Intrinsic value of Abraxas Petroleum - AXAS

Previous Close

$1.67

  Intrinsic Value

$0.03

stock screener

  Rating & Target

str. sell

-98%

  Value-price divergence*

-158%

Previous close

$1.67

 
Intrinsic value

$0.03

 
Up/down potential

-98%

 
Rating

str. sell

 
Value-price divergence*

-158%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of AXAS stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -14.93
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  57
  91
  141
  211
  306
  431
  593
  796
  1,045
  1,345
  1,699
  2,109
  2,579
  3,109
  3,699
  4,349
  5,059
  5,827
  6,653
  7,535
  8,472
  9,462
  10,504
  11,599
  12,744
  13,940
  15,188
  16,487
  17,838
  19,244
  20,704
Variable operating expenses, $m
 
  285
  440
  658
  955
  1,347
  1,852
  2,486
  3,264
  4,200
  5,305
  6,588
  8,054
  9,708
  11,551
  13,582
  15,799
  18,199
  20,778
  23,532
  26,457
  29,549
  32,805
  36,222
  39,799
  43,535
  47,431
  51,488
  55,709
  60,098
  64,660
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  130
  285
  440
  658
  955
  1,347
  1,852
  2,486
  3,264
  4,200
  5,305
  6,588
  8,054
  9,708
  11,551
  13,582
  15,799
  18,199
  20,778
  23,532
  26,457
  29,549
  32,805
  36,222
  39,799
  43,535
  47,431
  51,488
  55,709
  60,098
  64,660
Operating income, $m
  -73
  -194
  -299
  -447
  -649
  -916
  -1,259
  -1,690
  -2,219
  -2,855
  -3,606
  -4,478
  -5,475
  -6,600
  -7,852
  -9,233
  -10,740
  -12,372
  -14,125
  -15,997
  -17,986
  -20,088
  -22,301
  -24,624
  -27,055
  -29,595
  -32,243
  -35,001
  -37,871
  -40,854
  -43,955
EBITDA, $m
  -49
  -165
  -255
  -381
  -552
  -779
  -1,071
  -1,438
  -1,888
  -2,429
  -3,068
  -3,810
  -4,659
  -5,615
  -6,681
  -7,856
  -9,138
  -10,526
  -12,018
  -13,611
  -15,303
  -17,091
  -18,974
  -20,950
  -23,019
  -25,180
  -27,433
  -29,780
  -32,221
  -34,760
  -37,398
Interest expense (income), $m
  4
  3
  6
  11
  17
  25
  36
  50
  68
  90
  116
  148
  184
  225
  271
  323
  380
  443
  510
  583
  660
  742
  829
  921
  1,017
  1,117
  1,222
  1,332
  1,446
  1,565
  1,688
Earnings before tax, $m
  -96
  -197
  -306
  -458
  -666
  -941
  -1,295
  -1,740
  -2,287
  -2,945
  -3,723
  -4,626
  -5,659
  -6,824
  -8,124
  -9,556
  -11,120
  -12,814
  -14,635
  -16,580
  -18,646
  -20,830
  -23,130
  -25,544
  -28,072
  -30,712
  -33,466
  -36,333
  -39,317
  -42,419
  -45,643
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -96
  -197
  -306
  -458
  -666
  -941
  -1,295
  -1,740
  -2,287
  -2,945
  -3,723
  -4,626
  -5,659
  -6,824
  -8,124
  -9,556
  -11,120
  -12,814
  -14,635
  -16,580
  -18,646
  -20,830
  -23,130
  -25,544
  -28,072
  -30,712
  -33,466
  -36,333
  -39,317
  -42,419
  -45,643

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  162
  259
  400
  599
  869
  1,225
  1,685
  2,261
  2,969
  3,821
  4,826
  5,993
  7,327
  8,831
  10,508
  12,355
  14,372
  16,555
  18,901
  21,407
  24,068
  26,880
  29,842
  32,950
  36,204
  39,603
  43,147
  46,837
  50,677
  54,669
  58,819
Adjusted assets (=assets-cash), $m
  162
  259
  400
  599
  869
  1,225
  1,685
  2,261
  2,969
  3,821
  4,826
  5,993
  7,327
  8,831
  10,508
  12,355
  14,372
  16,555
  18,901
  21,407
  24,068
  26,880
  29,842
  32,950
  36,204
  39,603
  43,147
  46,837
  50,677
  54,669
  58,819
Revenue / Adjusted assets
  0.352
  0.351
  0.353
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
  0.352
Average production assets, $m
  181
  289
  446
  667
  968
  1,366
  1,878
  2,521
  3,310
  4,259
  5,380
  6,681
  8,168
  9,845
  11,714
  13,773
  16,021
  18,455
  21,071
  23,864
  26,830
  29,966
  33,267
  36,733
  40,360
  44,148
  48,099
  52,213
  56,494
  60,945
  65,571
Working capital, $m
  -7
  -9
  -14
  -21
  -31
  -43
  -59
  -80
  -105
  -134
  -170
  -211
  -258
  -311
  -370
  -435
  -506
  -583
  -665
  -754
  -847
  -946
  -1,050
  -1,160
  -1,274
  -1,394
  -1,519
  -1,649
  -1,784
  -1,924
  -2,070
Total debt, $m
  97
  183
  307
  483
  721
  1,036
  1,442
  1,951
  2,576
  3,328
  4,215
  5,246
  6,424
  7,752
  9,232
  10,863
  12,644
  14,572
  16,644
  18,856
  21,206
  23,689
  26,305
  29,049
  31,922
  34,923
  38,052
  41,311
  44,702
  48,227
  51,891
Total liabilities, $m
  143
  229
  353
  529
  767
  1,082
  1,488
  1,997
  2,622
  3,374
  4,261
  5,292
  6,470
  7,798
  9,278
  10,909
  12,690
  14,618
  16,690
  18,902
  21,252
  23,735
  26,351
  29,095
  31,968
  34,969
  38,098
  41,357
  44,748
  48,273
  51,937
Total equity, $m
  19
  30
  47
  70
  102
  143
  197
  265
  347
  447
  565
  701
  857
  1,033
  1,229
  1,446
  1,682
  1,937
  2,211
  2,505
  2,816
  3,145
  3,492
  3,855
  4,236
  4,634
  5,048
  5,480
  5,929
  6,396
  6,882
Total liabilities and equity, $m
  162
  259
  400
  599
  869
  1,225
  1,685
  2,262
  2,969
  3,821
  4,826
  5,993
  7,327
  8,831
  10,507
  12,355
  14,372
  16,555
  18,901
  21,407
  24,068
  26,880
  29,843
  32,950
  36,204
  39,603
  43,146
  46,837
  50,677
  54,669
  58,819
Debt-to-equity ratio
  5.105
  6.030
  6.560
  6.890
  7.090
  7.230
  7.310
  7.370
  7.410
  7.440
  7.470
  7.480
  7.490
  7.500
  7.510
  7.520
  7.520
  7.520
  7.530
  7.530
  7.530
  7.530
  7.530
  7.540
  7.540
  7.540
  7.540
  7.540
  7.540
  7.540
  7.540
Adjusted equity ratio
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117
  0.117

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -96
  -197
  -306
  -458
  -666
  -941
  -1,295
  -1,740
  -2,287
  -2,945
  -3,723
  -4,626
  -5,659
  -6,824
  -8,124
  -9,556
  -11,120
  -12,814
  -14,635
  -16,580
  -18,646
  -20,830
  -23,130
  -25,544
  -28,072
  -30,712
  -33,466
  -36,333
  -39,317
  -42,419
  -45,643
Depreciation, amort., depletion, $m
  24
  29
  45
  67
  97
  137
  188
  252
  331
  426
  538
  668
  817
  985
  1,171
  1,377
  1,602
  1,846
  2,107
  2,386
  2,683
  2,997
  3,327
  3,673
  4,036
  4,415
  4,810
  5,221
  5,649
  6,094
  6,557
Funds from operations, $m
  20
  -168
  -261
  -391
  -569
  -804
  -1,107
  -1,488
  -1,956
  -2,520
  -3,185
  -3,958
  -4,842
  -5,840
  -6,952
  -8,179
  -9,518
  -10,969
  -12,528
  -14,193
  -15,963
  -17,833
  -19,803
  -21,871
  -24,036
  -26,297
  -28,656
  -31,112
  -33,667
  -36,324
  -39,086
Change in working capital, $m
  -7
  -3
  -5
  -7
  -10
  -13
  -16
  -20
  -25
  -30
  -35
  -41
  -47
  -53
  -59
  -65
  -71
  -77
  -83
  -88
  -94
  -99
  -104
  -109
  -115
  -120
  -125
  -130
  -135
  -141
  -146
Cash from operations, $m
  27
  -165
  -256
  -384
  -560
  -792
  -1,091
  -1,468
  -1,931
  -2,490
  -3,150
  -3,917
  -4,795
  -5,787
  -6,893
  -8,114
  -9,447
  -10,892
  -12,445
  -14,105
  -15,869
  -17,734
  -19,699
  -21,762
  -23,921
  -26,178
  -28,531
  -30,982
  -33,532
  -36,184
  -38,940
Maintenance CAPEX, $m
  0
  -18
  -29
  -45
  -67
  -97
  -137
  -188
  -252
  -331
  -426
  -538
  -668
  -817
  -985
  -1,171
  -1,377
  -1,602
  -1,846
  -2,107
  -2,386
  -2,683
  -2,997
  -3,327
  -3,673
  -4,036
  -4,415
  -4,810
  -5,221
  -5,649
  -6,094
New CAPEX, $m
  -32
  -108
  -157
  -221
  -301
  -398
  -512
  -643
  -789
  -949
  -1,121
  -1,301
  -1,487
  -1,677
  -1,869
  -2,060
  -2,248
  -2,434
  -2,616
  -2,793
  -2,966
  -3,136
  -3,302
  -3,465
  -3,627
  -3,789
  -3,951
  -4,114
  -4,281
  -4,451
  -4,626
Cash from investing activities, $m
  -14
  -126
  -186
  -266
  -368
  -495
  -649
  -831
  -1,041
  -1,280
  -1,547
  -1,839
  -2,155
  -2,494
  -2,854
  -3,231
  -3,625
  -4,036
  -4,462
  -4,900
  -5,352
  -5,819
  -6,299
  -6,792
  -7,300
  -7,825
  -8,366
  -8,924
  -9,502
  -10,100
  -10,720
Free cash flow, $m
  13
  -291
  -442
  -650
  -927
  -1,287
  -1,740
  -2,299
  -2,973
  -3,770
  -4,696
  -5,756
  -6,950
  -8,281
  -9,746
  -11,344
  -13,073
  -14,928
  -16,906
  -19,005
  -21,222
  -23,553
  -25,997
  -28,554
  -31,222
  -34,002
  -36,896
  -39,906
  -43,034
  -46,284
  -49,661
Issuance/(repayment) of debt, $m
  -43
  86
  125
  175
  238
  315
  406
  509
  625
  752
  888
  1,030
  1,178
  1,328
  1,480
  1,631
  1,781
  1,928
  2,072
  2,212
  2,349
  2,484
  2,615
  2,745
  2,873
  3,001
  3,129
  3,259
  3,391
  3,525
  3,664
Issuance/(repurchase) of shares, $m
  27
  208
  322
  481
  698
  983
  1,349
  1,808
  2,370
  3,045
  3,841
  4,763
  5,815
  7,000
  8,320
  9,772
  11,356
  13,070
  14,909
  16,873
  18,957
  21,159
  23,476
  25,908
  28,453
  31,110
  33,880
  36,765
  39,766
  42,886
  46,129
Cash from financing (excl. dividends), $m  
  -16
  294
  447
  656
  936
  1,298
  1,755
  2,317
  2,995
  3,797
  4,729
  5,793
  6,993
  8,328
  9,800
  11,403
  13,137
  14,998
  16,981
  19,085
  21,306
  23,643
  26,091
  28,653
  31,326
  34,111
  37,009
  40,024
  43,157
  46,411
  49,793
Total cash flow (excl. dividends), $m
  -4
  3
  5
  6
  9
  11
  15
  18
  23
  27
  32
  37
  43
  48
  53
  59
  64
  70
  75
  80
  85
  90
  94
  99
  104
  108
  113
  118
  122
  127
  132
Retained Cash Flow (-), $m
  65
  -208
  -322
  -481
  -698
  -983
  -1,349
  -1,808
  -2,370
  -3,045
  -3,841
  -4,763
  -5,815
  -7,000
  -8,320
  -9,772
  -11,356
  -13,070
  -14,909
  -16,873
  -18,957
  -21,159
  -23,476
  -25,908
  -28,453
  -31,110
  -33,880
  -36,765
  -39,766
  -42,886
  -46,129
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -205
  -318
  -475
  -689
  -971
  -1,334
  -1,789
  -2,348
  -3,018
  -3,809
  -4,725
  -5,772
  -6,952
  -8,266
  -9,713
  -11,292
  -13,000
  -14,835
  -16,793
  -18,872
  -21,069
  -23,382
  -25,809
  -28,349
  -31,001
  -33,767
  -36,647
  -39,643
  -42,759
  -45,996
Discount rate, %
 
  9.70
  10.19
  10.69
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
  21.17
  22.23
  23.34
  24.51
  25.74
  27.02
  28.38
  29.79
  31.28
  32.85
  34.49
  36.21
  38.03
  39.93
PV of cash for distribution, $m
 
  -187
  -262
  -350
  -450
  -556
  -662
  -761
  -844
  -904
  -937
  -941
  -915
  -862
  -787
  -697
  -597
  -497
  -400
  -312
  -235
  -172
  -121
  -83
  -54
  -34
  -21
  -12
  -7
  -4
  -2
Current shareholders' claim on cash, %
  100
  47.7
  23.1
  11.4
  5.7
  2.9
  1.5
  0.8
  0.4
  0.2
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Abraxas Petroleum Corporation, an independent energy company, engages in the acquisition, exploitation, development, and production of oil and gas properties in the United States. The company operates oil and gas assets in the Rocky Mountain, Permian Basin, and onshore Gulf Coast regions. As of December 31, 2014, its estimated net proved reserves were 43.2 million barrels of oil equivalent. The company was founded in 1977 and is based in San Antonio, Texas.

FINANCIAL RATIOS  of  Abraxas Petroleum (AXAS)

Valuation Ratios
P/E Ratio -2.4
Price to Sales 4
Price to Book 11.9
Price to Tangible Book
Price to Cash Flow 8.4
Price to Free Cash Flow -45.1
Growth Rates
Sales Growth Rate -14.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -53.6%
Cap. Spend. - 3 Yr. Gr. Rate -19.6%
Financial Strength
Quick Ratio 0
Current Ratio 0.3
LT Debt to Equity 505.3%
Total Debt to Equity 510.5%
Interest Coverage -23
Management Effectiveness
Return On Assets -42.8%
Ret/ On Assets - 3 Yr. Avg. -19.9%
Return On Total Capital -56.3%
Ret/ On T. Cap. - 3 Yr. Avg. -25.3%
Return On Equity -186.4%
Return On Equity - 3 Yr. Avg. -76.9%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 57.9%
Gross Margin - 3 Yr. Avg. 61.6%
EBITDA Margin -119.3%
EBITDA Margin - 3 Yr. Avg. -55.4%
Operating Margin -128.1%
Oper. Margin - 3 Yr. Avg. -103.4%
Pre-Tax Margin -168.4%
Pre-Tax Margin - 3 Yr. Avg. -103.9%
Net Profit Margin -168.4%
Net Profit Margin - 3 Yr. Avg. -103.7%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

AXAS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AXAS stock intrinsic value calculation we used $57 million for the last fiscal year's total revenue generated by Abraxas Petroleum. The default revenue input number comes from 2016 income statement of Abraxas Petroleum. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AXAS stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 9.7%, whose default value for AXAS is calculated based on our internal credit rating of Abraxas Petroleum, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Abraxas Petroleum.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AXAS stock the variable cost ratio is equal to 312.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for AXAS stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Abraxas Petroleum.

Corporate tax rate of 27% is the nominal tax rate for Abraxas Petroleum. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AXAS stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AXAS are equal to 316.7%.

Life of production assets of 10 years is the average useful life of capital assets used in Abraxas Petroleum operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AXAS is equal to -10%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $19 million for Abraxas Petroleum - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 154.272 million for Abraxas Petroleum is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Abraxas Petroleum at the current share price and the inputted number of shares is $0.3 billion.

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COMPANY NEWS

▶ Abraxas misses Street 2Q forecasts   [Aug-10-17 01:07AM  Associated Press]
▶ Lower volumes sting second quarter profits for Abraxas Petroleum   [09:10AM  American City Business Journals]
▶ Abraxas Announces Second Quarter 2017 Results   [Aug-08-17 05:30PM  Business Wire]
▶ LD Micro Index Reconstitution as of August 1, 2017   [Aug-01-17 09:40AM  ACCESSWIRE]
▶ Abraxas Petroleum sells Power River Basin assets to expand in Permian Basin   [Jul-14-17 03:05PM  American City Business Journals]
▶ Abraxas Petroleum back in the black after two years of losses   [09:10AM  American City Business Journals]
▶ Abraxas tops 1Q profit forecasts   [May-09-17 07:44PM  Associated Press]
▶ Abraxas Announces First Quarter 2017 Results   [04:15PM  Business Wire]
▶ Opening Bell, April 4, 2017   [Apr-04-17 09:29AM  CNBC Videos]
▶ Oil and Gas Stock Roundup: A Small Dose of Optimism   [Mar-18-17 10:00AM  at Motley Fool]
▶ Abraxas Announces 2016 Results   [04:15PM  Business Wire]
▶ Webcast-OGIS New York for Abraxas Petroleum Corp.   [Mar-08-17 05:56PM  at Company Spotlight]
▶ Oil Worries Send Oil Stocks Tumbling Today   [04:52PM  at Motley Fool]
▶ Jackson Walker's SA office adds three veteran corporate attorneys   [Mar-07-17 09:00AM  at bizjournals.com]
▶ Abraxas Provides Reserve and Operational Update   [Feb-15-17 07:18PM  Business Wire]
▶ Abraxas Launches Common Stock Offering   [04:23PM  Business Wire]
▶ These 5 Oil Stocks Were Smoking Hot in December   [Jan-09-17 12:00PM  at Motley Fool]
▶ Abraxas Provides Operational and Divestiture Update   [Jan-03-17 04:20PM  Business Wire]
Stock chart of AXAS Financial statements of AXAS
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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