Some investors get nervous when they see E&P companies selling acreage, but I suspect that may be due to a basic misunderstanding of how oil and gas companies create value. Acreage and reserves are definitely a critical part of long-term production and profit growth, but "acreage at any cost" has to be tempered with profitability and liquidity. I think Abraxas Petroleum (NASDAQ:AXAS) has been making a lot of good decisions in 2013, shoring up a once-stretched balance sheet by selling off non-operating acreage in non-core areas and focusing its attention on its Bakken and Eagle Ford properties where the company has been seeing surprisingly good results given the previously assumed quality of the acreage.
Looking into 2014, Abraxas...
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