Abraxas Petroleum +4% after Global Hunter upgrade


Abraxas Petroleum (AXAS +3.9%) is upgraded to Accumulate from Neutral with a $4.50 price target, up; from $4, at Global Hunter, which cites "very positive developments on AXAS' conference call coupled with a compelling valuation and organic growth profile."

The firm says AXAS' net debt fell ~41% after the $73M sale of non-operated Eagle Ford assets, which has dropped AXAS's estimated FY 2014 EV/EBITDA multiple to 5.1x vs. small-cap peers at 6x, and has helped push its debt-adjusted production growth/share forecast to 10% in 2014, higher than the industry average of ~7%. (Q4 earnings)

AXAS's inventory footprint also is much improved vs. prior quarters, as the firm now sees future well count more than 2x higher than expected just quarters ago, driven by Eagle Ford success at the emerging Jourdanton prospect.

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs