UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 8 - K/A Number 1
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
February 26, 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>
The undersigned registrant hereby amends the following items, financial
statements and exhibits of its Current Report on Form 8-K dated January 28,
1999, as set forth in the pages attached hereto.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(B)Unaudited Pro Forma Financial Statements
(1) Pro Forma Condensed Balance Sheet as of September 30, 1998.
(2) Pro Forma Statement of Operations for the year ended December 31,
1997 and for the nine months ended September 30, 1998.
<PAGE>
ITEM 7 - FINANCIAL STATEMENTS AND EXHIBITS
(b) Pro Forma Financial Information
UNAUDITED PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma financial statements are derived from the
historical financial statements of Abraxas Petroleum Corporation (Company) and
are adjusted to reflect the divestiture of the Company's Wyoming properties,
previously reported on Form 8-K and Form 8-K/A Number 1 filed on November 30,
1998 and January 27, 1999 respectively. The unaudited pro forma statements also
reflect the acquisition of New Cache Petroleums Ltd (New Cache) described in the
Form 8-K filed on January 28, 1999.
The unaudited pro forma condensed balance sheet of the Company as of September
30, 1998 has been prepared assuming that the divestiture of the Wyoming
properties and the acquisition of New Cache occurred on September 30, 1998. The
historical balance sheet of New Cache is as of August 31, 1998 as their fiscal
year ended on November 30. The unaudited pro forma consolidated statements of
operations are presented as if the divestiture of the Wyoming properties and the
acquisition of New Cache occurred at the beginning of the period presented. The
historical financial statements of New Cache included in the pro forma
statements are for the nine months ended August 31, 1998 and November 30, 1997
respectively.
The unaudited pro forma information is presented for illustrative purposes only
and may not be indicative of the results that would have been obtained had the
divestiture and acquisition actually occurred on the dates assumed, nor is it
necessarily indicative of the future consolidated results of operations. While
the Company believes that cost savings in general and administrative expense for
the combined entities will be achieved, these potential cost savings have not
been included in the pro forma statements of operations.
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<TABLE>
<CAPTION>
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
September 30, 1998
-------------------------------------------------------------------------------
Abraxas Divestiture New Cache Abraxas/
Petroleum of Wyoming Ltd. Pro Forma New Cache
Historical Properties Sub-total Historical Adjustments Pro Forma
----------- -------------- ---------- ------------ ------------- -----------
(In Thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Current Assets
Cash ...................... $ 11,268 $ -- $ 11,268 $ -- $ (3,064)(2) $ 8,204
Accounts receivable, less
allowance for doubtful
accounts .................. 8,952 -- 8,952 5,391 -- 14,343
Property held for sale .... 60,250 (60,250)(2) -- -- -- --
Equipment inventory ....... 493 -- 493 -- -- 493
Other current assets ...... 185 -- 185 -- -- 185
--------- --------- --------- --------- --------- ---------
Total current assets .... 81,148 (60,250) 20,898 5,391 (3,064) 23,225
Property and equipment, based
on the full cost method of
accounting - net ........... 259,964 1,650 (2) 261,614 107,950 (1,141)(3) 368,423
Deferred financing fees, net of
accumulated amortization 8,656 -- 8,656 -- -- 8,656
Restricted cash ............
40 -- 40 -- -- 40
Other assets ................ 1,222 602 (3) 1,824 -- -- 1,824
--------- --------- --------- --------- --------- ---------
Total assets ............... $ 351,030 $ (57,998) $ 293,032 $ 113,341 $ (4,205) $ 402,168
========= ========= ========= ========= ========= =========
</TABLE>
See adjustments to unaudited pro forma financial statements.
<PAGE>
<TABLE>
<CAPTION>
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
September 30, 1998
-------------------------------------------------------------------------------
Abraxas Divestiture New Cache Abraxas/
Petroleum of Wyoming Ltd. Pro Forma New Cache
Historical Properties Sub-total Historical Adjustments Pro Forma
----------- -------------- ---------- ------------ ------------- -----------
(In Thousands)
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ........ $ 9,450 $ -- $ 9,450 $ 6,122 $ -- $ 15,572
Oil and gas production
payable ................ 3,285 -- 3,285 -- -- 3,285
Accrued interest ........ 13,253 -- 13,253 -- -- 13,253
Income taxes payable .... 162 -- 162 -- -- 162
Other accrued expenses .. 1,109 -- 1,109 -- -- 1,109
--------- --------- --------- --------- --------- ---------
Total current liabilities 27,259 -- 27,259 6,122 -- 33,381
Long-term debt:
Senior notes .............. 275,000 (57,998)(1) 217,002 -- 57,998 (1) 275,000
Credit facility ........... 100 -- 100 24,426 2,269 (2) 26,795
Other ..................... 7,076 -- 7,076 -- -- 7,076
--------- --------- --------- --------- --------- ---------
282,176 (57,998) 224,178 24,426 60,267 308,871
Premium on senior notes ... 3,471 -- 3,471 -- -- 3,471
Deferred income taxes ..... 21,976 -- 21,976 17,857 -- 39,833
Minority interest in foreign
subsidiary ............... 9,392 -- 9,392 -- -- 9,392
Future site restoration ... 3,279 -- 3,279 464 -- 3,743
Stockholders' equity ...... 3,477 -- 3,477 64,472 (64,472) 3,477
--------- --------- --------- --------- ---------- ---------
Total liabilities and
stockholders' equity ... $ 351,030 $ (57,998) $ 293,032 $ 113,341 $ (4,205) $ 402,168
========= ========= ========= ========= ========== =========
</TABLE>
See adjustments to unaudited pro forma financial statements.
<PAGE>
<TABLE>
<CAPTION>
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
Nine months ended September 30, 1998
-------------------------------------------------------------------------------
Abraxas Divestiture New Cache Abraxas/
Petroleum of Wyoming Ltd. Pro Forma New Cache
Historical Properties Sub-total Historical Adjustments Pro Forma
----------- -------------- ---------- ------------ ------------- ----------
(In Thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
Revenue:
Oil and gas production revenues ............ $ 41,406 $(10,189)(1) $ 31,217 $ 12,409 $ -- $ 43,626
Gas processing revenues .................... 2,369 -- 2,369 -- -- 2,369
Rig revenues ............................... 350 -- 350 -- -- 350
Other ...................................... 1,884 84 (3) 1,968 661 -- 2,629
-------- --------- --------- --------- --------- ----------
46,009 (10,105) 35,904 13,070 -- 48,974
Operating costs and expenses:
Lease operating and production taxes ....... 12,530 (1,775)(1) 10,755 4,838 -- 15,593
Gas processing costs ....................... 857 -- 857 -- -- 857
Depreciation, depletion, and amortization .. 26,049 (3,415)(1) 22,634 8,184 -- 30,818
Rig operations ............................. 381 -- 381 -- -- 381
General and administrative ................. 3,957 -- 3,957 1,367 -- 5,324
-------- --------- --------- --------- --------- ----------
43,774 (5,190) 38,584 14,392 -- 52,976
-------- --------- --------- --------- --------- ----------
Operating income .............................. 2,235 (4,915) (2,680) (1,322) -- (4,002)
Other (income) expense:
Interest income ............................ (418) -- (418) -- -- (418)
Amortization of deferred financing fee ..... 913 -- 913 -- -- 913
Interest expense ........................... 22,795 (7,230)(2) 15,565 769 7,230 (1) 23,564
-------- --------- --------- --------- ------- -----------
23,290 (7,230) 16,060 769 7,230 24,059
-------- --------- --------- --------- ------- -----------
Income (loss) before taxes .................... (21,055) 2,315 (18,740) (2,091) (7,230) (28,061)
Income tax expense (benefit):
Current .................................... 208 -- 208 146 -- 354
Deferred ................................... (4,741) -- (4,741) (479) -- (5,220)
Minority interest in income of
consolidated foreign subsidiary ............ (50) -- (50) -- -- (50)
-------- --------- --------- --------- -------- -----------
Income (loss) ................................. $ (16,472) $ 2,315 $(14,157) $ (1,758) $(7,230) $ (23,145)
========== ========= ========= ========= ======== ===========
Net income (loss) per common share ......... $ (2.60) $ .36 $ (2.24) $ (3.66)
========== ========= ========= ===========
Net income (loss) per common share - assuming
dilution: ................................. $ (2.60) $ .36 $ (2.24) $ (3.66)
========== ========= ========= ===========
</TABLE>
See adjustments to unaudited pro forma financial statements.
<PAGE>
<TABLE>
<CAPTION>
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
Year ended December 31, 1997
-------------------------------------------------------------------------------
Abraxas Divestiture New Cache Abraxas/
Petroleum of Wyoming Ltd. Pro Forma New Cache
Historical Properties Sub-total Historical Adjustments Pro Forma
----------- -------------- ---------- ------------ ------------- -----------
(In Thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
Revenue:
Oil and gas production revenues ............ $ 65,826 $(13,773)(1) $ 52,053 $ 12,884 $ -- $ 64,937
Gas processing revenues .................... 3,568 -- 3,568 -- -- 3,568
Rig revenues ............................... 334 -- 334 -- -- 334
Other ..................................... 1,203 114 (3) 1,317 812 -- 2,129
-------- --------- --------- --------- --------- ----------
46,009 (13,659) 57,272 13,696 -- 70,968
Operating costs and expenses:
Lease operating and production taxes ....... 14,881 (1,386)(1) 12,495 4,040 -- 16,535
Gas processing costs ....................... 1,252 -- 1,252 -- -- 1,252
Depreciation, depletion, and amortization... 30,581 (7,485)(1) 23,096 5,941 -- 29,037
Proved property impairment.................. 4,600 -- 4,600 -- -- 4,600
Rig operations ............................. 296 -- 296 -- -- 296
General and administrative ................. 4,171 -- 4,171 1,542 -- 5,713
-------- --------- --------- --------- --------- ---------
55,781 (9,874) 45,910 11,523 -- 57,433
-------- --------- --------- --------- --------- ---------
Operating income............................... 15,150 (3,788) 11,362 2,173 -- 13,535
Other (income) expense:
Interest income ............................ (320) -- (320) (110) -- (430)
Amortization of deferred financing fee...... 1,260 -- 1,260 -- -- 1,260
Interest expense ........................... 24,620 (3,635)(2) 20,985 715 3,635 (1) 25,335
Other....................................... (369) -- (369) -- -- (369)
-------- --------- --------- --------- --------- ---------
25,191 (3,635) 21,556) 605 3,635 25,796
-------- --------- --------- --------- --------- ---------
Income (loss) before taxes .................... (10,041) (153) (10,194) 1,568 (3,635) (12,261)
Income tax expense (benefit):
Current .................................... 244 -- 244 175 -- 419
Deferred ................................... (4,135) -- (4,135) 854 -- (3,281)
Minority interest in income of
consolidated foreign subsidiary ............ 335 -- 335 -- -- 335
-------- --------- --------- --------- --------- ---------
Income (loss) ................................. (6,485) (153) (6,638) 539 (3,635) (9,734)
Less dividend requirement on cumulative
preferred stock.............................. (183) -- (183) -- -- (183)
-------- --------- --------- --------- --------- ---------
Net income (loss) applicable to common stock... $ (6,668) $ (153) $ (6,821) $ 539 $ (3,635) $ (9,917)
======== ========= ========= ========= ========= =========
Net income (loss) per common share........... $ (1.11) $ (.02) $ (1.13) $ (1.65)
======== ========= ========= =========
Net income (loss) per common share - assuming
dilution:.................................. $ (1.11) $ (.02) $ (1.13) $ (1.65)
======== ========= ========= =========
</TABLE>
See adjustments to unaudited pro forma financial statements.
<PAGE>
ADJUSTMENTS TO UNAUDITED PRO FORMA FINANCIAL STATEMENTS
WYOMING DIVESTITURE
Adjustments to the Unaudited Pro Forma Condensed Consolidated Balance Sheet:
The Unaudited Pro Forma Condensed Consolidated Balance Sheet is presented as it
the transaction had occurred as of September 30, 1998.
(1) To record net cash proceeds of the transaction as a reduction of long-term
debt.
(2) To adjust property held for sale and property and equipment to reflect
actual sales proceeds.
(3) To record the Company's investment in the Partnership.
Adjustments to the Unaudited Pro Forma Statement of Operations:
The Unaudited Pro Forma Statements of Operations are presented as if the
transaction had been occurred as of the beginning of the periods presented.
(1) To adjust oil and gas production revenues, lease operating and
production taxes and depreciation, depletion and amortization as if this
transaction had been completed as of the beginning of the period.
(2) To adjust interest expense, giving effect to paydown of the
Company's long term debt, at the Company's assumed average interest rates.
(3) To recognize Company's one percent (1%) management fee from the
Partnership for the period.
NEW CACHE ACQUISITION
The Unaudited Pro Forma Condensed Consolidated Balance Sheet is presented as it
the transaction had occurred as of September 30, 1998.
Adjustments to the Unaudited Pro Forma Condensed Consolidated Balance Sheet:
(1) Record long-term debt associated with the New Cache acquisition,
reduction in long-term debt was recognized as the result of the Wyoming
divestiture proceeds. Debt is being reinstated as the Wyoming divestiture
proceeds were reinvested in the New Cache acquisition.
(2) Record additional long-term debt associated with the New Cache
acquisition, and additional cash invested.
(3) Record increase in basis of oil and gas properties for acquisition
cost in excess of historical basis.
Adjustments to the Unaudited Pro Forma Statement of Operations:
The Unaudited Pro Forma Statements of Operations are presented as if the
transaction had been occurred as of the beginning of the periods presented.
(1) Reinstate interest expense that was previously reduced as a result
of the Wyoming divestiture. The proceeds from the Wyoming divestiture were
reinvested in the New Cache acquisition, a opposed to reduction of long-term
debt as previously reflected.
<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: February 26, 1999
