000, or $0.14 per
diluted common share in the comparable 1997 quarter. The charges are the result
of the reduction in carrying value of certain oil and gas properties due to
lower commodity prices.
For the year ended December 31, 1998, Abraxas reported a net loss of $84.0
million, or $13.26 per diluted common share, on revenues of $60.1 million as
compared to a net loss of $6.7 million, or $1.11 per diluted common share, on
revenues of $70.9 million for the year ended December 31, 1997. Excluding
impairment charges, the Company's loss would have been $22.7 million or $3.59
per diluted common share for the year ended December 31, 1998, compared to a net
loss of $3.7 million or $0.61 per diluted common share for the prior year. Cash
flow, before changes in working capital, totaled $5.7 million or $0.90 per
diluted common share in 1998, compared to $26.2 million or $4.35 per diluted
common share in 1997. Overall 1998 financial results were impacted by average
oil and gas prices that were 27% and 14% respectively, below the 1997 levels.
Fourth quarter and year-end financials include operating results attributable to
the Company's Wyoming properties for only 45 days of the final quarter,
reflecting the sale of those properties in mid-November 1998. Additionally, the
results do not include operations from New Cache Petroleums Ltd. acquired
effective January 13, 1999.
Production in the 1998 fourth quarter decreased to 86.4 MMcfe per day from 96.3
MMcfe per day in the fourth quarter of 1997, due to the sale of the Wyoming
properties and due to curtailed capital spending related to low commodity
prices. The sale of the Wyoming properties reduced average daily production by
13.2 MMcfe per day in the fourth quarter of 1998. Including the results of the
New Cache properties for the full period, production in the 1999 first quarter
has increased to 102 MMcfe per day.
During full year 1998, the Company produced an average of 68.3 MMcf of gas per
day and 4,373 barrels of oil and natural gas liquids per day, or a total of 94.5
MMcfe per day.
"The serious conditions confronting the industry are fully reflected in our
financial results, however, we remain committed to the future as an aggressive
and opportunistic low cost producer," Abraxas' Chairman and Chief Executive
Officer, Robert Watson, said. "During the balance of 1999, our focus will be the
continued development of our south Texas horizontal Edwards play and the
exploitation of our central Alberta, Canada property base."
<PAGE>
The following tables summarize production, prices, controllable expenses and
balance sheet trends:
<TABLE>
<CAPTION>
Production and Pricing Information Three Months Twelve Months
Ended Dec. 31 Change Ended Dec. 31 Change
1998 1997 1998 1997
<S> <C> <C> <C> <C> <C> <C>
Revenues (In $000s except share data) .......... 14,075 20,240 -30% 60,084 70,932 -15%
Cash Flow (Before Working Capital Changes) ..... (23) 9,154 -$9,177 5,676 26,216 -78%
Net Income (Loss)* ............................. (67,488) (3,887) -$63,601 (83,960) (6,668) -$77,292
Net Income (Loss) Per Share* ................... (10.68) (.61) -$10.07 (13.26) (1.11) -$12.15
Net Income (Loss) Per Share* - Assuming Dilution (10.68) (.61) -$10.07 (13.26) (1.11) -$12.15
Average Shares Outstanding (Millions) .......... 6.3 6.3 6.3 6.0
*Applicable to common shareholders
Production
Crude Oil (Bpd) .............................. 1,778 2,441 -27% 1,996 2,566 -22%
NGL (Bpd) .................................... 1,654 2,623 -37% 2,377 2,719 -13%
Natural Gas (Mcfpd) .......................... 65,820 65,926 -- 68,301 57,671 +18%
MMcfepd ...................................... 86.4 96.3 -10% 94.5 89.4 +6%
Prices
Oil Price ($/Bbl) ............................ 13.33 18.13 -26% 13.65 18.63 -27%
NGL Price ($/Bbl) ............................ 6.35 11.14 -43% 6.81 10.75 -37%
Natural Gas Price ($/Mcf) .................... 1.60 2.00 -20% 1.54 1.79 -14%
Price Per $/Mcfe ............................. 1.62 2.13 -24% 1.57 2.02 -22%
Expenses
Lease Operating Expenses & Production Taxes
($/Mcfe) ..................................... 0.54 0.48 +13% 0.49 0.46 +7%
General & Administrative ($/Mcfe) ............. 0.20 0.12 +67% 0.16 0.13 +23%
</TABLE>
<TABLE>
<CAPTION>
Year Ended: December 31, 1998 December 31, 1997
------------------------------------------------------
Balance Sheet (In $000s except share data)
<S> <C> <C>
Working Capital 50,659 (9,144)
Oil & Gas Properties, Net 208,449 310,845
Total Assets 291,498 338,528
Long-Term Debt 299,698 248,617
Shareholders Equity (63,522) 26,813
Common Shares Outstanding 6,501,441 6,422,540
</TABLE>
Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas
exploration and production company that also processes natural gas. It operates
primarily along the Texas Gulf Coast, in the Permian Basin of western Texas,
western Canada and southwestern Wyoming.
###
Safe Harbor for forward-looking statement: Statements in this release looking
forward in time involve known and unknown risks and uncertainties, which may
cause the Company's actual results in future periods to be materially different
from any future performance suggested in this release. Such factors may include,
but may not be necessarily limited to, changes in the prices received by the
Company for crude oil and natural gas. In addition, the Company's future crude
oil and natural gas production is highly dependent upon the Company's level of
success in acquiring or finding additional reserves. Further, the Company
operates in an industry sector where securities values are highly volatile and
may be influenced by economic and other factors beyond the Company's control. In
the context of forward-looking information provided for in this release,
reference is made to the discussion of risk factors detailed in the Company's
filing with the Securities and Exchange Commission during the past 12 months.
<PAGE>
<TABLE>
<CAPTION>
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------------- ----------------------------
(In $000s except share data) 1998 1997 1998 1997
<S> <C> <C> <C> <C>
Revenue:
Oil and gas production revenues ................ $ 12,857 $ 18,906 $ 54,263 $ 65,826
Gas processing revenues ........................ 790 775 3,159 3,568
Rig revenues ................................... 119 84 469 334
Other .......................................... 309 475 2,193 1,203
----------- ----------- ----------- ------------
14,075 20,240 60,084 70,931
Operating costs and expenses:
Lease operating and production taxes ........... 4,311 4,278 16,841 14,881
Gas processing costs ........................... 393 61 1,250 1,252
Depreciation, depletion, and amortization ...... 5,177 10,801 31,226 30,581
Rig operations ................................. 140 82 521 296
Proved property impairment ..................... 61,224 4,600 61,224 4,600
General and administrative ..................... 1,565 1,052 5,522 4,171
----------- ----------- ----------- ------------
72,810 20,874 116,584 55,781
Other (income) expense:
Interest income ................................ (387) -- (805) (320)
Interest expense ............................... 8,053 5,982 30,848 24,620
Amortization of deferred financing fee ......... 658 327 1,571 1,260
Other .......................................... -- (369) -- (369)
----------- ----------- ----------- ------------
8,324 5,940 31,614 25,191
----------- ----------- ----------- ------------
Income (loss) before taxes and extraordinary item . (67,059) (6,574) (88,114) (10,041)
Minority interest ................................. 54 134 4 244
Income tax expense (benefit)
Current ........................................ 23 88 231 244
Deferred ....................................... 352 (2,909) (4,389) (4,135)
----------- ----------- ----------- ------------
Income (loss) ..................................... (67,488) (3,887) (83,960) (6,485)
Dividend requirement on preferred stock ........... -- -- -- (183)
=========== =========== =========== ===========
$ (67,488) $ (3,887) $ (83,960) $ (6,668)
=========== =========== =========== ===========
Weighted average shares outstanding ............... 6,321,188 6,334,305 6,331,292 6,025,294
=========== =========== =========== ===========
</TABLE>
<PAGE>
Exhibit 99.2
<TABLE>
<CAPTION>
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
December 31
-------------------------------
1997 1998
Unaudited
--------------- ---------------
(In thousands)
<S> <C> <C>
Current assets:
Cash .......................................... $ 2,876 $ 61,390
Accounts receivable, less allowance for
doubtful accounts:
Joint owners .............................. 2,149 3,337
Oil and gas production sales .............. 11,194 6,098
Other ..................................... 1,259 1,070
--------------- ---------------
14,602 10,505
Equipment inventory ........................... 367 504
Other current assets .......................... 508 844
--------------- ---------------
Total current assets ........................ 18,353 73,243
Property and equipment........................... 385,442 374,316
Less accumulated depreciation, depletion, and
amortization .................................. 74,597 165,867
--------------- ---------------
Net property and equipment based on the full cost
method of accounting for oil and gas properties
of which $11,519 and $10,675 at
December 31, 1997 and 1998, respectively,
were excluded from amortization ............. 310,845 208,449
Deferred financing fees, net of accumulated
amortization of $1,540 and $2,911 at
December 31, 1997 and 1998,
respectively .................................. 8,072 8,059
Other assets .................................... 1,258 1,747
--------------- ---------------
Total assets .................................. $ 338,528 $ 291,498
=============== ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
(UNAUDITED)
December 31
-------------------------------
1997 1998
--------------- ---------------
(In thousands)
<S> <C> <C>
Current liabilities:
Accounts payable ................................ $ 17,120 $ 10,499
Oil and gas production payable .................. 2,819 5,846
Accrued interest ................................ 4,622 5,522
Income taxes payable ............................ 164 160
Other accrued expenses .......................... 2,732 527
--------------- --------------
Total current liabilities ..................... 27,457 22,554
Long-term debt:
Credit facility ................................. 31,500 15,700
Senior notes .................................... 215,000 277,471
Other............................................ 2,117 6,527
--------------- ---------------
248,617 299,698
Deferred income taxes ............................. 27,751 19,820
Minority interest in foreign subsidiary ........... 4,813 9,672
Future site restoration .......................... 3,077 3,276
Commitments and contingencies
Stockholders' equity (Deficit):
Convertible preferred stock, 8%, authorized
1,000,000 shares; -0- shares issued and
outstanding.................................... - -
Common stock, par value $.01 per share -
authorized 50,000,000 shares; issued
6,422,540 and 6,501,441 shares at
December 31, 1997 and 1998, respectively .... 63 65
Additional paid-in capital ...................... 51,118 51,695
Accumulated deficit ............................. (19,185) (103,145)
Treasury stock, at cost, 53,023 and 171,015 shares
at December 31, 1997 and 1998, respectively ... (281) (1,167)
Accumulated other comprehensive income (loss).... (4,902) (10,970)
-------------- ---------------
Total stockholders' equity (deficit) 26,813 (63,522)
--------------- ---------------
Total liabilities and stockholders' equity
(deficit).................................... $ 338,528 $ 291,498
=============== ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Year Ended December 31
-------------------------------------------
1996 1997 1998
-------------------------------------------
(In thousands except per share data)
<S> <C> <C> <C>
Reveune:
Oil and gas production revenues ............... $ 25,749 $ 65,826 $ 54,263
Gas processing revenues ....................... 600 3,568 3,159
Rig revenues .................................. 139 334 469
Other ........................................ 165 1,203 2,193
------------- ------------ -------------
26,653 70,931 60,084
Operating costs and expenses:
Lease operating and production taxes .......... 5,858 14,881 16,841
Gas processing costs .......................... 262 1,252 1,250
Depreciation, depletion, and amortization ..... 9,605 30,581 31,226
Rig operations ................................ 169 296 521
Proved property impairment .................... - 4,600 61,224
General and administrative .................... 1,933 4,171 5,522
------------ ------------- ------------
17,827 55,781 116,584
------------ ------------- ------------
Operating income (loss).......................... 8,826 15,150 (56,500)
Other (income) expense:
Interest income ............................... (254) (320) (805)
Amortization of deferred financing fee ........ 280 1,260 1,571
Interest expense .............................. 6,241 24,620 30,848
Other ......................................... 373 (369) --
------------ ------------- ------------
6,640 25,191 31,614
------------ ------------- ------------
Income (loss) before taxes and extraordinary item 2,186 (10,041) (88,114)
Income tax expense (benefit):
Current ....................................... 176 244 231
Deferred ...................................... - (4,135) (4,389)
Minority interest in income of consolidated
foreign subsidiary ............................ 70 335 4
------------ ------------- ------------
Income (loss) before extraordinary item ......... 1,940 (6,485) (83,960)
Extraordinary item:
Debt extinguishment costs ................... $ (427) $ - $ -
------------ ------------- ------------
Net income (loss) ............................. 1,513 (6,485) (83,960)
Less dividend requirement on cumulative
preferred stock ............................. (366) (183) --
------------ ------------- ------------
Net income (loss) applicable to common stock .. $ 1,147 $ (6,668) $ (83,960)
------------ ------------- ------------
Earnings (loss) per common share:
Income (loss) before extraordinary item ... $ .27 $ (1.11) $ (13.26)
Extraordinary item ........................ (.07) - -
------------ ------------ ------------
Net income (loss) per common share ............ $ .20 $ (1.11) $ (13.26)
============ ============ ============
Earnings (loss) per common share - assuming dilution:
Income (loss) before extraordinary item ... $ .23 $ (1.11) $ (13.26)
Extraordinary item ........................ (.06) - -
------------ ------------ ------------
Net income (loss) per common share - assuming
dilution $ .17 $ (1.11) $ (13.26)
============ ============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(In thousands except share amounts)
Accumulated
Convertible Other
Preferred Stock Common Stock Treasury Stock Additional Comprehensive
--------------------------------------------------------- Paid-In Accumulated Income
Shares Amount Shares Amount Shares Amount Caprtal Deficit (Loss) Total
-------------------------------------------------------------------- ------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 45,741 $ - 5,799,762 $ 58 2,571 $ (1) $ 50,914 $ (13,664) $ (244) $ 37,063
1995 .................
Comprehensive income
(loss):
Net income ......... - - - - - - - 1,513 - 1,513
Other comprehensive
income:
Change in
unrealized
holding loss on - - - - - - - - 244 244
securities .....
Foreign currency
translation - - - - - - - - (2,406) (2,406)
adjustment .....
----------------------------------------------------------------------------------------------------------
Comprehensive income - - - - - - - 1,513 (2,162) (649)
(loss)
Issuance of common
stock for - - 5,050 (2,500) 1 41 - - 42
compensation ....... - - -
Expenses paid related
to private - - - - - - (42) - - (42)
placement offering .
Options exercised .... - - 2,000 - - - 13 - - 13
Treasury stock - - - - 74,640 (405) - - - (405)
purchased ..........
Dividend on preferred - - - - - - - (366) - (366)
stock ..............
----------------------------------------------------------------------------------------------------------
Balance at December 31,
1996 ................. 45,471 - 5,806,812 58 74,711 (405) 50,926 (12,517) (2,406) 35,656
Comprehensive income
(loss):
Net loss ........... - - - - - - - (6,485) - (6,485)
Other comprehensive
income:
Foreign currency
translation - - - - - - - - (2,496) (2,496)
adjustment .....
----------------------------------------------------------------------------------------------------------
Comprehensive income - - - - - - - (6,485) (2,496) (8,981)
(loss)
Issuance of common
stock for - - 7,735 - (21,688) 124 186 - - 310
compensation .......
Conversion of
preferred stock (45,741) - 508,183 5 - - (5) - - -
into common stock ..
Options exercised .... - - 2,000 - - - 11 - - 11
Dividend on preferred - - - - - - - (183) - (183)
stock ..............
Warrants exercised ... - - 97,810 - - - - - - -
----------------------------------------------------------------------------------------------------------
Balance at December 31,
1997 ................. - $ _ 6,422,540 $ 63 53,023 $ (281) $ 51,118 $(19,185) $ (4,902) $ 26,813
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (continued)
(In thousands except share amounts)
Accumulated
Convertible Other
Preferred Stock Common Stock Treasury Stock Additional Comprehensive
--------------------------------------------------------- Paid-In Accumulated Income
Shares Amount Shares Amount Shares Amount Caprtal Deficit (Loss) Total
-------------------------------------------------------------------- ------------------------------------
Balance at December 31,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 ................. - $ _ 6,422,540 $ 63 53,023 $ (281) $ 51,118 $ (19,185) $ (4,902) $ 26,813
Comprehensive income
(loss):
Net loss ........... - - - - - - - (83,960) - (83,960)
Other comprehensive
income:
Foreign currency
translation (6,067) (6,067)
adjustment ..... - - - - - - - - -
---------
Comprehensive income
(loss): (90,027)
Issuance of common
stock for
compensation ....... - - 4,838 - (18,263) - 114 - - 207
Purchase of treasury
stock .............. - - - - 136,255 (980) - - - (980)
Options exercised .... - - 3,000 - - - 16 - - 16
Issuance of common
stock for
acquisition of oil
and gas properties . - - 71,063 2 - - - - - 449
==========================================================================================================
Balance at December 31,
1998 ................. - $ - 6,501,441 65 171,015 $ (1,167) $ 51,118 $(103,145) $(10,970) $ (63,522)
==========================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Year Ended December 31
----------------------------------------------------------
1996 1997 1998
------------------ ------------------ -------------------
(In thousands)
<S> <C> <C> <C>
Operating Activities
Net income (loss) ........................ $ 1,513 $ (6,485) $ (83,960)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Minority interest in income of
foreign subsidiary ................ 70 335 4
Depreciation, depletion, and
amortization ...................... 9,605 30,581 31,226
Proved property impairment .......... - 4,600 61,224
Deferred income tax benefit.......... - (4,135) (4,389)
Amortization of deferred financing
fees............................... 280 1,260 1,571
Issuance of common stock for
compensation ...................... 42 310 207
Loss on marketable securities ....... 235 - -
Net loss from debt restructurings ... 427 - -
Changes in operating assets and
liabilities:
Accounts receivable ............. (6,013) (444) 4,739
Equipment inventory ............. (82) 76 (137)
Other assets .................... (133) (325) (468)
Accounts payable and accrued
expenses ...................... 7,009 10,402 (5,770)
Oil and gas production payable .. 591 466 598
Net cash provided by operating activities 13,544 36,641 4,845
Investing Activities
Capital expenditures, including purchases
and development of properties ......... (87,793) (84,111) (57,412)
Payment for purchase of CGGS,
net of cash acquired .................. (85,362) - -
Proceeds from sale of oil and gas
properties and equipment inventory .... 242 9,606 59,389
Proceeds from sale of marketable
securities ............................ 335 - -
------------------ ------------------ -------------------
Net cash (used) provided by investing
activities ............................ (172,578) (74,505) 1,977
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Abraxas Petroleum Corporation and Subsidiaries
Consolidated Statements of Cash Flows (continued)
(UNAUDITED)
Year Ended December 31
----------------------------------------------------------
1996 1997 1998
------------------ ------------------ ------------------
(In thousands)
<S> <C> <C> <C>
Financing Activities
Preferred stock dividends .................. $ (366) $ (183) $ -
Issuance of common stock, net of expenses (29) 11 3,926
Purchase of treasury stock, net ............ (405) - (979)
Proceeds from long-term borrowings ......... 305,400 33,620 83,691
Payments on long-term borrowings ........... (131,969) - (32,433)
Deferred financing fees .................... (9,688) (123) (1,688)
Other ...................................... 87 - -
------------------ ------------------ -------------------
Net cash provided by financing activities .. 163,030 33,325 52,517
------------------ ------------------ -------------------
Increase (decrease) in cash ................ 3,996 (4,539) 59,339
------------------ ------------------ -------------------
Effect of exchange rate changes on cash .... - (1,005) (825)
------------------ ------------------ -------------------
Increase (decrease) in cash ................ 3,996 (5,544) 58,514
Cash at beginning of year .................. 4,384 8,380 2,876
------------------ ------------------ -------------------
Cash at end of year......................... $ 8,380 $ 2,836 $ 61,390
================== ================== ===================
Supplemental Disclosures
Supplemental disclosures of cash flow
information:
Interest paid ......................... $ 3,863 $ 24,170 $ 29,948
================== ================== ===================
Supplemental schedule of noncash investing and financing activities:
During 1996, the Company purchased all of the capital stock of CGGS
Canadian Gas Gathering Systems, Inc. for $85,362,000, net of cash
acquired. In conjunction with the acquisition, liabilities assumed were
as follows (in thousands):
Fair value of assets acquired ............................................... $ 123,970
Cash paid for the capital stock ............................................. (85,362)
-------------------
Liabilities assumed ......................................................... $ 38,608
===================
</TABLE>
