Abraxas Petroleum's Preliminary 2020 Outlook

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About: Abraxas Petroleum Corporation (AXAS)
by: Elephant Analytics
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Summary

Abraxas has provided preliminary guidance for 2020 with a capex range of $48 million to $79 million.

This may result in oil production declining slightly compared to 2019 with the lower capex budget, and a double-digit increase with its higher capex budget.

Abraxas can operate around neutral cash flow at near $60 WTI oil with its higher capex budget in 2020.

Going forward beyond 2020, Abraxas's hedges should have less negative effect, but its Bakken inventory is running out.

Capital efficiency may suffer in the future though, with its Delaware Basin type curves indicating that production per dollar may be only 70% of its Bakken type curves.

Abraxas Petroleum (AXAS) has provided some preliminary guidance for 2020, with capex ranging from $48 million to $79 million. The lower-end capex budget may result in slight oil production declines, while the higher-end