Seeking Alpha

Braden Holt

 
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  • Abraxas Petroleum: Still Searching For Its Core Asset [View article]
    I defined it as an asset that will provide long-term growth.
    Apr 9, 2013. 10:29 AM | Likes Like |Link to Comment
  • Abraxas Petroleum: Still Searching For Its Core Asset [View article]
    James,

    I appreciate the comments and will look for that article. This piece wasn't a valuation, it was a drill down in to their asset base. I made note that the company has a low valuation, but no where did I talk about what it's true value might be. Oil and gas exploration is a risky endeavor, so I look at companies I'm looking for a path to long-term growth.
    Jan 10, 2013. 04:47 PM | Likes Like |Link to Comment
  • Abraxas Petroleum: Still Searching For Its Core Asset [View article]
    According to the Texas Railroad Commission the well was completed on March 6, 2012 and produced 21,410 barrels of liquids and 4,852 Mcf of natural gas during March. I assumed the well produced 25 days during the month of March and if you crunch those numbers you will get 889. During April, the well produced slightly more oil and more than triple the amount of gas.

    It's possible these wells produced for less than 30 days during those months which, if the well fell off, could explain the difference. I calculate my own data based off of publicly available data and because the State of Texas doesn't give days a well produced in a month, I have to make some assumptions. Usually, I'm pretty close. I should have footnoted the data
    Jan 10, 2013. 04:40 PM | Likes Like |Link to Comment
  • Abraxas Petroleum: Still Searching For Its Core Asset [View article]
    Their valuation is certainly low, but after taking a close look at their assets I didn't see anything that's going to give them say, ten years of growth and that speaks to their low multiples. I don't think that's a bad thing as companies don't need to start out with 90k acres in the Eagle Ford to be successful, I was just highlighting that point. It's easy for investors to look at their presentation and see 23k in the Bakken and 7k in the Eagle Ford and wonder why this company trades so low. I believe my article explains why that is. I am open to being wrong though.
    Jan 10, 2013. 11:30 AM | Likes Like |Link to Comment
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