Abraxas Petroleum Corp
) has provided a glimpse of its 2014 capital expenditure plan.
The San Antonio-based oil and gas exploration and production
(E&P) firm is planning to invest roughly $105.0 million in
the next year.
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Out of the total capital spending program, the company will
allocate $53.8 million for Bakken shale operations. In the Bakken
shale, Abraxas will be drilling 7.2 net wells in 2014 while 6.4
net wells will likely be completed.
Another, $40.8 million will likely be spent in the Eagle Ford
shale play. In the Eagle Ford shale, Abraxas is planning to drill
5 wells and is expected to complete net 6.0 wells in 2014.
The remaining $10.4 million is expected to be invested in leasing
additional core operating assets in the Bakken and Eagle Ford
Following the 2014 capital investment plan, Abraxas anticipates
2014 output in the range of 4,900 to 5,100 barrels of oil
equivalent per day.
Abraxas also reported the completion of its previously declared
sale of WyCross properties. The company has received net $71.4
million from the asset divestment. Abraxas reveals that it will
likely utilize the proceeds to pay off debts and invest in core
operating areas in the Bakken and Eagle Ford shale plays.
Abraxas is an independent energy company engaged primarily in the
acquisition, exploration, exploitation and production of crude
oil and natural gas. The company has operations in the Rocky
Mountains in the United States, Permian Basin, onshore Gulf Coast
and in Alberta, Canada.
Abraxas currently carries a Zacks Rank #2 (Buy), which implies
that it is expected to outperform the broader U.S. equity market
over the next one to three months.
One can also consider players in the energy sector like
Harvest Natural Resources Inc.
Clayton Williams Energy Inc.
). All the stocks sport a Zacks Rank #1 (Strong Buy).