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Since my January 10, 2013 article titled "3 Speculative Resource Stocks With Recent Insider Buying" the stocks that I featured in the article have performed as follows:

CompanyPrice 1/9Price 1/15Change
PLG$0.83$1.13+36.1%
RRFFF.PK$4.75$5.04+6.1%
RIC$3.23$3.29+1.9%

In this article I will feature three stocks that have seen intensive insider buying during the last 30 days.

Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10 percent.

1. Abraxas Petroleum Corporation (NASDAQ:AXAS) is a San Antonio based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, Mid-Continent, Permian Basin and onshore Gulf Coast regions of the United States and in the province of Alberta, Canada.

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Insider buys

  • Edward Russell purchased 5,000 shares on January 14 and currently holds 8,264 shares or less than 0.1% of the company. Edward Russell serves as a director of the company.
  • Dean Karrash purchased 5,000 shares on January 8 and currently holds 20,050 shares or less than 0.1% of the company. Dean Karrash serves as a director of the company.
  • Brian Melton purchased 1,500 shares on January 8 and currently holds 23,500 shares or less than 0.1% of the company. Brian Melton serves as a director of the company.

Financials

The company reported the third-quarter financial results on November 9 with the following highlights:

Revenue$17.2 million
Net loss$18.6 million
Cash$2.6 million
Debt$145.6 million
Production4,177 Boepd

On December 19, 2012 Abraxas announced the closing of a divestiture of the company's Nordheim Eagleford assets for net proceeds of $18.8 million.

Outlook

4Q 2012 Guidance

Abraxas expects 4Q 2012 production to average between 4,300-4,500 Boepd. The variance in guidance is due to the timing of completion and productivity of recent Bakken and Eagle Ford wells. Abraxas anticipates its exit rate to be substantially higher than fourth quarter average volumes, based on the expected completion of four wells in Abraxas' continuous drilling program in the Bakken and Eagle Ford plays.

2013 Guidance

Abraxas expects 2013 production to average between 4,900-5,200 Boepd, which equates to approximately 21-28% growth over 2012. The company is also actively marketing numerous assets which it deems non-core, assets with a low working interest or assets with little associated production that are not reflected in this guidance.

Abraxas' board of directors recently approved the company's capex budget for 2013 of $70 million. Abraxas' internal model indicates at the current strip this capex is fully supportable by current projected cash flow from operations including cash flow from Raven Drilling (which is treated as a credit to Abraxas' full cost pool for accounting purposes and not reported in operating income or operating cash flow) and minimal use of the company's credit facility. Abraxas plans to keep one drilling rig continuously operating in its Bakken and Eagle Ford plays throughout 2013.

Competition

Abraxas' competitors include Apache (NYSE:APA), Chesapeake Energy Corporation (NYSE:CHK) and Chevron (NYSE:CVX). Here is a table comparing these companies.

CompanyAXASAPACHKCVXIndustry
Market Cap:205.02M31.33B11.08B221.17B53.96M
Employees:1045,29912,60061,00049.00
Qtrly Rev Growth (yoy):-0.03-0.04-0.25-0.100.16
Revenue:65.95M16.76B11.50B224.77B18.02M
Gross Margin:0.530.830.420.300.63
EBITDA:25.93M12.45B4.15B48.51B134.77K
Operating Margin:0.070.440.130.16-0.18
Net Income:-12.18M2.45B-768.00M24.06BN/A
EPS:-0.146.28-1.2012.19N/A
P/E:N/A12.75N/A9.2718.89
PEG (5 yr expected):N/A1.62-28.60898.000.74
P/S:3.081.870.950.984.55

Abraxas is trading below the industry average P/S ratio.

My analysis

There have been three different insiders buying and there have not been any insiders selling the shares during the past 30 days. Insiders own 13% of the company and the institutions own 59% of the company. There are four analyst buy ratings, two neutral ratings and 0 sell ratings, with an average target price of $4.00. The stock is trading at a forward P/E ratio of 18.42 and the company has a book value of $0.62 per share. The company's proved reserves are 30.8 mmboe. I have a cautiously bullish bias for the stock currently based on the insider trading activity and the company outlook.

2. Gasfrac Energy Services (OTCPK:GSFVF) operates as an oil and gas well fracturing company in Canada and the United States.

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Insider buys

  • Robert Maitland purchased 8,200 shares on January 8 and currently holds 439,700 shares or 0.7% of the company. Robert Maitland is a Director of Gasfrac.
  • Leo Schnitzler purchased 41,700 shares on December 27-31 and currently holds 271,900 shares or 0.4% of the company. Leo Schnitzler is a Director of Gasfrac.
  • Dale Bossert purchased 7,000 shares on December 28-31 and currently holds 133,500 shares or 0.2% of the company. Dale Bossert is a Director of Gasfrac.
  • Dwight Loree purchased 7,200 shares on December 28 and currently controls 1,827,700 shares or 2.8% of the company. Dwight Loree is a Director of Gasfrac.
  • Gerald Roe purchased 30,000 shares on December 24 and currently holds 171,000 shares or less than 0.3% of the company. Gerald Roe is Director and Chairman of the Board.

Financials

The company reported the third-quarter financial results on November 9 with the following highlights:

Revenue$40.9 million
Net loss$7.1 million
Cash$5.7 million
Debt$56.7 million

Outlook

The visibility of capital expenditures by exploration & production companies into Q4 2012 and 2013 is difficult given the current volatile commodity price conditions and the lack of finalization of capital budget plans by most companies at this time. The extent to which these budgets will impact the willingness of companies to trial and adopt new technologies such as Gasfrac's is another factor that will impact the company's growth into 2013.

My analysis

The stock is currently trading below the 200 day moving average. There have been five different insiders buying and there have not been any insiders selling the shares during the past 30 days. The directors and officers hold approximately 4.1% of the shares. The stock could be a good pick below the book value of $3.81 per share.

3. Long Run Exploration (OTCPK:WFREF) engages in the acquisition, development, and production of crude oil and natural gas in Western Canada.

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Insider buys

  • William Andrew purchased 41,083 shares on December 31, 2012 - January 11, 2013 and currently holds 311,139 shares or 0.4% of the company. William Andrew is Chair & Chief Executive Officer of the company.
  • Devin Sundstrom purchased 10,988 shares on January 10 pursuant to a purchase/ownership plan. Devin Sundstrom currently holds 24,228 shares or less than 0.1% of the company. Devin Sundstrom is Vice President, Production.
  • Dale Orton purchased 2,345 shares on January 7 pursuant to a purchase/ownership plan. Dale Orton currently holds 28,029 shares or less than 0.1% of the company. Dale Orton is Vice President, Engineering.
  • Dale Miller purchased 7,075 shares on December 31 pursuant to a purchase/ownership plan. Dale Miller currently holds 102,630 shares or 0.1% of the company. Dale Miller is President and Director of the company.
  • William Tang Kong purchased 5,986 shares on December 31 pursuant to a purchase/ownership plan. William Tang Kong currently holds 95,014 shares or 0.1% of the company. William Tang Kong is Vice President, Corporate Development.

Financials

The company reported the third-quarter financial results with the following highlights:

Revenue$60.1 million
Net loss$4.7 million
Net debt$178.0 million

Outlook

On November 26, 2012 Long Run provided an operational update to the end of November, 2012.

Long Run has drilled 20.8 wells (net) in the fourth quarter to-date, with an additional 10 wells (net) planned for the remainder of 2012. Of those already drilled, 5.8 (net) have been horizontal wells targeting crude oil in the Montney zone in the Peace River area and 7 (net) have targeted the Viking zone in the Edmonton area. After the impact of the previously announced $180 million Saskatchewan Viking asset sale of approximately 1,900 boe per day, Long Run's 2012 exit production rate is anticipated to be approximately 23,000 boe per day. 2013 annual average production volumes are forecast to be approximately 25,000 boe per day targeting balanced oil and natural gas production.

As indicated in the November 15, 2012 press release, Long Run has announced a 2013 capital spending program of between $260 - $270 million, with approximately 50 percent of forecast spending targeting crude oil in the Peace River Montney play at Normandville and Girouxville. The company also plans on spending approximately 30 percent of 2013 planned capital spending on the Edmonton Area Viking play at Redwater targeting light oil. Exploration drilling, land acquisition, and seismic will make up approximately 10 percent of the 2013 budget. Long Run anticipates drilling approximately 130 wells (net) in 2013.

News

On December 14, 2012 Long Run Exploration announced that the company has closed the previously announced disposition of its non-core Viking interests located in the Plato / Dodsland / Lucky Hills areas of Saskatchewan for total cash consideration of $180 million.

Sale proceeds have been used to reduce the company's bank debt. As a result of this transaction, Long Run's anticipated year-end net debt will be approximately $290 million. Long Run's revolving, syndicated credit facility remains at $450 million. The $50 million non-renewable development facility has been repaid and canceled.

My analysis

The stock has a $7.75 price target from the Point an Figure chart. There have been five different insiders buying and there have not been any insiders selling the shares during the past 30 days. Long Run's current production is approximately 23,000 boe per day weighted 48% to crude oil and NGLs. The company's Proved plus Probable reserves are 88 MMboe. I believe the stock could start trending towards the $7.75 price target.

Source: 3 Oil And Gas Stocks With Recent Intensive Insider Buying