Abraxas Petroleum (AXAS) 2020 Estimates Increase As Problems Are Worked Through - Johnson Rice

Johnson Rice analyst reiterated a Buy rating and $2.50 price target on Abraxas Petroleum (NASDAQ: AXAS) after the company lowered the midpoint of its 2019 oil production guidance by ~9% due to prolonged shut-ins in the Bakken after a series of casing/tubular failures on its 4-well Lillibridge pad, and continued gas flaring. The company also received a notice concerning its non-compliance with NASDAQ continued listing standards requiring an average closing price of over $1.00 for 30 consecutive trading days. The company has 180 days to meet the standard and regain
compliance for continued listing on the exchange.

The analyst stated "The company now believes the majority of these issues are in the past. We had previously lowered our estimates below its prior guidance following Abraxas’ 2Q19 earnings, and thus our 2019 EBITDA is unchanged at $81 million". "While our 2019 estimates are unchanged given our anticipation of the move down in guidance, we have increased our 2020 EBITDA estimate to $101 million (up from $91 million). This reflects the company’s aim to TIL its finally 12 Bakken locations simultaneously in late 2Q20".

For an analyst ratings summary and ratings history on Abraxas Petroleum click here. For more ratings news on Abraxas Petroleum click here.

Shares of Abraxas Petroleum closed at $0.54 yesterday.

You May Also Be Interested In

• Evotec (EVO) PT Lowered to $11 at H.C. Wainwright
• SLM Corp. (SLM) PT Raised to $25 at RBC Capital
• Encompass Health Corp (EHC) PT Raised to $95 at Mizuho