Abraxas Petroleum Prices Upsized Common Shares Offering

U.S.-based oil and natural gas explorer, Abraxas Petroleum Corp.AXAS stated that it has recently priced an underwritten upsized public offering of 25,000,000 shares of common stock at a price of $2.40 apiece. A 30-day option is granted to the underwriters to purchase up to 3,750,000 additional shares of common stock. The offering is scheduled to get closed by Jan 25, subject to customary closing conditions.

Abraxas intends to use the net proceeds from this offering, including the proceeds from the exercise of underwriters' option, to boost its drilling program with a capex budget of $110 million for 2017. The proceeds are also expected to help in acquisitions and repayment of outstanding debt under the company's credit facility.

San Antonio, TX-based Abraxas Petroleum is an independent energy company, which deals with the exploration, production and development of oil and natural gas. The company has its operations spread across Rocky Mountain, Permian Basin and South Texas regions of the U.S.

The company currently carries a Zacks Ranks #1 (Strong Buy). It has significantly outperformed the Zacks categorized US Oil and Gas Exploration & Production industry over the prior three months. During the period, Abraxas shares registered a growth of around 40%, while the broader industry gained just 5%.

Other favorably placed stocks in the space are Crescent Point Energy Corp. CPG , Penntex Midstream Partners L.P. PTXP and Rice Midstream Partners L.P. RMP . All these stocks sport a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

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Abraxas Petroleum Corporation (AXAS): Free Stock Analysis Report

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Crescent Point Energy Corporation (CPG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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