Intrinsic value of Abraxas Petroleum - AXAS

Previous Close

$1.75

  Intrinsic Value

$0.16

stock screener

  Rating & Target

str. sell

-91%

Previous close

$1.75

 
Intrinsic value

$0.16

 
Up/down potential

-91%

 
Rating

str. sell

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 0001), $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
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  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
  138
  213
  319
  462
  652
  897
  1,204
  1,580
  2,034
  2,569
  3,190
  3,900
  4,701
  5,593
  6,576
  7,649
  8,812
  10,060
  11,394
  12,810
  14,307
  15,884
  17,538
  19,270
  21,079
  22,965
  24,929
  26,973
  29,098
  31,307
Variable operating expenses, $m
  317
  490
  733
  1,064
  1,502
  2,064
  2,771
  3,638
  4,682
  5,913
  7,343
  8,977
  10,821
  12,874
  15,138
  17,609
  20,284
  23,159
  26,229
  29,489
  32,935
  36,564
  40,373
  44,359
  48,523
  52,865
  57,387
  62,092
  66,984
  72,068
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
  317
  490
  733
  1,064
  1,502
  2,064
  2,771
  3,638
  4,682
  5,913
  7,343
  8,977
  10,821
  12,874
  15,138
  17,609
  20,284
  23,159
  26,229
  29,489
  32,935
  36,564
  40,373
  44,359
  48,523
  52,865
  57,387
  62,092
  66,984
  72,068
Operating income, $m
  -180
  -277
  -415
  -602
  -849
  -1,168
  -1,567
  -2,058
  -2,648
  -3,344
  -4,153
  -5,077
  -6,120
  -7,282
  -8,562
  -9,960
  -11,473
  -13,099
  -14,835
  -16,679
  -18,628
  -20,680
  -22,835
  -25,089
  -27,445
  -29,900
  -32,458
  -35,119
  -37,886
  -40,761
EBITDA, $m
  -137
  -211
  -316
  -458
  -647
  -889
  -1,193
  -1,567
  -2,016
  -2,546
  -3,162
  -3,866
  -4,660
  -5,544
  -6,519
  -7,583
  -8,735
  -9,973
  -11,295
  -12,698
  -14,183
  -15,745
  -17,385
  -19,102
  -20,895
  -22,765
  -24,712
  -26,738
  -28,845
  -31,034
Interest expense (income), $m
  4
  5
  10
  18
  29
  44
  64
  90
  122
  162
  210
  266
  331
  406
  490
  584
  688
  801
  923
  1,055
  1,195
  1,344
  1,501
  1,667
  1,842
  2,024
  2,214
  2,413
  2,619
  2,835
  3,058
Earnings before tax, $m
  -184
  -288
  -433
  -631
  -894
  -1,232
  -1,657
  -2,180
  -2,810
  -3,554
  -4,419
  -5,409
  -6,526
  -7,772
  -9,146
  -10,647
  -12,273
  -14,022
  -15,889
  -17,874
  -19,972
  -22,182
  -24,502
  -26,931
  -29,468
  -32,115
  -34,871
  -37,738
  -40,720
  -43,820
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
Net income, $m
  -184
  -288
  -433
  -631
  -894
  -1,232
  -1,657
  -2,180
  -2,810
  -3,554
  -4,419
  -5,409
  -6,526
  -7,772
  -9,146
  -10,647
  -12,273
  -14,022
  -15,889
  -17,874
  -19,972
  -22,182
  -24,502
  -26,931
  -29,468
  -32,115
  -34,871
  -37,738
  -40,720
  -43,820

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
Total assets, $m
  439
  679
  1,015
  1,472
  2,077
  2,856
  3,833
  5,033
  6,477
  8,181
  10,158
  12,420
  14,970
  17,811
  20,943
  24,361
  28,062
  32,039
  36,286
  40,797
  45,564
  50,585
  55,854
  61,369
  67,130
  73,137
  79,393
  85,901
  92,669
  99,703
Adjusted assets (=assets-cash), $m
  439
  679
  1,015
  1,472
  2,077
  2,856
  3,833
  5,033
  6,477
  8,181
  10,158
  12,420
  14,970
  17,811
  20,943
  24,361
  28,062
  32,039
  36,286
  40,797
  45,564
  50,585
  55,854
  61,369
  67,130
  73,137
  79,393
  85,901
  92,669
  99,703
Revenue / Adjusted assets
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
Average production assets, $m
  300
  463
  693
  1,006
  1,419
  1,950
  2,618
  3,438
  4,423
  5,587
  6,938
  8,482
  10,224
  12,164
  14,303
  16,638
  19,165
  21,881
  24,782
  27,862
  31,118
  34,547
  38,145
  41,912
  45,846
  49,949
  54,221
  58,666
  63,288
  68,092
Working capital, $m
  -57
  -88
  -132
  -192
  -271
  -372
  -500
  -656
  -844
  -1,066
  -1,324
  -1,618
  -1,951
  -2,321
  -2,729
  -3,175
  -3,657
  -4,175
  -4,728
  -5,316
  -5,937
  -6,592
  -7,278
  -7,997
  -8,748
  -9,530
  -10,346
  -11,194
  -12,076
  -12,992
Total debt, $m
  189
  335
  541
  821
  1,191
  1,668
  2,266
  3,001
  3,884
  4,927
  6,137
  7,521
  9,082
  10,821
  12,737
  14,829
  17,094
  19,528
  22,127
  24,888
  27,805
  30,878
  34,103
  37,478
  41,004
  44,680
  48,508
  52,492
  56,634
  60,938
Total liabilities, $m
  269
  415
  621
  901
  1,271
  1,748
  2,346
  3,080
  3,964
  5,006
  6,217
  7,601
  9,162
  10,900
  12,817
  14,909
  17,174
  19,608
  22,207
  24,967
  27,885
  30,958
  34,182
  37,558
  41,083
  44,760
  48,588
  52,572
  56,713
  61,018
Total equity, $m
  170
  263
  394
  571
  806
  1,108
  1,487
  1,953
  2,513
  3,174
  3,941
  4,819
  5,808
  6,911
  8,126
  9,452
  10,888
  12,431
  14,079
  15,829
  17,679
  19,627
  21,671
  23,811
  26,046
  28,377
  30,804
  33,330
  35,956
  38,685
Total liabilities and equity, $m
  439
  678
  1,015
  1,472
  2,077
  2,856
  3,833
  5,033
  6,477
  8,180
  10,158
  12,420
  14,970
  17,811
  20,943
  24,361
  28,062
  32,039
  36,286
  40,796
  45,564
  50,585
  55,853
  61,369
  67,129
  73,137
  79,392
  85,902
  92,669
  99,703
Debt-to-equity ratio
  1.110
  1.270
  1.370
  1.440
  1.480
  1.510
  1.520
  1.540
  1.550
  1.550
  1.560
  1.560
  1.560
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.570
  1.580
  1.580
Adjusted equity ratio
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388
  0.388

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -184
  -288
  -433
  -631
  -894
  -1,232
  -1,657
  -2,180
  -2,810
  -3,554
  -4,419
  -5,409
  -6,526
  -7,772
  -9,146
  -10,647
  -12,273
  -14,022
  -15,889
  -17,874
  -19,972
  -22,182
  -24,502
  -26,931
  -29,468
  -32,115
  -34,871
  -37,738
  -40,720
  -43,820
Depreciation, amort., depletion, $m
  43
  66
  99
  144
  203
  279
  374
  491
  632
  798
  991
  1,212
  1,461
  1,738
  2,043
  2,377
  2,738
  3,126
  3,540
  3,980
  4,445
  4,935
  5,449
  5,987
  6,549
  7,136
  7,746
  8,381
  9,041
  9,727
Funds from operations, $m
  -141
  -221
  -334
  -488
  -691
  -953
  -1,283
  -1,689
  -2,178
  -2,756
  -3,428
  -4,197
  -5,066
  -6,034
  -7,103
  -8,271
  -9,536
  -10,896
  -12,349
  -13,893
  -15,526
  -17,247
  -19,053
  -20,943
  -22,919
  -24,979
  -27,125
  -29,357
  -31,679
  -34,092
Change in working capital, $m
  -21
  -31
  -44
  -60
  -79
  -101
  -127
  -156
  -188
  -222
  -258
  -295
  -332
  -370
  -408
  -445
  -482
  -518
  -553
  -588
  -621
  -654
  -687
  -719
  -751
  -783
  -815
  -848
  -882
  -917
Cash from operations, $m
  -120
  -190
  -290
  -428
  -612
  -852
  -1,156
  -1,533
  -1,990
  -2,534
  -3,170
  -3,903
  -4,733
  -5,664
  -6,695
  -7,825
  -9,053
  -10,378
  -11,796
  -13,306
  -14,905
  -16,592
  -18,366
  -20,225
  -22,168
  -24,196
  -26,310
  -28,509
  -30,797
  -33,176
Maintenance CAPEX, $m
  -27
  -43
  -66
  -99
  -144
  -203
  -279
  -374
  -491
  -632
  -798
  -991
  -1,212
  -1,461
  -1,738
  -2,043
  -2,377
  -2,738
  -3,126
  -3,540
  -3,980
  -4,445
  -4,935
  -5,449
  -5,987
  -6,549
  -7,136
  -7,746
  -8,381
  -9,041
New CAPEX, $m
  -113
  -163
  -230
  -313
  -413
  -532
  -668
  -820
  -986
  -1,164
  -1,351
  -1,544
  -1,742
  -1,940
  -2,139
  -2,335
  -2,528
  -2,716
  -2,900
  -3,080
  -3,256
  -3,429
  -3,598
  -3,767
  -3,934
  -4,103
  -4,272
  -4,445
  -4,622
  -4,804
Cash from investing activities, $m
  -140
  -206
  -296
  -412
  -557
  -735
  -947
  -1,194
  -1,477
  -1,796
  -2,149
  -2,535
  -2,954
  -3,401
  -3,877
  -4,378
  -4,905
  -5,454
  -6,026
  -6,620
  -7,236
  -7,874
  -8,533
  -9,216
  -9,921
  -10,652
  -11,408
  -12,191
  -13,003
  -13,845
Free cash flow, $m
  -260
  -397
  -586
  -839
  -1,169
  -1,586
  -2,102
  -2,726
  -3,467
  -4,330
  -5,319
  -6,438
  -7,687
  -9,065
  -10,571
  -12,203
  -13,958
  -15,832
  -17,822
  -19,926
  -22,142
  -24,467
  -26,900
  -29,441
  -32,090
  -34,848
  -37,718
  -40,700
  -43,800
  -47,021
Issuance/(repayment) of debt, $m
  101
  146
  206
  280
  370
  476
  598
  734
  883
  1,043
  1,210
  1,384
  1,561
  1,739
  1,917
  2,092
  2,265
  2,434
  2,599
  2,760
  2,918
  3,072
  3,225
  3,375
  3,526
  3,676
  3,829
  3,983
  4,142
  4,305
Issuance/(repurchase) of shares, $m
  248
  380
  563
  809
  1,128
  1,534
  2,036
  2,646
  3,370
  4,215
  5,186
  6,286
  7,516
  8,875
  10,361
  11,974
  13,709
  15,565
  17,537
  19,624
  21,822
  24,130
  26,546
  29,071
  31,704
  34,445
  37,298
  40,264
  43,346
  46,549
Cash from financing (excl. dividends), $m  
  349
  526
  769
  1,089
  1,498
  2,010
  2,634
  3,380
  4,253
  5,258
  6,396
  7,670
  9,077
  10,614
  12,278
  14,066
  15,974
  17,999
  20,136
  22,384
  24,740
  27,202
  29,771
  32,446
  35,230
  38,121
  41,127
  44,247
  47,488
  50,854
Total cash flow (excl. dividends), $m
  90
  130
  183
  249
  330
  424
  533
  654
  787
  928
  1,078
  1,232
  1,390
  1,548
  1,706
  1,863
  2,017
  2,167
  2,314
  2,458
  2,598
  2,736
  2,871
  3,005
  3,139
  3,273
  3,409
  3,547
  3,688
  3,833
Retained Cash Flow (-), $m
  -248
  -380
  -563
  -809
  -1,128
  -1,534
  -2,036
  -2,646
  -3,370
  -4,215
  -5,186
  -6,286
  -7,516
  -8,875
  -10,361
  -11,974
  -13,709
  -15,565
  -17,537
  -19,624
  -21,822
  -24,130
  -26,546
  -29,071
  -31,704
  -34,445
  -37,298
  -40,264
  -43,346
  -46,549
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
  -158
  -250
  -380
  -559
  -799
  -1,110
  -1,504
  -1,992
  -2,583
  -3,287
  -4,109
  -5,054
  -6,126
  -7,326
  -8,655
  -10,111
  -11,693
  -13,398
  -15,223
  -17,166
  -19,224
  -21,394
  -23,675
  -26,065
  -28,564
  -31,172
  -33,889
  -36,717
  -39,658
  -42,716
Discount rate, %
  5.60
  5.88
  6.17
  6.48
  6.81
  7.15
  7.50
  7.88
  8.27
  8.69
  9.12
  9.58
  10.06
  10.56
  11.09
  11.64
  12.22
  12.84
  13.48
  14.15
  14.86
  15.60
  16.38
  17.20
  18.06
  18.96
  19.91
  20.91
  21.95
  23.05
PV of cash for distribution, $m
  -150
  -223
  -318
  -435
  -575
  -733
  -906
  -1,086
  -1,263
  -1,429
  -1,573
  -1,686
  -1,763
  -1,797
  -1,788
  -1,736
  -1,646
  -1,524
  -1,378
  -1,216
  -1,048
  -881
  -723
  -578
  -450
  -341
  -252
  -180
  -126
  -85
Current shareholders' claim on cash, %
  54.0
  29.8
  16.7
  9.6
  5.6
  3.3
  2.0
  1.2
  0.7
  0.5
  0.3
  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

Abraxas Petroleum Corporation is an independent energy company. The Company is engaged in the acquisition, exploration, development and production of oil and gas. As of December 31, 2016, the Company's estimated net proved reserves were 44.7 million barrels of oil equivalent (MMBoe), of which 33.6% were classified as proved developed, 74% were oil and natural gas liquids (NGL), and 95% of which (on a PV-10 basis) were operated by the Company. As of December 31, 2016, the Company's daily net production was 6,181 barrels of oil equivalent per day (Boepd), of which 61% was oil or liquids. The Company's oil and gas assets are located in three operating regions: the Rocky Mountain, Permian Basin and onshore Gulf Coast. The Company's properties in the Rocky Mountain region are located in the Williston Basin of North Dakota and Montana, and in the Green River Powder River and Unita Basins of Wyoming and Utah.

FINANCIAL RATIOS  of  Abraxas Petroleum (AXAS)

Valuation Ratios
P/E Ratio -2.5
Price to Sales 4.1
Price to Book 12.4
Price to Tangible Book
Price to Cash Flow 8.8
Price to Free Cash Flow -47.3
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 $86.189 million for the last fiscal year's total revenue generated by Abraxas Petroleum. The default revenue input number comes from 0001 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 5.6%, 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 230.2%.

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 5.4% 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 217.5%.

Life of production assets of 7 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 -41.5%. 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 - $106.308 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 166.713 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 names new CFO, reports profit for third quarter   [Nov-13-18 11:03AM  American City Business Journals]
▶ Axalta moves into new Navy Yard building   [06:00AM  American City Business Journals]
▶ Abraxas Provides Operational Update   [Oct-24-18 04:27PM  Business Wire]
▶ Abraxas Provides Operational Update   [Sep-24-18 04:38PM  Business Wire]
▶ Abraxas Petroleum makes leadership changes   [Sep-21-18 08:04AM  American City Business Journals]
▶ Abraxas Announces Change in Leadership Roles   [Sep-20-18 05:15PM  Business Wire]
▶ Nearly 78,000 acres of Permian Basin oil leases going up for bid   [Aug-15-18 02:11PM  American City Business Journals]
▶ Shut in wells put Abraxas Petroleum in the red during second quarter   [08:24AM  American City Business Journals]
▶ Abraxas: 2Q Earnings Snapshot   [07:30PM  Associated Press]
▶ Abraxas Announces Resignation of Chief Financial Officer   [Jun-07-18 04:05PM  Business Wire]
▶ Abraxas: 1Q Earnings Snapshot   [May-08-18 04:07PM  Associated Press]
▶ High Growth Stocks To Invest In   [Apr-17-18 12:02PM  Simply Wall St.]
▶ Abraxas reports 4Q loss   [Mar-13-18 05:07PM  Associated Press]
▶ Abraxas Announces 2017 Results   [04:20PM  Business Wire]
▶ Abraxas Provides Reserve and Operational Update   [Feb-20-18 05:00AM  Business Wire]
▶ Abraxas Petroleum Corporation to Host Earnings Call   [Nov-09-17 09:20AM  ACCESSWIRE]
▶ Abraxas Petroleum reports $770,000 loss during third quarter   [Nov-08-17 09:57PM  American City Business Journals]
▶ Abraxas misses Street 3Q forecasts   [Nov-07-17 04:05PM  Associated Press]
▶ Abraxas Announces Third Quarter 2017 Results   [04:00PM  Business Wire]
▶ Abraxas Provides Operational Update   [Sep-19-17 04:10PM  Business Wire]
▶ 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]

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